Insight of Governance

Governance is a management enhancement tool and a learning tool that needs to be well understood and reinvented.

Governance is about how well an organization is being run, and if set upright, it should effectively oversee the achievement of the vision, mission, and objectives. Needless to say, effective governance leads to effective management and reaches a high level of organizational maturity.

Internal control to monitor the execution path: Management and governance are interdependent disciplines, a strategy execution takes both for success. 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 is to steer the organization in the right direction at the right speed. If a strategy is not moving forward as desired, an organization has a cleaner structure to traverse in an attempt to identify the root cause and take mitigating actions.

Organizations with strong governance achieve better profitability and higher performing results than their competitors: Evaluate whether the governance leads to streamlining of processes, improve risk management and whether the organization is able to measure its strategic objectives more effectively and efficiently. Strong governance disciplines enforce the ability to revisit and reinforce what you have put into place at the start of the program consistently before moving on to new phases. When the business fails to deliver desired results, it's important to leverage effective analysis tools such as interdictive analysis to dig into the root causes of mismanagement, prevent the business from getting stuck at ineffective strategy management, aimless administrative bureaucracy, irrational decisions, or irresponsible behavior, and how to avoid unnecessary pains.

Effective governance mechanisms are embedded into project management processes seamlessly: Governance is the structure and process of authority, responsibility, and accountability in an organization. Without effective GRC discipline, the business will face significant risk for surviving, and opportunities which it creates cannot be properly transferred into multidimensional business value. So discipline and follow-up are the keys. Governance mechanisms can be embedded into the investment decision cycle and core processes to enhance an iterative strategy management cycle for accelerating performance and managing risks effectively. It makes instant conceptual sense to the top leadership team for clarifying financial returns, return timeline and risk.

Governance is a management enhancement tool and a learning tool that needs to be well understood and reinvented for improving business management commitment and maturity. Corporate governance definitely creates an impact on business performance. This impact is, however, situational. Good corporate governance creates a good controlling system, which can assure the corporations’ operation under the correct directions and behaviors correctly, and sustain the transformative change in business.

Posted in: GRC