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Governance As Catalyst: The New Management System 2
The Sarbanes-Oxley Act and other corporate governance regulations are pushing businesses to do something serious about how they manage business processes for both financial and operational objectives. A process-based management system is what's needed - and could be the focus of innovative technology to come.
2 Min Read
Along the path to developing an MSS, keep four things in mind:
Enlist skilled individuals who have a deep understanding of the business and its analytic and data architecture. You'll need people who can bridge the communications gap between business strategists and technology specialists. Communication is critical in guiding people away from traditional approaches, especially within IT.
Develop a shared understanding of existing management system capabilities and related gaps. Without an understanding of the value associated with addressing these gaps, it will be difficult to proceed.
Focus on how management systems create value and minimize SOX-related risk: by enabling consistent strategy execution, strategic alignment, and transparency. Merely providing more information isn't the solution. It must be presented in a meaningful context.
Anticipate and understand potential sources of resistance. Management processes are often among the most political.
Technology is the enabler: but the key to launching a PBMS initiative is to prepare the organization for change. Otherwise, a PBMS will become one in a long line of great ideas that never really overcame traditional functional mindsets.
Disruptive Times
Businesses have been asking, what lies beyond budgeting, ABC, and BSC? While much has been written, few practical solutions have emerged. PBMS offers such a solution. Moreover, it can provide a foundation for an effective response to SOX that simultaneously improves business processes.
The Internet brought disruptive technology change, especially in how organizations interact with customers. A PBMS has the promise of doing something similar regarding how organizations are managed. With strong, visionary leaders, organizations can make the necessary changes that will enable them to capitalize on this opportunity for improving business competitiveness going forward.
Dean Sorensen [[email protected]] is a principal with Bywater Management Consulting. He specializes in helping organizations create alignment around executing strategies that create profitable growth.
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