Which statement best captures the relationship between governance and strategy?

• A. Governance aligns incentives and monitors strategy.
• B. Governance is unrelated to strategy.
• C. Governance only handles compliance with law.
• D. Governance determines marketing slogans.

Answer: (A)

Governance provides the structure and oversight that makes strategy workable. It sets decision rights and performance metrics, aligns incentives so what people do supports the strategic goals, and continuously monitors progress to catch deviations and trigger corrective actions. This oversight also brings risk checks, ensures resources are allocated to strategic priorities, and upholds legal and ethical boundaries, all of which keep the strategy on track.

That’s why the statement that governance aligns incentives and monitors strategy is the best fit. It acknowledges that governance isn’t just about rules or compliance; it shapes how strategy is pursued and how success is measured. It isn’t about unrelated tasks like marketing slogans, and it’s more than a bystander to strategy—it actively steers and guards it.