Governance often conjures images of endless paperwork, glacial decision-making, and creativity-stifling bureaucracy. But what if we’ve got it all wrong? What if, counterintuitively, the right kind of governance could actually speed things up?
Here’s an example: You’re at the helm of a nimble start-up, ideas firing on all cylinders. Suddenly, you hit a wall of regulations and compliance checks. Innovation grinds to a halt. We’ve all been there, cursing the red tape that seems designed to suffocate progress.
But it doesn’t have to be this way.
Enter the world of “fit for purpose” governance. It’s the difference between a traffic light orchestrating smooth flow and a poorly placed stop sign causing needless delays. When done right, governance becomes the invisible hand guiding organisations towards their goals, not the iron fist holding them back.
Take Amazon, for instance. In its early days, Jeff Bezos instituted the famous “two-pizza rule” – if a team couldn’t be fed with two pizzas, it was too big. This simple governance principle fostered agility and rapid decision-making, allowing the e-commerce giant to innovate at breakneck speed.
On the flip side, we’ve all heard horror stories of projects languishing in approval purgatory, their potential withering on the vine of ineffective governance. The key lies in striking a balance – providing enough structure to mitigate risks without stifling the very creativity and agility that drive success.
So, what are the key elements of effective governance? It boils down to three key ingredients:
- Clarity of purpose: Every rule, every process should serve a clear, communicated goal.
- Flexibility: One-size-fits-all rarely fits anyone well. Adaptable principle based governance frameworks allow for context-specific decision-making.
- Empowerment: Trust your people. Pushing decision-making down the chain can lead to faster, more informed choices.
As we navigate the complexities of the modern business landscape, it’s time to reframe our view of governance. When done right, it’s not a roadblock, but a catalyst – propelling organisations forward, fostering innovation, and turning the dream of agile, responsive operations into reality.
The choice is clear: We can either let governance be the anchor that weighs us down or the wind in our sails. Which will you choose?
Check out one of our videos on governance here or join the conversation on Linkedin …