Over time boards have transitioned from ceremonial and passive to active and free thinking. This has created a more dynamic board room resulting in increased institutional performance. One aspect that continues to be a challenge to some institutions is maintaining high levels of strategic thought throughout the year and not just in planning season.
One of the biggest complaints I get from the directors I work with is the lack of time for strategic discussion in the board room. Most boards use up their meeting time listening to last month’s results, dissected in unnecessarily minute detail with very little focus on the future. Too often discussions of important matters such as long-term strategy and succession planning are left at the tail end of an agenda – being the first items that get cut when time is short.
In the face of increasing regulatory requirements and rising institutional risk a director’s focus is understandably pulled away from longer-term strategic exercises. However, when the creation, monitoring and the support of a strategic plan becomes lost in the monthly grind of board meetings you begin to see a lack of clarity on institutional goals. This can lead to disjointed communication with the management team and leave your board confused and unsure on their role in the strategic roadmap of the institution.
The truth of the matter is that high-performing boards put strategic thought and application above all else. That does not mean they ignore their core duties and responsibilities. They just understand that being the guardians of the strategic plan is their most important duty.
To ensure your institution stays in alignment with your strategic plan place a dedicated time slot in your board agenda each meeting. It will improve your chances of successfully implementing the plan and provide a meaningful enrichment exercise for your directors. Time never stops for planning – it may never seem like a good time. That is why it is so critical to develop a culture in your board room that stays focused on long-term institutional value while also dealing with the present challenges of increased profitability.
We can help.
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