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