Board governance and strategy in a changing global economic landscape

On the board’s agenda, April 2023

By Carey Oven, Ira Kalish, Danny Bachman, and Jamie McCall

Board-level strategy around economic challenges

From an economic perspective, the past few years have resembled a roller coaster. As the pandemic spread and global commerce grinded to a halt, there were predictions that mass lockdowns would create a severe global recession (or worse). Such concerns had merit, and for a brief time the nation’s economy plummeted into recession. But as businesses adapted to the pandemic’s “newnormal,” and especially as the slow reopening process began, some industries benefited from a recovery that was just as swift as the descent.

The recovery from the pandemic has been uneven at best, and it brought its own challenges—chief among them inflation. Board-level strategy around such issues often requires weighing a proverbial constellation of economic data. While cost cutting is often the “standard playbook” response in this area, there is value in weighing all the options available to promote economic resiliency.  Periods of volatility are also an opportunity for boards to reaffirm their stewardship commitments. Such actions can pay dividends in social capital—a return on investment that, while not measured in dollars, can be just as valuable.

Board governance and strategy in a changing global economic landscape
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