Governance of Strategy in Corporate Governance

Definition: Governance of strategy refers to the structured process

through which corporate strategies are developed, executed, and
monitored within an organization to ensure alignment with its
mission, vision, and stakeholder interests.

Key Elements:

Board Oversight: The board of directors plays a pivotal role in

governing the company's strategy. They approve strategic plans,
assess risks, and monitor execution.
Alignment with Stakeholders: Effective strategy governance ensures
that the company's strategic decisions consider the interests of
various stakeholders, including shareholders, employees,
customers, and the community.
Risk Management: It involves identifying strategic risks and
implementing risk mitigation strategies to safeguard the
company's long-term viability.
Transparency and Disclosure: Companies should communicate
their strategies, goals, and progress transparently to shareholders
and the public, promoting accountability.
Ethical Considerations: Governance of strategy should encompass
ethical standards to guide decision-making, ensuring responsible
and sustainable business practices.
Performance Evaluation: Regularly assess the performance of the
implemented strategies against predefined objectives and make
adjustments as needed.
Compliance and Legal Requirements: Ensure that strategies adhere
to all relevant laws, regulations, and corporate governance
codes.
Long-term Focus: Encourage a long-term perspective in strategic
planning, emphasizing sustainable growth over short-term gains.

Benefits:
• Enhanced Accountability: Governance of strategy holds
executives and the board accountable for strategic decisions and
outcomes.
• Risk Mitigation: Identifying and addressing strategic risks helps
prevent crises and protects the company's reputation.
• Stakeholder Confidence: Transparent strategy governance builds
trust among stakeholders, fostering investor confidence and
employee engagement.
• Sustainable Growth: A well-governed strategy contributes to the
company's long-term success and value creation.