PRACTICES OF STRATEGY COMMITTEES OF SUPERVISORY BOARDS
PRACTICES OF STRATEGY COMMITTEES OF SUPERVISORY BOARDS

Summary/Abstract: This article presents the very first research on strategy committees in the context of Polish supervisory boards. Consequently, it is also the first study on strategy committees of supervisory boards conducted in the European, two-tier system of corporate governance. Research aims. The article aims to explore practices of strategy committees in supervisory boards, including factors conditioning the formation of a committee, criteria for membership selection, as well as functions, tasks, and operations that are undertaken by the committees. Methodology. The research presented in this paper was conducted via the method of interviews with 10 board members selected according to the stratified sampling, having both vast experience in the function of a board member at several companies, and experience of participation in a strategy committee. Key findings. Their narration suggests that a strategy committee serves as a structural solution supporting the engagement of the board in the company’s strategy process. A strategy committee plays an advisory role for the board, which decides on the final strategy. An opportunity to focus attention on key factors influencing strategy formulation is perceived as a key dimension of a committee’s works. A committee may be permanent or formed ad hoc if a strategic renewal is needed. Critical factors that seem to increase the likelihood of committee formation are the size and complexity of a company.

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