Transformational governance

  • Organisations increasingly need to be ambidextrous, that is to be able to both exploit and explore.
  • However, companies often lack transformational capabilities.
  • New roles such as the Chief Opportunity Officer can provide required institutionalisation and guidance towards transformational performance.

Hands holding glowing data orb

This article1 investigates governance in the context of rapid changes and calls for a stronger focus on the transformational performance of the firm via appropriate roles, responsibilities and processes.

Emerging digital technologies combined with the increasing digital literacy of corporations and citizens are making our economy opportunity-rich. The costs to innovate have fallen as a cloud-enabled infrastructure allows organisations that are light on assets to shape (disrupt) value chains that so far have been reserved for large corporations. As a consequence, we witness start-up communities (FinTech, InsurTech, GovTech, etc) in most industries leading to an active environment of rapid prototyping and new alliances. In this context, organisations can no longer rely on their ability to exploit existing assets and capabilities. Instead, a greater demand exists to ensure adequate explorative capabilities at the disposal of corporate decision-makers. It is the ambidextrous organisation that has at its heart this idea of co-existing exploitative and explorative strengths.2

Governance as the system of corporate processes, mechanisms, rights distribution and relationships through which an organisation is controlled and directed3 is foundational to achieve and sustain the transactional and transformational performance of the ambidextrous organisation.

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