Board directors are often concerned about how to participate in strategic planning without micromanaging the CEO or stepping outside of their role. The lengthy planning process and three to five-year time frames are being replaced by strategic frameworks that define the priorities of the organization. Business plans that integrate operational like this and programmatic goals along with financial forecasts, as well as robust annual plans that include clear metrics and timelines are also becoming more common.

A board that is focused on its oversight responsibilities needs to be involved in the formulation of strategy, acquainting itself with the strategic actions taking place, and recognizing that specific situations will always require the Board to be attentive. They should also formulate an action plan for monitoring strategy. This article outlines ways to accomplish all of this while allowing the Board to be involved in strategic discussions and be productive to these discussions.

One of the most viewed pieces on this website is our post on how to facilitate a strategic planning session for your board. This article addresses a question that is often raised in this space that is how the board can draw the line between managing the company’s strategy and directing its own. This is a crucial discussion, because when the Board believes that its role is to rubber-stamp every plan presented to it, it’s in danger of becoming a ‘rubber stamp’ board. It is important to avoid this by having a clear conversation between the board and management on the strategic issues that they believe are the most important. This will enable the board to aid in defining these issues and also for management to be open to suggestions from the board, which can hones and refine the problem framing.