Notable quote – Boards and strategy

A fundamental flaw in The Healthy NHS Board guidance is the requirement that boards should ‘formulate strategy.’ Strategy is a function of management, not governance. Besides, non executive directors typically have neither the time or experience of healthcare to go off and develop organisational strategy.

According to US board expert David Nadler, “In the area of strategy, the board can play an important role not by formulating corporate strategy but by reviewing strategic initiatives and providing an external reality check grounded in their collective experience, insight, and expertise. With increasing frequency, we’re seeing CEOs hold strategy off-sites that give board members the opportunity to wade deeply into the latter stages of strategy development. That investment in time and work ultimately pays dividends all around. The board benefits from a deeper understanding of the company and its game plan and management benefits from having a better strategy – one to which the board members feel some personal commitment.”

Read more here.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: