Part of the board members' responsibilities is developing and overseeing the execution of the organisation’s strategy. The board of directors are more than just a rubber stamp for the CEO and can add tremendous value to the organisation's overall strategic success. However, to be effective in this role, board members need to ask the correct questions when it comes to strategy.
The exact questions that the board will ask depend on the organisation's strategic goals, industry and size. The right questions mean that the organisation will formulate an executable strategy. As a board member, here are some of the questions you should ask about strategy.
What is the mission and vision of the organisation?
The organisation's mission and vision statement are the cornerstone of its strategy, and board members should ascertain that the strategy bolsters it.
Board members should enquire about the organisation's hopes to realise its core principles and how the strategy will aid in attaining its objectives. The board members are also tasked with ensuring that the strategy is pragmatic and attainable and that it takes into account the capabilities and resources of the organisation.
The questions will assist the board in making sure that the organisation's strategy is in line with its mission and vision and has a high probability of success.
What are the main goals of the strategy, and are they attainable within the stipulated period?
The board members of any organisation should concentrate on the organisation's strategy and whether it is attainable and time-oriented. The first query is what are the primary objectives of the strategy?
Boards usually concentrate on attaining short-term goals rather than thinking of long-term goals the organisation wants to attain. This can particularly be hard when there are members who want immediate results (and preferably at little or no cost to them). Board members need to consider the overall objectives of the organisation and where they are attainable within the stipulated timespan.
After identifying the organisation goals, the board can evaluate if the current strategy in place will result in their realisation. if not, it's time to reconsider the strategy or formulate a new one completely. This way, the board can be sure they are concentrating on the right things.
How will strategy affect clients, employees, and other stakeholders?
This is the most integral question board members should ask.
Will the strategy involve staff increases, job cuts or layoffs
Will it need training and new skills?
What sort of impact will strategy have on motivation and morale?
When it comes to members, will the strategy result in better member satisfaction?
And what effect will it have on the organisation's reputation?
Finally, the board should consider the impact on other stakeholders like clients, partners, and suppliers.
These questions can assist the board in understanding the potential rewards and drawbacks affiliated with the strategy and help determine the viability of the strategy.
Like to know more?
In the book Getting to grips with not-for-profit governance, you will discover how strategic thinking, and strategic planning are at the heart of effective governance.
