Why does decision making have such a critical influence on organizational functioning and success? Well let’s think about it.
Okay ~ let’s look at the heron family. In the image we see two parents trying to answer the demands of the chicks. And what do chicks want but more, more, more – food, safety, support, attention, life lessons and skills and lastly independence. How are the parent birds to meet all these demands and at the same time ensure the health and wellbeing of both themselves and the chicks? These chicks are really not much different from you and me. We see the same situations both in human families and human organizations.
How do you balance the interests of management, employees, clients and stakeholders while winning their commitment while at the same time staying aligned with the organization’s overall strategic direction and within fiscal constraints? Yes, you guessed it ~ with effective decision making or governance.
How do you address the resolution of important issues that, when left unsettled, inevitably lead to conflict?
How do you ensure that the organization operates in an ethical manner in line with its stated principles and in support of the public good?
How do you determine who controls and directs the organization and is ultimately responsible for its success or failure.
So now you get to the core of Governance. Governance happens whenever people work together to achieve an organizational outcome. Essentially, governance is about decision making:
How decisions are made,
Whether the decisions are effective and
How they are communicated and
How they are acted upon