Strategic Dimension

Abstract

We propose four main preconditions for success in developing, implementing and controlling corporate strategy (see Fig. 3.1): (1)Diversity: strategically targeted composition of the board team(2)Trust: constructive and open‐minded board culture(3)Network: efficient board structure and(4)Vision: stakeholder oriented board measures of success These four components have to be integrated in a process as shown in Fig. 3.2. At each of the different levels, success measures are established relating to the important stakeholder groups, and then the responses of members of those stakeholder groups are measured periodically to assess the performance of the company leadership. Anglo‐Saxon researchers have been studying the relationship between corporate governance and firm success. A study conducted at the University of Basle in Switzerland confirms that higher share price and lower cost of capital are directly linked to good corporate governance (Beiner, Schmid and Zimmerman, in Noetzli 2004, p. 24; cf. Revelle 2009).