Governanceattributes

Organizations across the industry sectors become more complex than ever, the time has come to rethink traditional approaches to governance.

Governance is to steer the organization in the right direction at the right speed. It is a learning tool that needs to be well understood and reinvented for improving business management commitment and maturity. 

Governance as a management enhancement tool demonstrates the following characteristics, with the mechanisms of escalation and resolution used to strengthen the weakest links of strategy management to achieve high performance business results.

Accountability: Accountability is part of personal integrity to make certain accomplishments. Lack of accountability is often one of the biggest obstacles to get things done or cause change inertia. Accepting responsibility is when we prove our values and build our trust. Strong governance discipline enhances accountability across the organizational hierarchy to accomplish the work and improve business performance.

Accountability goes hand in hand with the delegation of authority or power. If you ensure the individuals have autonomy within their tasks, you will be able to address performance on an equal partnership basis. Shared accountability or collective accountability involves shared ownership, empathetic communication and smooth collaboration to build a competitive team for delivering high performance results with consistency. Solid governance ensures effective management to improve business maturity.

Transparency: Transparency, as used in science, engineering, business, the humanities and in a social context more generally, implies openness, communication, and accountability. Transparency is operating in such a way that it is easy for others to see what actions are performed. Business process transparency improves governance agility as organizational transparency will enable effective communication, build trust, enforce collaboration, integrate the loosely coupled functions into dynamic business competency in order to manage change smoothly.

Transparency enforces trust in the organization, it is really important for shaping high performance teams as every member is always aware of how the whole process is going on, and what results have already been achieved. It can help leaders tell a story of the journey from current state to future state of corporate improvements, accomplishments with business strategies, etc. By increasing transparency and improving governance, the hyper-connective nature of digitalization provides the new level of management fluency to run a digital business today.

Influence: Corporate governance has a direct link to each business and its processes, not only from the financial results, but also from the involvement and signs being displayed inside the organization, about what values, guidance, and principles governing the company's commercial activities. Governance practitioners can provide a structured communication bridge between shareholders/investors, lubricate corporate relationships and enhance management disciplines. As a complementary approach to corporate management, corporate governance discipline can fulfill its purpose as a high-level strategy influenced by corporate board, top business leadership team, varying stakeholders, and cross-boundary governance influencers.

In fact, business performance can be affected by numerous factors of which governance is one of them. Governance makes influence on both performance and compliance, in fact, performance and compliance are the two sides of the same coin. Thus, effective governance needs to be perceived as an opportunity to grow the business rather than constraints only, become more holistic, to influence business management principles, processes, and practices to accelerate performance.

Organizations across the industry sectors become more complex than ever, the time has come to rethink traditional approaches to governance. Solid governance with above characteristics can enforce decision effectiveness, get people, culture, accountability, and performance right, to unlock corporate performance and influence business outcome.

Posted in: GRC