Organizational Governance

In a free market system corporate governance is generally a lagging influencer, meaning that we introduce rules and regulations after a negative event has already occurred. Our knee jerk reactions to unforeseen performance results almost always give rise to efforts for greater transparencies. Although greater transparencies may create short term performance correction, they seldom create accountabilities to the right entities. The concept of a balanced governance model is one which is built on the foundation of accountability not transparency. Because where accountabilities start transparencies begin.

Intrinsic to long term economic sustenance of any organization is the adherence to a balanced governance framework; a framework that is built on the pillars of accountability, commitment and transparency. Balance is core to universal governance laws. It is this balance that in turn induces sustained prosperity.

A balanced governance model is one where accountability, commitment and transparency are the foundation on which public trust responsibilities are shouldered. Responsibilities only to special interest groups leave other governance components either under utilized or over leveraged. Organizations often put financial performance ahead of all other performance parameters, creating imbalance in governance. In such one-dimensionally run organizations when the financial element weakens or buckles, the entire organization collapses instantly. Wonderment and unbelief follows as leaders and analyst are left dazed and confused only to blame their failure on external market economic forces.