PT  - JOURNAL ARTICLE
AU  - William J. Hass
AU  - Shepherd G. Pryor IV
TI  - The Board's Role in Corporate Renewal
AID  - 10.3905/jpe.2005.490412
DP  - 2005 Feb 28
TA  - The Journal of Private Equity
PG  - 12--19
VI  - 8
IP  - 2
4099  - https://pm-research.com/content/8/2/12.short
4100  - https://pm-research.com/content/8/2/12.full
AB  - Boards need to exercise constant vigilance in their oversight role as custodians of corporate value. Many CEOs and directors have recently been distracted from more strategic issues as they struggle to meet new detailed compliance deadlines established under Sarbanes-Oxley and new exchange rules. This article calls for boards to refocus on three critical corporate strategic processes: strategic planning, risk assessment, and renewal, which includes succession planning. The board must work with management to develop a realistic understanding of the environment, and to evaluate the effectiveness of alternative strategies and the results they are expected to produce. The company's cost of capital can be used as a critical benchmark in all renewal, strategic planning, and risk assessment efforts. Corporate renewal must be a continual process. When renewal efforts are deferred and losses result, management has lost its edge in the fight for corporate survival.