BU Research Blog

The strategy work of boards of directors has been a puzzle in the corporate governance literature for a long time. But the picture is becoming clearer, thanks to a paper soon to be published and co-written by a Master’s graduate and staff member in the Faculty of Management at BU.

After the financial crisis the work of boards became especially pertinent, for companies and public policy. Some boards — think of Royal Bank of Scotland and HBOS — manifestly failed both in strategizing  and in monitoring the performance of managers. The shortcomings contributed to a long, global economic malaise. Margaret Concannon earned an MSc in Corporate Governance with Distinction at BU in 2015 with a dissertation that examined how the work of boards has changed. Now, writing with Donald Nordberg, Associate Professor of Strategy and Corporate Governance, her study has become a journal article, due to appear soon in European Management Journal.

Their paper, “Boards strategizing in liminal spaces: Process and practice, formal and informal,” shows how the theory of liminality, developed in anthropology to study rites of passage and adapted in organisation studies, can explain how, after the crisis, the increasingly hierarchical nature of the monitoring work of boards has pushed often strategy off the formal agenda. But strategizing has emerged again in new, informal settings and spaces, where the creativity possible in liminality can reassert itself. The paper explores what benefits that brings — and what risks.