Chief executives run the company, but the board of directors must also lead the organization on the most crucial issues. Monitoring is still important. Governance matters. But the time has come for boards to rebalance their responsibilities. Directors need to know when to take charge, when to partner and when to stay out of the way.
Recent history shows that directors who take more active roles—particularly in CEO selection—are fundamental to the long-term health of their companies.
People set strategy. Directors and executives who know where the company should be going will be best equipped to get it there.
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