Reverse Governance to create accountability and reinforce Ethics, Integrity,
and Transparency
Conventional wisdom dictates Good Governance improves
corporate discipline. Poor governance, on the other hand, may deteriorate
the company's fiscal position, cause damage to reputation and harm the stakeholder
interests. Instead of simply adjusting your Governance bar and make fragmented
changes to your Governance policies and procedures, go thru the process
of reverse Governance every 3-5 years to avoid the volatility of fragmented
Governance systems.
Reverse governance if correctly implemented
will terminate the nearly continuous flow of minor and major scandals
of systemic failures and narrow crack that move focus from developments
that improve Governance to constant firefighting and damage control issues.
Identify the troubled spots
Reverse Governance is the process of analyzing the current Governance
structures, to identify the entire range of current Governance components.
This classification and categorization of each Governance component must
be related to their interrelationship to the issues that involve the processes
of Risk management and compliance.
Reverse Governance should be used to gain a better understanding of the
current Governance system, its complexity, and functionality and to identify
the troubled spots.
The errors of the current Governance issues must be detected and corrected
before embarking on a Reverse Governance journey. Modifications to the
current Governance structures can be made to improve the Governance system
performance.
Organisations decision-making process
The information gained from the Reverse Governance process can then be
used to restructure the Reverse Governance system, thus making the future
Governance system more maintainable. Maintenance request for improved
Governance when e.g. entering new markets can then be implemented and
maintained more easily and quickly.
One of the advantages of Reverse Governance is that you have prioritized
you Governance activities and determined the key Governance issues that
are important to your organization. The results of reverse Governance
will benefit the organisations decision-making process and gradually create
a more mature and efficient system of internal controls in the business.
There are ten steps to implement The Reverse Governance exercise.
- The procedure of Reverse Governance involves analyzing all of the
process documentation information that relates to the current Governance
practices. This information is required to modify the current governance
systems to fit the results that are derived from the reverse Governance
exercise.
- It is beneficial to start the process of Reverse Governance process
at the low levels of the Governance supply chain that often consists
of between 50-100 Governance policies.
- The top level support and the long-term commitment is very critical
before you start the Reverse Governance process.
- To avoid stumbling and struggles when going thru the Reverse Governance
processes, determine the related structures that are necessary to
integrate the reverse Governance to the organisations Risk Management
and Compliance forces.
- The high-quality staff is also essential to meet the revised level
of the Governance set bar.
- In Reverse Governance, it is critical that it is the business that
is the driver of the course of action. Reverse Governance is not technology
driven
- To be able to start you Reverse Governance procedure, it is essential
to have substantial stakeholder input that give you their opinion
on the various adverse Governance issues that have occurred in the
past.
- In Reverse Governance, you have to coordinate with the functions
and the departments the ramifications to the Governance process that
have a direct impact, so that you can ensure that the organization
is capable of meeting the changes Stakeholder input
- The structural organisational issues and the entire Change Management
procedure must also be reviewed in the right order before implementing
the Reverse Governance systems.
- Right upfront planning that include templates, roadmap, technology,
matrix, monitoring and valuation of the feedback are the essential
elements of the entire Reverse Governance process.
As the world makes a slow and for some companies even a painful recovery
after the financial crisis, a growing number of businesses are rapidly
extending their global reach by launching new and innovative products.
Before you embark on a globalization journey, ensure your current governance
roadmap and framework.
Boost the corporate brand
This reverse Governance service check includes the pickup in momentum
due to the changing strategies as a result if the entry of globalisation,
before launching products in global markets.
The sustaining and accelerating momentum of globalization requires a different
kind of Governance vigil as current policies should be strengthened to
fit the essential core of eco-system for Governance. The review must provide
the requirements of the large and growing emerging markets. Governance
strategies should include how to boost the brand without being insatiable
to local Governance mandates.