“Governance arguably suffers most…when boards spend too much time looking in the rear-view mirror and not enough scanning the road ahead”, according to an article published in the McKinsey Quarterly last month written by Christian Casal and Christian Caspar.
The article puts the case forward that long-term economic, technological and demographic trends are radically reshaping the global economy, making it more complex to oversee a successful multinational business and meaning it is vital for directors to be aware of what’s on the horizon.
Clearly defining the board’s role, requiring board members to study the external landscape and making strategy part of the board’s DNA are some of the guidelines the authors have put together in order for companies to avoid the sort of failures witnessed during the last financial meltdown.
Read the full McKinsey Quarterly article here.
