Business Advisory Services
Strategy, Planning and
Monitoring
It is necessary for a Board to have well defined
strategies and objectives to be able to achieve its
goals. A Board must monitor how its strategies are
implemented and pursued as well as evaluate and
review them regularly.
PwC believes strategic planning and monitoring will
assist organisations to achieve their goals in a more
efficient and secure manner and is an essential part
Are your organisation’s of good corporate governance.
vision and mission
statements relevant to Vision, strategy and monitoring
the business operation Vision and Mission
and endorsed by all The vision and mission of an organisation should be determined by the Board of
Board members? Directors and driven by either the Chairman or the Managing Director. It is important
that an organisation’s vision and mission are practical and relevant to its operation,
and are endorsed by its employees.
An organisation’s vision and mission should support the desired corporate culture
Are your organisation’s and ethos, encourage the intended level of innovation and risk taking, and attract the
strategies and business continuing support of all stakeholders.
plans adequately The organisation’s vision and mission should also be sufficiently challenging yet
realistic, and survive changes in Board membership.
implemented and
reviewed regularly? Strategic / Corporate Plan
The Board should design the organisation’s strategies and long and medium-term
goals in cooperation with management when necessary. Goals should be set for
Do business plans and individual corporate units as well as for the organisation as a whole.
strategies exist for The Board should design a financial plan that reflects particular goals and
contributes towards achieving them.
different parts of your
The Board should also design risk strategies related to the organisation’s overall
organisation? policymaking.
Monitoring and Evaluation
The Board should put measures in place to regularly monitor the implementation of
the organisation’s strategies and plans. To facilitate such monitoring it would be
advisable to implement efficient compliance processes designed to fill the
organisation’s needs. Such risk management requires that the Board gather all
relevant information and identify and explain discrepancies between planned and
actual performance.
The Board and management should introduce adequate strategies and planning,
and evaluate them regularly, taking into consideration the organisation’s projects,
goals and values.
pwc
Our Experience
Strategic Planning
Contacts
PwC believes that strategic planning should involve those who implement it. The
organisation’s management is in charge of the daily operations and can identify
important issues that need to be included in the strategy formulation, such as
customer preferences, quality issues, employees and so on. Halldór Þorkelsson
Head of Business Advisory Services
The Board should keep this in mind: + 354 550 5229
y Recognise that past trends may not simply be extrapolated into the future [Link]@[Link]
y Incorporate input from external specialists when appropriate
y Evaluate the probabilities of risks in different future projections
Ólafur B. Kristinsson
y Incorporate risk management State Authorized Public Accountant
+ 354 550 5338
y Set performance objectives and compare them with other relevant companies
[Link]@[Link]
Business Plans / Annual Budgets
The Board should determine business plans and strategies for different parts of the Hrafnhildur Ragnarsdóttir
organisation that are consistent with corporate strategy and reviewed regularly. Consultant / MSc Comparative Politics
Business plans should reflect the business operation and recognise changes in + 354 550 5367
know-how and innovation. They should be governed by specific action-based and [Link]@[Link]
dated milestones and supported by appropriate project plans and management
reports.
There should be a sufficiently detailed annual budget that includes adequate
comparisons between actual, historical and budgeted expenditures and detailed Ragnar Þ. Jónasson
Consultant / Legal Advisor
explanations obtained for all significant variations.
+ 354 550 5360
[Link]@[Link]
Management Performance Monitoring and Assessment
The Board should delegate authority to management and monitor and evaluate the
implementation of policies, strategies and business plans. The Board should
examine the organisation’s successes and variations, analyse the causes and
consequences of why goals have not been achieved and react appropriately in each
case.
The Board should underpin management’s commitment and support for strategies
and plans to ensure positive results. Performance evaluation is an important aspect
of strengthening and encouraging management to implement and pursue the
organisation’s strategies and plans.
What can PwC do for you
PricewaterhouseCoopers emphasises that strategic planning and monitoring will
result in a more efficient and transparent business operation. PwC consults
businesses in implementing robust information and communication systems,
internal control, risk management and improved managerial work procedures, all of
which are important aspects of good corporate governance.
This publication has been prepared for general guidance on matters of interest only, and does not constitute
professional advice. You should not act upon the information contained in this publication without obtaining
specific professional advice. No representation or warranty (express or implied) is given as to the accuracy
or completeness of the information contained in this publication, and, to the extent permitted by law,
PricewaterhouseCoopers LLP, its members, employees and agents accept no liability, and disclaim all
responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the
information contained in this publication or for any decision based on it.
© 2006 PricewaterhouseCoopers LLP. All rights reserved. ‘PricewaterhouseCoopers’ refers to
PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context
requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate
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and independent legal entity.
