cgma strategic scorecard t1 final

7/28/2019 Cgma Strategic Scorecard t1 Final

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H t im

as ctiss:Tl - CIMA

Statgic Scca

CGMA TOOLS


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CIMA STrATeGIC SCOreCArd

This tool was developed to help boards o any

organisation to engage eectively in the strategic

process. It recognises that boards struggle to engage

in strategy or the ollowing reasons:

lack o time and crowded agendas

inormation overload

lack o robust processes at board level or dealing

with strategy

greater complexity o business.

The scorecard is designed to provide a simple buteective process that helps the board to ocus on the

key strategic issues and most importantly to ask

the right questions. This means that the board can

work constructively with management to promote

the uture success o the organisation. It can help

ensure a high-level perspective on strategy, thus

avoiding the comort zone o detail.

The uniqueness o the ramework is that it:

Summarises the key aspects o the environment

in which an organisation is operating to ensurethat the board is aware o changing competitor,

economic and other actors.

Highlights the risks and opportunity acing the

board in its strategic endeavours and moves these

into manageable plans.

Identies the major strategic options that could

have a material impact on the strategic direction o

the organisation and helps the board to determine

which options will be developed and implemented.

Charts or the board the signicant steps or

milestones in relation to the chosen strategic plans

to be achieved in the coming period and then

tracks perormance against these.

The ramework o the scorecard has evolved over

time and indeed is fexible enough or organisations

to modiy it to meet their needs. What really

matters is that strategy and risk must be deal with

in an integrated way at board level and that the

board dedicates sucient time to issues such as

determining its risk appetitive and developing

strategic options.

The ramework is shown in Figure 1. It shows the

organisations business model at the heart o the

ramework, and how this relates to the external

environment and leads to the generation o risks and

opportunities. Options can be derived rom these

and then implemented.1

How To IMprove your boArdS eeCTIveneSS: Tl - CIMA Statgic S cca2


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The scorecard ramework helps the board to determine

what inormation they need to address each aspect o

strategy. Based on the inormation received, the boardcan then ask challenging and searching questions;

depending on the answers, the board can determine

whether it is satised, whether action needs to be taken

and/or whether it needs to explore a specic issue in

more depth, perhaps by reerring to the more detailedsupporting analysis and whether urther discussion is

required in a uture board meeting.

FIGUre 1: CIMA Statgic Scocad

Options

Qalit cisis (as isight/al)

rt istmt (roI)

balac sht/lg tm(sstaial t siss)

External environment

Cmtiti

Sstaiailit

rtati

Tchlg

ecmic/glalisati

Scial/mgahic

Ists

Strategic risks/opportunities

black sas/kk isks

Makt chag

Mgs a acqisiti

Scai laig/tisk assssmts

Iati

Business model how do

we make money?

val chai

Ct statg a sissla clait/c cmtcis

Clt-als a mac-as

Talt

Assts/ liailitis

Implementation

pct lmt

Cstm satisacti

Qalit

Cst lashi/icig

pjct maagmt KpIs a alig ictis

Sstms/css/atial isks

Results

Impa

ct


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4 How To IMprove your boArdS eeCTIveneSS: Tl - CIMA Statgic S cca

Options

1. A ths tis csistt ith

th statgic siti a isk atit?

2. wh ha ths tis slct a ths jct?

3. A th th tis shl csi?

Some key questions to ask about each key aspect o strategy include:

FIGUre 2: Ky qustions boads should ask

External environment

1. ds th sitati aalsisc all th cssa isss?

2. d t lk at aasct i m tail?

3. H lial a igs isth imati?

Strategic risks/opportunities

1. A lkig at th ightstatgic isks, icligtati (a th iiialisks a isks i cmiati)?

2. what titis a aailal t s?

3. what isks a a ttak i sit jctis?

4. what scs a cmtcis t l?

Business model how do

we make money?

val chai

Ct statg a sissla clait/c cmtcis

Clt-als a mac-as

Talt

Assts/liailitis

Implementation

1. A ha ith gss

a s xt sts?2. A th a actis

t tak t ass alms?

3. A sig that la lsss m mistaks?

Results

Impa

ct


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Th Assciati Itatial Ctif pssial Acctats, ajit t AICpA a CIMA, stalish th CGMA sigatit lat th ssi maagmt acctig glall.

SM

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Chat Istitt Maagmt Acctats26 Chat Stt

L Sw1p 4npuit KigmT. +44 (0)20 7663 5441. +44 (0)20 7663 5442

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Mach 2012

CIMA has fcs i th llig lcatis: Astalia, baglash, btsaa, Chia,Ghaa, Hg Kg SAr, Iia, Ila, Malasia, nigia, pakista, pla, rssia,Siga, Sth Aica, Si Laka, uAe, uK, Zamia, Zima.

cgma strategic scorecard t1 final

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