Politics and policy need to be higher on the agenda of American CEOs. The ramifications of trade, taxation, and regulation are too great to be neglected, or even delegated. As notable cases show, companies are far better off working to influence the process than responding to the result. This calls for more direct effort on the part of CEOs, and for companies to recruit and develop leaders with deep policy experience.
Today's boards will be expected to watch over an organization's various risks, while at the same time help corporate management develop strategies to cope with regulatory and policy issues. It is more important than ever for nominating committees to consider candidates with strong backgrounds in government policy making.