Monday, January 16, 2023


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

The world has become much more complex and smaller all at once due to blurred territories, virtual interactions, intriguing business reality, and global professional mobility. Governance is complex because the management discipline and GRC practices are more interdependent than ever. 

 Some old school of management thinks governance is only for the bottom line, statistically, the organizations with strong governance competency will improve strategy management effectiveness and increase business agility and innovation significantly.

Improving governance principles, practices, and mechanisms can increase the quality of corporate performance: Governance is a management enhancement tool with the mechanisms of escalation and resolution used to strengthen the weakest links of a multitude of management disciplines. The corporate rules and principles established based on interdisciplinary governance practices can be followed to improve transparency of the company, encourage cross-functional communication and collaboration to build management excellence.

It’s crucial to clarify the difference between local rules and global principles, provide invaluable views, rules, methods, practices to address the different aspects of governance, and achieve high performance business results with coherence.

Business governance is not only a business enabler, but also a change orchestrator, to frame management with trust and flexibility: There is a very real risk that governance as a discipline will begin to lose focus of its prime purpose if it does not address strategically important emerging issues. If organizations were, for instance, to consider just how evolutionary the corporate governance should be, insightful global leaders and BoDs can bridge the cognitive difference and bring the new insight of corporate governance to achieve digital agility.

In order to orchestrate the large scale of changes, top leadership teams need to contemplate: To what extent is senior management involved for governance at various levels? Governance disciplines need to be reassessed, reevaluated, and remodified to address the latest trends, take activities to ensure management effectiveness under the proper governance disciplines, frame management with trust and flexibility, and orchestrate changes smoothly.

The higher the complexity of the organization and its ecosystem environments, the more agile and customized governance is in demand to generate multifaceted value
: In today’s business dynamic, there is an ongoing problem with highly structured governance approaches that seem to overlook the very human and social behavioral factors that underpin governance effectiveness. Governance shouldn’t add a heavy layer of control and enforcement which causes bureaucracy, but needs to take a new meaning such as agility, intelligence, and creativity in the dynamic digital era.

Because organizations become more dynamic, complex and adaptive, the next governance practices are for synchronizing management and change management, balance of creativity and standard, change and stability. Customized governance is to optimize complexity, improve resilience, enabling contemporary organization to reach a state of high-maturity.

Still, there is still a long way to achieving corporate governance maturity. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically to generate multifaceted value smoothly. Solid governance discipline is to optimize complexity, for reaching a state of organizational maturity with desirable characteristics such as business agility, innovation, high-performance, and resilience.


Post a Comment