Organization 21C: Someday All Organizations Will Lead This Way

Critical Knowledge for the Board: Strategy and Globalization

In our research on corporate boards, we discovered that directors are often asked to play an important role in a firm's overarching strategy. In addition, they are responsible for tracking the progress of implementing strategic initiatives. Given the fact that most directors are not directly involved in day-to-day management and are likely to be from outside the company's industry, it can be difficult for directors to possess sufficient relevant knowledge to be effective advisors with respect to strategy. Given the complexity of today's businesses and the rapid pace of change, it is critical that boards be structured and managed so that they will be able to effectively play a role in ...