Exceptional leadership: Internal governanceInternal governance is simply the right people, equipped with the right data and authority, making the right decisions, aligned against clear priorities, allocating the appropriate resources, and then holding the organization accountable for execution. Sadly, most organizations haven't established sufficient governance to execute their strategy. Yet aligning and integrating strategic, financial, and talent processes to effectively allocate authority, priorities, and resources are the most profoundly differentiating activities a company can undertake. This drives competitive positioning by maintaining proper focus on efficiency, effectiveness, and results.
Unfortunately, many organizations believe a proliferation of councils and committees constitute effective governance; or they pride themselves on being an "informal," organic company. Both are risky. Regardless of the organization, well designed governance defines and reinforces desirable behaviors and helps diminish negative ones. It clarifies leadership expectations, spheres of power, performance measures, and collaboration required at critical seams across the organization. Good governance defines how groups of leaders come together to make and execute decisions about:
- Priority objectives with requisite resource allocation,
- Targets, performance measures and accountability
- P&Ls and budgets, and
- Managing the portfolios of products, clients, and talent.