Design Concepts for Governance Architects

Abstract

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.