A friend who serves on a number of consequential public company boards came to my office not long ago to ask my opinion on something that had become a contentious issue across his boards. The question: What is the proper role of a board with respect to company strategy?
On some of my friend’s boards, the prevailing view is that strategy is their job and they insist on having board strategy retreats during which they set strategy. On other of his boards, the prevailing view is the extreme opposite: their job is to wait for management to come forward with its strategy and to either approve it or not. The others lay at varying points in between. He wished for some clarity and consistency.
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