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Home | Governance Q&As | Board role clarity | On many fund boards, Independent Non-Executive Directors (INEDs) are often not expected or encouraged to actively participate in strategy discussions. While they may challenge management’s decisions, the responsibility for strategy formulation typically lies with management. How should INEDs be involved in the strategic process?

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On many fund boards, Independent Non-Executive Directors (INEDs) are often not expected or encouraged to actively participate in strategy discussions. While they may challenge management’s decisions, the responsibility for strategy formulation typically lies with management. How should INEDs be involved in the strategic process?

We’ve worked with numerous trustee and responsible entity boards and have often encountered a similar dynamic. In such cases, we typically encourage boards and executive teams to reassess their approach and find ways to add more value to one another.

In our experience, most boards seek deeper involvement in shaping the long-term strategy and direction of the fund. When board members possess the right skills, experience, and authority, their input is highly valued by executive teams, primarily when provided at an early stage of strategy development.

In every case where boards have actively contributed to the strategy development process—typically over a period of around six months—a more robust and thoroughly considered strategy has been produced. Early engagement allows for productive discussions with executives, helping to clarify expectations and gather valuable insights before the strategy process even begins. Incorporating further board input at key stages of development only strengthens the overall outcome.

This collaborative approach not only leads to a more rigorous strategy but also fosters greater buy-in from the board, making them stronger advocates for the organisation’s direction. Additionally, it enhances the board’s ability to oversee the strategy’s execution effectively, ensuring alignment with long-term goals.

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