Engaging Boards in Corporate Direction-Setting: Strategic Scorecards

Moves by regulators to drive governance reform have cascaded across the globe. The U.S. Sarbanes-Oxley Act and the U.K. Combined Code are leading examples. The article discusses how boards can contribute to strategic conversations and share responsibilities for strategic management with the CEO and top teams. We discuss how tools like balanced scorecards can align the focus of directors towards future opportunities and risks. It is suggested that boards adopt a strategic scorecard as implemented by CIMA1 to engage in strategy. This holistic framework provides a common language and structure for top-level decision-making and leads to enhanced performance for stakeholders.