Posts Tagged ‘Corporate governance’

Expert Interviews Series: Accountability, KPIs, and Execution with Ghazi Heal Alanazi

Written by Len on May 13, 2026. Posted in Interviews

What separates a performance management system that drives real results from one that simply produces reports?

According to Ghazi Heal Alanazi, the answer lies in execution, accountability, and disciplined decision-making.

As the Administration Director of Northern Area Armed Forces Hospital in Saudi Arabia, Alanazi shares valuable insights on the future of performance management, the growing role of AI and sustainability, and why organizations must move beyond traditional KPI tracking toward systems that actively guide strategy and operational outcomes.

What key trends in organizational performance management have you observed emerging so far in 2026?

In 2026, performance management is shifting toward real strategy execution. Organizations are using real-time KPIs, clearer decision ownership, and AI-driven insights. There is also a stronger connection between performance, risk, and sustainability, making systems more practical and closely tied to actual business outcomes.

Which existing trends, topics, or aspects within performance management have lost their relevance or importance?

Traditional KPI reporting without action has lost relevance. Static annual plans, disconnected scorecards, and overengineered frameworks that fail to support decision-making are becoming obsolete. Focusing only on measurement without accountability, execution, and real business impact is no longer acceptable in today’s performance environment.

What does the corporate performance management system of the future look like?

The future system is fully integrated with strategy execution. It connects objectives, KPIs, initiatives, and risk within a unified framework. It operates on real-time data, supported by AI-driven insights and clear decision ownership. The focus is less on reporting and more on guiding decisions, enforcing accountability, and continuously improving performance.

What will be the major challenges in managing performance in the future, and how should organizations prepare?

The main challenge is maintaining discipline. Organizations often struggle to enforce accountability, align decisions, and sustain focus. Data overload is another growing issue. To prepare, organizations need strong governance, clear decision rights, simplified KPI structures, and leadership commitment to using performance systems as management tools.

How is technology impacting the way organizations conduct strategic planning and manage performance?

Technology is transforming performance management from periodic reporting into continuous monitoring. AI and analytics provide faster insights, while integrated platforms connect strategy, KPIs, and execution. Tools such as BI dashboards and AI copilots improve visibility, but their real value depends on how effectively organizations embed them into decision-making and governance processes.

How is sustainability impacting the way organizations conduct strategic planning and manage performance?

Organizations are integrating ESG factors into KPIs, risk management, and decision-making. This shift encourages a stronger focus on long-term value rather than short-term results. The challenge is ensuring sustainability becomes measurable and actionable, rather than remaining only a reporting requirement, while linking it directly to performance and accountability.

Practice

What should be improved in the use of strategy and performance management tools to make organizations more resilient to future crises?

Most tools need to become simpler and more connected. Organizations should reduce complexity, link KPIs directly to decisions, and integrate risk into performance systems. Flexibility is also essential, as systems must adapt quickly during disruptions. The focus should move from tracking performance to enabling fast, informed, and aligned decision-making.

While navigating challenging times, what would you consider a best practice in performance management?

The key practice is maintaining focus. Organizations should prioritize a limited number of critical KPIs, align leadership around them, and review performance frequently. Clear decision ownership is essential. During difficult periods, simplifying the system and enforcing accountability has greater impact than adding more metrics or complex frameworks.

How does benchmarking support the improvement of performance management and target-setting systems?

Benchmarking introduces external perspective into the system. It helps validate targets, identify performance gaps, and challenge internal assumptions. When applied effectively, it shifts discussions from opinion to evidence. Its real value emerges when organizations use benchmarking to drive decisions and continuous improvement.

Research

Which organizations would you recommend observing for their approach to performance management, and why?

Organizations such as Amazon, Microsoft, and Saudi Aramco are strong examples. They combine clear strategy, disciplined execution, and data-driven decision-making. What stands out is how leadership uses performance management to drive accountability and results at scale.

What aspects of performance management should be explored further through research?

More research is needed on how performance systems influence decisions and organizational behavior. The relationship between KPIs, incentives, and actual execution outcomes remains weak. In addition, the role of governance and decision rights in making performance systems effective requires deeper practical exploration.

What are the key competencies of a successful business leader or C-level executive?

A successful C-level executive must think systematically. They need strong decision-making skills under uncertainty, clear ownership of outcomes, and the ability to align the organization around priorities. Discipline in execution, governance awareness, and the ability to translate strategy into results are more critical than technical expertise.

What are the key competencies of a strategy and performance manager today?

They must be able to connect strategy to execution. Strong capabilities in KPI architecture, data interpretation, and performance analysis are essential. More importantly, they must enforce accountability, support decision-making, and understand how organizations operate to ensure performance systems function effectively in practice.

What are the recent achievements in generating value from performance management in your organization?

We shifted performance management from reporting to execution control. We redesigned KPIs to align with strategic objectives, introduced clearer ownership, and improved executive dashboards for decision-making. This increased visibility, reduced ambiguity, and helped leadership respond faster. The greatest value came from transforming performance management into an active management tool.

The role of governance in strategy implementation

Written by Liana Paraschiv on May 8, 2024. Posted in Strategy

One of the most important factors in running a successful business is strategy implementation, where general, strategic objectives are translated into precise activities that involve bringing ideas to fruition. Operational performance is used to measure the effectiveness and efficiency of these activities in achieving strategic goals and objectives. Meanwhile, governance provides the structure and rules needed to monitor performance and achieve objectives, which requires good planning, resource allocation, and management.

