Governance is to frame business management; it should orchestrate change, do it with trust and flexibility.
Besides processes and mechanisms, it’s important to understand the human element - harden the soft factors for enforcing GRC maturity.
Ensuring Accountability: It is important to run a high-performance business with shared accountability or collective accountability that involves shared ownership, empathetic communication, and continuous improvement. Accountability chains can be enforced by the agreement of management and employees at the different layers of organizational hierarchy. Upholding democratic values ensures that policy processes reflect the values of the people. Ensure that organizations are accountable to their stakeholders and that there are mechanisms for redress if their interests are not adequately represented.
Promoting Transparency: Transparency is integral to various political goals, including corruption control, fair financing of election campaigns, enhancing democracy in existing institutions, consolidating democracy in transitional societies, and limiting international conflict. Ensuring that outsiders can obtain valid and timely information about the activities of the organization.
Harnessing Innovation: Organizations that support innovation, reward individuals who push for it, dedicate resources to it, have a diverse workforce, and are willing to experiment tend to foster a culture of creativity and continuous improvement.
Common challenges: Given that many organizations don't view governance as "decision-making optimization" or “accountability enforcement,” their governance efforts usually devolve into time-consuming, costly, bureaucratic constructs. Common challenges in organizational governance include:
Managing Conflicting Stakeholder Interests: Balancing the often conflicting stakes of various groups and preparing for conflicts that may arise from prioritizing competing groups of stakeholders.
Complexity. The inclusion of an increasing number of stakeholders renders the decision-making process more costly and complicated, which is at odds with efficiency claims.
Maintaining Accountability: Ensuring organizations are accountable to their stakeholders and that there are mechanisms for redress if their interests are not adequately represented.
Adapting to Change: The cultural inertia might inhibit organizational transformation, where greater flexibility and adaptation are required to respond to changes in the external environment.
Restructuring of Hierarchy: Hierarchical organizations can struggle to adapt to change and may be perceived as inattentive to stakeholders' interests, potentially leading to a rigid and unresponsive culture. Restructuring hierarchy, adopting market solutions, and fostering collaboration can promote a more flexible and adaptive culture.
Governance is to frame business management; it should orchestrate change, do it with trust and flexibility. Governance discipline should be seen as a leadership style and effective tactics to achieve high-performance business results.
1 comments:
Fantastic post! I really liked your perspective and how you presented the topic.Furniture store in gwalior
Post a Comment