Overseeing Strategy and Strategic Oversight
Companies find themselves in a fix in times of transformational change, when incremental changes in strategy fails to meet incremental changes in the environment. The only way to mitigate this problem is through
strategic oversight.
The need for
effective operation of internal controls and budgeting need not be overemphasized.
There is also need for a
strategy committee to be set up at the board level to ensure adequate monitoring of strategy. This committee has to meet at regular intervals to evaluate/review how much the company has gone in achieving its strategy, ask questions where necessary and make recommendations to management. A
CIMA strategic scorecard can also be of help.
This scorecard is a pragmatic and flexible tool designed to help boards to fulfil their responsibilities to contribute to and oversee strategy effectively. The CIMA card is a 2x2 matrix with 4 quadrants:
1. Strategic Position
2. Strategic Options
3. Strategic Implementation
4. Strategic Risks
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Comments
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Dr Robin C Hesler, Canada
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Overseeing Strategy and Strategic Oversight Thanks for the CIMA card, Hencho. In governance of organizations strategic oversight is part of the modern governance of knowledge and complimentary doctrine; this is a must.
HOW it is done may vary according to the model used, but it needs to be done as you suggest.
Also assessment of the "before" and "after" of each oversight area needs to be incorporated into the process through, as you suggest, internal monitoring control tools looking at cost, quality etc.
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