The effectiveness of governance is to encourage, actually orchestrate change with the appropriate speed, take stepwise approaches to implement strategies at the steadfast paces.
With rapid change, governance practices need to be sufficiently informed and able to keep pace with what is going on. Good governance must create good performance, especially for the long term business growth and maturity.
Governance & guidance: Governance is all about setting guidance, conforming to regulation and performing well to achieve business goals. Governance is fundamentally about improving decisions coherence within the corporate entity and taking an oversight of business management assessment. It is a mechanism for monitoring policies, and decisions or actions of corporations. Highly strong governance discipline enhances corporate principles and rules that need to be followed to improve transparency of the company, oversee business strategy, optimize processes and monitor business performance in a structural way.
Top directorship roles such as corporate board directors are supposed to be the guiding force in the enterprise, as the steering wheel, envisioning and leading the business toward the right directions. They are able to look from a different stance, ask insightful questions, and take the step-wise “assess--approach--prioritization-strategy-risk-monitoring” governance scenario. They provide excellent feedback which gives the top management invaluable advice to improve management effectiveness and agility.
Governance & gap-minding: The digital era upon us is about the advancement of new technologies and the breakdown of silos or outdated concepts or things. Due to the increasing speed of change and abundant knowledge, outdated thoughts and skill gaps are the reality. Governance is about alignment. Alignment goes beyond conformity and order taking, it needs to include a close partnership with interpersonal communication, value analytics, partnership alliance, etc. The digital workforce today is multigenerational, multi-geographic, and multi-devicing. Gap-minding is an important aspect for enhancing governance disciplines & practices.
In many organizations, the talent gap is often caused by misunderstanding or miscommunication between different business functions, knowledge domains, and vertical industries. Further, there is out-of-date talent recruiting and performance management practices and mechanisms. There's also a disconnect of short-term staff needs and long term talent perspectives. There is an ongoing problem with highly structured governance approaches that seem to overlook the very human and social behavioral factors. It is important to develop a series of gap-minding practices to bridge the multitude of gaps for speeding up changes. The alignment process can become a smooth and harmonized process, approaching a flow zone in which people are ready for moving to a fluid environment and business executives are eager to set stages for seamless people-centric business management.
Governance and gauging: The strong governance principles & practices steer organizations toward the journey of value-adding and high performance. There are tangible and intangible components of value, besides economical value, there is customer value, brand value, societal value, etc. Gauging business success has a multitude of focus such as customer satisfaction, overall business capacity and capability to achieve strategic goals on-time, on-value; the success rate of business initiative delivery, the fiscal health of organization.
There are no two companies that are exactly alike in the same product/services/customers mix; they also vary in their investment cycle of growth and cost management. With strong governance discipline, the effective way to track the achievement of strategic goals is to cascade those down throughout the organization with the use of clearly defined key performance indicators for successful tracking of the effectiveness of strategy implementation. Strong governance ensures high performance with consistency.
Digital era is volatile, complex, uncertain and ambiguous, corporate governance is not only about governing operations and tactical efforts. It is more about setting the right directions, overseeing strategies. To put simply, it is about governing the evolution of the company. Otherwise, the company will fail because of a lack of vision and strategic direction. Those organizations that feel stifled by governance may not have matured beyond operational risk and control. The effectiveness of governance is to encourage, actually orchestrate change with the appropriate speed, take stepwise approaches to implement strategies at the steadfast paces.
Top directorship roles such as corporate board directors are supposed to be the guiding force in the enterprise, as the steering wheel, envisioning and leading the business toward the right directions. They are able to look from a different stance, ask insightful questions, and take the step-wise “assess--approach--prioritization-strategy-risk-monitoring” governance scenario. They provide excellent feedback which gives the top management invaluable advice to improve management effectiveness and agility.
In many organizations, the talent gap is often caused by misunderstanding or miscommunication between different business functions, knowledge domains, and vertical industries. Further, there is out-of-date talent recruiting and performance management practices and mechanisms. There's also a disconnect of short-term staff needs and long term talent perspectives. There is an ongoing problem with highly structured governance approaches that seem to overlook the very human and social behavioral factors. It is important to develop a series of gap-minding practices to bridge the multitude of gaps for speeding up changes. The alignment process can become a smooth and harmonized process, approaching a flow zone in which people are ready for moving to a fluid environment and business executives are eager to set stages for seamless people-centric business management.
There are no two companies that are exactly alike in the same product/services/customers mix; they also vary in their investment cycle of growth and cost management. With strong governance discipline, the effective way to track the achievement of strategic goals is to cascade those down throughout the organization with the use of clearly defined key performance indicators for successful tracking of the effectiveness of strategy implementation. Strong governance ensures high performance with consistency.
Digital era is volatile, complex, uncertain and ambiguous, corporate governance is not only about governing operations and tactical efforts. It is more about setting the right directions, overseeing strategies. To put simply, it is about governing the evolution of the company. Otherwise, the company will fail because of a lack of vision and strategic direction. Those organizations that feel stifled by governance may not have matured beyond operational risk and control. The effectiveness of governance is to encourage, actually orchestrate change with the appropriate speed, take stepwise approaches to implement strategies at the steadfast paces.
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