Strategists on the Board

Terry McNulty · Andrew Pettigrew

552 citations0/0 files storedOrganization Studies

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Corporate Finance and Governance Management and Organizational Studies Organizational Management and Leadership

Abstract

The paper examines the contribution to strategy by chairmen and non-executive directors in large UK companies. The collective label of `part-time board member' is used to refer to individuals performing these roles. The paper asks `how, if at all, do part-time board members influence strategy in UK plc's'?. Using data gathered from interviews with 108 company directors, the paper suggests that part-time board members do not simply ratify decisions made by all-powerful executives. A conceptual model is developed to show that part-time board members are able to influence processes of strategic choice, change and control by shaping both the ideas that form the content of company strategy and the methodologies and processes by which those ideas evolve. Their involvement in strategy is conditioned by factors such as: changing norms about corporate governance; the history and performance of the company; the process and conduct of board meetings and informal dialogue amongst company directors between board meetings.

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References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1983Separation of Ownership and Control 1972Size and Composition of Corporate Boards of Directors: The Organization and its Environment 1992Strategic decision making 1971Directors: Myth and Reality 1987The Strategy Concept I: Five Ps for Strategy 1994The effects of board size and diversity on strategic change 1997Strategic Leadership: Top Executives and Their Effects on Organizations

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2007Triggers And Enablers Of Sensegiving In Organizations 2008Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal 2009Boards of Directors' Contribution to Strategy: A Literature Review and Research Agenda 2010Attention Patterns in the Boardroom: How Board Composition and Processes Affect Discussion of Entrepreneurial Issues 2008Making Boards Effective: An Empirical Examination of Board Task Performance

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