Friday, September 23, 2022


Effective governance discipline enhances corporate principles and rules, processes and practices that need to be leveraged, to improve the functioning and transparency of the company.

We live in an era, full of uncertainty, diversity, complexity, and ambiguity. The result is a higher risk of conflicts and inertia either for solving problems and running a high performance organization. There are so many things organizations need to spin well simultaneously these days. 

The goal driven business management should keep improving organizational effectiveness, efficiency, agility, resilience, for achieving business excellence. How to connect the dots between governance, investment, risk management, architecture, intelligence to run a high-performance organization?

Business governance, investment risk management: With the increasing speed of changes and digital velocity, there are full of opportunities and risks in making wise investments and running a smart organization. In many traditional organizations, the business is still fundamentally looking at risk in a negative context, which is not good enough and it’s the main reason why management may choose to forgo mitigating such risks. The one part of the governance process is to catch opportunities and create value depends on understanding the intrinsic risk of the strategies. GRC leaders and professionals take the responsibility for governing risks, setting the right risk appetite for business investment, and improving risk management effectiveness.

Lack of strong governance practice and risk management discipline might lead to the business investment falling down sooner than later. In practice, it’s always important to specify the rules and procedures for making decisions in corporate affairs, integrate governance rules, processes, and mechanisms in the investment decision cycle of the business, clarify the distribution of rights and responsibilities among different stakeholders in the corporation, etc. With a strong governance approach, the management can focus on key perspectives to presenting business investment value such as financial returns, return timeline and on value delivery with consistency.

Organizational governance, architecture:
Governance is one of the purposes of enterprise architecture, influencing the architecture relationships or other components options. Governance artifacts include such as planning, policies, processes, etc to improve business effectiveness, reduce risk. Leaders can use architecture as an effective governance tool for making wise investments, optimizing processes, and improving business effectiveness.

Enterprise becomes more complex than ever, uncertainties and complexity are a common occurrence in any walk of our progress. An effective governance model from a business architecture lens can expand a holistic view, broaden an outside-in perspective, and take an agile approach to improve organizational maturity. In specific, governance is the process to manage business processes and part of architectural disciplines to bridge “as is” and “to-be” state of the organization. Governance has a broader discipline than auditing, legal & compliance, etc, providing monitoring, measuring, and enforcement mechanisms, leading to decision coherence, encouraging ownership and enforcing accountability.

Governance, intelligence:
To run a high performance organization, governance provides the necessary framework and interdependent processes to provide insightful reporting or business intelligence. In business management practice, business intelligence has a lot of potential, allowing enterprises to interpret their past to understand their present, and better plan their future to enforce a growth cycle. With abundant information growth, business intelligence makes positive influences which touch every aspect of the business across the geographical and business territories, achieve multifaceted business value, shape a dynamic and ever-expanded high performance business.

To deal with business ineffectiveness pitfalls, strong governance principles harness leadership and management disciplines to ensure the business is doing the right things and doing that in the right way. By enforcing governance practices, an intelligent organization will develop an effective information management strategy for acquiring, processing, refining information, exploring an innovative way to analyze, model, visualize and extract information value to formulate insight, help people improve data-based, on-time decision coherence, make context-based suggestions and recommendations continually.

In reality though, most managers spend very little time on addressing crumbling paradigms with continuous disruptions and distractions, or they would not know how to start raising the intelligence of their organization and take a holistic management approach. Effective governance discipline enhances corporate principles and rules, processes and practices that need to be leveraged, to improve the functioning and transparency of the company, its business strategy, processes and management performance in a structural way.


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