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Increasing the board's involvement in strategy.

S A Zahra1

  • 1School of Business Administration, George Mason University.

Long Range Planning
|November 5, 1990
PubMed
Summary
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This study revitalizes corporate boards by actively involving them in strategic direction mapping. Eight conditions are outlined to ensure continuous, disciplined board contributions for improved company financial performance.

Area of Science:

  • Corporate Governance
  • Strategic Management
  • Organizational Behavior

Background:

  • Historically, boards of directors have been perceived as lacking influence on corporate financial success.
  • Recent shifts in boardroom practices indicate a potential for greater strategic involvement.

Purpose of the Study:

  • To propose a framework for revitalizing boards of directors.
  • To enhance the strategic contribution of boards to corporate financial performance.

Main Methods:

  • Review of recent changes in boardroom practices.
  • Identification of eight conditions for effective board strategic contribution.
  • Specification of areas of director interest in strategy.

Main Results:

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  • The article outlines eight key conditions necessary for boards to effectively contribute to corporate strategy.
  • Specific areas of interest for directors in strategic planning are identified.

Conclusions:

  • Implementing these suggestions can lead to continuous and disciplined board contributions to strategy.
  • Enhanced board strategic involvement is expected to improve overall corporate performance.