How Boards Strategise: A Strategy as Practice View

While board involvement in strategy is seen as increasingly important, our understanding of how boards fulfil this role is limited. This article draws on indepth qualitative research with directors and senior managers to develop a Strategy as Practice view on how boards ‘‘do’’ strategy. Two different but complementary strategising practices; Procedural Strategising and Interactive Strategising, are identified and elaborated in terms of their underlying micro-activities. The internal boardroom factors that affect the relative emphasis on these strategising practices e the strategic stance of the board, board power and the perceived legitimacy of each practice are also identified and discussed. These findings are then integrated into a typology of board strategising. A key implication of this paper is that boards need to consciously choose the nature and extent of their involvement in strategy.

[1]  Andrew Pettigrew,et al.  Power and Influence in and Around the Boardroom , 1995 .

[2]  J. Pfeffer Size and Composition of Corporate Boards of Directors: The Organization and its Environment , 1972 .

[3]  P. S. Scherrer Directors’ responsibilities and participation in the strategic decision making process , 2003 .

[4]  J. Pound,et al.  The promise of the governed corporation , 1995 .

[5]  Mark J. Zbaracki,et al.  Strategic decision making , 1992 .

[6]  Jay W. Lorsch,et al.  Back to the Drawing Board: Designing Corporate Boards for a Complex World , 2003 .

[7]  S. Zahra,et al.  Increasing the board's involvement in strategy. , 1990, Long range planning.

[8]  P. Jarzabkowski,et al.  Strategy-as-Practice: A Review and Future Directions for the Field , 2009 .

[9]  Gerry Johnson,et al.  Ritualizing strategic thinking: the effectiveness of the strategic away day , 2007 .

[10]  R. Whittington The Work of Strategizing and Organizing: For a Practice Perspective , 2003 .

[11]  Violina P. Rindova,et al.  WHAT CORPORATE BOARDS HAVE TO DO WITH STRATEGY: A COGNITIVE PERSPECTIVE* , 1999 .

[12]  A. Pye The changing power of 'explanations': directors, academics and their sensemaking from 1989 to 2000 , 2002 .

[13]  Michael Goold,et al.  The (limited) role of the board , 1996 .

[14]  David C. Wilson,et al.  From Strategy to Action: Involvement and Influence in Top Level Decisions , 2008 .

[15]  Shaker A. Zahra,et al.  Boards of Directors and Corporate Financial Performance: A Review and Integrative Model , 1989 .

[16]  Adrian Davies,et al.  A Strategic Approach to Corporate Governance , 1999 .

[17]  A. Pye Corporate Directing: Governing, Strategising and Leading in Action , 2002 .

[18]  D. Samra-Fredericks Strategizing as Lived Experience and Strategists' Everyday Efforts to Shape Strategic Direction , 2003 .

[19]  Y. Doz,et al.  Embedding Strategic Agility A Leadership Agenda for Accelerating Business Model Renewal , 2010 .

[20]  A. Demb,et al.  The corporate board: confronting the paradoxes. , 1992, Long range planning.

[21]  E. Herman Corporate Control, Corporate Power , 1982 .

[22]  Kevin Hendry,et al.  The Role of the Board in Firm Strategy: Integrating Agency and Organisational Control Perspectives , 2004 .

[23]  Richard W. Oliver Real Time Strategy: New Rules for Global Markets , 2000 .

[24]  A. Pettigrew,et al.  The Contribution, Power and Influence of Part-time Board Members , 1996 .

[25]  James D. Westphal,et al.  Pluralistic Ignorance in Corporate Boards and Firms' Strategic Persistence in Response to Low Firm Performance , 2005 .

[26]  Jonathan L. Johnson,et al.  BOARD STRUCTURE AND INTERNATIONAL POLITICAL RISK , 2002 .

[27]  R. Whittington Completing the Practice Turn in Strategy Research , 2006 .

[28]  W. Werther,et al.  The Next Frontier in Corporate Governance:. Engaging the Board in Strategy , 2008 .

[29]  M. Huse,et al.  Context, Behavior, and Evolution: Challenges in Research on Boards and Governance , 2004 .

[30]  Philip Stiles The Impact of the Board on Strategy: An Empirical Examination , 2001 .

[31]  A. Pettigrew,et al.  Sources and Uses of Power in the Boardroom , 1998 .

[32]  Thomas A. Turk,et al.  Effects of Board and Ownership Structure on Corporate R&D Strategy , 1991 .

[33]  The Strategic Background to Corporate Accounting Scandals , 2006 .

[34]  A. Pettigrew,et al.  Strategists on the Board , 1999 .

[35]  A. Campbell,et al.  Brief case: Non-executive directors' role in strategy , 1990 .

[36]  Kamel Mellahi The Dynamics of Boards of Directors in Failing Organizations , 2005 .

[37]  Mason A. Carpenter,et al.  The Strategic Context Of External Network Ties: Examining The Impact Of Director Appointments On Board Involvement In Strategic Decision Making , 2001 .

[38]  J. Hendry,et al.  The Structure and Significance of Strategic Episodes: Social Systems Theory and the Routine Practices of Strategic Change , 2003 .

[39]  Myles L. Mace,et al.  Directors: Myth and Reality , 1971 .

[40]  B. Golden,et al.  When will boards influence strategy? Inclination × power = strategic change , 2001 .

[41]  David W. K. Anderson,et al.  The Evolution of Corporate Governance: Power Redistribution Brings Boards to Life , 2007 .

[42]  D. Nadler,et al.  Building better boards. , 2004, Harvard business review.

[43]  Saku Mantere Strategic practices as enablers and disablers of championing activity , 2005 .

[44]  Jay W. Lorsch,et al.  Pawns or Potentates: The Reality of America's Corporate Boards , 1989 .

[45]  F. Bosch,et al.  Boards of Directors' Contribution to Strategy: A Literature Review and Research Agenda , 2009 .

[46]  L. Donaldson Strategic Leadership: Top Executives and Their Effects on Organizations , 1997 .

[47]  L. Melin,et al.  Strategy as Practice: Research Directions and Resources , 2007 .

[48]  James D. Westphal Collaboration in the Boardroom: Behavioral and Performance Consequences of CEO-Board Social Ties , 1999 .

[49]  John Roberts Building the Complementary Board. The Work of the Plc Chairman , 2002 .

[50]  Y. Kor,et al.  Experience-Based Human Capital and Social Capital of Outside Directors , 2008 .