Strategy: More than a board game

FAILING to plan, as the adage goes, is planning to fail. That is why it is essential for a company to have a solid strategy for success.

Yet the 2013 McKinsey Global Survey on Governance revealed that a mere 34 per cent of 772 directors understood their companies' strategies. This may not seem alarming as boards generally spend most of their time on compliance matters rather than strategy.

However, the board is ultimately responsible for the company's long-term success. Section 157A of the Companies Act states that "the business of the company shall be managed by or under the direction of the directors". It is therefore important for the board to understand and influence the company's strategy.