Strategic Management and Governance
Strategic Management and Governance
The board of directors should be able to improve their effectiveness by taking the responsibility of measuring the performance of the organization with the generally set balanced measures. Most of the successful organizations usually check the value of the customer or client and the engagement of the employees with the organization’s financial outcomes. Being able to check on the customer value enables an organization to identify the developing trends at an early stage. Employees with good work ethic and a good team work enables the organization to deliver good and high quality of goods or services. Hence a board that makes sure that the above have been met achieve effectiveness because they are able to identify the enterprise performance (Grant, 2016).
As shared by (Rothaermel, 2015), the board can be effective, is when they have their dashboard indicators set up for purposes of review when they hold their meetings. This involves having a report system that is easy to grasp in order to achieve a balanced measure. Through this it is easier for them to grasp information since it will be indicated monthly on the set of indicators. Thus the initiative assists the board members to have a report that gives them the ability to access the overall performance of the company and find out the areas that need more attention. It is thus advisable that the board should have approximately five to seven indicators for each balance measure in the report.
According to (Grant, 2016), the board should also include an approximate of 75% the company’s agenda in their strategic objectives. This would reduce time wasting especially when it comes to dealing with consent agenda or agendas that require certain standard requirements or actions, giving out informative knowledge and the reports that do not need discussion. Doing this allows the board to have more time to deal with the important needs in the company that are either in finances, planning for the company, the leadership and the management of resources. Lately, the environment in business has been evolving thus the board should also be active in bringing in strategic changes for them to remain important in the business.
(Frias‐Aceituno & Rodriguez‐Ariza, 2013) shares on how the board members should be given the opportunity to expound on their knowledge and capabilities for their growth and the growth of the company. The board rarely have free time and their constant business trips does not give them the budget to expound on their education. Thus frequent training or developmental meetings should be allocated for them. An example is when they go for a workshop training over the weekend or they can discuss an article on a certain important matter and discuss how they can be better and what they should improve as a board. Through this, the management and leadership in the company will have improved (Grant, 2016).
According to (Rothaermel, 2015), the board should have a short preview or tutorial on the company’s product or service in every meeting. This is essential because it gives them the knowledge and the current progress of the company. Through this, the board also have the opportunity to mingle with the management and the people behind the progress on the company’s product or service. This initiative gives them the chance to conduct an evaluation on the leadership and management in the company as well as the performance of the company and the effectiveness of their product or service. This is advantageous because they would feel involved in contributing to the success of the company.
Rules concerning the interaction of the board should be created. As shared by (Grant, 2016), a board that is accustomed to certain conditions are usually very skeptic when it comes to making decisions, communicating and making relations with people and controlling and managing the different ideas and opinions and conflicts. When a board has set a certain level of expectation that restrict freedom in employees and initiate rules on how the employees and officers should interact with the board during meetings often work well and as desired.
FT Rothaermel. (2015), Strategic management
RM Grant. (2016), Contemporary strategy analysis
JV Frias‐Aceituno, L Rodriguez‐Ariza. (2013),The role of the board in the dissemination of integrated corporate social reporting
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