Performance Management strategy and governance for oversight, compliance, sustainability, objectives, alternatives, operations, people, and ERM.
Strategy and Governance is the broad decision layer of Performance Management. Candidates should connect mandate, oversight, compliance, alternatives, operations, people, and enterprise risk to implementation-ready advice.
flowchart LR
A["Mandate"] --> B["Governance"]
B --> C["Strategy options"]
C --> D["Risk and people"]
D --> E["Implementation recommendation"]
Use this chapter as the strategic judgment layer. The answer should not stop at naming a framework; it should explain what the framework means for governance, risk, behaviour, resources, stakeholder impact, and implementation.
| Section | Main question | Study focus |
|---|---|---|
| 2.1 Governance Structure | Does the governance structure support effective oversight and accountability? | Board composition, committees, independence, diversity, role clarity, and accountability. |
| 2.2 Board Information | Does the board receive information and incentives that support stakeholder interests? | Board packages, relevance, compensation policy, incentives, conflicts, and governance response. |
| 2.3 Compliance | Are policies, ethics, regulators, and reporting structures making compliance visible? | Processes, procedures, ethical expectations, escalation, regulator contact, and monitoring. |
| 2.4 Sustainability | Does sustainability align with board responsibilities and strategy? | Social responsibility, values, stakeholder effects, targets, reporting, and accountability. |
| 2.5 Mission Alignment | Does the recommendation fit mission, vision, values, and mandate? | Decision criteria, strategic fit, constraints, stakeholder promises, and recommendation compatibility. |
| 2.6 Objectives & Measures | Do measures reinforce the objective without creating harmful behaviour? | Strategic objectives, KPIs, social measures, controllability, data quality, and incentives. |
| 2.7 Environment Scan | Which internal and external facts should change strategy? | Market insight, life-cycle position, value proposition, key success factors, and capability gaps. |
| 2.8 Strategy Integration | Does the choice fit across functional, entity, corporate, and public-sector levels? | Strategic layers, public value, resource fit, stakeholder effects, and implementation capacity. |
| 2.9 Alternatives | Which strategic alternative best fits objectives, constraints, and risk? | Ownership structures, investments, divestitures, alliances, acquisitions, and criteria. |
| 2.10 Operations | What operational or accountability weakness blocks execution? | Policies, controls, decision rights, information flow, owners, and monitoring. |
| 2.11 People & Culture | Which people, culture, or structure issue affects implementation? | HR barriers, culture, organizational structure, strategy maps, incentives, and change actions. |
| 2.12 Enterprise Risk | Are enterprise risks identified, tolerated, owned, and monitored? | ERM scope, risk tolerance, exposure, response strategy, ownership, and indicators. |
Read each section as a management recommendation task. Identify the objective, stakeholders, information need, measure, alternative, risk, behaviour effect, and implementation step. Performance Management rewards candidates who turn frameworks and calculations into usable decisions.
| Trap | Better response |
|---|---|
| Naming a framework without applying it. | Tie the framework to case facts, criteria, and recommendation. |
| Treating measures as neutral. | Explain the behaviour each measure will encourage. |
| Recommending without implementation. | State owner, timing, control, KPI, and follow-up action. |