ABSTRACT
Setting strategy is a difficult endeavor – not gathering parameters from the parent, board or owners before embarking on its development is a disaster. In many cases, CEOs surmise the parameters or criteria for any option the board might consider – only to find out during the board meeting that their strategic growth option does not fit what the board had in mind. CEOs need to ensure they have a visible one-pager of dimensions that define what is in or out BEFORE setting strategy. In many cases, the board is thankful this dialogue is established and clear lines of Strategic Latitude are established. Boards play a critical role in lending their earned experience and advising CEOs on how best to navigate strategic opportunities and pitfalls. In practice the board/CEO exchange on Strategic Latitude is often assumed and murky. The format should include objectives, metrics, targets and data sources for each of the parameters being set forth by the board.
