Wednesday, November 9, 2022


 Strong governance allows different roles to work together in harmony, and ensures organizations to achieve high performance business results qualitatively and quantitatively.

Due to the “VUCA” characteristics -complexity, uncertainty, ambiguity, and velocity of the digital era, high-mature organizations can only be developed and sustained via strong governance discipline. 

Governance as an interdependent discipline is to frame business management. The corporate governance rules and principles need to be followed to improve transparency of the company, its business strategy, and performance. It should orchestrate change, do it with trust and flexibility.

Governance isn’t just about putting restrictions on what you can do; it is the guiding force behind business progression: Governance is about guiding businesses in the right direction and achieving expected business results by enforcing compliance, risk management with a right set of policies and a right level of controls. Governance comprises value delivery to the business and the governance of risk management. to ensure information quality & fluidity, communication consistency, decision coherence, and performance consistency.

There are a multitude of distinctions between corporate governance responsibilities and management responsibilities; such as governance structure, process, mechanisms, practices, and metrics, etc. They are complementary approaches to improve organizational agility and maturity.

Governance is the business discipline to enforce process intelligence and process innovation: Governance, risk, and compliance is not a single process but a collection of cohesive processes and mechanisms such as roles and tools to harness organizational management disciplines. Technically, the governance process management consists of interrelated intelligence operations: planning and direction, process analysis and production, dissemination and integration, evaluation and feedback.

There are both hard and soft components in business governance. There are potentially multiple joint processes that could define the scope of governance; and some of the elements of those various processes could be automated. In adapting to the rapidly changing new normal, governance controlling and enforcement takes a new meaning such as agility, focus, intelligence, and creativity in the dynamic era of digitalization. High mature businesses embed governance mechanisms into core processes, integrate governance structures and practices into different cycles of business management to ensure organizational effectiveness.

Corporate governance should directly link to the performance and value-generation:
Governance is about both performance and compliance. Organizations feeling stifled by governance may not have matured beyond operational risk and control. Governance is about monitoring and knowing when things are not going to plan so that you can take appropriate actions at the right time, ensuring boundaries are appropriately set and adhered to, for improving business effectiveness and agility. Shift the governance conversation from availability of business resources to the most productive uses for the enterprise's scarce resources; paying more attention to the social behavior factors that underpin governance activities, and take an interdisciplinary, people-centric governance approach to real GRC success,

The higher the complexity of the organization and the complexity of the environment in which it operates, the higher the requirement for business connectivity including communication, coordination, and governance discipline in order to meet performance baselines and generate multifaceted business value. Strong governance allows different roles to work together in harmony, and ensures organizations to achieve high performance business results qualitatively and quantitatively.


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