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In its most abstract sense, Governance is a concept referring to the actions and processes by which stable practices and organizations arise and persist1. These actions and processes may operate in formal and informal organizations of any size; and they may function for any purpose, good or evil, for profit or not.
Conceiving of governance in this way, one can apply the concept to states, to corporations, to non-profits, to NGOs, to partnerships and other associations, to business relationships (especially complex outsourcing relationships), to project teams, and to any number of humans engaged in some purposeful activity.
Put simply, governance is the set of structures put in place to control achieving the objectives
We focus on the following well recognised forms of governance:
Corporate
Corporate
Corporate organisations often use the word governance to describe both:
The manner in which boards or their like direct a corporation
The laws and customs (rules) applying to that direction
Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct, administer or control an organisation. Corporate governance also includes the relationships between people within an organisation, (the stakeholders) and the corporate goals. The principal players include the shareholders, management, and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.
Nonprofit
Nonprofit
Nonprofit governance has a dual focus: achieving the organisation's social mission and ensuring the organisation is viable. Both responsibilities relate to fiduciary responsibility that a board of trustees (sometimes called directors, or Board, or Management Committee - the terms are interchangeable) has with respect to the exercise of authority over the explicit actions the organisation takes. Public trust and accountability is an essential aspect of organisational viability so it achieves the social mission in a way that is respected by those whom the organisation serves and the society in which it is located.
transformation
transformation
Very closely linked with CHANGE governance, TRANSFORMATION is about significant, one off interventions. Depending on the level, it could include Project, Programme, Portfolio governance or any combination of those. All of these are the management frameworks within which decisions are made and outcomes are realized. The focus is to provide a repeatable and robust system through which an organisation can manage such interventions with maximum efficiency and without undermining the stability of ongoing operations.
changE
changE
Very closely linked with TRANSFORMATION governance, CHANGE or Continuous Improvement is more about smaller, step-by-step modifications, which often don't require dedicated resources and may just slightly affect the status quo. However, it is crucial to recognise the importance and cumulative impact which a significant number of small changes may have and employ correct mechanisms to control the outcomes.
Operational
Operational
The foundational level, this is the framework to control the performance of established day-by-day activities on the most granular level of details, and ensure it leads to achievement of the desired objectives, or send signal if interventions are required. Contract governance, case management could be good examples of such governance.
Whilst serving unique purposes, there is a very significant overlap and many similarities in terms of philosophy, approach and methods used between all of these forms. But most importantly - none works well in isolation. On the opposite, if integrated and applied holistically, these would allow to avoid duplication and maximise the outcomes for all the stakeholders in most efficient way
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