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Module 3. Organizational Readiness > Governance: The Second Pillar of Organizat...

Governance: The Second Pillar of Organizational Readiness

Governance is the operating structure of a company. Governance includes company authority, roles, responsibilities, and accountabilities. It defines the overarching operating model of the company and is typically established by the leadership team. In essence, corporate governance is the glue that holds together and defines the nature of the organization.

Governance defines the overall operating model of the company. Corporate operations encompass IT and its role as a business enabler. In addition to defining the operational structure and model of the company, governance addresses the following:

  • Organizing, funding, and executing IT initiatives

  • Executing defined IT initiatives in business and customer-centric ways

  • Defining and establishing decision metrics for measuring IT implementation successes

  • Defining and establishing decision metrics that measure the overall impact of each IT initiative individually, as well as its impact collectively on the firm

  • Establishing a closed loop process that provides feedback on the initiative to identify components of success, components needing adjustment, components that become a core competency, and components that could be optimized via outsourcing or out-tasking

Companies defined as having high organizational readiness have governance models that focus on setting new business and interpersonal dynamics both inside and outside the organization. They rely less on Industrial Era business models of established hierarchies and bureaucratic procedures and more on communication and collaboration across the organization. Generally speaking, strong governance follows solid leadership.

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