Inside the Strategy Room 236. How corporate boards are responding to their changing role
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Jan 31, 2025 Celia Huber, a Senior Partner at McKinsey specializing in board effectiveness, Frithjof Lund, leading global board services, and Nina Spielmann, an expert in simplifying governance structures, dive into the evolving role of corporate boards. They discuss how boards can transition from compliance-driven entities to proactive catalysts for strategic change. The trio also emphasizes the importance of enhancing CEO-board collaboration and adapting to complexities like cybersecurity and ESG challenges, making governance more dynamic and effective.
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Board Evolution
- Corporate boards have evolved from complacent (pre-2001) to compliant (post-Enron) to value-enhancing (post-2014).
- Now, they are becoming "catalyst boards," focusing on future trends and navigating complexity.
Board Transition
- Not all boards evolve at the same pace; some remain focused on compliance while others aim for value enhancement.
- Few boards have fully embraced the "catalyst" role, but many are transitioning towards it.
Increased Board Time
- Board directors now spend an average of 30 days annually on each board, up from 25 days in 2019.
- This increase reflects growing complexity, demanding more time for effective governance.