The effectiveness of Governance directly determines how well the entire SO operates and the extent to which it can achieve its purpose. To explain that we need to take a quick look at what Governance is and how it fits within the functioning of a service organization.
Every organization has a given purpose – its mission, a function or social role it is aiming to fulfill in its environment. To realize that purpose a service organization runs its operations, producing its services and delivering their value. These service operations need to be set up, steered and controlled through the organization’s management system.
The SO’s management system always consists of four management functions: Mandating, Directing, Regulating and Governance. In different organizations, these management functions may be fulfilled either by the same role / team or by different roles / teams. However, they always exist in some share and form at every level of the organization.
The SO’s management system always consists of four management functions:
In different organizations, these management functions may be fulfilled either by the same role / team or by different roles / teams. However, they always exist in some share and form at every level of the organization.
To do that, it creates the needed functional groups / roles within the SO, giving them their tasks & responsibilities and assigning them to actual assets.
All organizations are created, modified and eventually disbanded by their overarching Mandating management function
To that end it continuously defines a strategy consisting of finite goals to be achieved by Service Operations, contributing to realizing the purpose.
It also makes the decisions required for Service Operations to achieve the set goals.
Directing drives all management domains, from portfolio development, technology architecture & resourcing to manufacturing, production, marketing & sales, etc.
These could be rules on legal / financial / tax / infosec / HR / safety matters, but could also focus on maintaining ISO standards, ensuring environment friendly production, etc. To drive these secondary initiatives, it sets additional constraints and tasks to be factored into Service Operations.
It also provides an assurance role within all management domain, with the focus on the secondary initiatives
is effectively the integration between all other management functions and operations. It ensures that management and operations are closely connected and work in synergy.
It could be compared to a spinal cord in a body, connecting all its parts to the brain.
Summarizing, how well Governance functions directly determines how well the entire SO operates. Having an effectively working Governance, even an organization with limited resources can achieve strong results. On the other hand, having a badly working Governance will greatly limit the results of organizations even with great assets and good management.
That is why we specialize in improving Governance for our clients. Through this we help them become better at what they do, getting more out of their capabilities and being more creative & satisfied with their work. And that is our purpose.
