The context for corporate governance includes a wide range of circumstances and capabilities which are subject to constant organizational variability.
How to enforce the organizational governance discipline depends on the nature, scale, and complexity of the organization, as well as understanding risks and barriers it faces in business changes. Without effective GRC discipline, the business will face significant risk for surviving, and opportunities which it creates cannot be properly transferred into multidimensional business value. Strong governance to enable business management dots connection is both art and science for improving organizational effectiveness and maturity.
Corporate governance could be part of strategic planning to improve business effectiveness: The business environment is dynamic, business planning provides direction. There have been changes all along, the pace of disruption is very high this time around. Strong governance practices improve planning effectiveness, otherwise, strategic planning becomes outdated sooner than what you thought of. The governance body such as BoDs need to ask insightful questions: Does your planning put you ahead of trends? Does your planning tap a true source of advantage? Have the organizational resources been allocated to turning the strategy into a reality? Etc. Organizational governance should oversee important business components and ensure the organization as a whole is more effective and efficient than the sum of its parts.
Planning and forecasting become more critical, even if it is challenging. The planning oversight as a governance practice is crucial to identify and strengthen the weakest link in business management. By enforcing strong governance discipline, the business management can identify blind spots, close gaps between planning and actions, diagnoses crucial issues that need to be handled with priority, and outlines the preferred course of action. So the iterative planning-adjusting- evolving digital refinement cycle creates the business synergy to strive vigorously in leading digital transformation.
Governance initiatives harness process management by improving efficiency and standardization, customer focus, and innovation: Traditional organizational management with siloed processes often causes bureaucracy. The reality in most organizations though is the process which is forcibly jammed within an existing organizational design. There are situations - process and information governance that are genuinely needed to improve business effectiveness and efficiency. If you don't consider the processes as the main driver to deliver the desired result, then you will not get the result you hoped for.
Whoever governs, ensures the process is more focused from an enterprise and business perspective. Overly rigid governance for process control can crush innovation and customer-centric initiatives. Process governance initiatives need to be aligned with process improvement and change. The well managed governance practices are not just for controlling processes or stifling innovation, it's the complimentary business discipline to enforce process intelligence and process innovation.
Governance practices optimize resource alignment and improve organizational agility: When resource management becomes a bottleneck for organizational learning and digital transformation success, companies across the vertical sectors get lagging behind in the changing environment. Corporate governance is where resources are allocated to turning the strategy into a reality. How resource allocation is determined should be understood by important parties. It’s critical to set up priorities, free up resources that can be used to and deepen core capabilities in order to unlock organizational potential.
By enforcing business governance, an effective resource allocation scenario helps to get all related people involved, take advantage of resources effectively, optimize cost, set priorities, and keep the process transparent in order to build a highly intelligent organization. If organizations need to make adjustments to strategic planning due to the rapidly changing environment, by enforcing governance disciplines, realigning and rebalancing resources helps the organization take advantage of resources effectively, optimize cost, and strike the right balance of “running, growing and transforming” business steadfastly.
Governance effectiveness directly impacts business system cohesiveness and effectiveness: Business is a system, people are systems; every system has its position in the hierarchy of systems. Statistically, the organizations with greater governance discipline usually result in significantly better performance than their competitors, and they are doing better in well-embedding risk management into key business processes seamlessly. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lenses such as innovation, people, and multidimensional value perspectives, and be enforced holistically.
Strong governance discipline is about enforcing decision effectiveness, and getting the people, culture, accountability, and performance right. Thus, it’s important to apply a system's lens to understand how the people factor affects the business system, and then, manage the complex business as a holistic system to improve business effectiveness, stability and resilience.
There is no standard model for corporate governance because organizations are at the different stages of business growth and maturity. There are varying degrees of understanding of the scope of corporate governance, the context for corporate governance includes a wide range of circumstances and capabilities which are subject to constant organizational variability. It’s critical to enforce governance and management as interdependent disciplines to run a high performance organization.
Corporate governance could be part of strategic planning to improve business effectiveness: The business environment is dynamic, business planning provides direction. There have been changes all along, the pace of disruption is very high this time around. Strong governance practices improve planning effectiveness, otherwise, strategic planning becomes outdated sooner than what you thought of. The governance body such as BoDs need to ask insightful questions: Does your planning put you ahead of trends? Does your planning tap a true source of advantage? Have the organizational resources been allocated to turning the strategy into a reality? Etc. Organizational governance should oversee important business components and ensure the organization as a whole is more effective and efficient than the sum of its parts.
Planning and forecasting become more critical, even if it is challenging. The planning oversight as a governance practice is crucial to identify and strengthen the weakest link in business management. By enforcing strong governance discipline, the business management can identify blind spots, close gaps between planning and actions, diagnoses crucial issues that need to be handled with priority, and outlines the preferred course of action. So the iterative planning-adjusting- evolving digital refinement cycle creates the business synergy to strive vigorously in leading digital transformation.
Governance initiatives harness process management by improving efficiency and standardization, customer focus, and innovation: Traditional organizational management with siloed processes often causes bureaucracy. The reality in most organizations though is the process which is forcibly jammed within an existing organizational design. There are situations - process and information governance that are genuinely needed to improve business effectiveness and efficiency. If you don't consider the processes as the main driver to deliver the desired result, then you will not get the result you hoped for.
Whoever governs, ensures the process is more focused from an enterprise and business perspective. Overly rigid governance for process control can crush innovation and customer-centric initiatives. Process governance initiatives need to be aligned with process improvement and change. The well managed governance practices are not just for controlling processes or stifling innovation, it's the complimentary business discipline to enforce process intelligence and process innovation.
By enforcing business governance, an effective resource allocation scenario helps to get all related people involved, take advantage of resources effectively, optimize cost, set priorities, and keep the process transparent in order to build a highly intelligent organization. If organizations need to make adjustments to strategic planning due to the rapidly changing environment, by enforcing governance disciplines, realigning and rebalancing resources helps the organization take advantage of resources effectively, optimize cost, and strike the right balance of “running, growing and transforming” business steadfastly.
Governance effectiveness directly impacts business system cohesiveness and effectiveness: Business is a system, people are systems; every system has its position in the hierarchy of systems. Statistically, the organizations with greater governance discipline usually result in significantly better performance than their competitors, and they are doing better in well-embedding risk management into key business processes seamlessly. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lenses such as innovation, people, and multidimensional value perspectives, and be enforced holistically.
Strong governance discipline is about enforcing decision effectiveness, and getting the people, culture, accountability, and performance right. Thus, it’s important to apply a system's lens to understand how the people factor affects the business system, and then, manage the complex business as a holistic system to improve business effectiveness, stability and resilience.
There is no standard model for corporate governance because organizations are at the different stages of business growth and maturity. There are varying degrees of understanding of the scope of corporate governance, the context for corporate governance includes a wide range of circumstances and capabilities which are subject to constant organizational variability. It’s critical to enforce governance and management as interdependent disciplines to run a high performance organization.
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