How do you handle board resistance or conflict in strategic planning?

To manage resistance or conflict within the board during strategic planning, first identify the underlying causes: disagreements on vision, risk aversion, or personal interests. Facilitate fact-based discussions and avoid personalizing the conflict. Create an environment where diverse perspectives are valued, and use specialized committees to assess proposals. If consensus isn't reached, establish a clear decision-making process based on majority or predefined criteria. Always ensure the focus remains on common strategic objectives.

> foster continuous improvement and accountability by having board members evaluate each other's contributions > ensure that independent perspectives on strategic issues are provided by a separate advisory group of external experts > focus on key points of contention by mapping out areas of agreement and disagreement on strategic issues using visual tools > identify the board's current dynamics, decision-making processes, and expertise areas > introduce formal debate structures, such as the Six Thinking Hats, to ensure all perspectives are considered systematically during decision-making discussions > appoint a "devil's advocate" for major decisions to challenge prevailing views in advance of meetings to provide board members

Begin by assessing the situation thoroughly. Understand the root causes of the resistance, whether it's due to differing priorities, risk tolerance, or lack of clarity. Take time to listen to all perspectives without judgment, identifying common ground. Once you have a clear view of the concerns, you can tailor your approach to address them directly. By demonstrating a deep understanding of the situation, you can create a strategy that aligns with both the board's concerns and the organization's long-term goals.

Strategic resistance often stems from a fear of short-term disruption rather than a genuine critique of the strategy itself. I find that the key is not just facilitating dialogue but identifying the underlying emotional and business concerns driving the resistance. By reframing the conversation around long-term value creation—whether that’s through sustainability, innovation, or operational efficiency—you can shift focus from resistance to collaboration. True strategic planning must incorporate foresight, not just alignment, especially when integrating ESG principles and digital transformation. Resistance becomes an opportunity when the board is guided to see change as a competitive advantage.

Drawing from my experience as a CEO and board member, I’ve learned that before starting any strategic planning, it's essential to assess the board's and executive team's readiness for change. This involves gathering feedback from both the board and the leadership team, especially the CEO, to understand their vision, concerns, and engagement levels. The key is to identify gaps in trust, communication, and alignment early in the process. By addressing these areas upfront, we can create a stronger foundation for board alignment and ensure everyone is prepared to drive the necessary business transformation and strategy.

Understanding the current state of your board is crucial for effective change management. By employing surveys and interviews, organizations can unearth underlying issues that may hinder progress, such as trust deficits or misaligned expectations. This proactive approach not only identifies resistance but also fosters a culture of open communication, paving the way for transformative leadership. Embracing feedback as a catalyst for growth empowers boards to navigate challenges with agility, ensuring that strategic planning aligns with the collective vision and values of its members. Ultimately, this alignment is essential for unlocking the full potential of the organization and achieving sustainable success.

Building a positive board environment from the outset will prevent such conflict. A positive board environment needs to have trust, open communication, alignment on mission and purpose, and proper accountability. Every board member needs to work towards fostering such an environment so when resistance arises it is easily mitigated.

Resistance often stems from differing assumptions about risk and priorities. I’ve found success in reframing conflicts as opportunities to explore those differences collaboratively. Encouraging open dialogue, grounded in data, can surface underlying concerns while aligning on shared goals. Tools like visual mapping of risks and benefits or structured scenario exercises allow board members to see how their perspectives contribute to the bigger picture. By treating dissent as a form of constructive engagement rather than opposition, we can foster trust and turn resistance into a catalyst for innovation.

While management formulates the strategy and fills it with live, boards have a critical supervisory role in corporate strategy. Consequently, most boards will offer resistance and slow walk changes if they feel overwhelmed by sudden management actions. After all, it takes considerable effort to evaluate a complete strategy package. Consequently, if management involves the board early and regularly in the discussion, the meetings can focus on certain parts of the whole, giving more time for discussion and allowing management to utilize the wisdom of the board members. It also makes it easier for the board to point at problems and request corrections instead of throwing out the whole strategy.

The greatest benefit of a good board is what it can bring to the organization. That’s why it’s essential to maintain open communication and involve them continuously in open discussions throughout the entire process. This gives them the opportunity to express their opinions and concerns before they become major issues. By fostering continuous and transparent dialogue, you ensure the board feels engaged in the strategy, making it easier to gain their support on key decisions.

From my experience as a CEO and now as a board member, I believe that in today’s fast-paced business environment, where digital transformation and AI are critical drivers, the board’s involvement must go beyond traditional oversight. The board needs to own the strategic thinking process continuously, not just during planning phases. It's essential that the board and CEO leverage AI and data-driven insights, from strategic analysis to execution. This enables better decision-making and ensures the agility needed to adapt to constant change. By fully engaging the board throughout, we build a stronger commitment and accountability to the strategy's success.

Engaging the board early is essential, but I’d add that it's about embedding the board’s expertise into continuous strategic foresight, rather than limiting their input to predefined checkpoints. Particularly when dealing with fintech or ESG-focused startups, real-time adjustments in strategy are crucial. Regular involvement is less about updates and more about creating a feedback loop where board insights directly inform agile pivots. Additionally, data-driven scenario planning combined with ESG considerations not only aligns board members but also gives them a vested interest in the success of the strategy because they see how it ties to broader environmental and governance imperatives.

Involving the board early in the strategic planning process is not just a best practice; it’s a catalyst for transformative leadership. By engaging board members in activities like SWOT analyses and scenario planning, organizations can harness diverse perspectives that enhance decision-making and foster a culture of ownership. This collaborative approach not only mitigates resistance but also cultivates a shared vision, empowering leaders to navigate change with agility and purpose. Ultimately, when boards feel valued and heard, they become champions of the strategic plan, driving sustainable growth and innovation within the organization. Lead with purpose and vision, and watch your organization thrive.

