Strategy is transformational. Which of the following statements does not support the board's perspective about what strategy is?

Prepare for the NACD Certification Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to aid your understanding. Ensure you are fully ready for your test!

The statement that does not support the board's perspective about what strategy is focuses on the idea of defaulting into business-unit strategies rather than considering comprehensive enterprise moves. Strategy, particularly from a board's viewpoint, is about a holistic and proactive approach to organizational direction and long-term success. Proactively planning for future challenges indicates that the board is focused on anticipating and mitigating risks, which is essential in strategic thinking.

Engaging with stakeholders for feedback aligns with the strategy by ensuring that the board considers external perspectives and insights, which can inform better decision-making. Similarly, investing in new market opportunities demonstrates a forward-thinking and growth-oriented approach, as it reflects the intention to expand and innovate.

In contrast, defaulting into narrower business-unit strategies suggests a reactive or fragmented approach, which fails to encompass the larger vision that a board is expected to uphold. A truly transformational strategy requires intentionality and a broad perspective, rather than automatically relying on existing business frameworks. This illustrates why the selected statement does not resonate with the board's perspective on what constitutes effective and impactful strategy.

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