Board and CEO practice in modem strategy-making: How is strategy developed, who is the boss and in what circumstances?

The interplay of the board of directors (BOD) and the chief executive officer (CEO) in strategy-making has been the subject of some debate in the literature. Some experts argue the BOD should take a strong role in strategy-making while the alternative point of view is that the CEO is the key man or woman. In a qualitative study with 16 interviews of leading Australian industry figures, the CEO is found to be the key player in modern strategy-making. The findings identify how the BOD, individual directors and the CEO can combine to add value to the organization, in particular how these organization members can team up and interact to achieve a faster, more flexible strategy cycle. The modern organization focus needs to be on giving more emphasis to the empowerment, interaction and creativity of the CEO and top management team. The BOD should focus on questioning, criticizing, refining and enabling the strategy proposed by the professional managers. However, the study indicates these findings are subject to exception and variation in relation to factors including specialist knowledge, track record of performance, personality attributes, personal power, and political and influencing skills. The major focus of attention of the BOD and CEO is the strategic-thinking related activities in strategy-making. Strategic planning still has an important role in formalizing strategy content, usually in a regular cycle.