Involving the board early in the strategic planning process is not just a best practice; it’s a catalyst for transformative leadership. By engaging board members in activities like SWOT analyses and visioning exercises, organizations can harness diverse perspectives that drive innovation and agility. This collaborative approach fosters a sense of ownership and commitment, essential for navigating change and maximizing profits. As leaders, we must embrace this participatory model to cultivate an environment where strategic initiatives thrive, ensuring that every voice contributes to a shared vision of success. Lead with purpose and vision, and watch your organization flourish.

For any respected board, all strategic matters are of great importance, which is why clear and transparent communication will be highly valued. Ensure that each board member understands the goals, risks, and benefits of the strategy. Avoid technical jargon or overly complex information. Present data in a straightforward manner, highlighting key points and critical decisions. By being transparent about both challenges and successes, you build trust and ensure the board remains aligned with the organization’s vision and objectives.

Clear communication goes beyond transparency; it’s about crafting a narrative that resonates with the board's fiduciary and ethical responsibilities. I’ve found that data without context often fuels more questions than alignment. In fintech and ESG, I focus on showing the why behind the data—whether it’s about compliance, digital transformation, or sustainability. When you tie the metrics directly to long-term ESG goals or risk mitigation strategies, you help the board understand the deeper implications of decisions. It’s not just about clarity, it’s about demonstrating the impact of their leadership on the organization's future.

Effective communication is the cornerstone of overcoming board resistance and fostering a collaborative environment. By clearly articulating the strategic planning process's purpose and benefits, leaders can cultivate trust and engagement among board members. Additionally, leveraging diverse communication channels not only keeps the board informed but also empowers them to contribute meaningfully, transforming potential conflicts into opportunities for growth and innovation. Embracing transparency and soliciting feedback creates a culture of inclusivity, essential for navigating the complexities of modern business landscapes. Lead with purpose and vision, and watch your organization thrive.

Effective communication is the cornerstone of successful board engagement, especially during strategic planning. By fostering an environment of transparency and openness, leaders can not only mitigate resistance but also cultivate a culture of collaboration. Regular updates and inclusive dialogue empower board members, transforming potential conflicts into opportunities for innovation and growth. As we navigate the complexities of modern business, embracing diverse communication channels and actively seeking feedback will unlock the full potential of board dynamics, leading to more informed decision-making and enhanced organizational resilience. Lead with purpose and vision, and watch your board thrive.

Create an environment where members feel comfortable sharing their ideas and concerns. Encourage active participation by asking open-ended questions that invite different perspectives. Listen carefully and show a willingness to adapt the strategy if valid points arise. By fostering respectful, solution-oriented discussion, you ensure all voices are heard and the board feels part of the process, strengthening their commitment to the decisions made.

Wherever you can, base the dialogue on undisputed facts and / or numbers. That leaves less room for mere 'opinions' and 'views' and, as a consequence, more room for constructive dialogue.

Facilitating dialogue requires structure, but I believe real breakthroughs happen when you create space for vulnerability and unorthodox perspectives. Often, in fintech and tech-led sectors, risk governance and ESG principles spark debate. However, when board members are encouraged to speak openly about their fears—whether it's risk exposure or market disruption—they are more likely to transition from resistance to constructive debate. The board's diversity of experience should be treated as a strategic asset, and creating environments where these differences can surface safely leads to stronger, more resilient outcomes.

When disagreements arise, approach the differences calmly and professionally. Listen to all opinions before responding and look for common ground that can unite the parties. If necessary, use data and objective facts to support your position without imposing your perspective. By resolving conflicts in a respectful and open manner, you strengthen relationships and ensure the decision-making process remains collaborative and productive.

In my experience, conflicts often arise not just because of differing visions, but due to unaddressed assumptions about risk and reward. Respectful conflict resolution in strategic planning should focus on surfacing these assumptions early. I recommend reframing conflicts not as points of disagreement but as divergent risk assessments. Encouraging board members to explore different risk tolerance levels, especially in ESG and fintech spaces, where the stakes are high, helps create common ground. By reminding everyone of the shared long-term mission—whether it’s innovation, sustainability, or market expansion—we can navigate conflict toward constructive action.

In navigating board conflicts during strategic planning, it’s crucial to embrace the diversity of perspectives as a catalyst for innovation. By fostering an environment of active listening and constructive dialogue, leaders can transform disagreements into opportunities for growth. Remember, the goal is not merely to resolve conflicts but to harness them to refine strategies that align with the organization’s vision. This approach not only strengthens board cohesion but also propels the organization toward sustainable success, ensuring that every voice contributes to a shared purpose. Lead with purpose and vision, and watch as collaboration becomes the cornerstone of your strategic initiatives.

Celebrating and reinforcing the success of the strategic planning process is not merely a formality; it is a critical component of effective board development. Recognizing the contributions of board members fosters a culture of appreciation and accountability, essential for sustaining engagement and commitment. Furthermore, ongoing training and mentorship empower board members, equipping them with the skills necessary to navigate complexities and drive transformative change. By cultivating a proactive and supportive environment, organizations can unlock their full potential, ensuring that strategic initiatives are not only implemented but also embraced as a shared vision for success. Lead with vision and watch your board thrive.

It may be very obvious but whatever the strategy may be; it must serve to reach an undisputed and common goal. If such a goal exists then the strategy needs to link to it very clearly. If that is not the case then the strategy has to be revisited and it is too early to discuss it. If such a goal does not exist or, if the goal isn't clear, then there is work to do before thinking about strategy.

Strategic planning is outside of a Board's scope if there is a good governance in place. Strategic planning belongs to executive functions, unlike strategy, which is part of the Board's responsability.