Clarifying the board’s role in strategic discussions has long been a worthwhile ambition although rarely a straightforward one. Most governance gurus will agree that the strategic pen is held by management while the board provides oversight. That sees directors playing the critical role of constructive challengers, lending their own experiences of what has and has not worked, and how to anticipate future unknowns. Some of the biggest points of tension around the board’s role in strategy come when the board is so passive that they aren’t weighing-in to help management evolve its strategy or when their enthusiasm has them getting carried away resulting in overstepping their boundaries. As we head into a murky future with levels of disruption that could be existential to some organizations, all stakeholders are well served when the board pays close attention to the organization’s strategy, agility, and alternative plans.   

In 2026, boards will increasingly be future-focused: Where is the market going? How will disruptive technologies help or hurt the business? What is driving the competition dynamics? In what ways might geopolitics impact supply and demand? How do we set ourselves up for success over the medium- and long-term?

Always-On Strategy: Scheduling an annual strategy discussion with a midyear update is no longer enough. In the current environment, agility is paramount and boards will want strategy to be on every meeting agenda. This not only keeps strategy top-of-mind, it reminds boards where they add the most value.

Discussing strategy, which by definition is long-term in nature, on a quarterly basis doesn’t mean it should be changing with that frequency. Rather, it gives the board a construct for regular check-ins when the environment is dynamic and the chance to stay abreast of management’s responses to new opportunities or risks on the horizon. In short, a regular cadence of strategy discussions helps the board and management stay aligned on one of the most important topics in governance.

Market Updates: Staying informed is essential and in a fast-moving world, it requires more effort than ever before. We recommend management provide regular updates on industry trends, peer comparisons and emerging risks; we also recommend board members read industry journals, attend key events, and that the board be proactive in communicating to management the data it needs to guide strategic decision-making. Boards benefit when management delivers the same metrics in every deck, aligns market data with strategic priorities to support deeper forward-looking board conversations, and frames strategic decision-making with data about market dynamics, peer benchmarking and/or external conditions that clarify risks and tradeoffs. 

Plan for What Could Go Wrong:

With Risk Analysis... Strategic boards recognize that while risk abounds with most decisions the organization makes, it can be anticipated and mitigated. While management is responsible for ERM, the board has its own role to play in identifying what it sees as the most likely scenarios for the looming threats or missteps. Given its ultimate responsibility for oversight, the board benefits from undertaking an analysis of the risk landscape to surface different perspectives or questions for management, leading to fruitful discussions. 

…And Crisis Preparedness. Being strategic also means having a gameplan for addressing crisis scenarios; those events where near disaster strikes. There is much to be gained from taking time now to consider: If that black swan arrives, what is expected from management and how will the board engage? That often depends upon which swan arrives at your doorstep. A bit of planning today can save precious time and emotion during a high-stakes moment.

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