By implementing effective GRC programs and embedding governance mechanisms into business processes, corporations can deliver immediate benefits to the entire organization.
Governance today as a discipline is a living entity which continually requires stroking and attention in the digital era. The corporate governance rules and principles need to be followed to improve transparency of the organizational strategy, management performance.
No Governance= Poor Management: Traditional management runs in silos; silos introduce lots of delays, waste, queues, and bottlenecks. Poor management is a reality without governance discipline. Some processes or procedures create chaos for operations, and other delivery groups. Chaos! It may work well for a startup but when the company and the various organizations grow, it becomes a nightmare!
From a problem-solving perspective, poor management decisions often arise from the unnecessary embellishment of the problem. The negative reactions to the problems come from a state of distrust, disengagement, and disempowerment. This can be due to corporate political necessities or ignorance of the problem parameters. Given many organizations don't view governance as "decision-making optimization," their governance efforts usually devolve into time-consuming, costly, overbearing bureaucratic constructs; their management turns out to be ineffective and inefficient.
Some Governance= Mediocre Management: Traditional management is inside out process oriented and efficiency driven. Consequently, silo functions and divide-and-conquer methodologies are promoted both in organizational design as well as work responsibility or accountability distribution. Applying a single layer/definition of Governance, as a lot of businesses do, will either enforce ‘over Governance’ or ‘under Governance’ in or more of these areas, stifling innovation. Governance should be applied to ensure that common understanding is reached before strategy implementation begins. If not, failure is nearly inevitable.
Most “classic” management principles date from the industrial revolution. Some governance causes mediocre management. The organization operates remaining on more linear systems thinking and silo management control systems. The consequence of all of this is that “classic” management doesn’t take a systemic approach to management. Silo functions and divide-and-conquer methodologies are promoted both in organizational design as well as task responsibility or accountability distribution.
There should be a governance mechanism embedded in all crucial business processes, there are governance practices to enforce accountability at every level of the organization. And there are varying governance activities such as delegation of authority, auditing, or strategy monitoring, etc. Structural and Strong Governance = Superior Management which is critical to build a conducive climate and nurturing a working environment in which creative thinking is encouraged and innovation rewarded; people are inspired to change, grow, self-management to unlock high performance.
It is evolutionary to shift from inside-out traditional management style to outside-in and people-centric, focus on problem-solving and create business synergy. Governance must be viewed and assessed at the enterprise level to enhance management effectiveness and improve organizational maturity. By implementing effective GRC programs and embedding governance mechanisms into business processes, corporations can deliver immediate benefits to the entire organization.
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