Governance controlling and enforcement takes a new meaning such as agility, focus, intelligence, and creativity in the dynamic era of digitalization.
Providing a common corporate "language" as well as work instructions: The assumption that the language of finance is the closest thing to a universal language among the different functional types is perhaps a bit outdated because digital organizations are people centric and highly innovative. It is important to enforce governance discipline by setting rules for safeguarding the status quo, but not stifling innovation, providing a common language, establishing proper standards, appropriate business and use cases, etc. Besides finance language, there is a different way to communicate, such as visual representations provide a neutral language that is not laden with technical terms and allow an effective conversation to happen between the different parties - in fact dramatically accelerates consensus. With strong governance practices, communication via a common corporate language could become more persuasive and effective.
The other problem with governance is that the people who enforce governance normally have a frame of reference based on their own experiences and a view of the existing business capabilities. There are all sorts of misperception symptoms such as preconceived ideas about how things should happen, seeing the trees but missing the forest, etc. The value proposition of good GRC and brand should be integrated within and across operations not siloed off in a box and improve the success rate of business change and innovation.
Listing a set of common corporate characteristics - the thing consistent with companies that have chosen to take the holistic GRC path: There is a set of common corporate characteristics such as effectiveness, efficiency, reliability, agility, scalability, quality, people-centricity, etc, and these characteristics tend to align to a common set of guiding principles that can be evidence. Effective governance approach is not just about covering risk management, but also about setting good principles or right policies ensuring alignment with the corporate objectives, policies, and procedures for how organizations work, and measuring the value creation, to enforce a list of common corporate characteristics, manage organizational complexities, and create a good working environment to harness accountability.
There are both hard and soft components in business governance which has either direct or indirect impact on corporate performance. There is an ongoing problem with highly structured GRC approaches that seem to overlook the very human and social behavioral factors that underpin real GRC success. GRC can be used to raise visibility and awareness for many things that are captured at the working group levels of the organization, and bring them in front of leadership. Such things can be business improvement and business drivers including improvements to areas of the business that have a direct customer impact; or the people management initiatives to break down silo, harmonize working relationship and tap human potential. Keep in mind, governance is a discipline which continually requires stroking and attention. Otherwise, it will stagnate and lose its ability to enforce desired digital business competency and steer the business in the right direction.
Building a set of common governance standards - allowing the advantages of reusability, decrease in duplication of effort, decreased risk of violations that can occur: The solid governance disciplines are not for encouraging silos or stifling business speed. In fact, it should enforce good governance standards, quality, desired simplicity and risk intelligence. With rapid changes and fierce competition, businesses should avoid reinventing the wheel and accelerate the products/services delivery cycle, decrease the development or support costs, decrease duplication of effort, and decrease time to market. The challenge seems that there are hype increases for business improvement, so senior management is heavily engaged to sponsor and monitor systematic reusability and improvement efforts. The challenge of governance becomes obtaining that shift in the culture where continuous improvement is the focus.
There are often disruptive processes or technologies that need some relaxation of the old governance models during the changeover. It makes sense to have governance processes that are more lightweight, more continuous, and that focus more on results rather than detailed plans, and have change agents and innovators involved. Otherwise, you run a risk that you'll invest to improve process governance and find you've made yourself less competitive. Get senior management focus and ensure that process owners are at a sufficiently senior level in the organization to do more than influence the change, they must be able to drive it to improve business effectiveness - doing the right things and efficiency - doing things right.
Governance controlling and enforcement takes a new meaning such as agility, focus, intelligence, and creativity in the dynamic era of digitalization. It will only be when the internal and external emphasis shifts from regulatory and compliance governance to identifying, reporting and developing the behavioral governance, so accountability comes from managers at the core, and the business performance is accelerated via the accountability of management and cohesiveness of business capabilities.
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