Creating your strategic goals when you do not have clarity on your governance style can lead to confusion in your strategic planning sessions. One director may have a completely opposite opinion of a board’s authority and could lead the session in an entirely different direction than where others intend for it to go.
Building a solid strategic plan with your governance structure as the foundation ensures that your board does not stray from properly fulfilling your duties within that model.
If a board is new to the governance subject, it is a good practice to have the discussion in board meeting regarding their current governance style and if they wish to change it. There are at least ten models to choose from!
Once the board agrees on their governance model, they would require training to understand their role within that model. When directors have begun comprehending their governance role, strategic planning will make more sense to them.
However, sometimes boards may identify the need for a governance review when they go through their strategic planning process. While this is not the preferred order, this does happen.
In either scenario, this is such a healthy discussion to have as a board. Fully grasping your role within your governance structure empowers boards to soar to new heights.
So, this is a bit of a chicken and egg scenario. How do you see your board fitting into this question?