Governance: Getting Serious about Process Improvement

To their credit, many organizations recognize the gaps and respond by dedicating valuable resources to addressing process shortcomings. Far too many, however, neglect the most important element: governance.

What is process governance.
If a process – at its very core, can be described as a set of tasks, activities, and outputs conducted by individuals and teams, then governance addresses who decides what steps and tasks represent the best way to execute the process, and how they decide it. Effective governance is bigger than improvement projects – it begins with a full understanding of how the process is really functioning – at the working level and against a defined standard. It quantifies the impact of gaps and opportunities. It identifies process stakeholders and their requirements. And it clarifies process ownership, accountabilities, and responsibilities and maintains a systematic process for making key decisions about the process including updates to process standards and managing execution of improvements.

Effective governance removes “throwing corporate processes under the bus” from the top 3.

Why is process governance important.
Effective governance ensures processes deliver against organizational goals and objectives and timely, effective responses to shortcomings and improvement opportunities. Process governance is an ongoing, continuous activity. Process governance assigns and empowers members of the organization to:

1. Drive consistent execution and process improvement: effective governance ensures processes are designed and executed in the most efficient and effective way possible. Driving improvement never stops – it responds to the evolving business environment, monitors process performance, and proactively identifies opportunities. Of course, improving processes begins with consistent execution across business units and functions against a well-defined standard.
2. Ensure compliance: core business processes must comply with a myriad of categories of requirements including applicable laws and regulations, internal enterprise policies, and contractual agreements to name a few. Effective governance mitigates risks associated with business processes, such as compliance risks, security risks, and operational risks.
3. Ensure transparency and accountability: good governance provides regular opportunities for stakeholders to engage and provide feedback and promote transparency and accountability in process execution and decision-making.
4. Facilitate continuous improvement: governance promotes a culture of continuous improvement by monitoring and analyzing processes, identifying opportunities, and driving improvements.