Increased scrutiny by a range of interested stakeholders is prompting many boards to explore how robust their strategic process is. For listed entities, regulators require evidence of compliance and have extended their interest to incorporate a broader governance agenda. Positioned as good practice for all, the agenda has been tailored for large private companies into the Wates Principles. For public and third sector entities, standards bodies provide inspection regimes.
Investors expect to make informed choices and seek assurances that they have a true and fair picture of organisation performance and aspirations. Talent is attracted to organisations that clearly position their strategic intentions and report on their delivery.
When health checking their strategic process, boards may choose to consider the following:
Inputs - board intelligence
Specification - asking the right questions and requesting the exploration of alternatives.
Collation - triangulating sources to increase confidence and including big data and human intelligence.
Clarity - ensuring that assumptions are explicitly stated.
Process
Timing - building on the board rhythm.
Urgency – determined by the level of dynamics in the wider world and market places
Order - sequencing activities to recognise appropriate involvement and sustain focus and momentum through time.
Involvement - building engagement through conversations between horizon scanners and those with operational insight. Ensuring respect for different perspectives and perceptions.
Outputs - decision and tracking
Aspiration - developing a storyline to explain the journey to the future.
Evidence - showing how decisions have been arrived at.
Metrics – choosing the few lead strategic metrics which will clearly show progress and behaviour.
Most critically, a robust strategic process requires the commitment of all members of the board and the teams who enable them to govern effectively. It takes time to align individuals and build common purpose. Failing to ensure that alignment before health checking your process will deliver flawed results.
And for the curious, the picture shows the ward of Samson and Bryher, from whence the ballot boxes have finally been collected to enable the last UK General Election result to be declared.
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