How Does Governance Impact Organizational Success?

Governance is a complex process. Failures in this area is not limited to relatively younger organization. Even established organization show chinks in their armour.

If you look at all instances where governance failed, there will be an overwhelming majority where an individual’s own interest put everyone else at risk.

With the newspapers filled with increasing number of such cases, it’s time organizations’ took a look at the governance mechanism.

I feel any of the following or maybe a combination should work:

1. Everyone’s responsible. All members already have a subset of the functional responsibility allocated as a part of their job description. Add a strong ‘G’ [ of ESG ] in the mix. An overhaul of the functional matrix is required. Ultimately, strong change management should help achieve the change in mindset.

2. Include junior folks or mid career professionals in senior governance forums. This experience will help groom the next layer of managers. Apart from the holistic impact, diverse viewpoints can help find better alternate solutions. Some organizations already use a ‘shadow board’ – but I am suggesting that such boards have a sub set across different business layers. It’s all about inclusivity.

3. Show and tell the effect of good governance. Classify, report and share lesson learnt basis the intent, impact and intensity matrix for governance issues.

Why do we think governance is always the manager’s job? Anything else that I should add to this list? Let me know.