Don’t just see governance as a constraint, but rather, an opportunistic construct.
Theoretically, almost everything in an organization should have both management and governance components, to ensure business doing the right things in the right way. The top leadership team should make an objective assessment by asking tough questions, to make sure governance and management as interdisciplinary approaches improve business effectiveness, efficiency, and agility.
Are conflicts or contradictions making the business suffer, can you detect them and handle them timely: The world becomes more complex and hyperdiverse, conflicts are perhaps inevitable. What is one state of mind to one person need not necessarily mean the same thing to another. And that's where the conflict comes in. There are either internal conflicts or conflicts in the outside world. Not all conflicts are bad; some conflicts generate creative tensions, and spur innovation. The key is to find out the root cause of conflicts. When conflicts happen, it’s important to listen and understand before acting, learn, share, lubricate. Strong governance practices help to deal with conflicts effectively and lubricate business relationships smoothly.
The management needs to contemplate: How are you aware of what triggers conflicts, and what are the specific ways to better manage them before and after the buttons to trigger the conflict are pushed? Are they caused by cognitive difference, miscommunication or excessive emotional involvement? Could it be a cultural difference, emotional responses, or the growing pain of the business transformation? Etc. One point of struggle is governance taking away liberties that are essential to people doing their works innovatively or making change flexibly. Governance shouldn’t mean over-control only. Effective governance practices need to enhance good corporate policies, principles, and processes to broaden perspectives, improve communication effectiveness, and collaborative problem-solving.
Is there anything going on which could cause embarrassment if it became known? We live in an era full of uncertainty, velocity, complexity, and ambiguity. The result is a higher risk of business disruptions, etc. The challenges, competition & complexities may be on the increase but along with it comes the increase in opportunity as well and in the form of demand. The lack of risk awareness creates more blind spots uncovered, and gaps unfilled. Uncertainty is essentially a lack or void in the current knowledge base to predict future events or activities. Organizations shouldn’t just respond to them in a reactive way, but need to enforce a holistic GRC discipline proactively.
As business leaders today, you can’t predict every turn or curve that the organization will face. But you should keep asking yourself and others: Are we experiencing certain “embarrassing moments” before? What are cause-effects underneath? Did we learn the lessons? Can we predict and deal with threats or disruptions that organizations face more accurately? What is the "spirit" in the governance body? How integral are today's GRC practices? And what are the perspectives for the future of governance? The way to effectively deal with uncertainty is to reduce it by getting information and improving GRC disciplines via integrating governance and risk management processes. First, you have to be able to visualize and identify the uncertainty; second, it is necessary to convert the uncertainty to risk through the application of quantification methods in order to be able to manage uncertainty as risk and improve business risk intelligence constantly.
Is the organization gradually becoming irrelevant due to change inertia or complacent attitude: In face of rapid change, exponential growth of information, fierce competitions, organizations across the boundaries have huge pressure to survive in today’s “VUCA” normality. Change inertia makes many people reluctant to make the move until a catastrophic event happens and causes significant business damage. The mediocre thinking and attitude lead to complacency, change inertia, silo, or lower team morality. The command & control style of management lost their steam to drive business transformation as businesses need to keep rejuvenating their culture, riding above learning curves, and building differentiated competencies.
One of the biggest challenges for organizations to overcome the culture inertia or complacent attitude is to enforce governance discipline, cultivate a proactive attitude, increase learning/change curve awareness, so change inertia can be minimized via common understanding about the necessity and imperatives of changes. Change managers with learning curve awareness can ride the learning curve smoothly. Once that complacency barrier is broken, people become more creative and learning agile, a positive change process can commence, organizations become agiler, innovative and flexible. They are able to build the full set of business capabilities to take their organization from where it is to the next level of organizational maturity.
Every organization is at a different stage of the business development cycle, with its own set of issues, problems and concerns regarding its strategic and inherent risks. Don’t just see governance as a constraint, but rather, a construct. Without strong governance, management perhaps gets lost or even totally out of control. Effective governance discipline enhances corporate principles, processes and practices to improve organizational functioning, transparency, and maturity of the company.
Are conflicts or contradictions making the business suffer, can you detect them and handle them timely: The world becomes more complex and hyperdiverse, conflicts are perhaps inevitable. What is one state of mind to one person need not necessarily mean the same thing to another. And that's where the conflict comes in. There are either internal conflicts or conflicts in the outside world. Not all conflicts are bad; some conflicts generate creative tensions, and spur innovation. The key is to find out the root cause of conflicts. When conflicts happen, it’s important to listen and understand before acting, learn, share, lubricate. Strong governance practices help to deal with conflicts effectively and lubricate business relationships smoothly.
The management needs to contemplate: How are you aware of what triggers conflicts, and what are the specific ways to better manage them before and after the buttons to trigger the conflict are pushed? Are they caused by cognitive difference, miscommunication or excessive emotional involvement? Could it be a cultural difference, emotional responses, or the growing pain of the business transformation? Etc. One point of struggle is governance taking away liberties that are essential to people doing their works innovatively or making change flexibly. Governance shouldn’t mean over-control only. Effective governance practices need to enhance good corporate policies, principles, and processes to broaden perspectives, improve communication effectiveness, and collaborative problem-solving.
As business leaders today, you can’t predict every turn or curve that the organization will face. But you should keep asking yourself and others: Are we experiencing certain “embarrassing moments” before? What are cause-effects underneath? Did we learn the lessons? Can we predict and deal with threats or disruptions that organizations face more accurately? What is the "spirit" in the governance body? How integral are today's GRC practices? And what are the perspectives for the future of governance? The way to effectively deal with uncertainty is to reduce it by getting information and improving GRC disciplines via integrating governance and risk management processes. First, you have to be able to visualize and identify the uncertainty; second, it is necessary to convert the uncertainty to risk through the application of quantification methods in order to be able to manage uncertainty as risk and improve business risk intelligence constantly.
One of the biggest challenges for organizations to overcome the culture inertia or complacent attitude is to enforce governance discipline, cultivate a proactive attitude, increase learning/change curve awareness, so change inertia can be minimized via common understanding about the necessity and imperatives of changes. Change managers with learning curve awareness can ride the learning curve smoothly. Once that complacency barrier is broken, people become more creative and learning agile, a positive change process can commence, organizations become agiler, innovative and flexible. They are able to build the full set of business capabilities to take their organization from where it is to the next level of organizational maturity.
Every organization is at a different stage of the business development cycle, with its own set of issues, problems and concerns regarding its strategic and inherent risks. Don’t just see governance as a constraint, but rather, a construct. Without strong governance, management perhaps gets lost or even totally out of control. Effective governance discipline enhances corporate principles, processes and practices to improve organizational functioning, transparency, and maturity of the company.
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