Archiv der Kategorie: Governance

Governance covers regulations and control aspects.

Mortar – the ideal metaphor for the purpose of Governance

Enterprises are always looking for new ways, in order to set themselves up in the best way by smartly distributing the tasks. In the past the tasks were divided into as small parts as possible and provided with goals that unfortunately did not always fit to each other. As a result there are the corporate areas research & development, production, sales and so on. Today everybody makes efforts to reverse this development and to implement holistic solutions with process orientation and agile organization. No matter how you set up yourself, you need a connecting element between the parts – the governance. In order to explain the purpose of governance, mortar that joins building blocks to a stable whole is a good metaphor.

The interactions of many functions, units and employees within enterprises must be ensured. The following attributes of the Governance should enable this interaction.

  • Leveling
    Without mortar, it is very difficult to build a custom-fit masonry. The unevenness of the stones corresponds to the blurring of the components of a company. The adaptable mortar compensates for unevenness and connects the blocks in the right plumb line.
    Accordingly, the governance provides answers, which are not so critical within the individual areas, but ensure the accuracy between each other by balancing the scope of action across all areas.
  • Cohesion
    After the stones are piled up with the moist mortar to the desired wall, the whole dries to a stone-like mass. The walls hold together as if they were made of one stone. At the same time, the joints are designed to absorb climatic fluctuations.
    Governance must be prepared to cope with fluctuations in business requirements, e.g. through a common set of values that provides a framework for difficult times.
  • Stability
    You cannot simply put stones together with mortar. An overall statics is required for the wall to fulfill its tasks. The overall plan provides the basis for this. If the static of the building is OK, i.e. if there are no imbalances that let the wall collapse over time, then the build-up will likely last for a long time.
    Accordingly, it is not enough to introduce governance. The building blocks must also be meaningfully aligned to each other, e.g. through a shared vision and long-term goals.

As the mortar is the binder between stones, the jointly decided governance holds the enterprise together and ensures that everybody is aligned to the same direction.

Bottom line: There are rarely walls that work without mortar. The same applies to companies that do not function without governance. Therefore, to convey the purpose of governance, mortar is a good example, as it allows any   sizes of walls and stabilizes buildings. The crucial thing is to connect the parts of the company in such a way that they stick together and perform their tasks in a stable way. In this sense, mix your mortar and ensure that way the cohesion of your area.

P.S.: See also the elements of Governance.

Join the contract, quit the contract – Good riddance

Many services are offered today as a membership. It starts with the fitness center around the corner, is valid for a membership in an automobile association, up to a subscription with Netflix. In order to benefit from the advantages of the membership, you sign a contract. As soon as you do not pay or even cancel, the agreed advantages are lost. You can join the contract without delay, but also quickly quit the contract – Good riddance.

mitgliedschaft

This is valid for all, but perhaps some believe that this is not valid for them, as you can see from the expectations of the British. They actually believe that they quit (which they did not do yet) and nevertheless are able to further use the advantages of the European Union – of course without the appropriate obligations. Although contracts are always defined the same way.

  • Terms
    Here you specify, how long the offer remains in full force and effect. As soon as the period has expired, a vendor is no longer bound to offer the deliverables with the indicated conditions. With the exit of the British it is rather the matter that the BREXIT will take at least over two years. Since David Cameron refuses tactically quitting the contract, it is open, when the exit period really starts. For the time of being, they are a member.
  • Conditions
    It is unclear, which conditions are valid, as soon as they quit. On the one hand England is then any longer part of the EU, but additionally not yet outside. What this means for payments, liabilities, laws, and so on will be clarified in the upcoming negotiations. Thus, the British still have another grace period, in order to adjust themselves to the loss of the European rights. For the rest of Europe nothing else remains to be done as to use the time for executing the relocation of banks, enterprises and institutions as well as to build up new tactical economic sites.
  • Rights
    The contracting parties lose with the cancellation at latest after two years the rights that resulted from the contract. It starts with fiscal arrangements, goes across import and export barriers as well as the loss of full say in European decisions, to the freedom of the citizens to travel. Swiss can tell a lot of not being involved in the agreements.
  • Conflict resolutions
    The question is, how it will be proceeded in case of conflict. England will become a non-European location, comparable with those countries, which yet did not achieve to make agreements with Europe. While it is clearly regulated so far, where legally obligatorily disputes are solved, in the future almost insurmountable walls arise that at least let the costs explode in the economic exchange. It is unlikely that this will be to the disadvantage for Europe. The luxury goods will be more expensive, but this should not be really a problem for the wealthy people in England. When this legal security gets lost, is not yet foreseeable.

Each golf and tennis court is prepared to allow non-members to their courses. The players cannot avoid paying an extra fee after they waited patiently in the line, in order to be let in at all. This should be clear for the Englishmen.

Bottom line: The current state is actually simple. The English want to withdraw. Okay. As island people they are used to go their own ways. In this case, it should be guaranteed by the European politicians that no back doors are opened that would be paid eventually by the EU citizens. Let us hope that the correct measures were already introduced, to take the European Union-relevant elements off from England and to re-activate the border barriers. Join the contract, quit the contract – Good riddance!