The board and management do not agree with each other on everything. What they do understand, however, is that they need a strategy. The board and management are having trouble figuring out who should set the strategic plan after all. The key is to align the whole process and make sure it’s done according to plan, and the board portal can help you with that. This tool is the safest place to work together and in this article, we’ll explain how it can help you.
Clarifying the role of the board of directors in strategic management
The board of management needs to learn how to draw the line between their responsibilities. CEOs are typically responsible for planning strategy, they are also required to provide answers about strategy issues to shareholders and other regulators, and they are always under intense pressure. At the same time, the board of directors must choose what the ultimate direction for a particular strategy should be.
It is believed that the board of directors can only be involved in making a strategy when something serious is at stake, a major investment, or a change of CEO. Because company management is more involved in the day-to-day affairs of the company, they are more competent in formulating these or those strategies. The role of the board is to analyze and evaluate the path chosen by the boards, they must be able to distinguish between prospective possibilities and dangers, and have the power to seek the counsel of external professionals.
Strategic activities of boards of directors
There is a way to help the board participate in strategy preparation in a way that does not control the CEO or go beyond its responsibilities. Thus, questions about the strategic plan and its alignment with the company’s goals should be discussed at a board meeting at least several times a year. In preparation for this discussion, directors should gather and examine data regarding the industry environment, the type of competition, and business models.
It is also the responsibility of the board of directors to create a platform for strategy-related solutions, which will facilitate the distribution of assets and business capabilities. The main thing required of the board of directors in developing a business plan is to set priorities, define aims and tasks, and determine and distribute resources in order to be able to carry out this or that action. Also, the board of directors should oversee the strategic plan process so that everything is done in accordance with the activities defined in the plan.
Choice of decisions to monitor the implementation of the strategy
The board of directors has a lot of information from different areas during the development of the strategy. Therefore, it simply needs a solution to monitor data such as finance, sales, marketing, products, organizational issues, and so on.
Also, during the creation of the strategy, the board of directors must constantly communicate with the CEO, and there is no better solution for this than board management software. This solution is a digital management tool, which will help you balance your actions during strategic planning. The board room has collaboration functions, a secure communication tool, and a secure repository for all materials needed for strategy development. Within the portal, you can also conduct votes to help you approve or challenge a strategic decision. As a result, with the use of a board portal, you can arrive at a mutually detailed plan that satisfies both sides of the company.