{"id":489,"date":"2013-06-25T10:08:33","date_gmt":"2013-06-25T10:08:33","guid":{"rendered":"https:\/\/london-restrars.dev\/?p=489"},"modified":"2014-08-21T15:21:02","modified_gmt":"2014-08-21T14:21:02","slug":"directors-must-challenge-management-strategy-when-needed","status":"publish","type":"post","link":"https:\/\/www.london-registrars.co.uk\/?p=489","title":{"rendered":"Directors Must Challenge Management Strategy When Needed"},"content":{"rendered":"

The management consultant firm McKinsey & Company has carried out a global survey of directors which has highlighted that half of them do not sufficiently challenge management strategy, reveals company secretarial services<\/b><\/a>\u00a0and corporate support firm London Registrars (https:\/\/london-registrars.co.uk\/<\/b><\/a>).<\/span><\/p>\n

McKinsey & Company found that nearly 50% of all board directors surveyed around the world failed to sufficiently enquire into and analyse their management\u2019s proposed company strategies and, where applicable, challenge those strategies. Instead, these directors would simply \u2018review and approve\u2019 the strategies without due care and attention as to their ramifications.<\/p>\n

The survey found that directors are spending the same amount of time discussing company strategy as they were in 2008, despite the fact that the financial crisis has created far more challenges for most firms in recent years. What\u2019s even more surprising is the fact that only 21% of directors surveyed said they had a complete understanding of the strategies they were reviewing and approving. According to the directors surveyed, this is often because they receive insufficient information to make a well-informed decision and that the information that is provided by management is too short-term in focus. Over a third said they had \u201climited or no understanding of the risks their company faces\u201d. Boards\u2019 attitude to risk is an important part of the arena in which legal and corporate support firm London Registrars works. London Registrars advises all clients to regularly maintain a risk register document as part of their\u00a0corporate governance<\/b><\/a>\u00a0and company compliance<\/b><\/a>.<\/p>\n

The McKinsey & Company survey did reveal some more encouraging statistics, however. Nearly a third of the directors surveyed rated their boards performance as \u2018excellent\u2019; 40% said they have a complete understanding of their company\u2019s financial position and operations; and more than 50% said they have a good understanding of strategy, how value creation works in the company and the dynamics of their industry.<\/p>\n

With regards to the shortcomings of directors which were revealed, almost half were prepared to spend 25% more time discussing company matters in order to gain a deeper understanding of the business and its current challenges.<\/p>\n

For further information on board\u00a0corporate governance<\/b><\/a>, visit the London Registrars website athttps:\/\/london-registrars.co.uk\/<\/b><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The management consultant firm McKinsey & Company has carried out a global survey of directors which has highlighted that half … Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-489","post","type-post","status-publish","format-standard","hentry","category-corporate-governance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t