IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v61y2018i5p679-688.html

Setting and vetting strategy: Bridging the chasm between CEOs and boards

Author

Listed:
  • Sheehan, Norman T.
  • Powers, Richard C.

Abstract

One of directors’ key fiduciary duties is to set the firm’s direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm’s strategy, and even if they do understand it, they do not feel they have the desired impact on their firm’s strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm’s strategy.

Suggested Citation

  • Sheehan, Norman T. & Powers, Richard C., 2018. "Setting and vetting strategy: Bridging the chasm between CEOs and boards," Business Horizons, Elsevier, vol. 61(5), pages 679-688.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:5:p:679-688
    DOI: 10.1016/j.bushor.2018.05.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007681318300739
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bushor.2018.05.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Siciliano, Julie I., 2002. "Governance and strategy implementation: expanding the board's involvement," Business Horizons, Elsevier, vol. 45(6), pages 33-38.
    2. Sheehan, Norman T. & Bruni-Bossio, Vince, 2015. "Strategic value curve analysis: Diagnosing and improving customer value propositions," Business Horizons, Elsevier, vol. 58(3), pages 317-324.
    3. Hongjin Zhu & Pengji Wang & Chris Bart, 2016. "Board Processes, Board Strategic Involvement, and Organizational Performance in For-profit and Non-profit Organizations," Journal of Business Ethics, Springer, vol. 136(2), pages 311-328, June.
    4. Marie‐Josée Roy, 2011. "Board information: meeting the evolving needs of corporate directors," Management Research Review, Emerald Group Publishing Limited, vol. 34(7), pages 773-789, June.
    5. Waterman, Robert Jr. & Peters, Thomas J. & Phillips, Julien R., 1980. "Structure is not organization," Business Horizons, Elsevier, vol. 23(3), pages 14-26, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sheehan, Norman T. & Vaidyanathan, Ganesh & Fox, Kenneth A. & Klassen, Mark, 2023. "Making the invisible, visible: Overcoming barriers to ESG performance with an ESG mindset," Business Horizons, Elsevier, vol. 66(2), pages 265-276.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massicotte, Steeve & Henri, Jean-François, 2021. "The use of management accounting information by boards of directors to oversee strategy implementation," The British Accounting Review, Elsevier, vol. 53(3).
    2. Katarína Remeňová & Jakub Kintler & Nadežda Jankelová, 2020. "The General Concept of the Revenue Model for Sustainability Growth," Sustainability, MDPI, vol. 12(16), pages 1-12, August.
    3. Aneek Choudhury & P.N. Ram Kumar & Ramesh Krishnan, 2026. "A Comprehensive Framework for Strategy Execution: CADAP Strategy Execution Framework," IIM Kozhikode Society & Management Review, , vol. 15(1), pages 96-113, January.
    4. Linden, Erik, 2021. "Pandemics and environmental shocks: What aviation managers should learn from COVID-19 for long-term planning," Journal of Air Transport Management, Elsevier, vol. 90(C).
    5. Massimo Egidi, 2014. "The economics of wishful thinking and the adventures of rationality," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 13(1), pages 9-27, June.
    6. Nur Nahar Yasmin, 2024. "Four-day workweek in corporate sector: post-pandemic work arrangement for Bangladesh," SN Business & Economics, Springer, vol. 4(7), pages 1-26, July.
    7. James Gathogo Kamau & Dr. Thomas A. Senaji, R. Eng. & Dr. Susan C. Nzioki, 2019. "Effect Of Information Technology Capability On Competitive Advantage Of The Kenyan Banking Sector," International Journal of Technology and Systems, IPRJB, vol. 4(1), pages 1-20.
    8. Roelofse, Emmalinde, 2017. "M3 Strategic Decision-Making Under Uncertainty: Modes, Models, & Momentum," SocArXiv uafvr_v1, Center for Open Science.
    9. Goksel KORKMAZ, 2020. "The Moderating Effect of Internal Audit in Strategic Planning Implementation Success," Istanbul Management Journal, Istanbul University Business School, vol. 0(88), pages 57-84, June.
    10. Cathal M. Brugha, 2001. "Implications from Decision Science for the Systems Development Life Cycle in Information Systems," Information Systems Frontiers, Springer, vol. 3(1), pages 91-105, March.
    11. Judge, William Q. & Talaulicar, Till, 2017. "Board Involvement in the Strategic Decision Making Process: A Comprehensive Review," Annals of Corporate Governance, now publishers, vol. 2(2), pages 51-169, April.
    12. Rintamäki, Timo & Kirves, Kaisa, 2017. "From perceptions to propositions: Profiling customer value across retail contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 159-167.
    13. James Gathogo Kamau & Dr. Susan C. Nzioki & Dr. Thomas A. Senaji, R. Eng., 2019. "Relationship Between Strategic Capabilities And Competitive Advantage In The Kenyan Banking Sector," European Journal of Business and Strategic Management, International Peer Review Journals and Books, vol. 4(2), pages 1-23.
    14. Khraisha, Tamer, 2020. "Complex economic problems and fitness landscapes: Assessment and methodological perspectives," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 390-407.
    15. Seogjun Lee & Seung Woon Oh & Kichan Nam, 2016. "Transformational and Transactional Factors for the Successful Implementation of Enterprise Architecture in Public Sector," Sustainability, MDPI, vol. 8(5), pages 1-15, May.
    16. Minne L. N. Mikkelsen & Marianne H. Frederiksen & Niels Marcussen & Bethany Williams & Kristian Kidholm, 2022. "Prior to Implementation of Digital Pathology—Assessment of Expectations among Staff by Means of Normalization Process Theory," IJERPH, MDPI, vol. 19(12), pages 1-19, June.
    17. Wang, Xincheng & Li, Yuan & Tian, Longwei & Hou, Ye, 2023. "Government digital initiatives and firm digital innovation: Evidence from China," Technovation, Elsevier, vol. 119(C).
    18. Nozharov, Shteryo, 2016. "Social Costs of the Inefficient Management of the EU Funds for Bulgaria," EconStor Conference Papers 148052, ZBW - Leibniz Information Centre for Economics.
    19. Roelofse, Emmalinde, 2017. "M3 Strategic Decision-Making Under Uncertainty: Modes, Models, and Momentum," Thesis Commons dwt3a_v1, Center for Open Science.
    20. Rodriguez, Carlos Adrian, 2016. "Challenges to effectiveness in public health organizations: The case of the Costa Rican Health Ministry," Journal of Business Research, Elsevier, vol. 69(9), pages 3859-3868.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:61:y:2018:i:5:p:679-688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.