Boards have to be mobilized in order to make the right decisions to survive the crisis. Nothing new. But according to this essay from McKinsey, it’s far from being that simple.
Three reasons are put forward
â€¢ Boards follow unchanging procedures and ritualss. Defines shedules on a yearly basis, documentsÂ and agendas fixed many weekds ago.
It may seem absurd that people who make strategic decisions are traped into such straitjackets but this is facts. With all the consequences we can imagine on adaptability.
â€¢ Interaction modes that are not constents with the purpose. Boards are the place for consensual discussions, members only validate what has been done in preliminary works. It’s in no way a place for brainstorming and reflection from which anything innovative will emerge.
It seems that the only conflictuous point in a board meeting may be power. Not strategic issues.
â€¢ Many board members are not in touch with what’s going on in the economy. They are more comfortable with “preservation” strategies, waiting for things to solve themselves rather than with trying to take the initiative.
As a result, they will find themselves struggling to withstand tough conditions and badly positioned in the new environment.
Conclusion : board have to get rid of received ideas, to learn to think differently in order to find the means for strategies heading to the future instead of to become ossified on the present. Unlike halves-strategies.