Four Governance Factors That Lead to Disaster

By on April 18, 2019

April 18, 2019

In an article in Harvard Business Review the author discusses a 15 year study including 3200 interviews designed to discover what makes an organization dishonest and unethical. The research revealed key organizational issues. Lack of consistency between an organization’s stated mission, objectives, and values, and the way it is actually experienced by employees made it more likely they would withhold or distort truthful information. Unjust processes for measuring employee contributions had an even more pronounced effect on their willingness to withhold or distort information. Weak cross-functional collaboration is another big problem. Fragmentation, especially across divisional lines, creates dueling truths, resulting in one side having to prove they are right, and the other wrong. Divisional loyalties paint those outside the team as an enemy to be feared. Poor governance that fails to provide an effective process for decision makers to have honest conversations about tough issues leaves the organization reliant on rumors and gossip. These factors are within a corporation’s control and improving them helps avert reputation and financial disasters.

Read the full article at:

Harvard Business Review

Leave a Reply

Your email address will not be published. Required fields are marked *

Do NOT follow this link or you will be banned from the site!