The evaluation of senior executives' strategy-making skills falls under whose responsibility?

The evaluation of senior executives' strategy-making skills primarily falls under the responsibility of the company's board of directors. This group is tasked with overseeing the overall direction and decisions made at the highest levels of the organization. A critical component of this oversight includes assessing the performance of senior executives, which encompasses their ability to formulate and execute effective strategies that align with the company’s goals and objectives.

The board plays a key role in ensuring that the company remains on track regarding its strategic vision and that leadership is competent in navigating challenges and opportunities in the market. By evaluating the strategy-making skills of senior executives, the board can ensure that leadership is equipped to drive the company’s success and can make informed decisions about the progression of the organization, including potential leadership changes if necessary.

While top management, departmental managers, and external consultants may provide insights or recommendations regarding strategic initiatives, the formal responsibility for evaluating executive strategy-making abilities lies primarily with the board, which has the ultimate fiduciary duty to shareholders and stakeholders of the company.