Deepen the board's engagement in strategy and assess the continuing validity of assumptions at the core of the strategy
Given global volatility and uncertainty - and the forces disrupting corporate business models and entire industries - the board's traditional "review and concur" role in strategy is no longer adequate. Addressing these uncertainties and market forces requires a new level of board engagement in strategy, working closely with management in a "continuous process". Understand the fundamental assumptions at the core of the company's strategy. How robust is management's process to monitor the continuing validity of these assumptions? Does the monitoring process provide timely signals indicating when a strategic adjustment may be necessary? Does the board engage with management on strategy on an ongoing basis and have a deep understanding of the business environment so that it can recognize when a strategic correction may be required? Is the board on guard against status quo thinking - particularly when the company is doing well? Do the company's short-tern actions and targets align with its strategy and promote long-term value creation? Does the company's long-view consider sustainability issues (e.g., environmental, social, health, and safety) and the benefits of "shared value" - to the company, its customers and employees, the supply chain, and other stakeholders?