Corporate directors know what they should be doing. But they haven’t raised their game since 2008 and must strengthen their capabilities and spend more time on board work.Corporate boards are under pressure to take more responsibility for developing strategy and overseeing business risk after the financial crisis exposed many cases of inadequate governance.1 Yet, according to the latest McKinsey Quarterly survey on governance,2 directors report that their boards have not increased the time spent on company strategy since our previous survey, conducted in February 2008—seven months before the collapse of Lehman Brothers. Moreover, 44 percent of respondents say their boards simply review and approve management’s proposed strategies. Just one-quarter characterize their boards’ overall performance as excellent or very good; even so, the share of boards that formally evaluate their directors has dropped over the past three years.
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