Governance is about enforcing decision effectiveness and getting the people, culture, accountability, and performance right.
The key differences between traditional governance and agile governance primarily revolve around the shift from hierarchical, bureaucratic structures to more flexible, network-based approaches.
Traditional Governance: Traditional governance relies heavily on hierarchical, bureaucratic systems where authority is centralized within the organization. Senior management plays a dominant role in decision-making and policy implementation, with clear boundaries between different functions. Governance is characterized by formal rules and procedures, with a focus on control and regulation by government entities.
Agile Governance: Agile governance emphasizes the role of markets and networks, moving away from strict bureaucratic control to more collaborative and decentralized approaches. There is a blurring of boundaries between the modern global society, with increased involvement of diverse stakeholders in governance processes. Authority is more dispersed, with informal networks and partnerships supplementing or replacing traditional government roles. Agile governance seeks to improve coordination across various agencies and stakeholders, promoting social inclusion and citizen involvement in the policy process.
Proactive governance: Proactive governance refers to the approach of actively managing and guiding an organization or system to anticipate and address potential challenges and opportunities before they arise. This approach is often seen in the context of corporate governance, where shareholders and stakeholders engage in practices that influence how a company is managed to ensure it aligns with broader social, environmental, and governance goals.
The problem with governance is that the people enforcing governance normally have a frame of reference based on their own experiences and a view of the organization's existing capabilities. Governance is about enforcing decision effectiveness and getting the people, culture, accountability, and performance right.
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