Sound governance is to improve management effectiveness and eliminate risks.
Organizational governance is about steering; governance maturity refers to the idea that leaders and organizations should not only make promises and statements about their values, policies, and commitments but also demonstrate those through their actual actions and behaviors.
Technically, the governance structure is independent of the management structure, but the governance process/mechanism can be embedded into the business process seamlessly. In the realm of organizational change, governance coherence implies that:
Consistency between words and actions: There should be no disconnect between what is promised or proclaimed and what is ultimately delivered or implemented. Governing bodies, public officials, and organizational leaders should ensure that their words, policies, and public statements are aligned with and reflected in their real-world decisions and actions.
Accountability and transparency: Governing entities should be transparent about their decision-making processes, hold themselves accountable for their actions, and be willing to admit and address any gaps between their stated intentions and actual performance. This can involve regular public reporting, open dialogues with stakeholders, and mechanisms for external oversight and evaluation.
Ethical and principled conduct: Leaders and governing bodies should demonstrate a commitment to ethical, principled, and responsible governance by ensuring that their behaviors, choices, and outcomes are consistent with the stated values, codes of conduct, and public interest. This involves setting a strong moral and behavioral example for others to follow.
Responsiveness to stakeholders: Effective governance requires being responsive to the needs, concerns, and feedback of various stakeholders, including citizens, businesses, civil society, and other affected parties. Governing bodies should actively listen, engage, and take concrete actions to address the legitimate interests and expectations of those they serve.
Continuous improvement and learning: Governing entities should be willing to continuously evaluate their performance, learn from their mistakes, and make adjustments to improve their practices and outcomes over time. This can involve seeking external input, conducting self-assessments, and implementing evidence-based reforms.
Sound governance is to improve management effectiveness and eliminate risks. By "walking the talk" in governance improvement, leaders and organizations can build trust, credibility, and legitimacy with the public, demonstrating that their words and commitments are backed by meaningful, consistent, and ethical actions that serve the common good.
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