Thursday, May 12, 2022


Without effective GRC discipline, the business will face significant risk for surviving, and opportunities which it creates cannot be properly transferred into multidimensional business values.

Consider digital organization as the coherent, self-organized, interlaced and hyper-connected organic system. Organizations "become complex," not for their own amusement, but do it to respond to environments more proactively. 

Corporate boards oversee business strategies to improve the management effectiveness and eliminate risks. High-performing boards would check the coherence of corporate management, laser focus on the most critical issues, advise the management on the maximization of multifaceted business value creation.

Corporate decision coherence:
The digital coherence is the decisive factor for improving strategy effectiveness and running a high performance organization. Coherence is simply about logic and consistency. Corporate boards oversee decision coherence across the organizational hierarchy as running business is an iterative deciding-problem-solving continuum. Human decision making becomes important and essential when there are multiple criteria; as in multi-objective optimization, and the decision changes according to which criteria have priority.

Corporate governance could be part of strategic planning. When the organization lacks effective governance discipline to guide through, people are running in the dark, fumbling around to make decisions blindly. Strong governance is critical to enforce effectiveness of decision-making framework which includes a guideline containing approach or model, methodology, process, and the scope of the activities to improve decision efficiency. It helps to optimize an essential part of the decision framing process to understand what your high-level outcomes are related to the issue, opportunity, or problem; as well as cultivate a culture of information-based decision-making. 

Corporate process coherence:
The degree of business coherence decides how flexibly the organization can adapt to business dynamics and how innovatively it can drive progressive changes. Processes underpin business capabilities. Process coherence fosters “cosilience” “coherence + resilience” of the organizational capabilities. Thus, BoDs as one of the most crucial governance bodies can leverage business architecture as an effective tool to facilitate communication and enforce process governance.

Many organizations that get stuck at the lower level of maturity have an overly rigid hierarchy and contain information or process silos. Thus, governance is needed to create more effective processes and information-enabled enterprises. The broader the reach of the business process, the more diffuse the truth becomes, and the more important it is to commit the time and energy required to reach a holistic view to improve process effectiveness and efficiency. Enforcing mutual respects between organizational design and business process management can lead to effective business transformation.

Corporate culture coherence:
Culture as collective mindset, attitude, and behaviors, is perhaps the most invisible, but powerful fabric surrounding the organization. Culture takes all forms - some 'out of control cliques' and some 'microcosms of diversity.' Culture is critically important to a business's success so it is appropriate for business leaders such as BoDs to make an objective assessment of corporate culture, as well as set the right tone to shape the corporate culture that catalyzes strategy management.

The spirit of an organization comes from the top. The mindset and actions of the leaders define the culture. It is what they do and what they do not do. It’s whatever the leadership encouraged, excused, or condoned shapes what culture turns out to be. In high-integrity cultures, every person has the opportunity to exhibit leadership by upholding the company core values and advocating the culture of innovation.

With the increasing pace of organizational changes and digital disruptions, sound governance is part of improving risk intelligence and doing the right thing, Corporate governance isn’t just about putting restrictions on what you can do, it is also about monitoring and knowing when things are not going to plan so that you can take appropriate actions at the right time. Without effective GRC discipline, the business will face significant risk for surviving, and opportunities which it creates cannot be properly transferred into multidimensional business values. With effective tools or methodologies, the best practice in the boardroom can be used wisely and with the expertise to really add value for effective strategy execution.


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