Governance Is Performance
- Trevor Dale
- 7 days ago
- 3 min read
Updated: 2 days ago
More Than Policies: Governance Starts with People
Governance isn’t just a checklist of policies or a complicated framework of approvals—it’s about people. It’s about teams coming together with clarity, understanding the “why” behind their work, and piecing together the moving parts of an organization into one cohesive picture.
Think of governance as the puzzle box top: without it, everyone is guessing what the image is supposed to be. With it, every person knows what piece they hold, where it fits, and how their role connects to something greater. Governance enables collaboration, accountability, and ultimately, progress.
What Is Governance?
Governance refers to the frameworks, policies, systems, and processes that ensure an organization meets its objectives in an ethical, transparent, and accountable manner. At its core, governance guides decision-making, clarifies roles and responsibilities, and aligns organizational efforts toward common goals. Whether in corporations, non-profits, or healthcare systems, governance is the backbone that enables integrity, performance, and trust.
“Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders.” – OECD Principles of Corporate Governance, 2015
The Business Purpose of Governance
Good governance is not just about regulatory compliance—it drives real value. Here’s why it matters:
Strategic Alignment: Ensures that every initiative supports the organization’s vision.
Risk Mitigation: Identifies and reduces financial, operational, legal, and reputational risks.
Operational Transparency: Creates clarity in decision-making and accountability.
Resource Optimization: Prevents waste, duplication, and inefficiencies.
Stakeholder Confidence: Builds trust with investors, employees, partners, and customers.
A McKinsey survey found that companies with strong governance practices had 20% higher market valuations than peers with weak governance.
Governance in Healthcare: A Critical Necessity
In healthcare, governance is not just beneficial—it’s life-saving. A well-governed healthcare system improves patient safety, data integrity, care delivery, and compliance with regulations like HIPAA, HITECH, and CMS guidelines.
Key Benefits in Healthcare Governance:
Improved Patient Outcomes: Standardized care protocols reduce variability and error.
Financial Performance: Strong governance helps contain costs—The Healthcare Financial Management Association (HFMA) notes hospitals with effective governance practices show 12–18% better cost efficiency.
Regulatory Compliance: Reduces penalties, lawsuits, and accreditation risks.
Data Governance: Ensures accurate, timely, and actionable insights from clinical and operational data.
“Healthcare organizations that implemented robust governance models saw a 15% reduction in adverse events and a 20% increase in data utilization effectiveness.” – Journal of Healthcare Management, 2022
Governance and Process/Performance Improvement: A Natural Alliance
Governance and process improvement are intertwined. Governance sets the expectations, while methodologies like Lean and Six Sigma deliver on them.
Lean targets waste elimination and streamlines workflow.
Six Sigma ensures quality through statistical rigor and defect reduction.
Together with governance, these frameworks ensure repeatable, scalable, and measurable performance improvements.
For instance, in a Six Sigma initiative at a healthcare provider:
Clear governance led to proper project selection and oversight.
Lean reduced discharge delays by 40%.
Six Sigma improved lab turnaround time by 25%.
Without governance, such gains are unsustainable or poorly aligned with organizational goals.
Comparative Scenario: With vs. Without Governance
Scenario 1: No Governance
A regional hospital implements an EHR upgrade without a governance structure. Departments operate in silos, training is inconsistent, and there is no project oversight. Result: $2.5M over budget, 6-month delay, and a 30% drop in provider satisfaction due to workflow disruptions.
Scenario 2: With Governance
A peer hospital approaches the same EHR upgrade with a governance board, project charter, Lean project sponsors, and clinician input. There’s a phased rollout with clear metrics. Result: On-time, on-budget deployment with only a 5% drop in productivity during transition—recovered within three weeks.
“The cost of poor project governance is not just financial—it includes lost trust, talent attrition, and missed opportunities.” – Project Management Institute
The Hard Truth: Governance Takes Work
Yes, implementing governance is hard. It requires:
Time to develop policies and frameworks
Cultural shifts across departments
Leadership buy-in and training
But the payoff? Massive.
Organizations with mature governance frameworks report:
28% fewer compliance violations (Deloitte, 2023)
22% higher project success rates (PMI Pulse of the Profession)
Significant ROI in healthcare quality improvements, often exceeding 200% over 3 years
Conclusion: Optimized Outcomes Through Governance
Governance is not bureaucracy—it’s infrastructure. Without it, efforts are disjointed, and risks are unchecked. With it, performance is enhanced, change is managed, and value is maximized.
For healthcare leaders, business executives, and operational teams alike, governance is the silent powerhouse behind sustainable excellence.
References
OECD Principles of Corporate Governance, 2015
McKinsey & Company – “The Value of Good Governance,” 2022
Journal of Healthcare Management – “Governance and Patient Outcomes,” 2022
HFMA – “Financial Governance in Hospitals,” 2023
Deloitte – “Global Risk & Compliance Survey,” 2023
Project Management Institute – “Pulse of the Profession,” 2024
Get in Touch https://www.myccgroup.com/
Comments