Our Six Non-Negotiable Disciplines: #1 Governance
At Six Factor sharing our capability in leadership and performance management practices, means we evaluate the value being secured and not just the progress made. We also maintain the highest possible internal standards and ethics. Successes are tracked and shared with our team. We build actionable motivation as it happens:
What is governance?
Put simply, it's the ability within an organization for people to make informed decisions and to communicate their impact to the right people at the right time and in the right way, always in context to a stated need or requirement. We need governance to help keep the direction of business focused on achieving the big picture.
Effective governance involves the consistent use of systems, structures and best practices. The International Bureau of Education (IBE) defines this in detail as “structures and processes that are designed to ensure accountability, transparency, responsiveness, rule of law, stability, equity and inclusiveness, empowerment, and broad-based participation”.
Why is Corporate Governance important?
An organization should be measured by its performance and good governance practices equally to have a positive impact on day-to-day activities without compromise. It is crucial to prioritize both growth and ethical standing points of view all the time, that will lead to transparency to all stakeholders equally. Balancing these two perspectives may be challenging when you have conflicting stakeholders interests within the same project.
Positive Impacts of Corporate Governance
There are many positive impacts - some of them are:
Monitor and measure effect performance using consistent metrics;
Minimize wastage, risks and mismanagement;
Establish clear lines of stakeholder team accountability;
Maintain the confidence of investors and employees;
Provide refined guidance in context to company goals and strategy; and
Emphasize integrity and ethical behaviours;
Organizational challenges which good governance practices address
Company knowledge and intellectual property can be easily lost if not recorded properly. The expert in a specific tool can get sick, leave the company or retire. In each instance, why a decision was made, may be forgotten or lost. An organization should not solely rely on verbal updates. Training is important to record and measure the impact of decisions made and even improve upon their processes when necessary. Committing to make effective governance practice a priority improves efficiency and promotes effective communication and collaboration within an organization. Additionally, it sets clear roles of accountability, the decision owner, and responsibilities of those impacted to ensure compliance to the decision.
How do we apply Governance at Six Factor
In managing multiple projects, we are always looking for ways to improve the effectiveness of our operations by empowering people through following simple and clear steps of guidance.
Before starting any project you ask yourself these questions:
What is our goal with this task and why is it important?
Who is accountable for approving?
Who is responsible for completing the task?
Who needs to be consulted by the responsible person(s) to improve the task?
Who needs to be informed after the task is completed?
However, these questions do not apply to just complex projects. Standard operating procedures and operational workflows also benefit from asking these questions to help continuously improve quality and efficiency.
We now want to reorganize the above questions using RACI - an acronym for Responsible, Accountable, Consulted, and Informed. The four roles we look for in any project we undertake are:
Responsible – who will do the work
Accountable – who makes final decisions and/or owns the service
Consulted – who should be consulted prior to any action or decision
Informed – who should be notified of actions or decisions
If you would like to know and understand more about RACI roles, click on the link to read a more detailed article “What does RACI stand for?”. The RACI matrix helps you set clear expectations about project roles and responsibilities that will help your company build internal trust in a transparent, accountable, equal, and ethical way.
This is the first article of a series “Six 6 Non- Negotiable Disciplines” to ensure our high-quality projects. Would you like to receive reminders of the others? Click here to sign up for our newsletter.