Tuesday, August 24, 2021

Relaxed Governance

Governance methods, techniques, structures, etc, would need to be defined properly and robust tools are nice to have to continue innovating and optimizing governance approaches to frame management and drive business transformation.

Business ineffectiveness is usually caused by the failure of effective governance, risk control, and compliance process. Given many organizations don't view governance as "decision-making optimization," their governance efforts usually devolve into time-consuming, costly, overbearing bureaucratic constructs. 

So the concept of relaxed governance discipline is to ensure your organization optimizes the "traditional" governance to which you refer, and then make the governance more flexible to drive changes, improve autonomy, determine how much risk you are willing to accept to make decisions faster and catalyze innovation. Relaxed governance is not about less discipline, but about improving intelligence, innovation, and automation into governance disciplines and practices for improving the organizational maturity.

Process-intelligent governance: Governance is a self-defined framework used by the business to judiciously authorize and manage business investments and resources to produce value in support of business goals and objectives at either strategic or tactical level. The governance can be “relaxed” to a certain degree if its processes are information-driven, less human touch, intelligent enough to identify or prevent potential issues, and steer the organization toward the right direction more effortlessly. Intelligent governance processes are the processes by which information is converted into intelligence, planning and direction, processing and analytics, dissemination and integration.

Governance is actually a collection of processes. Indeed, many of the elements of those various processes could be automated. The level of automation can play a role in selecting the right processes for improvement and improving governance intelligence. You cannot automate all aspects of GRC, however, you can and should automate all areas that don't require human intervention. You can “loose control” a bit if your people and business systems become more purposeful, self-disciplined and self managed to achieve their goals with less monitoring and supervising.

Relaxed governance is actually a great tool to facilitate innovation: Organizations are always struggling with balancing process and innovation. Sometimes, traditional governance restricts and even actively discourages innovation that is not based on the organization’s current capability. But without encouragement and support from the top, how can businesses continue building their differentiated competency to innovate and cultivate their new breed of innovators? Especially nowadays, a lot of innovation, especially breakthrough innovation, comes from the shop floor, people should dare to criticize conventional thinking and take innovative initiatives to solve problems that make differences to their organizational long-term growth. Besides supporting budget, regulation, safety or budget, effective GRC discipline needs to facilitate innovation and encourage transformative changes.

So Relaxed governance focuses on prioritization, value-adding, and change orchestration. It’s about less controlling, repurposing, realignment and integration, to bridge the multitude of gaps, breakdown bottlenecks, lubricate the rigid process with valuable feedback and flexible functions or structures. The goal is to achieve the state of dynamic balance - maximizing value via innovation, and minimizing risks via strong governance by weighing diverse variables and fitting business circumstances accordingly. By implementing relaxed governance, it could be argued that maximizing business value from prioritizing business objectives actually lessens a number of risks so the two are lock-stepped together.

Relaxed governance approach enhances autonomy
: Although governance is about policy establishment or process enhancement, people are always the focal point. The people dimension of governance consists of strategic enrichment, empowerment, or enchantment. Governance and risk management are important but should be handled and prioritized in such a manner that improves business decision coherence at the different layers of the organizational hierarchy by providing clear and concise information to key decision-makers and improving accountability and their commitment to get work done.

Relaxed governance practices are inherent in the way without negatively impacting the working flexibility to deliver solutions on-value and on-time. It’s important to keep the end in mind, governance shouldn’t become the other layer of complexity for its own sake with outdated docs putting on the shelf, It needs to become more interactive, flexible, have a definite goal and exactly know the kind of problem they would like to solve for the business and once solved, employees win, customers win, and business win. Make everyone feel relaxed and fulfilled as well. We are what we continue to learn and do. Relaxed governance help people and their organizations become more meaningful and delightful.

People, process, technology, etc, are the critical components in building good governance, with different flavors to fit your business taste. Organizations become over-complex than ever, governance methods, techniques, structures, etc, would need to be defined properly and robust tools are nice to have to continue innovating and optimizing governance approaches to frame management and drive business transformation.




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