Design Concepts for Governance Architects
26 Pages Posted: 22 Feb 2010 Last revised: 27 Oct 2010
Date Written: March 19, 2010
Research Question/Issue: The objectives of this paper are to: (a) Identify criteria for custom designing the governance architecture of organisations to enhance their operations and sustainability; (b) Encourage practitioners and policy makers to: (i) custom design governance systems; (ii) apply the science of governance to this task, and (iii) utilise the natural self-governing attributes of individuals.
Research Findings/Insights: The form of network structures and governance found in biota provide role models for social organisations to achieve sustainable operating advantages. Unitary boards and/or centralised control of organisations in the private, non-profit or public sectors are inconsistent with furthering self-governance at local, national or global levels. The self-governance of network organisations is empowered by, and facilitates the contrary behaviour of humans to be competitive/cooperative, suspicious/trusting and selfish/altruistic. Contrary attributes in individuals and organisations promote the integrity of their self-governance.
Theoretical/Academic Implications: The natural science of governance provides design criteria for organisational architects. It identifies the need to decompose decision-making labour to within the data processing capacity of humans. This resulting division of decision-making powers with stakeholder engagement provides a requisite variety of communication and control channels to cross check the integrity of governance data. This highlights the need for scholars to consider organisations governed by a number of boards and to consider other non-market governance mechanisms as provided by communities, associations and networks.
Practitioner/Policy Implications: Provide lawmakers, regulators, lawyers, executives, investors and other stakeholders with criteria to improve the operations of organisations while also allowing the size, cost and intrusiveness of government to be reduced.
Keywords: Corporate Governance, Global Governance, Governance Science, Network Governance, Self-Governance
JEL Classification: B49, D71. D73, D74, G34, H11, H77, K23
Suggested Citation: Suggested Citation