Corporate Governance
Corporate strategy
Perhaps the most succinct and comprehensive definition of strategy was offered by a member of the Lead Director Network: “Strategy is answering the question, 'How are we going to beat the competition sustainably?'”
While board directors acknowledge differences in the particulars of a board’s role in strategy, they generally agree on the fundamentals:
- Oversight of strategy is one of the board’s most critical duties.
- Directors’ full expertise should be brought to bear in delivering this oversight.
- Strategic oversight should be an ongoing, not episodic, activity.
With companies entering new markets, deepening existing ties to global markets, and competing with new or expanding firms, corporate strategy is increasingly focused internationally, where businesses see new growth opportunities and new risks.
Boards must understand the international risks and opportunities that are at the heart of corporate strategy. To fulfill that need, boards seek to attract, retain, and develop a group of skilled and diverse directors who are conversant in global markets and issues.
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