6 ◼ Defining the Strategic Direction
Looking to the Future
If boards are to evolve to play a more active role in safeguarding the long-term future of companies and avoiding the growth curse, then a more strategic form of governance is key. With the average CEO tenure at around five to six years in most regions, we can hardly expect executive leadership to have the time or motivation to factor a long-term perspective into their strategies. And so, as we outlined in chapter 4, it should rightly fall to the board to set the strategic direction of the firm—the longer-term ambition.
For many boards, taking on the responsibility for defining a firm’s strategic direction will at first seem way out of their comfort zones and perhaps beyond their capabilities. ...
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