Improving strategic oversight: the CIMA strategic scorecard

Enterprise governance is an emerging concept which emphasizes the importance of balancing the corporate governance and performance management aspects of the organization. In the light of recent corporate scandals, there has been considerable pressure worldwide to improve standards of corporate governance through new codes of best practice and legislation. While necessary, there is a danger that with so much attention on control issues, the need for companies to create long‐term wealth and to pursue the right strategies to achieve this is overlooked. Research has shown that a particular challenge for boards is to maintain effective oversight of the company’s strategic position and progress. In response to this “gap” in oversight, The Chartered Institute of Management Accountants has developed a strategic scorecard. The scorecard is currently under development but is introduced here as a potentially valuable strategic management framework.