Trustees set direction & strategy
Evaluating whether the organization's trustees actively establish and document its strategic direction is essential. Strategic direction-setting is a fundamental responsibility of governance, ensuring the organization has clear goals and a roadmap for achieving its mission. In Islamic stewardship, this reflects the profound duty of Amanah (trust) and Shura (mutual consultation). By setting a deliberate strategy, the board safeguards the Maslahah (public interest) and aligns organizational objectives with the broader Maqasid al-Shariah (objectives of Islamic law).
| Metric | Strategic KPI Performance & Governance |
|---|---|
| Target | See Criterion KPI/Measure for targets |
| Frequency | Quarterly (KPI tracking); Annual (Reviews) |
| Method | Composite assessment of strategic KPI achievement, strategy review cadence, stakeholder consultation, risk management, budget alignment, and public benefit reporting. |
| Unit | Percentage, Binary |
Level 1: Initial/Ad-hoc
Direction is informal and reactive, primarily driven by the immediate vision of the founders or senior leaders. There is no formally documented strategic plan.
Level 2: Developing
A basic mission and vision statement are documented and have been formally approved by the trustees. Strategic discussions occur, but they do not yet result in a comprehensive, documented plan.
Level 3: Established
Trustees lead a formal process to develop and approve a multi-year strategic plan with clear goals and objectives, linked to a basic risk register; objectives cascaded into an annual operating plan and budget.
Level 4: Advanced
The strategic planning process is systematic, data-informed (needs analysis, PESTLE), broad shūrā, approved risk appetite and strategic risk register; quarterly board monitoring; clear links to maṣlaḥah and public benefit.
Level 5: Optimizing
The strategy is dynamic, forward-looking, with annual scenario planning/horizon scanning, integrated risk and performance frameworks, explicit maqāṣid alignment, and sustained delivery (≥80% strategic KPIs on track or adaptive governance evidenced) ensuring long-term sustainability and impact.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | partial | Formal Scheme of Delegation is disproportionate for volunteer-run charities; basic strategic direction suffices. |
| Small | partial | Strategic plan can be simplified; Scheme of Delegation only needed if employing executive staff. |
| Medium | full | |
| Large | full | |
| Major | full |
Applicable When
- The organization has a board of trustees or equivalent governing body
- The organization aims for sustainable operation and impact
- For federated/affiliate charities, local trustees should set a local strategy consistent with the federation framework; any variance requires documented rationale (local needs/maṣlaḥah) and written approval.
Not Applicable When
- The organization is a temporary entity established for a single, time-bound project (e.g., a specific relief campaign, a one-time conference) and is intended to be dissolved upon completion.
- The organization is a program or department of a larger parent entity, and its strategic direction is set entirely by the parent entity's governing body.
- The organization's mission and activities are rigidly and permanently defined by a legally binding external document (e.g., a waqfiyyah, a government charter) that does not permit the governing body to alter the strategic direction.
Related Criteria
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
Sign in to post a comment.