The AERU Value Chain Compass

Governance and Management

The horizontal axis of the Compass focuses on the interaction between Governance and Management.

• Governance: Determining and monitoring the overall collaborative mission and strategy of the value chain.

• Management: Organising resources and activities to implement the strategy and advance the mission.

This interaction influences the economic value created by the value chain. Governance and management must be ready to identify and take advantage of commercial opportunities.

Social and cultural values are important for interactions between governance and management of the value chain, which typically require strong collaboration among the value chain partners. Clearly articulated collective values reduce the need for tightly specified contracts in advance and support collaboration for solving commercial challenges as they emerge.

An effective value chain ensures that the values of governance and management are aligned in order to maximise the economic value sustained by the value chain.