Let’s cut to the chase. If you’ve been in the shared services game for any length of time, you know the juggernaut that is governance. It’s essential, yet messy. You’ve got processes, people, compliance… a hundred moving parts all vying for your attention. It can feel overwhelming. Just when you think you’ve got a handle on things, another compliance rule throws a wrench in the works or a process falters under pressure.
I’ve sat where you sit—juggling operational strategies, ensuring we’re aligned with global standards, and addressing stakeholder concerns. After 20+ years in this industry, I’ve learned some vital lessons about what to do, and just as importantly, what to avoid. So grab a coffee, and let’s unpack this together.
Understanding Governance in Shared Services
First things first. What does governance even mean in this context? In shared services, governance is all about ensuring that there’s a clear set of rules for managing your processes, decision-making, compliance, and performance. It’s the backbone that allows everything else to run smoothly.
Okay, here are some of the top do’s that will make your governance efforts a breeze:
Do’s of Governance
- Establish Clear Policies: Be clear on what’s expected. Create comprehensive policies that lay out compliance, quality, and performance requirements.
- Engage Stakeholders Early: Get everyone on board from the get-go. Make sure they understand the benefits of your governance framework. This helps in building ownership.
- Regular Training: Continuous education keeps everyone updated on processes and compliance. Consider bite-sized training sessions to keep it engaging.
- Measure and Monitor: Keep track of key performance indicators (KPIs). Don’t just collect data—use it to drive improvements. Regular reviews help you pivot when necessary.
- Create a Culture of Accountability: Foster an environment where everyone takes ownership of their roles. This isn’t just about compliance; it’s about responsibility and pride in the work.
Don’ts of Governance
Now, let’s flip the coin. Here are some pitfalls you want to sidestep when it comes to governance in shared services:
- Skip the Documentation: Trust me on this one. Not documenting your processes is a fast track to chaos. If someone leaves, or a sudden change happens, you’ll be scrambling.
- Assume Everyone Understands: Just because you get it doesn’t mean everyone else does. Regularly check comprehension. It’s not a one-and-done deal.
- Ignore Feedback: Your team is on the ground floor. They see what’s working and what’s not. Make it a habit to gather feedback and act on it.
- Be Rigid: Governance shouldn’t be a straightjacket. Processes need to be dynamic. Allow for adjustments as you learn what works best.
- Avoid Accountability: Pass the buck and you’re creating a culture of blame. No one wins in that scenario. Instill accountability at all levels.
Sharing Stories: Real-World Experiences
A while back, I was working with a global company that was struggling with governance challenges. They had a robust framework on paper, but in practice? Not so much. Everyone thought that governance was someone else’s job. The result? Chaos. Things crumbled under the weight of miscommunication and misunderstanding.
We decided to hit the reset button. I started by engaging stakeholders in redesigning the governance model. And guess what? We created “Governance Champions”—individuals responsible for understanding, communicating, and implementing governance policies within their teams. It made all the difference.
Suddenly, governance wasn’t just a set of dry rules. It became a shared responsibility. The culture started shifting, accountability emerged, and the organization began to see tangible improvements in compliance and efficiency.
The Role of Technology
Can we talk tech for a minute? In the fast-paced world of technology and innovation, governance looks a little different. Technology can streamline governance efforts, from compliance tracking to data analytics. But you need to choose the right tools.
Some key tech tools to consider:
- Governance, Risk, and Compliance (GRC) Software: These tools help you manage regulatory and compliance requirements effectively.
- Data Analytics Platforms: They help with reviewing KPIs and performance metrics, aiding in making informed decisions.
- Communication Tools: Keep communications clear and open. Tools like Slack or Microsoft Teams help keep governance discussions ongoing and collaborative.
Crafting a Collaborative Approach
Let’s not downplay the power of collaboration. When team members feel like they’re part of the decision-making process, they’re more engaged and more likely to comply. This collaborative spirit can lead to innovative governance solutions.
Try hosting workshops or brainstorming sessions to gather ideas on improving governance policy. By including your team, you foster a sense of ownership, making it easier to implement changes.
Common Governance Mistakes and How to Avoid Them
Here are a few common missteps and how to avoid them:
- One-Size-Fits-All Approaches: Each team may have unique needs. Customize governance processes to fit the team’s specific requirements.
- Over-Complicating Processes: Keep it simple. Complicated processes can cause confusion and frustration. Streamline where possible.
- Failure to Adjust: If something’s not working, adapt it. Don’t feel tethered to a process just because “it’s the way we’ve always done it.”
Wrapping It Up: The Human Element in Governance
At the end of the day, governance is as much about people as it is about processes. It’s about building a strong framework that allows everyone to thrive. When teams understand the why behind governance, it shifts from being a chore to being part of the organizational culture.
Before I sign off, remember to regularly check in on your governance protocols. Adapt, engage, and keep refining. You’ll find that a proactive approach to governance leads to smoother operations, improved compliance, and, ultimately, a healthier work environment.
Want more insights on shared services and governance? Check out THEGBSEDGE. It’s a treasure trove of knowledge for anyone navigating the complexities of shared services.
