Good governance is essential for a transformation to be successful. The organisation will be protected from any poor decisions that may be made, alongside alleviating risk. In my view, teamwork is the essence of good governance.
On the other hand, poor governance can have a negative impact on the future of the organisation. There is potential for executives or senior individuals to be exposed to threats of personal liability and their reputation at risk. Poor governance can contribute to spectacular failures.
What are some key elements and essential ingredients of good governance in transformation?
- Adopt clear measures of expected value and how that value is determined;
- Ensure clear decision-making roles;
- Ensure governance looks at ‘actual’ versus ‘expected’ transformation outcomes;
- Ensure the team has a clear exception protocol;
- Ensure funding models recognise several types of investment and don’t adopt a ‘one size fits all’ model;
- Ensure the Governance group has the right operating rhythm with meeting frequency; and
- Pull the plug on failing initiatives early.
Expecting a complex change initiative to go well using anything less than good governance puts the entire transformation at risk.
Put the same amount of effort into your governance arrangement as you would into the business case to support the transformation of your business.
If you need help preparing your organisation for major transformational change and governance in transformation, please contact us on +65 6818 5771.