Remember Your Board of Directors When Building Your Growth Strategy

Our Point of View

A company’s Board of Directors plays a crucial role in shaping long-term growth strategies, yet many organizations struggle to fully leverage their board’s expertise. When engaged effectively, Boards provide invaluable insights, challenge assumptions, and ensure that leadership remains accountable for executing growth initiatives. This article explores how companies can foster meaningful Board involvement in strategy development.

1. Foster Open and Strategic Discussions

Insight: Boards contribute most when they engage in forward-thinking, strategic conversations rather than just operational oversight.

Too often, Board meetings are dominated by compliance reviews and financial reports, leaving little room for meaningful strategic dialogue. Companies that prioritize structured, high-level discussions on growth opportunities ensure that their boards actively guide long-term success.

Actionable Tip: Dedicate a portion of each Board meeting to forward-looking strategic discussions rather than just reviewing past performance.

2. Equip Board Members with the Right Data and KPIs

Insight: Informed Boards make better strategic decisions.

Boards need access to accurate, real-time data and key performance indicators (KPIs) to provide valuable input on growth strategies. This includes market trends, customer insights, competitive intelligence, and internal performance metrics. Discussions can become reactive rather than proactive without the correct information and clear KPIs to measure success.

Actionable Tip: Provide Board members with pre-read materials that include key strategic data points and analysis to ensure productive conversations.

3. Encourage Cross-Functional Perspectives and Challenge Assumptions

Insight: A strong Board fosters a culture of constructive debate and broad expertise.

Boards that encourage critical questioning and incorporate cross-functional perspectives help companies avoid blind spots in their growth strategies. Engaging directors with experience across different industries, disciplines, and expertise areas ensures well-rounded decision-making.

Actionable Tip: Regularly invite external speakers or industry experts to Board meetings to provide fresh perspectives on emerging trends and market shifts.

4. Align the Board’s Role with Leadership Execution

Insight: A Board’s involvement should complement, not overshadow, management’s role in executing strategy.

While Boards provide strategic oversight, execution remains the executive team's responsibility. Clearly defining how the Board supports leadership—through mentorship, advisory roles, or decision-making support—ensures a balanced approach.

Actionable Tip: Develop a clear governance framework that outlines how the Board will contribute to strategy development without interfering in day-to-day operations.

5. Tell the Board Where You Want Its Focus and Input

Insight: Boards are most effective when their role is clearly defined.

Boards can add the most value when they understand where leadership wants their input. Whether it’s assessing new market opportunities, guiding M&A decisions, or advising on technology investments, giving Board members specific focus areas leads to more meaningful contributions.

Actionable Tip: Clearly communicate to the Board memebrs which strategic areas require their expertise and input, ensuring alignment with company priorities.

6. Add Experts to the Board (or as Advisors) to Close Capability Gaps

Insight: A well-rounded Board includes expertise that aligns with the company’s strategic priorities.

Companies operating in rapidly evolving industries often require specialized knowledge that existing Board members may lack. Adding external experts as Board members or advisors can bridge these gaps and provide valuable insights on technology, market shifts, and regulatory changes.

Actionable Tip: Identify critical skill gaps on your Board and recruit industry experts or advisors who can bring fresh perspectives and specialized expertise.

Summary

An engaged and strategically focused Board can be a significant asset in driving long-term company growth. By fostering open discussions, providing the correct data, encouraging cross-functional perspectives, and aligning roles with execution, companies can maximize the value of their Board members' involvement.

Next Steps: Assess your Board’s current engagement in strategy development and identify opportunities to strengthen its role in shaping future growth initiatives.