Boards may accept outdated strategies without probing whether market conditions, technology, or competition have changed. For example, BlackBerry’s board failed to question management’s reliance on enterprise hardware while Apple redefined consumer mobility. Similarly, Kodak’s board didn’t press for urgent action despite signs that digital photography would disrupt film. More recently, Boeing, Bed Bath & Beyond, WeWork, and Credit Suisse boards arguably failed to question assumptions, adapt to changing environments, or hold leadership accountable:
Common board missteps include:
- Relying solely on management’s strategic updates without independent validation
- Failing to monitor capability gaps that erode execution potential
- Avoiding tough conversations that might challenge CEO authority or consensus
Boards can also suffer from internal dysfunction — poor communication, lack of curiosity, and a fear-driven culture that discourages dissent. Without a climate of accountability and inquiry, flawed strategies persist unchallenged.
To strengthen strategic oversight, boards should:
- Schedule regular strategy reviews, not just once-a-year retreats
- Request scenario plans and independent second opinions on major strategic bets
- Track execution readiness, including talent, systems, and risk capacity
- Evaluate strategic outcomes, not just financial results
- Ensure board composition includes diverse, strategically minded thinkers
A board’s ultimate failure is not in selecting the wrong strategy — it’s in failing to ask whether the right one is still in place. Monitoring strategy is not optional; it’s core to board duty.