From Oversight to Sense-Making: The Next Governance Shift

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<section>
<p>A board changed how they framed a single agenda item.</p>

<p>Instead of "CEO Report: Q3 Performance," it became "Q3 Performance: What Surprised Us?"</p>

<p>That shift opened a conversation they hadn't had in years. Not about whether targets were met, but why certain patterns emerged. About what the data might mean for next year. About blind spots they hadn't considered.</p>

<p>Simple reframing. Profound impact.</p>

<p>The truth is, that conversation only worked because the board had already built the communication infrastructure to support it.</p>
</section>

<section>
<h2>The Problem with Traditional Oversight</h2>

<p>Traditional governance is built on control—rules, audits, hierarchies, compliance dashboards, red-amber-green reporting. It works when the environment is stable, roles are clear, and risks are predictable.</p>

<p>But it breaks down in complexity.</p>

<p>Bob Jessop's research on governance in complex systems makes this clear: hierarchical, control-oriented structures struggle when autonomous actors must coordinate through "interactive learning" rather than top-down direction.<a href="#fn1" class="footnote-ref" id="ref1">¹</a></p>

<p>In sport, this shows up everywhere—overlapping mandates between federations and national bodies, multi-stakeholder talent pathways, Major Games delivery involving dozens of partners, athlete welfare systems spanning clubs, high-performance programmes, and medical providers.</p>

<p>The OECD-IOC Toolkit identifies these coordination challenges as systemic risks in major events and notes that adding more rules doesn't solve them.<a href="#fn2" class="footnote-ref" id="ref2">²</a> What's needed instead? Communication structures that facilitate understanding, not just accountability.</p>
</section>

<section>
<h2>Why Communication Is the Missing Piece</h2>

<p>Here's what most governance frameworks miss: sense-making doesn't happen in a vacuum. It happens through deliberate, structured communication.</p>

<p>McKinsey's 2019 Global Board Survey found that only 30% of board members report effective processes for sharing information and aligning on goals.<a href="#fn3" class="footnote-ref" id="ref3">³</a> INSEAD research confirms that board effectiveness hinges on socio-psychological processes—participation, information exchange, critical discourse.<a href="#fn4" class="footnote-ref" id="ref4">⁴</a></p>

<p>But communication alone isn't enough. You need psychological safety and a joint problem-solving orientation. Healthcare research shows that when people speak up without seeing responsive action, they feel ignored—and stop contributing.<a href="#fn5" class="footnote-ref" id="ref5">⁵</a></p>

<p>The pattern is clear: communication is the infrastructure. Sense-making is what you build on it.</p>
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<section>
<h2>When Communication Breakdowns Become Governance Failures</h2>

<p>The Boeing 737 Max crashes offer a stark example. Engineering teams developed the MCAS system but failed to communicate its design, implications, and risks to safety and training teams. That breakdown had catastrophic consequences.<a href="#fn6" class="footnote-ref" id="ref6">⁶</a></p>

<p>The 2017 Equifax breach exposed 147 million records because communication silos prevented coordination between departments responsible for patching vulnerabilities.<a href="#fn7" class="footnote-ref" id="ref7">⁷</a></p>

<p>Hong Kong's government discovered during a refugee crisis that its disciplined services—Police, Immigration, Customs—literally couldn't talk to each other because their communication systems were incompatible.<a href="#fn8" class="footnote-ref" id="ref8">⁸</a></p>

<p>These aren't oversight failures. They're communication architecture failures.</p>
</section>

<section>
<h2>Sport Already Knows This</h2>

<p>Sport governance frameworks explicitly recognise communication as foundational.</p>

<p>The UK Code for Sports Governance lists Communication as Principle 3—one of five core governance principles. It requires "effective and consistent two-way communication with stakeholders," framing this not as compliance but as an opportunity to share vision and build confidence.<a href="#fn9" class="footnote-ref" id="ref9">⁹</a></p>

<p>The IOC's Basic Universal Principles of Good Governance explicitly list "efficient internal communication" as a fundamental requirement, alongside transparency of rules and shared responsibilities.<a href="#fn10" class="footnote-ref" id="ref10">¹⁰</a></p>

<p>ASOIF's Governance Task Force assesses International Federations against 60 indicators across five principles—with multiple indicators focused on communication effectiveness, transparency, and stakeholder engagement.<a href="#fn11" class="footnote-ref" id="ref11">¹¹</a></p>

<p>These codes don't treat communication as an afterthought. They treat it as a structural requirement for good governance.</p>
</section>

<section>
<h2>What Learning-Oriented Boards Actually Do</h2>

<p>Learning-oriented governance isn't soft. It's disciplined.</p>

<p>It requires boards to build communication practices that enable sense-making:</p>

<h3>1. Create Psychological Safety for Divergent Thinking</h3>

<p>Microsoft's board transformation under Satya Nadella demonstrates this. Directors now challenge assumptions, disagree openly with the CEO, and upend conventional wisdom—not despite governance but because the chair cultivated psychological safety.<a href="#fn12" class="footnote-ref" id="ref12">¹²</a></p>

<p>Key practices:</p>
<ul>
<li>Chairs speak last and limit airtime to 10-15% of discussions</li>
<li>In-camera sessions at meeting start and end create safe spaces</li>
<li>Board evaluations explicitly assess psychological safety</li>
</ul>

<h3>2. Structure Dialogue for Collective Interpretation</h3>

<p>The best boards use deliberative dialogue frameworks like "What – So What – Now What":</p>

