The central question addressed is: how do boards plan and align their activities to fulfil stakeholder requirements? To answer this question the research investigated extant literature and conducted an interview based study to assess how boards of directors plan their board strategy and conduct performance management incorporating stakeholder requirements.
The study was motivated by the need for improvement in boards, that is, by the need to improve both the way they plan a board strategy and the way they conduct an effective performance management that is closely linked to the satisfaction of stakeholder requirements. The purpose of this study was to assess how this is done today, to understand why it is done this way, and to propose how it can be done better in future.
This is a qualitative study based on the grounded theory methodology. Interviews were conducted with participants who chair a total of 36 boards and hold 65 seats as ordinary board members at Swiss medium sized companies in several sectors. The interviews were analysed to understand which methodology would be appropriate to plan a board strategy and to conduct board performance management. The analysis also revealed the phenomenon why chairmen usually do not plan a board strategy - even though they admitted that such a strategy might be useful. Further, a grounded theory was able to be developed.
The main claims based on the findings of this study are: a) The strategy-map and BSC are indeed appropriate to plan a board strategy and to conduct board performance management, and b) In this study a grounded theory was developed that explains why chairmen, being on top of the company, usually do not apply well-known methods to formally plan a board strategy. The cause of this behaviour seems to be founded in the chairman’s willingness to develop themselves or not.
Contents
1 Introduction
1.1 Rationale for the research
1.2 Board strategy and performance management in the context of corporate governance
1.3 Significance of topic
1.4 Aim of study
1.5 Research objectives
1.6 Research questions
1.7 Central question and review questions
1.8 Outline of the dissertation
1.9 Summary
2 Literature review
2.1 Introduction
2.2 Research into frameworks for board strategy and performance management
2.3 To what extend is the framework under investigation useful to develop a board strategy and why?
2.4 How is board performance monitored and why is the described approach effective?
2.5 The strengths and limitations of the evidence
2.6 Conclusion
3 Research methodology
3.1 Introduction
3.2 Research questions
3.3 Research onion
3.4 Research philosophies
3.5 Research paradigm
3.6 Research approach
3.7 Research design
3.8 Research strategy of grounded theory
3.9 Research methods
3.10 Data collection through semi-structured interviews
3.11 Data analysis according to grounded theory
3.12 Ethical considerations
3.13 Limitations of research design
3.14 Summary
4 Findings and analysis
4.1 Introduction
4.2 Findings of initial and focused coding
4.3 Theoretical saturation
4.4 Grouping and sorting
4.5 Integration
4.6 Verification of the grounded theory
4.7 Answers to questions
4.8 Impact of findings to the initial conceptual framework
4.9 Summary
5 Conclusion and recommendation
5.1 Conclusion
5.2 Overall success of research
5.3 Recommendations and impact of study
5.4 Degree of certainty and generalisation
6 Personal reflection and development
6.1 Introduction
6.2 What went well
6.3 What went badly
6.4 What would I do differently if I were to do it again
6.5 Frameworks learned for future use and professional development
6.6 Conclusion
7 Appendix I
7.1 Initial interview questions
7.2 Final interview questions
8 Appendix II
8.1 Excerpt of initial codes
9 Appendix III
9.1 Sample participant invitation
9.2 Sample consent letter
10 Reference list
11 Bibliography
11.1 Additional literature of other background reading:
11.2 Literature equal to reference list:
Research Objectives and Themes
The study explores how boards of directors in Swiss medium-sized companies plan their board strategy and manage performance to satisfy diverse stakeholder requirements, ultimately seeking to propose a more effective, stakeholder-driven methodological framework.
- Analysis of board strategy planning processes and existing management frameworks.
- Investigation into how boards monitor and evaluate their own performance.
- Identification of the underlying reasons why chairmen often do not apply formal strategic methodologies.
- Development of a grounded theory regarding board behavior and decision-making dynamics.
Excerpt from the Book
4.2.1 No board strategy?
This first point stands in quite a contrast to the other points. The assumption of the author had been, that most boards do plan a board strategy explicitly. The question only seemed to be, how they plan it. Against this background the research question was formulated like this:
‘How do BoD develop their own board strategy?’
However, the results have been quite vexing, because neither of the participants had ever heard of the term ‘board strategy’ before nor was it clear to them what was meant by it at the beginning of the interview. All interviewees started to talk about the corporate strategy when they had actually been asked to talk about how they plan their board strategy. This has been captured in the initial codes: ‘Not knowing about a formal VR strategy’ an ‘Not distinguishing between board and corporate strategy’. Examples of statements relating to these codes are:
‘Not knowing about a formal VR strategy’
“I don’t know of any such papers that are labeled with the term Board-Strategy.”
“Don’t take this the wrong way but this doesn’t mean much to me.”
“Well, I don’t actually know the term Board-Strategy.”
“Honestly, I have never heard, I have never come across a formal strategy for a board. A written down strategy for a board? No.”
Chapter Summaries
1 Introduction: Provides the rationale for the study, focusing on the lack of formal board strategy planning in Swiss SMEs, and outlines the research objectives and questions.
2 Literature review: Analyzes existing theories on board effectiveness, strategy-maps, and balanced scorecards, identifying a research gap regarding actual board practices.
3 Research methodology: Describes the choice of grounded theory, the use of semi-structured interviews, and the constructivist approach applied to data analysis.
4 Findings and analysis: Presents the primary empirical findings, detailing the emergence of the grounded theory 'Being on top substitutes methodology' based on participant interviews.
5 Conclusion and recommendation: Summarizes the key insights, confirms the success of the research, and suggests future avenues for training and implementation in board governance.
6 Personal reflection and development: Reflects on the author's learning journey, challenges in applying grounded theory, and improvements in critical research skills.
Keywords
board of directors, board strategy, board performance management, strategy-map, balanced scorecard, board scorecard, corporate governance, grounded theory, qualitative research, Swiss SMEs, stakeholder requirements, board effectiveness, management practices, chairman, strategic planning
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation examines how boards of directors in Swiss medium-sized companies plan their board strategy and manage their performance, particularly in relation to meeting diverse stakeholder requirements.
What are the central thematic areas?
The research explores board effectiveness, the practical application of strategy-maps and balanced scorecards, the influence of the chairman's attitude, and the governance processes within non-listed companies.
What is the primary research goal?
The aim is to assess current practices and develop a method or holistic framework that incorporates both internal and external stakeholder requirements into board strategic planning and performance management.
Which methodology was chosen for this study?
The study utilizes a qualitative research methodology based on Grounded Theory, specifically the constructivist approach as advocated by Kathy Charmaz.
What does the main body cover?
The main body includes a thorough literature review of governance frameworks, a detailed methodology section, and an extensive analysis of interview data collected from chairmen of boards.
Which keywords characterize this work?
Key terms include board of directors, board strategy, balanced scorecard, corporate governance, grounded theory, and stakeholder management.
What phenomenon did the author discover regarding board strategy?
The author discovered that most experienced board chairmen are not aware that they are planning a board strategy, leading to the core phenomenon titled 'Being on top substitutes methodology'.
Why do chairmen often fail to use formal strategic methods?
The research suggests that this behavior is driven by a 'force of habit' and the chairman's willingness to develop, where reliance on past experience ('being on top') replaces the use of formal strategic methodologies.
- Arbeit zitieren
- Mike Portworsnick (Autor:in), 2016, Board strategy and performance management at Swiss medium sized companies. A proposal for a stakeholder driven approach, München, GRIN Verlag, https://www.grin.com/document/341958
