Thursday, September 29, 2022


Governance logic needs to be clarified for developing good governance practices and behaviors.

Corporate governance has a great impact on corporate performance. Governance controlling and enforcement needs to become more agile, intelligent and innovative. Business leaders need to clarify logic behind governance - the sequence of how to get things done: How governance rules can be enforced; how governance processes can be optimized, etc.

Digital era upon us is about innovation and customization. Enforcing enterprise governance involves updating rules, optimizing processes, developing, scaling new governance practices, etc, through good governance behavior to improve organizational manageability.

Governance logic can be enforced by putting clearly defined frameworks, policies and standards in place: The logical governance framework provides a common language, builds proper standards, appropriate business and use cases, etc, and takes governance practices cross-enterprise collaboratively. By enforcing governance logic to clarify sequence & consequence, the good governance standard provides a common corporate "language" and work instructions to decide and take actions for either grasping opportunities or managing risks.

Both architecture and corporate management such as financial control/planning/etc provide views, methods, and rules that address the different aspects of governance. Governance principles and practices need to be periodically assessed, evaluated, and modified to address the latest technology trend as well as enforce manageability via collaborating their geographically dispersed structures and talents. Governance is less about controlling, more about enabling. It takes fresh eyes to see through logic underneath; it evolves “finger-out” to enforce engagement, transparence; it needs “wire-up” to harness cross disciplinary communication and collaboration.

Governance logic is crucial to enhance process logic and maturity:
Incoherent processes cause misalignment, schedule delays, waste resources, disengage employees, and dissatisfied customers. At the logic level, with a role-based process view, perhaps there is no “Single Version of Truth” because nobody can agree on what the truth looks like, it's a matter of perspective from which angle of the process you are looking from. As the broader the reach of the process, the more diffuse the truth becomes, and the more important to reach a holistic view of the process. Cross-disciplinary governance approach enhances multipath process logic, improves organizational manageability.

It takes an agile mindset and governance practices to improve process agility and intelligence. It is critical to look at leadership, culture, staff training, existing processes, and existing technology first, make improvements if necessary, then determine whether governance logics/approaches/methods/tools would ensure effectiveness, efficiency and high performance of management practices.

Governance logic as part of intertwined business logic needs to be clear enough to accelerate performance; loose enough to encourage innovation:
As organizations or human societies turn to be more hyper-connected, and interdependent, business logic is often nonlinear and multifaceted. It’s important for organizational leaders and professionals to apply a multidimensional thinking box to understand business logic and sustain diversified viewpoints into holistic perspectives to solve problems logically.

There is gray logic behind running a holistic business today as there is the massive gray area between the two styles of management disciplines: top-down -“command & control” and autonomy - self-management disciplines. In terms of risk avoidance and the risk-tolerance, there is a gray area in between, the key is balance. Thus, strong governance is not too restrictive, but to clarify the gray logic about when or where you need to enforce business management; when and where you should flex the process to catalyze innovation; who and how to enhance governance discipline.

Governance today as a discipline is a living breathing entity which continually requires stroking and attention in the digital era. Governance logic needs to be clarified for developing good governance practices and behaviors. Governance philosophy provides ongoing inquiries to deepen understanding of business context based on abstract reasoning; governance principles offer a set of clearly defined rules to develop empirical methods and next governance practices to harness business management disciplines, improve organizational manageability and maturity.


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