Wednesday, October 19, 2022


For every corporation which should work and be effective and efficient, you need good governance.

In a complex world, in a complex organization, governance as a complementary discipline of corporate management, is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and enforced holistically. 

Governance is the key throughout all aspects to help people know what success and 'right' looks like, the time has come to rethink traditional approach, enhance agile governance principles, processes, mechanism for improving business effectiveness and maturity.

Governance rules and principles need to be followed to improve the functioning and transparency of the company: Governance is a neutral term which is useful in having the ability to discuss mismanagement issues such as waste, corruption, inefficiency etc. Governance and management mutually reinforce each other. Holistic governance discipline enhances corporate principles and rules that need to be followed to improve business strategy, processes and management performance, and improve risk management in a structural way. As you shouldn't finger point without laws (policies, standards, procedures), and you shouldn't have laws without someone having the final say on interpretation. Governance principle helps to unify, harmonize, guide; establish a set of rules to develop empirical methods and next governance practices to improve business effectiveness and maturity.

Initiative agile governance practices to enhance the structure and processes of authority, responsibility and accountability in a business: The best practice of governance takes a value-creation approach. Understanding business for the dynamic 'complex, but adaptive system' that they are, is the starting point for agile governance. It’s important to clarify the business vision and mission, develop governance practices to accelerate corporate capability development and optimization, ensure an appropriate risk and compliance structure is realized without being bureaucratic or misaligned with business objectives. Governance shouldn’t become the other layer of complexity for its own sake, but needs to be more interactive, flexible, have a definite goal and exactly know the kind of problem they would like to solve. The agile governance practices to improve requirements management fluidity and resource management helps business to manage complexity and achieve resilience.

There should be a governance mechanism embedded in all crucial business processes: Do people need to be forced to comply with GRC activities or do they naturally consider it as part of their daily job? Governance is about guiding and regulating those decisions and behaviors to serve the fundamental purpose. Governance mechanisms can be embedded in the myriad day-to-day decisions and behaviors taking place at all levels of the entire organization, for monitoring the policies, decisions, actions of corporations. Therefore, look for the linkage between strategy management, operation management and governance rather than compliance, corruption, and tough issues, to improve the quality of performance through governance improvement.

For every corporation which should work and be effective and efficient, you need good governance. Both over governance and under governance stifle changes. For an organization embarking on a business journey to achieve people-centricity, it might be good to start at the top, cultivating the governance fluency and risk intelligent culture. Governance involves updating rules, optimizing processes, having a clear organization, roles & responsibilities in place, guidelines, table of authorities and clearly defined processes are in place, scaling new governance practices, etc, for encouraging progress changes, enabling flexibility, improving organizational effectiveness and maturity.


Post a Comment