Setting and vetting strategy: Bridging the chasm between CEOs and boards

Norman T. Sheehan and Richard C. Powers

Business Horizons, 2018, vol. 61, issue 5, 679-688

Abstract: One of directors’ key fiduciary duties is to set the firm’s direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm’s strategy, and even if they do understand it, they do not feel they have the desired impact on their firm’s strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm’s strategy.

Keywords: Strategy due diligence; Corporate governance; Organizational strategy; Strategy meetings (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:61:y:2018:i:5:p:679-688

DOI: 10.1016/j.bushor.2018.05.003

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