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Writer's pictureSuzana Domingues

Innovation and Governance, why are these topics interconnected?

Suzana Marques Domingues


ESG practices (acronym for Environmental, Social and Governance) have been widely discussed and included in companies' agendas in recent years, but there is still a long way to go before they are actually incorporated into their strategy. According to the survey carried out with 167 publicly traded companies by Grant Thornton Brasil, XP Inc. and Fundação Dom Cabral on the topic, 75% of those interviewed consider ESG as a priority, but only 14% take these aspects into account when making decisions. . The main benefits reported with the ESG agenda were 17% for brand appreciation, 15% for improving reputation, 13% for reducing risks and 10% for attracting talent.


But, speaking specifically about Governance, why should this topic be included when we talk about Innovation?


The word governance brings the idea of regulation, control, structure, monitoring. Yes, governance involves well-established practices, processes, rules and behaviors, promoting a solid structure for companies to grow in a transparent and organized way in their internal and external actions to reduce risks in management and, consequently, in the companies' results.

So far, everything is coherent, but combining these concepts with Innovation, which inspires creativity, trial and error, risks and speed, sounds dissonant. Maybe that's the beauty of partnership!


Organizations with good governance practices can also provide environments for creativity and intrapreneurship, strengthening the organizational culture with its values, principles and purpose drivers that serve innovation very well and some companies are already realizing this.



Placing the customer at the center of actions, with respect and attention is part of the

innovation and governance objectives, and is translated into the company's image

before its customers, suppliers and shareholders. Furthermore, we have to

consider that innovation requires investment and be in compliance in all

aspects of governance brings interest from investors and sources of subsidies.


It is easy to see the importance of transversal governance in the company,

in their departments, in their employees and in their leadership. Then,

It couldn't be any different with innovation.


When we talk about innovation that happens only within the company,

governance processes are already mapped and monitored. But when

we talk about open innovation, where we have several actors participating in the

ecosystem? This is certainly when governance is even more important,

because it directs and integrates the management actions that will be carried out between


these new partners so that everyone is in compliance with the guidelines,

company values, purposes and culture. These are the new challenges of

governance, where independent participants are interdependent on the

ecosystem that they are part of. Open innovation drivers must

be integrated into corporate strategy and governance processes

they must be thought of in a more comprehensive way to include these new actors.


Therefore, the company that is designing or thinking about starting its

open innovation process must have governance as part of this

process. The scope must be thought of based on the strategy to be used,

being able to integrate participants such as startups, external research centers,

suppliers, customers, government and competitors. Papers must be clear

for each external innovation agent, as well as the ways of working

integrated into the company's innovation concepts and guidelines. Among the themes

of governance should not lack how decisions will be taken and

commitments that each party must have in this relationship. However, they must be

flexibility, adaptation and dynamics included in the practices of this governance

to deal with ecosystems and organizations collaboratively.


In conclusion, innovation and governance must be fully integrated to

allow new ideas to flourish on fertile and solid ground.


And you, and your company? Are prepared to use innovation and governance

to its greatest potential?


If you are interested in the subject and want to know more, participate and connect

with us. We can exchange ideas and help you take the first step!


https://www.dmspartners.com.br/transforma


https://www.dmspartners.com.br


DMS Transform


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