Governance mechanisms are critical to guiding, monitoring, and improving strategy planning and execution. Roles and accountabilities should be clear: the board of directors sets the company strategy, goals, and overall direction. Top management ensures the strategy is translated and cascaded to the lower managerial levels. Middle management is critical to ensure the implementation of strategic objectives.

Upon receiving clear direction from the top management, middle managers should also set clear responsibilities and metrics. Metrics should be set to monitor success impartially. Clear roles and their coordination could also be ensured by appointing a strategy/performance office responsible for overseeing the strategy process, contributing to setting strategic objectives, and coordinating performance measurement.

Organizational Hierarchy | Source: The KPI Institute – C-KPI Course

The purpose of governance is to ensure that an organization continuously fulfills its mission by coordinating its strategy with its operational goals, procedures, and standards. Procedures and processes are essential to the success of an organization, as these help ensure that resource allocation is done properly, with all stakeholders having a clear role in how the organization’s objectives are achieved. In the case of a company where multiple projects run at the same time in various areas, this is especially important. Confusion, overlap, and miscommunication may arise in these situations, therefore, clear rules, guidelines, and accountabilities should be set up.

Reliable, comprehensive financial and non-financial information is at the core of governance, as it serves decision-making. Reporting procedures are crucial to ensure the right processes are set up to disclose the necessary data to the stakeholders, with mechanisms for regular reporting to share performance data and progress updates. Performance reporting is important as it disseminates information, communicates progress, forecasts progress, and updates status to stakeholders.

Moreover, decisions are taken based on the information received, and an organized process for review and decision-making, such as regular strategic review meetings or performance review sessions could be implemented. Periodic performance reviews measured against objectives should be conducted to analyze gaps, identify areas for improvement, and initiate corrective actions.

Governance cannot be properly implemented without the adequate behaviors of people. Since emotions play a large role in shaping behavior, it becomes all the more crucial for leaders to facilitate buy-in from the organization. Leaders should provide trust, guidance, and direction, instilling the necessary behaviors that support the organization’s objectives. Communication should be clear and consistent to provide clear direction.

As resistance is natural given the fear of the unknown or the perceived negative changes, it is important to address employee concerns and provide support. Some of the potential barriers are removed when support is provided to ensure that employees understand the strategy, their roles, and how their performance contributes to strategic objectives.

In conclusion, governance is indispensable for an organization’s success and reputation. By establishing clear structures, processes, and accountability mechanisms, governance ensures that the company operates in alignment with its objectives, values, and legal obligations. It provides a framework for effective decision-making, safeguarding the interests of shareholders, employees, customers, and other stakeholders. To summarize, governance isn’t merely a corporate formality—it’s the cornerstone of organizational excellence and trust in the modern business world.

For more in-depth articles about strategy, click here.

How the global pandemic changed Annual General Meetings in Corporate Governance

Written by Fakhri Ramadhan on October 13, 2021. Posted in Articles, Operational performance

Image source: Chris Montgomery | Unsplash

In early 2020, mobility restrictions and lockdowns were implemented in most countries due to the spread of COVID-19. Those restrictions clearly impacted the way people interact and communicate. Online and virtual meetings became the new normal, from schools to businesses.

In the realm of corporate governance, one thing that changed was the shareholders meetings or annual general meetings (AGMs). AGMs are a critical component in corporate governance practice that is mandatory by law, where directors and shareholders interact. The pandemic forced companies to shift from traditional AGMs to virtual shareholders meetings (VSMs), and this brought technical, legal, and cultural challenges.

A report from the World Bank claims that 84% of the economies are allowing VSMs in their legal frameworks. Even countries that previously did not allow VSMs had introduced provisions through emergency legislation to enable virtual meetings. VSMs, as a virtual meeting, clearly have some differences from a conventional physical meeting.

In the 2020 report of VSMs practice, several benefits and drawbacks of VSMs are reported. Most companies expressed positive reactions due to its lower cost of operation and being more eco-friendly, while some companies expressed the technicalities of organizing VSMs are quite an issue. Conversely, shareholders felt that there might be a lack of transparency and felt less involved in the company. It can be argued that a lack of readiness and experience of companies to organize VSMs are the cause of the negative response from some of the shareholders.

A year later into the pandemic, mobility is slowly increasing and borders are starting to reopen, however, some changes are likely here to stay. As a consequence, there would be a future for VSMs as a permanent substitute for traditional AGMs. Best practices are starting to be built to successfully replace AGMs. Below you can find some recommendations based on these best practices in organizing a VSMs:

Establish the rule of conduct of the meeting just as a physical one, and communicate them clearly: In a simple way, you should treat the VSMs as a face-to-face meeting. Communicate them clearly in plain English. Specifically for VSMs, you should differentiate between regular participants and verified shareholders, whether they have the permission to speak or they can only listen.
Establish clear procedures for verified shareholders to vote remotely: Make sure that you only give vote access to the shareholders that have voting rights. It is also important that the votes are properly recorded.
Establish clear procedures for shareholders to ask questions: Questions are important, so make sure the Q&A sessions are scheduled. For questions that cannot be answered at the meetings, document them and answer them later (e.g. via e-mails, phone calls).
Archive the meeting and make it publicly available for a reasonable period of time: Most virtual meeting platforms have a record feature, which you can easily use to do this archiving task. Having someone assigned to prepare the Minutes of Meetings can also be useful.

Companies should take this moment as an opportunity to improve their relationship with stakeholders and shareholders. This transition from conventional to virtual meetings opens up many possibilities. The flexibility that is enabled by technology has allowed solutions that were previously impossible. It is possible that VSMs are only just the beginning of a better form of future AGMs.