Tuesday, March 9, 2021

Variety of Gvernance

Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens such as innovation, people, and multidimensional value perspectives, and get enforced holistically.

The purpose of governance is to steer the organization in the right direction. It provides monitoring, measuring, and enforcement mechanisms to corporate management. 

The corporate governance rules and principles need to be followed to improve the functioning and transparency of the company, its business strategy, and management performance. 

Good corporate governance enables a good decision-making system and a good controlling system. The more complex contemporary organizations cross the vertical sectors becomes, the broader scope of corporate governance turns to be. It can assure the corporation’s operation under the correct directions and behaviors correctly.

Data Governance enforcing excellent Data Quality which in turns leads to good Business Intelligence: One key effect of digitization is exponential growth of information, increased unpredictability and a need for faster response to changes based on informative decision making. How is that possible? Ensure the right people access to the right information at the right time to make right decisions, data is an asset that needs to be protected and used properly in order to maintain quality data. Data governance is critical especially as organizations move to the cloud using SaaS.

All data, from wherever it comes, is legitimate and reflective of the business systems that provide it. As such, the data reveals deep and essential truths about not only the business domain it covers, but also about the systems that capture it. IT is the steward of one of the most critical assets - information in the organizations. Information Technology governance evolves the leadership and organizational structures and processes that ensure the IT organization sustains and extends the enterprise strategies and objectives.

Innovation governance enforces trust and flexibility, not police creativity: Innovation overall has a very low success rate. Thus, innovation needs a level of guidance, it has to deliver business objectives, it needs the right kind of governance to thrive. Given many organizations don't view governance as a steering wheel with "decision-making optimization," their governance efforts usually devolve into time-consuming, costly, bureaucratic constructs. Traditional business governance for an operational excellence enterprise will stifle innovation. When governance is done properly, it actually is a great tool to facilitate innovation. If there is an innovative idea; the governance mechanisms dictate how that idea is fostered from inception to retirement.

Innovation is doing something better than it currently is. Hence, it requires a sound and competent understanding of what is currently being done. Innovation cannot be separated from a specific business purpose and in a broad context. Governance is critical for meaningful innovation. When you say innovation, you could really mean maximizing value to the business, when you say governance you could mean minimizing risk. So governance can be an integral part of innovation; they are complementary continuums.

Workforce governance enforces transparency for building tremendous trust and user-focused engagement, focus on Respect, Relevance, Intelligence: Organizational workforce optimization takes planning, experimenting, and scaling up. The transparent management to optimize workforce is to transform the organization into the organic system approach, not through the command-control hierarchy only. Governance is a neutral term which is useful in having the ability to discuss bad governance with terms such as waste, corruption, inefficiency etc. A good governance standard provides a common corporate "language," and work instructions to decide and take actions for either grasping opportunities or managing risks, helps to manage collaborative business results and best practices that view the organizational objectives holistically with the correct strategy lenses/focus.

Technically, governance can begin with frameworks, policies and standards to be put in place, governance practice should be shared cross-enterprise collaboratively. Governance process/mechanism can be embedded into the business process seamlessly. Enforcing workforce deployment and development makes sense to convey the vision of running an organic digital business which needs to keep investing, nurturing, and growing their people and optimize workforce to meet the needs of business growth.

Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens such as innovation, people, and multidimensional value perspectives, and get enforced holistically. Fundamentally, governance is about enforcing decision effectiveness, and getting the people, culture, accountability, and performance right. There’s a correlation between corporate governance and business performance. There is a consensus that governance not only should but must influence to manage the level of performance of all the members of the company, and ensure the business as a whole is superior to the sum of pieces.


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