Sunday, October 31, 2021


The balancing act of governance discipline is taken along a continuum of risk and reward, for enhancing multitude of organizational management cycles and accelerating business performance.

Governance complements the management approach. Without governance, the management could “get lost” or become too trivial. When companies become bigger and bigger, they try to overly control processes and administrative procedures that make it difficult to reach the strategic goal of the company effectively. 

In a high mature organization, governance must be viewed and assessed at the senior leadership level such as corporate board. High mature governance enhances information management cycle, iterative strategy management cycle, as well as an investment portfolio cycle, etc, to drive high performance results.

Information governance, for the most part, relates to the maintenance of quality data: Information as the most invaluable asset besides people, needs to be protected and used properly. Information governance is critical especially as we move to an on-demand model. Information is a resource over which the governing body should exercise oversight, delegate certain responsibilities, as well as define good policies regarding how decisions are made across the organizational hierarchy. A strong governance model illustrates the governance processes that are used to govern specific activities and establish principles for effective decision making.

As you will not be able to understand the performance of your company or measure it without quality data, and information governance ensures that you can get your hands on it. Information governance is essential for providing meaningful and insightful reporting or business intelligence by enabling information to flow smoothly; and enhancing a healthy information management cycle. So the organizational management can leverage fresh business insight to improve organizational agility, customer satisfaction and competitive advantage.

Good governance enhances a strategic alignment seamlessly: Alignment is fundamental and multidimensional to ensure a smooth strategy implementation and it is key to fully achieve corporate performance goals. Alignment goes beyond conformity and order taking, it needs to include a close partnership with interpersonal communication, value analytics, capability/ capacity enabled execution. Governance mechanisms can be embedded into core processes to enhance an iterative strategy management cycle for accelerating performance and managing risks effectively.

Governance models need to be flexible. If governance is top down or even dictate, you'll have a revolt on the ground and foster a culture whereby people look to bypass governance. If it’s consensus from bottom up only, perhaps you lose the big picture view that compromises governance effectiveness. An effective governance illustrates the governance processes with the mechanisms of escalation and resolution used to strengthen the weakest links of strategy management for improving its success rate.

Governance can be used to judiciously authorize and manage the portfolio of business investments and resources to produce multidimensional business value: Governance is a concept that applies to making decisions where multiple stakeholders need to be taken into account for improving business effectiveness. It is a neutral term which is useful in having the ability to eliminate waste, corruption, inefficiency etc. Governance approaches are nowadays customized, without “one style fits all” approach. If you can integrate governance mechanisms into the investment decision cycle and develop a balanced investment portfolio, it makes instant conceptual sense to the top leadership team for clarifying financial returns, return timeline and risk.

Governance can be enhanced via effective communication and policy setting. It is important to provide a structured communication bridge between shareholder/investors and the board. The corporate governance bodies and management teams should work closely to ensure policy coherence across the business investment portfolio for improving multifaceted value creation of the company. It’s also important to clarify whether the corporate planning aligns corporate priorities, sector business plans, and resource allocations smoothly to manage a balanced investment portfolio for achieving desired business results.

Governance and risk management are important but should be handled and prioritized in such a way that they're inherent in the way to improve business effectiveness, employee productivity without negatively impacting their flexibility to deliver clear solutions and concise information to key decision makers. The balancing act of governance discipline is taken along a continuum of risk and reward, for enhancing multitude of organizational management cycles and accelerating business performance.


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