What is governance?
The concept of "governance" is not new. It is as old as human civilization. Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented).
Since governance is the process of decision-making and the process by which decisions are implemented, an analysis must focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision.
What is good governance?
Recently the terms "governance" and "good governance" are being increasingly used in literature. Bad governance is being increasingly regarded as one of the root causes of all evil within our societies.
Good governance needs:
Participation - Participation by all stakeholders is a key cornerstone of good governance.
Decision process - Good governance requires adequate, robust but no overly bureaucratic decision processes
Transparency - Decisions taken and their enforcement must be done in a manner that follows decision making and implementation rules. It also means that information must freely available and directly accessible to those who will be affected by such decisions and their enforcement – I.e. decision collaboration
Responsiveness – The process must serve all stakeholders within a reasonable timeframe.
Consensus orientation - There are several actors and as many view points in a given society or organisation. Good governance requires mediation of the different interests to reach a broad consensus on what is in the best interest of the whole community and how this can be achieved.
Equity and inclusiveness – The well being of organisations and society depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the decision process
Effectiveness and efficiency - Good governance means that processes and institutions produce results that meet the needs of stakeholders, while making the best use of resources at their disposal.
Accountability - Accountability is a key requirement of good governance. Who is accountable to whom varies depending on whether decisions or actions taken are internal or external to an organisation.
Risk management - Risk management and monitoring is a crucial element within good governance. Identifying, assessing, mitigating, contolling and monitoring risks is the only way of ensuring strategic decisions are implemented and deliver the expected outcome, within resource constraints.
<< Download an overview of sourcing decisions risk governance here >>
<< See a quick animated explanation here >>
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