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Setting and vetting strategy: Bridging the chasm between CEOs and boards

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  • Sheehan, Norman T.
  • Powers, Richard C.

Abstract

One of directors’ key fiduciary duties is to set the firm’s direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm’s strategy, and even if they do understand it, they do not feel they have the desired impact on their firm’s strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm’s strategy.

Suggested Citation

  • Sheehan, Norman T. & Powers, Richard C., 2018. "Setting and vetting strategy: Bridging the chasm between CEOs and boards," Business Horizons, Elsevier, vol. 61(5), pages 679-688.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:5:p:679-688
    DOI: 10.1016/j.bushor.2018.05.003
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    References listed on IDEAS

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    1. Sheehan, Norman T. & Bruni-Bossio, Vince, 2015. "Strategic value curve analysis: Diagnosing and improving customer value propositions," Business Horizons, Elsevier, vol. 58(3), pages 317-324.
    2. Hongjin Zhu & Pengji Wang & Chris Bart, 2016. "Board Processes, Board Strategic Involvement, and Organizational Performance in For-profit and Non-profit Organizations," Journal of Business Ethics, Springer, vol. 136(2), pages 311-328, June.
    3. Marie‐Josée Roy, 2011. "Board information: meeting the evolving needs of corporate directors," Management Research Review, Emerald Group Publishing Limited, vol. 34(7), pages 773-789, June.
    4. Siciliano, Julie I., 2002. "Governance and strategy implementation: expanding the board's involvement," Business Horizons, Elsevier, vol. 45(6), pages 33-38.
    5. Waterman, Robert Jr. & Peters, Thomas J. & Phillips, Julien R., 1980. "Structure is not organization," Business Horizons, Elsevier, vol. 23(3), pages 14-26, June.
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    Cited by:

    1. Sheehan, Norman T. & Vaidyanathan, Ganesh & Fox, Kenneth A. & Klassen, Mark, 2023. "Making the invisible, visible: Overcoming barriers to ESG performance with an ESG mindset," Business Horizons, Elsevier, vol. 66(2), pages 265-276.

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