Initiativesofgovernance

Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically.

Organizational governance is about steering the company in the right direction; providing monitoring, measuring, and enforcement mechanisms to corporate management. The more complex contemporary organizations become, the broader scope of corporate governance turns out to be. In today's business dynamic, traditional compliance-driven governance perhaps overly focuses on compliance, without paying enough attention to performance. Governance shouldn’t add a heavy layer of control and enforcement which increases bureaucracy. Governance principles need to be assessed, evaluated, and modified to address the latest trend, governance practices and disciplines should be enforced to accelerate performance.

Initiate top down governance driven activities, set governance policy and standard: Governance is a set of policies which are often established at the top, the process and mechanism which can be embedded into corporate management discipline, as well as a series of practices to harness change and improve organizational performance. Governance is a concept that applies to making decisions where multiple stakeholders need to be taken into account at the solution level. Strong leadership focuses on respect, relevance, and intelligence, sets good governance policy, guidelines, values and standards for governing the company's commercial activities.

Compared to traditional governance approaches which focus on compliance, understanding digital business as a dynamic complex system is the starting point for effective governance. Great leaders are disciplined influencers as governance is a state of mind. Top leadership teams need to contemplate: To what extent is senior management involved for governance at various levels? Governance principles need to be reassessed, reevaluated, and remodified to address the latest trend, take activities to ensure management effectiveness under the proper governance disciplines.

Initiate customized governance to enhance dynamic business capability development: With the speed being in perfect balance with cost and risk for the given decision situation, the problem is, governance is almost always associated with compliance and control. Over governance stifles changes and under-governance brings high risks to business management. Customized governance is to optimize complexity, improve resilience, enabling contemporary organization to reach a state of hyper-connectivity and interdependence that has desirable characteristics such as self-organizing and self-regulating to achieve high performance results.

There is no such thing as governance by dictation, governance might be the conception, development, and deployment of business solutions and exploration. Corporate portfolio management is a governance discipline to enhance business initiative management for optimizing business competencies, which will strategically decide the overall business capabilities to manage strategy, improve business performance, and achieve the desired effect. Portfolio management processes are important, but it doesn't mean there is a prescribed governance process that can follow in different circumstances. There are many tools around, but lack of a “perfect” one. Thus, customized governance is about less controlling, repurposing, realignment and integration, to bridge the multitude of gaps, breakdown bottlenecks, lubricate rigid processes with invaluable feedback and flexible functions or structures to achieve consistent high performance.

Initiate governance process enhancement: Corporate governance, risk, and compliance are a collection of processes that help management perform risk analysis, harness connectivity, raise visibility and awareness for many things that are captured at the different levels of the organization. With strong GRC guidelines, authorities, disciplines, roles and responsibilities and clearly defined processes are in place to improve organizational transparency, lubricate corporate relationships, improve business effectiveness and maturity.

Strong governance discipline improves the consistency of decision-making across the organizational hierarchy; optimize business processes, getting the people, culture, accountability, and performance right by increasing the probability of business achievement. It also helps to improve reliable service/solution deliveries, cost optimization, availability of talents, scalability of operations, or culture cohesiveness, etc.

Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically. Corporate governance discipline can fulfill its purpose as a high-level business enabler by facilitating dynamic strategic planning; providing a structured communication bridge between varying stakeholders, accelerating business performance, advocating governance as a discipline to improve business maturity.

Posted in: GRC