Black Book Insights

Finance, Strategy

Boardroom Briefing: Governance Questions for Reshoring Moves

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What problem are we solving—cost, risk, speed, or brand? Boards should demand a crisp thesis with measurable outcomes: lead-time targets, FPY goals, DIFOT improvements, scope-3 reductions, and cash-to-cash compression.

Do we have the right operating cadence? Weekly exec Gemba, monthly KPI reviews, and quarterly supplier summits must be rituals, not aspirations. Governance fails when the calendar does.

Where is our IP most exposed? Require a map of firmware signing, key custody, test data, and build documentation. Reshoring should concentrate secrets under enforceable controls—prove it.

What is our talent plan by competency, not title? Ask for ladders with pay deltas, apprenticeship partnerships, and time-to-competency forecasts. If supervisors aren’t trained to coach, automation ROI will stall.

How are incentives sequenced and documented? Grants, credits, and rebates should have owners, milestone charts, and audit packets. Boards should see variance to plan as clearly as they see production variance.

What are the first three supplier co-investments? Bottlenecks live in tier-2 and tier-3 special processes. Insist on a short list with money and dates—even small gages or fixtures can unlock yield.

How will we handle the offshore unwind? Request a triage plan for tooling, people, customers, and contracts. Reputation is an asset; protect it with transparent timelines and service continuity abroad.

What’s the stop rule? Define red-line metrics that trigger redesign, pausing scale, or calling in external help. Good governance knows when to accelerate—and when to pivot.