Linking governance to strategy: the role of the finance organization

Strategic Direction

ISSN: 0258-0543

Article publication date: 21 March 2008

Keywords

Citation

Busco, C. (2008), "Linking governance to strategy: the role of the finance organization", Strategic Direction, Vol. 24 No. 4. https://doi.org/10.1108/sd.2008.05624dad.002

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited


Linking governance to strategy: the role of the finance organization

Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 4.

Linking governance to strategy: the role of the finance organization

Busco C., Giovannoni E., Riccaboni A., Franceschi D., Frigo M.L. Strategic Finance, September 2007, Vol. 89 No. 3, Start page: 22, No. of pages: 7

Purpose To describe the finance organization’s role in linking governance to strategy at GE Oil and Gas. Design/methodology/approach Outlines calls by professional bodies for corporate governance to include strategic perspectives, recognizes that finance professionals have been given greater corporate governance responsibilities (e.g. by the Sarbanes-Oxley Act) and describes how they help to link governance to strategy at GE. Lists the key principles of its controllership initiative and illustrates the meetings and business processes which link finance with operations and business leaders with corporate officers to produce an operating plan. Explains the part played by the financial planning and analysis team in providing accurate information to help businesses perform with integrity and in raising financial awareness; and by divisional finance managers in assisting operational managers. Originality/value Shows how one company links governance to strategy and the key role of its finance organization in using measurement to facilitate communication and knowledge sharing.ISSN: 1524-833XReference: 36BA799

Keywords: Accountants, Corporate governance, Corporate strategy, Operations management, Plans