Details

  • Service: Advisory
  • Date: 12/24/2013

Board Advisory Services 

The establishment of a robust governance framework requires Boards to balance their attention on monitoring executive activity (conformance) and contributing to the development of strategy (performance).

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While the conformance dimension of governance is a relatively easy concept that has been well understood by many; the performance dimension is more abstract and subjective which may not be easily assessed with a regime of standards, rules and regulations. Unlike the conformance dimension which focuses on value preservation, the performance dimension focuses on strategies and value creation. The two dimensions of the governance framework, performance and conformance, should be appropriately balanced.