GRC Journal - (Page 74) FINDING THE RIGHT CONTROLS FOR SUCCESS: SAP SOLUTIONS FOR GRC A WhiTe PAPer ProviDeD By Business Strategy Company Policy internal Controls Performance management Figure 1: operationalizing Strategy Using Company Policy & internal Controls Strategy flounders, execution fails, and performance suffers when company policy and the control structures used to enforce the policy are misaligned with strategic objectives. Knowing which operational controls best support company goals can mean the difference between internal frustration and dysfunction and a well-run organization that consistently meets performance objectives. Executive Summary Profitable companies employ a variety of strategies to succeed in the marketplace. Some focus on cost containment, others on providing premium quality products. One company can target double-digit growth, while another seeks to continually release innovative products. The strategy a company chooses to follow must be underpinned by company policies and associated process controls that embed these policies within standard business processes. The company also needs a performance management system that tracks and reports on the effectiveness of controls and key performance metrics to ensure progression toward goals. Regardless of whether a company is focused on commanding market share or attaining the distinction of being the most innovative in its field, its corporate policies must support that strategy – or the organization will likely lose focus. This is a key element of corporate governance – using corporate policies to underpin strategy execution. Companies then enforce policy and achieve efficiency and effectiveness in their operations by embedding internal controls into their strategic business processes, controls known as operational controls, so that the controls are part of “business as usual.” The entire corporate governance process, from establishing business strategy to instituting operational controls, should be monitored using corporate performance management, as illustrated in Figure 1. When implemented correctly, corporate governance creates value by facilitating stronger alignment of strategic objectives, corporate policies, process controls and ultimately operational execution. 36 Business Trends Quarterly Technology Solutions. Business Strategy.
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