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CIMA has made a major contribution to an innovative study on the causes of corporate success and failure by producing the 'Strategic Scorecard'.

CIMA is playing a key role in improving corporate governance by joining forces with IFAC (International Federation of Accountants) to release an original report on the emerging concept of enterprise governance.

The published report, Enterprise Governance: Getting the Balance Right will include an indepth analysis of corporate successes and failures in 27 case studies in 10 countries. This leads to several valuable conclusions about the causes of each example/case.

As part of this report, CIMA has produced a Strategic Scorecard to address the strategic oversight gap and avoid the sort of strategic failures that were apparent in the case studies.

The Strategic Scorecard is a pragmatic means of addressing the strategic oversight gap. It has four basic elements: strategic position (information for the board, no decision points), strategic options (how the board considers decision points on change), strategic implementation (measuring how well the strategy is being implemented) and strategic risks (what can go wrong and what must go right).

Bill Connell, Chairman of IFAC's Professional Accountants in Business (PAIB) Committee and Chairman of CIMA Technical Committee, said: The Strategic Scorecard is a pragmatic tool to assist boards to:

* have an oversight of a company's strategic process;

* deal with strategic choice and transformational change;

* give a true and fair view of a company's strategic position and progress and

* track actions in, and outputs from, the strategic process, but not the detailed content.

He said: "The tools and techniques that can be used to ensure effective enterprise governance, such as the Strategic Scorecard are very much the domain of the professional accountant in business. The challenge is to ensure that the quality of data being delivered to the board is accurate, timely and comprehensive as these tools are worthless without them."

"We do not pretend to present a guaranteed formula for success. However, greater attention paid to strategic oversight, through the use of the Strategic Scorecard, will go some way towards ensuring effective corporate governance and performance. We look forward to and will welcome working with organisations who would like to adopt the Strategic Scorecard approach," he said.

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