Wednesday, January 4, 2023


Governance is for enabling, not for stopping the corporate vehicle.

Unpredictability, uncertainty, and the probability of surprising emergent properties increase with the complexity of the business systems. Organizations become complex as an evolutionary trend, for responding to dynamic business environments proactively. 

The more complex an organization, the higher the number of control actions that are implemented; governance becomes more complex, and should be looked at more holistically in an enterprise, following the logical steps to improve organizational effectiveness and maturity.

It’s important to harness interdisciplinary governance
: In face of “VUCA” reality, the desire for proactive change and innovation will make governance issues more cross-disciplinary. Both over governance and under governance stifle change. The right level of guidance and process is important, but overly rigid processes or too pushy goals will stifle change. Some governance causes mediocre management. Thus, it’s important to reengineer the old fashioned governance control, focus on encouraging meaningful changes and developing innovation in a structural way.

From top down, governance and management structures only come together at the board level. It’s the intersection area of management and governance in which cross-disciplinary teams need to understand the business holistically. There is governance complexity because sometimes governance "standards" can be taken too far and become their own bureaucracy. It’s important to build high-mature interdisciplinary teams and experiment with the best practices or the next practices to optimize governance structures and improve governance agility.

It’s crucial to enhance customized governance for building dynamic business capability development: Governance controlling and enforcement takes a new meaning in the dynamic era of digitalization, it takes agility, intelligence, and creativity to enhance customized governance for building a people-centric organization. It’s less about controlling, more about repurposing, realignment and integration, to facilitate changes and build dynamic business capabilities.

Customized governance is actually a great tool to facilitate innovation. Customized governance based on personalized communication and real time information can improve organizational agility. Corporate governance indicates a relationship with the corporate board, management and the stakeholders, and it is a facilitation system to enhance communication and collaboration, enforce cross-functional alignment towards customer-centric products and delivery mechanisms; harness innovation and improve-people-centricity.

It’s critical to improve IT governance:
IT governance as an integral corporate governance enforcement starts with understanding business as the dynamic complex and adaptive system. Good IT governance takes into consideration the organization's ability to process information for enabling change, invest more in technology, as well as IT ability to execute the changes requested. The willingness of the organization to want to implement IT governance together with an understanding of what it entails is important to increase IT effectiveness that further improves the maturity of the entire organization.

As governance has costs associated with it and partly is to do with the way a business perceives risk, opposed to focusing on the benefits that a well-governed business can bring to their strategic stance. IT leadership role among many things is to decide where to make IT investments, provide IT insights, and be the marketer for all the information to ensure consistency and compliance and can assist in risk management. Done properly, IT governance facilitates faster, better execution through visibility and formal decision making; not only from the financial results, but also from the involvement being people-centric.

Governance is for enabling, not for stopping the corporate vehicle. Business competency will decide the overall business capabilities to manage strategy, improve business performance, and achieve the desired effects strategically. Governance is about doing the right things, more specifically, it’s about enforcing decision effectiveness, and getting the people, culture, accountability, and performance right. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically.


Post a Comment