STRATEGY - THE BOARDS ROLE (MODULE 6) ( Board and Strategy # (The board…
STRATEGY - THE BOARDS ROLE (MODULE 6)
Board and Strategy
The board involvement depends on:
capabilities and preferences i.e. do they have skills to add value, Do they put time in to learn the complex business environment so they can add value. Is there resistance to board input? Why?
Organisations specific factors
performance vs conformance
relationship with CEO
org life cycle
Board specific factors
resrouce and capability
clear on purpose
take long term view
seek awareness of emergent ideas and tech
understand the business
being proactive in dev and moniitoring of strategy
engaging in listening, questioning, dialogue, and analysis
making strategic conversations and ongoing activity of board -management
understand change management
support management in leading change
Balance shorter time horizons with long term sustainable value
Continue to be agile and responsie
Apply knowledge gained quickly
Deal with complexity, interrelationships and system linkages
Be mindful of levels of uncertainty
= how the organisation intends to create value for its shareholders, customers and citizens
How do we remain relevant
- subscribe to feeds
The McKinsey 12 disruptive technologies are:
• Mobile internet.
• Automation of knowledge work.
• Internet of things.
• Cloud technology.
• Advanced robotics.
• Autonomous vehicles.
• Next generation genomics.
• Energy storage.
• 3D printing.
• Advanced materials.
• Advanced oil and gas exploration and recovery.
• Renewable energy.
Strategic Planning Process
= processes and activities that promote informed and creative dialogue, which is aimed at finding and developing value creation opportunities. (underpins the planning process)
to produce insights realisations of 'the true nature of a thing' and its relationship to some contextual factor
creating functional views of the future, future events and possibilities, in such a way to take advantage of opportunities and prep for any adversit
Long term thinking into future
Scenario based planning
- visualising how alternate futures may look and their impact
can be more effective in rapidly changing, turbulent environments
doesn't predict yet describes plausable futures
enables building and testing strategy to those futures
open to emergent and disruptive technologies
design for the unmet need, technology, and business value = sweet spot
Strat plan process
= process used by board and management to distil thinking regarding current and aspired future state (underpins the plan)
= agreed plan for how the board and management intend to create value into the future
Strategic Decision Making
Strategy Execution and Monitoring
Balanced scorecard with lead indicators rather than lag indicators
Board Management Collaboration