Enterprise Governance - To Deliver Long-Term Strategic Success
Enterprise governance plays an important role in controlling and regulating the performance of an enterprise for achieving desired objectives, while complying with the constantly varying regulatory mandates. It also monitors potential risks and ensures optimal utilization of resources. A robust governance framework within an organisation, establishes the fundamental pillars for a sustainable business, with sound decision-making competence in identifying, selecting, and prioritizing services which meets long term business needs.
Enterprise governance has 2 dimensions – conformance and performance, which needs to be balanced to ensure long term success. Conformance also known as corporate governance, covers the issues such as executive remuneration and board structures and roles. While performance also known as business governance, dimension focuses on value creation and strategy.
Enterprise Governance enables organizations to
- Invest in the right initiatives and at right time
- Ensures that important investments meet expectations and achieve desired outcomes
- Align enterprise governance capabilities with strategic business objectives
- Deliver services cost effectively and efficiently
- Ensure transparency throughout organization
There are 5 A’s of Enterprise Governance of IT
For organizations to be successful they must take actions on the following 5A’s.
Alert - This action is possibly the most crucial step that every organization must follow. It can be a reactive or a proactive approach taken by an organization, to ensure that all the stakeholders associated with an organization, are aware of any possible internal or external course of events or incidents, that can positively or negatively impact the business.
Adopt - This action involves acceptance and implementation of various internal policies, which are in compliance with external regulatory mandates as well as internal business objectives.
Adapt - Adapt is one of the most complex course of actions, which could involve planning and strategizing for managing changes within the organization. This is an essential task to adjust the organization’s business framework to fit with the internal and external business environment. Alternately, it signifies the process of familiarizing all the business stakeholders with the latest updates on the organization’s business framework.
Align - Organizations need to bring their environment in line with the components of framework needed to implement. Organization should align their processes with enterprise goals and stakeholder needs to deliver value to stakeholders.
Assure - Organizations must assure that they have done what they declared for and must pick Key performance indicators which matters for them and strongly track them. This could involve due-diligence of internal and external business entities to ensure compliance with all business mandates.
– Sonam Chawla,