Leaders in all organizations face short-term pressures ranging from economic conditions to competitor activities to demands from shareholders and stakeholders. It can be extremely difficult for management teams—and board members—to set aside immediate demands and concerns in the interest of long-term goals that might seem distant and abstract. The Report of the NACD Commission on the Board and Long-Term Value Creation emphasizes that directors have a fundamental responsibility to ensure that the organization’s short-term actions are well-aligned with its long-term strategy. It focuses on the specific levers the board has to encourage this alignment, and includes specific recommendations, suggested action steps, and boardroom tools.
This is an executive summary of the document. The complete report is available exclusively to NACD members. To become an NACD member, please contact Brandan Nass at Join@NACDonline.org.