Modern Governance: Flow, not Friction.

Governance is meant to help organizations make better decisions at scale.

But instead of being an enabler, it is too often experienced as a barrier - a system that slows decision-making, creates distance between decision-makers and stakeholders, and stifles action with its rigid and bureaucratic structures. 

Old school governance isn't built for the myriad ways AI is changing how we work today.

โ— ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐—ฑ๐—ฒ๐˜€๐—ถ๐—ด๐—ป๐—ฒ๐—ฑ ๐˜๐—ผ ๐—บ๐—ถ๐—ป๐—ถ๐—บ๐—ถ๐˜‡๐—ฒ ๐—ฟ๐—ถ๐˜€๐—ธ, ๐—ป๐—ผ๐˜ ๐—ผ๐—ฝ๐˜๐—ถ๐—บ๐—ถ๐˜‡๐—ฒ ๐—ฎ๐—ฐ๐˜๐—ถ๐—ผ๐—ป.

  • Historically rooted in compliance, creating a reflexive focus on stopping bad outcomes rather than enabling good ones.

  • Asks, โ€œCan we do this?โ€ but really ought to be asking, โ€œHow might we do this well?โ€

  • The focus on avoiding liability leads to excessive bureaucracy, procedural inertia, and the creation of governance as a defensive function rather than an adaptive one. It leads to friction and misery. It disperses accountability, rather than encouraging and rewarding action.

โ— ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐—ฑ๐—ถ๐˜€๐—ฐ๐—ผ๐—ป๐—ป๐—ฒ๐—ฐ๐˜๐—ฒ๐—ฑ ๐—ณ๐—ฟ๐—ผ๐—บ ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฒ ๐—ฐ๐—ฟ๐—ฒ๐—ฎ๐˜๐—ถ๐—ผ๐—ป.

  • It is often managed separately from the business strategy itโ€™s meant to support, operating in the silos of legal, compliance, and risk rather than as an integrated part of decision-making.

  • The "governance burden" is treated as a cost center rather than a system that enhances judgment, creativity, and alignment.

  • Because governance is imposed rather than co-created, it generates resistance rather than engagement.

โ— ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐—ฑ๐—ฒ๐˜€๐—ถ๐—ด๐—ป๐—ฒ๐—ฑ ๐—ณ๐—ผ๐—ฟ ๐—ฝ๐—ฟ๐—ฒ๐—ฑ๐—ถ๐—ฐ๐˜๐—ฎ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐˜† - ๐—ฏ๐˜‚๐˜ ๐˜„๐—ฒ ๐˜„๐—ผ๐—ฟ๐—ธ ๐—ถ๐—ป ๐—ฎ ๐˜„๐—ผ๐—ฟ๐—น๐—ฑ ๐—ผ๐—ณ ๐˜‚๐—ป๐—ฐ๐—ฒ๐—ฟ๐˜๐—ฎ๐—ถ๐—ป๐˜๐˜†!

  • Many governance structures assume stable environments and clear hierarchiesโ€ฆum, do you know anyone working in that world? Todayโ€™s environment is volatile, complex, and interdependent.

  • Rules, policies, and approvals that once (supposedly) ensured clarity now create rigidity that slows responsiveness to emerging risks and opportunities.

  • Organizations fail to design governance for learning, adaptation, and decentralized decision-making.

๐—ช๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฏ๐—ผ๐˜‚๐˜ ๐—ฎ ๐—ฟ๐—ฒ๐—ณ๐—ฟ๐—ฎ๐—บ๐—ฒ?

๐Ÿ„โ€โ™€๏ธ ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐—ฏ๐—ฒ ๐—ณ๐—น๐˜‚๐—ถ๐—ฑ, ๐—ป๐—ผ๐˜ ๐˜€๐˜๐—ฎ๐˜๐—ถ๐—ฐ. It should flex with market conditions, strategy shifts, and emergent risks.
๐Ÿ’ก ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐—ฏ๐—ฒ ๐—ถ๐—ป๐˜๐—ฒ๐—น๐—น๐—ถ๐—ด๐—ฒ๐—ป๐˜, ๐—ป๐—ผ๐˜ ๐—ท๐˜‚๐˜€๐˜ ๐—ฝ๐—ฟ๐—ผ๐—ฐ๐—ฒ๐—ฑ๐˜‚๐—ฟ๐—ฎ๐—น. It should enable better judgment, pattern recognition, and learning across the organization.
๐Ÿ”„ ๐—š๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐—ฏ๐—ฒ ๐—ฟ๐—ฒ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น, ๐—ป๐—ผ๐˜ ๐—ท๐˜‚๐˜€๐˜ ๐˜€๐˜๐—ฟ๐˜‚๐—ฐ๐˜๐˜‚๐—ฟ๐—ฎ๐—น. It should create trust, shared accountability, and alignment rather than just enforcing compliance.

What do you think? Whatโ€™s one governance gap that, if closed, would immediately unlock value for your organization?

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Love Note to the EU AI Act