The Power of Board and Management Alignment

The board and management must have a shared understanding of the mission and goals of the enterprise, the environment in which it operates, the factors which influence success, and the risks that can prevent or destroy value.  This shared understanding must extend to the roles of board and management in accomplishing these objectives.

Boards often face issues that impair this alignment.  We see certain circumstances particularly as increasing the risks of non-alignment.  These include:

•    Directors and senior officers do not share the same values.
•    There is no common vision or set of strategic priorities among directors.
•    Not everyone on the board understands the company’s risk profile.
•    The CEO has become isolated from the non-management directors.
•    The “truth to power” dilemma isolates the CEO and skews vision.
•    Directors withhold views and participation in discussion and deliberation.
•    A transformational event has occurred:  merger, changed board composition, new CEO.
•    New directors have not been integrated as collegial, productive members of the board.
•    External events threaten the business environment.

At Masters-Rudnick, we work with boards and CEOs to create or to restore this crucial alignment. In doing so, we work to surface issues so that they can be discussed in a non-acrimonious manner.  We facilitate that discussion, help directors resolve any disputes and reach consensus, and develop an action plan to implement their new understandings.  Directors and management emerge from the process with a clear appreciation of their respective roles.  Board relationships, as well as relations between the CEO and non-management directors are strengthened, thus improving collegiality, debate, deliberation, and effective decision making.

One size does not fit all.  We tailor our work with boards to fit the board’s and the company’s unique needs.  We facilitate collaborative solutions and strategies.

We would be pleased to discuss the alignment strategies best suited to your board and executive team at your convenience.

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