Illuminategrc

As the more complex contemporary organizations become, the broader scope of corporate governance turns out to be.

For every corporation which should work effectively, strong governance, risk management disciplines help executives and management perform a risk analysis, raise visibility of their core processes, harness corporate connectivity via communication, coordination, and control, and improve organizational agility, maturity.

Governance should be the conception, development, and deployment of solutions in achieving business holism: Excessive management complexity enlarges functional gaps that stops data growth and information flow, limits performance and slows down change speed. Governance must be assessed at the enterprise level and take a holistic approach to improve overall business effectiveness and efficiency in achieving governance holism.

It’s important to look for the linkage between management and improve the quality of performance through governance improvement and enhancing complementary management-governance disciplines. A holistic governance approach with a set of innovative practices can harness information-based communication, enforce accountability, optimize resource usage, and improve problem-solving effectiveness.

Governance as an integral process should lead to decision coherence in improving business investment success rate: Although the governance structure is independent of the management structure, the governance mechanism can be embedded into the business process seamlessly. If you can integrate governance mechanisms into the investment decision cycle and develop a balanced investment portfolio, it makes instant conceptual sense to board and C-level executives.

Investment is both art and science; it takes a systematic governance process in making coherent decisions regarding the project, budget, talent management, etc. There is a thin line between perception and reality. The perception of being “better” is just an opinion until pre-defined measures of success are applied to the decision process. It makes conceptual sense to the top leadership team for clarifying financial returns, return timeline and risk. Strong governance enables the management to understand the reason for misperception and fix relevant issues, enhances investment decision cycle, improves effectiveness & efficiency of a balanced investment portfolio.

Governance provides a common corporate "language" and work instructions in achieving people-centricity: Exceptional people-centricity takes a holistic approach with the "horizontal" coordination approach and vertical permeation, focusing on putting people at the center of every employees' short and long term business purpose. Organizational workforce optimization takes planning, experimenting, and scaling up with strong governance discipline.

The transparent management to optimize the workforce is to transform the organization into the organic system approach, not through the command-control hierarchy only. Organizations should identify patterns with a soft human touch, enhance good governance by setting good policies to improve people engagement, motivation, and innovation as these are vital aspects of top-performing enterprises in the knowledge/creativity economy.

Corporate governance provides monitoring, measuring, and enforcement mechanisms to corporate management. Governance needs to be the frequent conversation of top leadership teams such as corporate board and C-level. As the more complex contemporary organizations become, the broader scope of corporate governance turns out to be. Taking part in governance discipline should be seen as a leadership style and effective management tactics to achieve high-performance business results with consistency.

Posted in: GRC,Principle/Practice