What is governance?

At LEAD, we specialize in designing and managing governance—the system of rules, processes, and guidelines that an organization uses to control and structure its operations. This system defines how an organization is shaped and how it acts. Governance also encompasses areas such as compliance, risk management, and administration.

In short, governance is about mapping out the controlling processes within an entire organization or a specific business area/department. This can involve designing workflows, mapping decision-making processes, and clarifying decision rights.

Key questions when designing governance include: How do we work? Who decides what? How do decisions move through the organization? And how does that movement influence the decision-making authority of employees and leaders?

The benefits of good governance

The essence of governance is to ensure structure and processes for control and decision-making—as well as the resulting accountability and behavior. Good governance means clear roles, responsibilities, and processes throughout the organization. In other words, governance is about assigning decision rights and practically distributing mandates—who can and should decide what in which situations?

Some benefits of working with governance include:

  • Supporting responsible and coordinated organization and leadership—documented in a way that helps fulfill the organization’s core tasks
  • Contributing to organizational compliance, trust, stability, and risk reduction
  • Creating effective workflows—ensuring tasks are clearly placed within the organization.

All these advantages are essential for running and leading an organization in an ever-changing world.

A concrete example might be a finance department within a public administration undergoing reorganization. Here it is useful to examine governance to ensure the department continues to operate optimally during—and after—the change. This involves testing role/function descriptions and mapping decision-making so that responsibilities are clear.

It is important to emphasize that governance is not a one-off exercise with a final answer. Rather, it should be seen as an ongoing process—a set of elements (rules, practices, processes, guidelines) that evolve over time.

LEAD’s approach to governance

Our framework for analyzing and managing governance is built on the idea that sound financial management and core business operations require holistic thinking—with strong interplay between:

  • Governance objectives
  • Controlling and follow-up
  • Professional expertise related to core tasks
  • Day-to-day leadership
  • Organizational culture
  • Approaches to error and failure


At LEAD, we have repeatedly found that governance setups focusing only on decision-making processes and workflows tend to become less effective over time. That’s why we recommend treating governance holistically—integrating it closely with core business, leadership, and culture.

Inspiration

We teach you about governance

We offer leadership and organizational sparring sessions, research-based education and presentations on governance as well as training programs specifically focused on equipping you with general management competencies. 

See examples of our services here:

Presentations

Inspirational research-based presentations on governance for all levels within your organization.

Sparring

Advisory support regarding development of your governance in connection with your challenges or initiatives.

Workshops

Facilitation of active workshops focused on competence development at both management and employee level.

Would you like to learn more about what we can do for your organization?

Are you facing organizational change? Do you need strategic advice or a leadership development program?

Contact us so we can tailor a program that develops exactly those competencies and structures needed to strengthen and future-proof your organization.

Ronja Ries Højbjerg

Chief Consultant

MSc i Competition & Elite Sports

Mobile: +45 28 93 84 69
Email: rh@lead.eu