Strategy, Governance, and the Discipline of Direction

Strategy formulation is often presented as a rational, linear exercise, analysing the environment, assessing internal resources, setting objectives, and choosing a path forward. In practice, strategy sits at the intersection of purpose, power, information, and control. It is shaped not only by markets and capabilities, but also by governance structures, mission statements, management control systems, and board oversight. Understanding how these elements interact is essential if strategy is to be more than an annual planning ritual.