Corporate Strategies for Success
In an article appearing in the McKinsey Quarterly, Dennis Carey explains the need for boards to focus their energies on creating corporate strategies for success. As Carey writes:
“As companies turn their attention from compliance to growth and innovation, boards must focus on strategy.”
Several years ago new accounting compliance rules were established by landmark congressional legislation, the Sarbanes-Oxley Act. Due to this comprehensive law corporations were forced to turn inward for a time to retool their companies to better comply with legislation.
As Dennis Carey observes in his article,
“Now, by and large, boards have come to terms with the new governance rules, and it’s time to move on.”
Moving on means that instead of boards attending to compliance, it is time to refocus and attend to ways to create to link, “a board’s human capital to the long-term strategy crafted by management to create more value for shareholders.” This, according to Carey, “should be the next wave of governance reform.”
Tags: dennis carey, Sarbanes-Oxley Act