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20 March 2024

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Agile Governance: Enough Structure to Enable, Not Enough to Control

Governance and agility are widely treated as opposing forces. They are not — but governance designed to control people rather than enable them does undermine agility. The difference matters, and it starts at the top.

MV

Mogens Villadsen

Better Change Coach

There is a question worth asking about why organisations accumulate governance. Some of it serves a genuine purpose: accountability, transparency, risk management, compliance. A great deal of it accretes over time as a response to individual failures — a process added here, an approval gate there — without anyone stepping back to ask whether the cumulative effect is creating more value than it costs.

The result, in many organisations, is governance that has become an end in itself: structures that feel safe because they exist, independent of whether they are producing anything useful.

What governance is actually for

Governance should serve two purposes. First, to safeguard the organisation against significant risks. Second — and this is the part most governance systems neglect — to facilitate the freedom people need to evolve their own processes, make good decisions, and deliver value.

Agile governance starts from the principle that people, given clarity of purpose and appropriate boundaries, are capable of designing and maintaining the processes they need. This is not a utopian assumption. It is a practical one: the people doing the work know more about what the work requires than the people designing the processes for them.

The empirical foundation

Transparency, Inspection, and Adaptation — the three pillars of empiricism on which Scrum is built — are also the right foundations for governance. Governance that makes work visible, enables honest assessment, and supports timely adjustment serves the organisation. Governance that creates the appearance of control while preventing people from responding to reality serves only itself.

Organisations that have learned to separate these two types of governance tend to maintain the former and progressively reduce the latter. This requires some nerve, because removing processes feels risky even when those processes are not adding value. The question to ask is not "is this governance necessary?" but "what would we actually lose if this weren't here?"

The leadership dimension

Governance reflects leadership. The choices made at the top of an organisation — by senior management, by C-level, by boards — determine what the governance framework signals about what is trusted, what is suspected, and what is valued.

Governance built on the assumption that people need to be controlled produces one kind of organisation. Governance built on the assumption that people need to be enabled — given clear purpose, appropriate boundaries, and the information they need to make good decisions — produces a fundamentally different one.

Leaders who are not examining their own assumptions about governance are, in effect, delegating those assumptions to the processes they have inherited. The cumulative effect of those assumptions shapes the culture more reliably than any values statement.

The question that tends to unlock useful conversations about governance is deceptively simple: what are we afraid would happen without this? If the answer is something specific and plausible, the governance is probably warranted. If the answer is vague or reveals a fundamental distrust of the people it governs, it is worth examining more carefully.

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