Leadership boards of directors

Abstract

Purpose

This paper critically reviews the role and function of the corporate board and finds that boards of directors that have a leadership role in corporate strategic planning go beyond merely caring for shareholder interests and take a proactive role in the success of the business. They do this by setting the strategic direction and evaluating company performance.Findings

However, the cultural and organisational conditions for the development of leadership boards are not well understood. The roles of executive and non‐executive directors need to be clearly defined in order that such boards can be effective and assert control over strategy and performance. Executive directors can only be effective when they clearly differentiate their role of providing direction from their daily role of working with managers in the company.Research limitations/implications

Recent research has begun to push back the ignorance surrounding the development of leadership boards. This is examined in order to define the barriers standing in the way of more empowered directors. It is then used to identify the actions and approaches that can be used by directors to develop their involvement in and influence over, corporate strategic planning.Originality/valueThe paper contains a critical discussion of boards that places the issue in their contemporary policy context. This leads to the conclusion that the organisation of partnership between board and management is important and that business success increasingly rests on openness and trust supported by creative and challenging dialogue. Practical suggestions for the revision of company law are provided.

Citation

Beaver, G., Davies, A. and Joyce, P. (2007), "Leadership boards of directors", Business Strategy Series, Vol. 8 No. 4, pp. 318-324. https://doi.org/10.1108/17515630710702023