Dr Newton Demba
IN today’s rapidly evolving business landscape, organisations must develop and execute effective strategies to maintain a competitive edge.
Strategy development is a complex process that requires collaboration and clear accountabilities among various stakeholders.
This article outlines the hierarchy of accountabilities in the strategy process, highlighting the roles and responsibilities of the management team and the board of directors.
Strategy generation
The management team is responsible for strategy development, leveraging their industry expertise, experience and market insights to craft and propose strategic plans to the board of directors.
This stage is critical, as it sets the foundation for the organisation’s future direction.
The presence of board members at this stage is not recommended, as it can inhibit open discussion and create undue influence.
Collaborative strategy refinement
Once the management team has finished crafting the strategy, the board of directors is invited to participate in the debate session.
This critical stage in the strategy development process brings together the board and management team to discuss, challenge and refine the proposed strategy.
The debate session aims to critically evaluate the proposed strategy, identifying its strengths, weaknesses, opportunities and threats.
Through collaborative discussion, the board and management work together to refine the strategy, addressing concerns and incorporating new insights.
Ultimately, the goal is to ensure the board is aligned with the proposed strategy and committed to supporting its implementation, resulting in a comprehensive and refined strategy that incorporates the board’s feedback and insights.
Strategy approval and ownership
The board of directors formally approves the refined strategy and assumes ownership of its implementation.
The approved strategy is communicated to all stakeholders, including employees, customers, investors and partners.
Strategy implementation
The implementation stage marks the transition from strategy development to action, where the approved strategy is executed and the organisation begins to realise its strategic objectives. During this stage, the CEO and management team are accountable for implementing the approved strategy, ensuring that plans and initiatives are executed effectively.
Strategy review
The strategy review stage is a critical component of the strategic management process.
This collaborative review, conducted jointly by the board of directors and management, evaluates the organisation’s strategy to ensure it remains effective and aligned with the organisation’s mission, vision and values.
Through this review, the board and management assess the strategy’s effectiveness, identify areas for improvement and consider the impact of external environmental changes.
This process informs necessary adjustments to the strategy, ensuring it remains relevant and effective.
Strategy oversight
“I start with the view that the final responsibility for the future of the company depends upon the board as a whole and, therefore, the direction in which the company is to be led is the unique responsibility of the board.’’ — Sir John Harvey Jones
The board of directors is responsible for providing strategic oversight, establishing clear metrics and monitoring systems and holding the CEO and management team accountable for implementing the approved strategy.
The board cannot delegate this responsibility and must ensure that the organisation’s strategy remains relevant, effective and aligned with its mission, vision and values.
In conclusion, effective strategy development requires clear accountabilities and collaboration among stakeholders.
By understanding the hierarchy of accountabilities in the strategy process, organisations can ensure that their strategies are developed and implemented successfully, driving sustainable growth, innovation and success.
The management team and the board of directors must work together to develop and implement effective strategies that align with the organisation’s mission, vision and values.
*Newton Demba is a management consultant, non-executive director and an adjunct lecturer at the University of Zimbabwe in the Faculty of Business Management Sciences and Economics. He writes in his personal capacity. For feedback; [email protected] or +263784166296
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