Which governance principle applies when a medical group's board asks the administrator to clarify who has authority over strategic direction?

• A. Board authority over strategy
• B. Management authority over strategy
• C. Operational control by committees
• D. External oversight

Answer: (A)

The key idea is that strategic direction is a board responsibility, with management implementing it. When the board asks the administrator to clarify who has authority over strategic direction, it shows that the board is asserting control over strategy decisions. This ensures clear accountability and alignment with the organization’s mission, with management carrying out the approved direction. The other options don’t fit because they shift or dilute who ultimately decides strategy (placing it with management), focus on day-to-day operations within committees, or refer to external monitoring rather than the internal authority to set strategy.