Innovationgovernance ~ Future of CIO

Thursday, December 30, 2021

Innovationgovernance

4:33 PM Pearl Zhu No comments

The flavor of GRC practices depends on the nature of the business and the level of the organizational maturity.

The important characteristics of digitalization are over-complexity, uncertainty, and ambiguity. Hence, GRC (governance, risk management, and compliance) becomes more critical than ever. Here's the context; how should GRC programs be approached? Should technology be a driver? Can you achieve any level of GRC without automation? Can you achieve any level of GRC without people? What is the real driver of GRC?

Modern corporate boards play significant roles in guiding businesses in the right direction and achieve expected business results. Due to the “VUCA” characteristics -Complexity, Uncertainty, Ambiguity, and Velocity of the Digital Era, the directorship in any organization must have the agility to adapt to changes and build abilities to advise, inspire and motivate a group of people toward accomplishing shared visions and goals. Here are the multiple perspectives of shaping a strategic boardroom with digital acumen.

Innovation Governance

Innovationgovernance As businesses get more cut-throat in an ever-changing environment, innovation is the light all forward-looking organizations are pursuing. However, innovation management has a considerably low percentage of success rate. As there are learning curves and various barriers on the way. In some cases, the hard components such as systems, processes, or technology that many organizations are using to capture innovation value are becoming inefficient in this rapidly changing world; in other cases, the soft factors such as communication, culture, leadership are not effective, becoming the very obstacles to innovation management. Thus, governance is critical for meaningful innovation.

Innovativegovernancepractices 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.

Innovationgovernanceaspects Governance is by definition a framework of principles, practices and indeed ethics; separate, different and outside the setting and subsequent control of business strategies, budgets, outcomes and metrics (in short, management discipline). Statistically, innovation management has a considerably low percentage of success rate and there are numerous learning curves and barriers on the way. Innovation has to deliver business objectives, but it needs the right kind of governance to thrive.

Uncoventionalgovernance Corporate governance has a great impact on corporate performance, Governance is the structure and process of authority, responsibility, and accountability in an organization. Without effective governance, businesses will face significant risk for surviving, and miss great opportunities for thriving. It's impossible to change rightly or have a good governance model without having a holistic view, an outside-in perspective and a collaborative approach.

Innovate Governance Upon the digital paradigm shift, we are experiencing at the moment, with the new characteristics such as hyper-connectivity and interdependence of the digital world we live in. The shift of governance is to focus on enterprise change. More organizations will make a bold step—reengineer or redesign the old fashioned governance control, focus on encouraging meaningful changes and nurturing innovation in a structural way. Top leaders should ask insightful questions and embrace multiple perspectives.