A guide to company strategy and the board
There is a lot of debate surrounding company strategy and the board.
Some believe the board should be heavily involved in developing and implementing the company’s strategy, while others think they should play a more hands-off ‘supportive’ role.
So, what is the right approach to strategy and the board?
The key points covered in this guide include:
- The board of directors is critical in formulating and executing company strategy.
- The question of what the relationship between the board of directors and management should be in terms of developing, implementing, and monitoring strategy is a complex one.
- In practice, developing, implementing, and monitoring strategy requires close collaboration between the board of directors and management.
- One of the biggest challenges facing boards is the need to make decisions quickly without sacrificing quality or foresight.
- There are many factors to consider when developing a business strategy, including the current market landscape, the organisation’s strengths and weaknesses, and the needs of its target audience.
Strategy is a fascinating area
Peter Drucker, the management consultant, educator, and author, came up with the phrase ‘culture eats strategy for breakfast’, but what does it mean?
In a nutshell, no matter how great your business strategy is, your plan will fail without a company culture that encourages people to implement it.
Great company culture is when the majority of employees and their managers can deal with pressure, respond creatively and positively to any challenges, and treat each other and their clients with respect and integrity.
Solid and healthy cultures emerge when people at every level of the organisation feel a true purpose in their work. They don’t feel burdened by their work; they feel energised and engaged. When a problem arises, they can work as a team to solve the issue and then celebrate the success.
This is why, no matter how brilliant your company’s strategy is, the plan will be difficult or impossible to implement without a healthy culture.