Quick Links
Connect us
Directors Databank (Empannel Yourself)
Become a faculty
Blog
Become an Awards Assessor
Publications
Contact Us
As Economic and Technology Risks Gain Urgency, U.S. Boards and Management Are Working More Closely Together
Insights from the
National Association of Corporate Directors (NACD)
The pressures on American boardrooms continue to grow in the face of complex business environments and shifting stakeholder expectations. The latest research by the National Association of Corporate Directors (NACD) provides insights into how directors are adapting boardroom processes to meet new demands and support effective boardmanagement relations.
NACD's 2026 Governance Outlook Survey, in the field in late October – early November 2025, captured directors' perspectives on the trends expected to impact their organization in 2026 and how the board is responding.
The survey shows that directors ranked “Shifting economic conditions” as the top trend for 2026. Other critical factors included AI, regulatory requirements, geopolitical volatility, growing business model disruptions, and the competition for talent. Taken as a whole, organizations are facing a convergence of long-term trends and short-term volatility as they aim to transform and grow.
In the face of these challenges and an unpredictable year ahead, the board's traditional role in the oversight of strategy development is expanding to emphasize execution. In doing so, directors are applying a more rigorous, sustained focus on how the organization will meet strategic goals in a fast-moving environment.
For example, the 2026 Governance Outlook Survey data shows that 60 percent of respondents rank “board oversight of strategy execution” as the top oversight improvement area for their board. The survey also shows how boards are adjusting their processes, with over 60 percent of respondents increasing strategy discussions in board meetings and more than 40 percent increasing dialogue between board meetings, increasing the time spent working with management to identify critical metrics to track, and increasing the time spent with the C-Suite and senior management.
As this data highlights, boards are engaging more with management as a Strategic Advisor or a “Sounding Board.” However, it is vital that directors do not cross the line into undue focus on operational issues or blurring the distinct board and management roles. The long-standing guidance to directors to provide oversight and ensure “noses in but fingers out” remains the rule. High-performing boards that provide additional value to the CEO and C-suite as strategic advisors do so with nuanced and real-world expertise.
Unlocking this value depends on an effective relationship between the CEO and the board, which we explored in our 2025 Blue Ribbon Commission Report. Drawing on the insights of CEOs and directors and a 25-person commission who had experience in hundreds of boardrooms, we identified trust as the key to enabling the board to provide effective and necessary oversight—and serve as an advisor to the CEO and C-suite.
Our research showed that when there is a strong trusting relationship, information flows early and openly, enabling both the speed and quality of decision-making. In these conditions, the CEO feels comfortable bringing emerging issues and ideas to the board early. The board, in turn, offers informed guidance and then allows management to execute without second-guessing. When trust is high, the board's collective experience is put to work for the company rather than spent on managing tensions. In short, as noted in the 2025 Blue Ribbon Commission report, “a strong relationship can be a powerful force multiplier for the organization or, if neglected or undermined, a significant impediment.”
The long-standing guidance to directors to provide oversight and ensure “noses in but fingers out” remains the rule. Highperforming boards that provide additional value to the CEO and C-suite as strategic advisors do so with nuanced and real-world expertise.
Board-CEO trust can be built through a framework with three phases:
• Build the trust foundation
The lead independent director or independent chair plays a critical role in establishing the trust foundation for the board-CEO relationship and cultivating the desired tone of engagement. The relationship should be anchored in clearly delineated board and CEO roles and responsibilities as set out in delegations of authority. In addition, the board and the CEO should explicitly define how they will work together and what each expects.
• Operationalize trust
Trust is demonstrated and reinforced through behaviors. Consistent and proactive communications between the board and CEO beyond formal meetings build transparency and trust. Other boardroom practices such as board and CEO evaluations, effective meeting and agenda management, and use of executive sessions support behaviors that strengthen the relationship.
• Leverage trust for strategic impact
Finally, to make these foundational steps effective, the board can maximize its value as a strategic advisor to the CEO by continually assessing board composition to align with strategy and value creation. This means, for example, each director's commitment to ongoing education to ensure they have strategic insights and knowledge to provide informed advice, especially on emerging issues and risks such as economic volatility, AI, and cybersecurity.
When trust is high, the board’s collective experience is put to work for the company rather than spent on managing tensions
The demands and expectations on directors and the organizations they oversee will continue to grow in 2026. In response, boards are increasing their engagement to support management teams navigating the challenges and opportunities ahead. The stakes are high, and the need for informed, committed, and rigorous governance is greater than ever.
Back to HomeAuthor
Mr. Peter Gleason
President & Chief Executive Officer - National Association of Corporate Directors (NACD), USA
Owned by: Institute of Directors, India
Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
