Boards continuously work on strategy for its organization. A board may help develop strategy, approve strategy or monitor performance against a strategy. In many cases, Boards have oversight in advancing strategy throughout every part of an organization. What happens when a crisis or unforeseen event suddenly creates an uncertain future? Perhaps a sudden change of technology, political shift, economic downturn or new competitive pressure has a dramatic impact on a company. The Board members may react with competing points of view and opinions on how to address the unforeseen event. The company’s direction is now in flux and shareholders are looking for a clear strategy.
As a Board of Directors, are you prepared to help steer the company through an unexpected crisis or event? Consider the following recommendation from KPMG:
- Recognize that connecting and calibrating strategy is more important-than ever. Let’s think: Does management have an effective process to monitor changes?
- Develop and execute the strategies based on total impact.
- Take a hard look at the Board’s arrangements. Is the talent in the boardroom aligned with the company’s strategy and future needs?
- Reassess the company’s crisis prevention and willingness efforts.
- Pay attention to potential risks. Think tone at the top, culture, and incentives.
- Reassess the company’s shareholder engagement program. Let’s think: Do we know and engage with our largest shareholders and understand their priorities?
- Refine and widen boardroom discussions about cybersecurity. For more information about cybersecurity read, Cybersecurity Is No Longer Just an IT Issue.
- Prepare for the new CEO pay ratio disclosure.
Beal Associates understands that effective Boards must be prepared to deal with unexpected events or situations. With respect to strategy, is your Board collaborative in nature and does it bring the diversity of expertise and experience to the boardroom to handle such crisis? If it’s time to evaluate and refresh your Board, the Beal Team is your resource for Board of Director search.