GOVERNANCE
The Board is Accountable for Any Strategic Initiative It Approves
By CS , Dr . Kellen Kiambati
The real test of a board of directors comes during the formulation and successful implementation of an organization ’ s strategy . Board members are expected to utilize the accumulated wisdom and judgment to make sound strategic direction decisions . Formulation of corporate strategy has always been complex sometimes because of increased involvement of board members hence bringing more new voices to the table and varying expertise to debate priorities . This puts pressure on the entire team to find the best answers to the valid strategic planning questions . Yet this form of strategy development , when done well , is invaluable . It not only leads to clearer strategies but also creates the alignment necessary to make bolder moves with more confidence and to follow through by committing resources to key decisions .
One common characteristic with all longstanding organizations is the ability to develop corporate strategies that bring out the organization destiny in a very clear way . Behind the fulfilling destiny of any organization is the Board that has what it takes to grab opportunities and take challenges head-on in a space that is not linear and predictable . That is to say boards should be pragmatic enough to adapt to situations . However , they must be alive to the costs of approving wrong strategies . This brings the concept of duty of care and duty of loyalty , calling on board members to ensure they are sufficiently informed before making decisions by relying on true information , experts and reports . Covid-19 pandemic is an example of how board members are periodically charged with the responsibility of solving complex problems in the midst of enormous uncertainty .
Turning to how exactly organization strategies are formulated , the common practice is that the management drafts the strategies and then pitches to the board in a bid to convince them to approve with a few debates and changes here and there . Most of the times , it is usually a one-week time restrained retreat accompanied by a one-day team-building activity at the end . Given the nature of board approval , it is important to ensure the planning is done in a way that allows board members to drill down on the points most salient to the success of the business , avoiding detours into discussions that distract the main retreat objective .
Key to being successful is to have board members who have an open mind about
“
Board members should be assertive , curious and probing so as to build an authentic purpose narrative , demonstrate competence , assess level of commitment , pressure test decisions on strategy and drive accountability in the organization .
revising the strategies if need be and also interrogate the environmental changes likely to affect the strategies negatively . Assessment of micro and macro factors that shape the progress of the organization must be well done . The board is expected to recognize , anticipate , consider and act on trends and shifts likely to affect the organization .
In conclusion , board members should be assertive , curious and probing so as to build an authentic purpose narrative , demonstrate competence , assess level of commitment , pressure test decisions on strategy and drive accountability in the organization .
CS , Dr . Kellen Kiambati holds a BA - HRM from Kenyatta University , MBA from the Kenya Methodist University and a PhD in Business Administration with a focus in Strategic Management from JKUAT . She is a member of the Institute of Human Resource Management of Kenya . She can be reached via : Kellenkiambati @ gmail . com .
58 MAL52 / 23 ISSUE