Make corporate governance effective

The global financial crisis and the disillusion with parliamentary democracy has proved that there is a problem with the way we govern ourselves, as organisations and states, and a need for a radical change to the way we govern ourselves in companies and states. The disconnected, obfuscated and backward-looking governance we have employed to date has consistently failed, from Enron to the global financial crisis. Our leaders’ response has been more of the same; but if you do the same things you get the same response, and flogging a dead horse doesn’t get you anywhere.

National and corporate governance failures continue unabated, proving that existing approaches to governance don’t work, despite incessant tinkering, because they suppose good behaviour, work against psychology, under-use IT, and are elitist, unstrategic, fragmented, ill-informed, reactive and redundant.

There is growing consensus that culture and people are the weak link in governance. However attempts to solve the problem by changing a Board’s composition or increasing regulation fail to tackle the root cause and so the same sort of crises recur.

Perendie’s solution is to use artificial intelligence to automate the automatable aspects of leadership, governance and management. Automation reduces dependence on people and culture, and provides two necessary conditions of effective governance which are missing from current governance, namely transparency and predictability. By transparency we mean every stakeholder being able to see what each stakeholder is producing, doing and employing. By predictability we mean a 5 part mechanism which predicts whether the organisation’s mission is likely to be achieved. Together they influence people to do the right thing and enable them to do business with confidence.