Which model for a board's consideration of strategy does NACD recommend as the most effective?

The recommendation for a continual process as the most effective model for a board's consideration of strategy highlights the dynamic nature of today’s business environment. Unlike static or infrequent approaches, a continual process allows the board to remain engaged with ongoing market changes, emerging opportunities, and potential threats.

This model emphasizes that strategic planning is not merely an annual event or a one-time retreat but rather an integral part of the board’s governance responsibilities. It enables boards to make timely adjustments to strategy, fostering a proactive mindset. Rather than being reactionary, this approach promotes foresight and agility, which are crucial for long-term success in an ever-evolving landscape. By continuously evaluating and adapting the strategy, boards can ensure that their organizations remain relevant and competitive.

In practicing a continual strategic process, boards also encourage collaboration and open dialogue among directors and management, creating a culture of innovation and responsiveness. Such an environment can lead to more informed decision-making and a better alignment of resources to strategic objectives.