Do you feel that your board is as good as it could be, or is it falling short?
Out of 772 directors surveyed by McKinsey:
- 34% directors agreed that their boards fully understood their companies’ strategies
- But a mere 22% said the board was aware of how their firms created value, (McKinsey Improving Board Governance)
The heart of the matter:
Are all the members of your board (or senior management team) able to:
- Communicate and articulate the business strategy?
- Understand the financial implications of strategic decisions?
- Discuss how the business adds value?
- Share what makes the business different from others in the industry?
In my experience, many board members (not you of course!) struggle to give a half-decent definition of what ‘strategy’ or ‘marketing’ is.
So, how on earth are they expected to produce or recommend a decent strategy themselves?