KPMG’s report: “Elevating strategy discussions in the boardroom” highlights the board’s increasingly active role in corporate strategy—even as responsibility for developing and executing strategy remains with management. As companies navigate geopolitical shifts, technological disruption, and economic uncertainty, boards are engaging earlier and more consistently in strategic conversations, helping management test assumptions, explore future scenarios, and align strategy with evolving risks and opportunities.
The report identifies three core components that shape effective board engagement in strategy: setting expectations, structuring strategy discussions, and building consensus on strategic direction. Boards and CEOs are encouraged to establish clear expectations for how directors will contribute to strategy discussions, including the information and analysis directors need to provide meaningful oversight. Equally important is the thoughtful design of strategy sessions—allocating sufficient time for forward-looking dialogue, scenario planning, and discussion of risks, resilience, and long-term opportunities.
Directors interviewed for the report also emphasized practices that support higher-quality boardroom dialogue, including encouraging diverse viewpoints, integrating risk considerations into strategy discussions, and maintaining a focus on long-term value creation, which can help boards move beyond a traditional review-and-approval role and instead serve as a strategic sounding board for management as conditions evolve.
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This post first appeared in the weekly Society Alert!