Monday, October 31, 2022


Structured governance today is informative, proactive, interdisciplinary, and automated to enable changes and improve innovation management effectiveness.

Governance is steering, it's neither linear nor single dimension nowadays because the speed of change is increasing and business disruptions are happening frequently. Re-imagining the future of business is exciting, but enforcing management and governance as complementary disciplines is crucial to improve business effectiveness and fluidity.

 There are too many different types of business management initiatives, so there are different styles of governance approaches. As “over-controlling” governance perhaps stifles change, and decelerates business speed. In a high mature organization, governance must be viewed and assessed at the enterprise level, applying different styles properly, to reach the high level of governance agility..

Reactive governance:
In many organizations that get stuck at the lower level of business maturity, governance is reactive, focusing on controlling and risk mitigation. When business leaders or managers are comfortable with the “we always do things like that,”static mentality, get stuck at the daily busyness, they often miss the big picture and become complacent or compliant only. They ignore the sign that their business is in danger at a certain point, because they get used to reacting, not being proactive, and lack an effective governance system to improve business risk intelligence and resilience.

Overly focusing on control and enforcement has the tendency to damage an enterprise's capacity to motivate and engage staff, causing change inertia. Sometimes governance standards can be taken too far and become their own bureaucracy. Reactive attitude is simply not enough to overcome numerous barriers and hidden pitfalls on the way of business transformation. In practice, governance needs to become more proactive and “loose-control” for enhancing iterative planning-acting business management continuum in the organization.

Relaxed governance:
The concept of relaxed governance discipline is to ensure your organization optimizes the "traditional" governance to which you refer, and then make the governance more flexible to drive changes, lubricate business interrelationships, harness collaboration, and encourage innovation. Organizations should identify patterns for good governance that sponsors and advocate engagement, motivation, autonomy to improve organizational effectiveness and agility.

The governance can be “relaxed” to a certain degree if its processes are information-driven, and intelligent enough to identify or prevent potential issues. It focuses on prioritization, value-adding, and change agility. It’s less about controlling, more about enabling; repurposing, realignment and integration, to bridge the multitude of business management gaps, break down bottlenecks, lubricate the rigid processes with valuable feedback, and fine-tune hybrid functions or organizational structures to improve organizational flexibility, changeability and resilience.

Interdisciplinary governance:
At this level, governance is not only a business enabler, but also a change orchestrator, frame innovation management with trust and flexibility. The right level of guidance and process is important, but overly rigid processes or too pushy goals will stifle innovation. Reengineer or redesign the old fashioned governance control, focus on encouraging meaningful changes and developing innovation in a structural way. It's worth keeping in mind that “engaging, motivating, innovating” are cultural issues, which need to be embedded in the policies, processes, procedures, and practices of the organization, and harnessed via a strong governance approach.

In practice, take a consideration of your current governance maturity - where you are today and how far and fast you might change things, coupled with a good definition of roles, responsibilities wrapped around governance processes. If governance is deemed to stifle innovation, then it is wrongly understood or implemented. Governance needs to set a framework for interdisciplinary innovation management. So it can be understood via multidimensional lenses such as effectiveness, innovation, people-centricity, to create multifaceted value accordingly.

Improving governance principles, practices, and mechanisms can improve the quality of corporate performance. Structured governance today is informative, proactive, interdisciplinary, and automated to enable changes and improve innovation management effectiveness. High mature governance provides a platform for determining sound corporate attitude, behavior and structured decision-making for improving business agility and maturity.


Post a Comment