<ul>
<li><strong>What:</strong> Present facts and data</li>
<li><strong>So What:</strong> Discuss multiple interpretations</li>
<li><strong>Now What:</strong> Decide on action<a href="#fn13" class="footnote-ref" id="ref13">¹³</a></li>
</ul>

<p>This isn't just good practice. It's how you legitimise divergent thinking before convergence.</p>

<p>NHS England's oversight framework explicitly states that learning should focus on system factors, with cross-system responses coordinated at the appropriate level.<a href="#fn14" class="footnote-ref" id="ref14">¹⁴</a></p>

<h3>3. Ensure Bi-Directional Information Flow</h3>

<p>The IOC's Three Lines Model shows how operational insights (first line), oversight checks (second line), and independent assurance (third line) can feed a coherent board narrative without duplication.<a href="#fn15" class="footnote-ref" id="ref15">¹⁵</a></p>

<p>Research on silos shows that fragmented communication costs organisations 350 hours per year—effectively one day per week lost to coordination failures.<a href="#fn16" class="footnote-ref" id="ref16">¹⁶</a></p>

<p>The solution isn't more committees. It's explicit coordination forums and clear communication channels.</p>
</section>

<section>
<h2>Three Mechanisms That Work</h2>

<p>These communication structures show consistent results:</p>

<p><strong>1. Agenda Design as Communication Protocol</strong></p>

<p>Use structured sequences:</p>
<ul>
<li><strong>Information:</strong> Facts and data</li>
<li><strong>Interpretation:</strong> What it might mean—multiple views welcome</li>
<li><strong>Implications:</strong> What options this opens or closes</li>
<li><strong>Decision:</strong> Accountable action</li>
</ul>

<p>This prevents premature closure on complex issues while maintaining fiduciary rigour.<a href="#fn17" class="footnote-ref" id="ref17">¹⁷</a></p>

<p><strong>2. After-Action Reviews as Learning Dialogue</strong></p>

<p>Post-decision or post-event reviews should ask:</p>
<ul>
<li>What surprised us?</li>
<li>What assumptions held or didn't?</li>
<li>What system conditions contributed?</li>
<li>What would we do differently?</li>
</ul>

<p>Not "Who failed?" but "What conditions allowed this, and what does that tell us?"<a href="#fn18" class="footnote-ref" id="ref18">¹⁸</a></p>

<p><strong>3. Stakeholder Communication as Two-Way Exchange</strong></p>

<p>The UK Code emphasises that communication isn't one-way reporting. It's sustained dialogue with participants, staff, volunteers, and the public—sharing not just governance information but vision, developments, and strategy.<a href="#fn19" class="footnote-ref" id="ref19">¹⁹</a></p>

<p>Singapore's Centre for Strategic Futures uses structured foresight sessions and scenario exercises to enable whole-of-government sense-making on emerging risks.<a href="#fn20" class="footnote-ref" id="ref20">²⁰</a></p>
</section>

<section>
<h2>The Shift Is Already Happening</h2>

<p>This evolution is occurring at the highest levels.</p>

<p>The IOC Executive Board instituted self-assessment and regular training for members to stay "fit for purpose" for societal, political, and technological governance challenges.<a href="#fn21" class="footnote-ref" id="ref21">²¹</a></p>

<p>The NHS Confederation called for oversight frameworks that "grapple with the complexity" of accountabilities, moving beyond easily measured processes toward outcomes.<a href="#fn22" class="footnote-ref" id="ref22">²²</a></p>

<p>ASOIF's Governance Task Force has conducted six reviews of International Federation governance, with all 32 member federations now meeting target scores—demonstrating that systematic assessment drives continuous improvement.<a href="#fn23" class="footnote-ref" id="ref23">²³</a></p>

<p>In each case, the message is consistent: governance must evolve from inspection to interpretation. Communication makes that evolution possible.</p>
</section>

<section>
<h2>Where to Start</h2>

<p>If you're chairing a board or leading governance reform:</p>

<p><strong>1. Audit your communication architecture</strong></p>

<p>Map all formal and informal communication channels. Ask: Where do silos exist? Where does information flow smoothly? Where does it stall?</p>

<p><strong>2. Redesign one agenda item per meeting</strong></p>

<p>Choose a routine report. Change the framing from "Are we on track?" to "What surprised us?" or "What are we not seeing?"</p>

<p><strong>3. Commission a communication-focused board evaluation</strong></p>

<p>Ask an external facilitator to assess not just skills and diversity, but communication effectiveness: quality of dialogue, openness to dissent, responsiveness to input.<a href="#fn24" class="footnote-ref" id="ref24">²⁴</a></p>

<p>None of these require structural overhaul. All of them shift how boards think and interact.</p>
</section>

<section>
<h2>Final Thought</h2>

<p>Governance in complex environments isn't about perfect control. It's about shared understanding. About structuring ambiguity through disciplined communication. About learning faster than the system changes.</p>

<p class="emphasis">Oversight watches. Sense-making understands.</p>

<p>Communication makes both possible—but only when it's designed as infrastructure, not afterthought.</p>

<p>If you're curious where your organisation sits on this spectrum, the HP Systems Readiness Scorecard provides a baseline assessment of governance maturity, communication effectiveness, and system alignment. It's designed for boards and senior teams who want to understand their current position before deciding where to focus reform efforts.</p>
</section>
<section class="footnotes">
<ol>
<li id="fn1">Jessop, B. "Governance and the Art of Complexity." <a href="https://www.lancaster.ac.uk/fass/resources/sociology-online-papers/papers/jessop-governance-of-complexity.pdf" target="_blank">https://www.lancaster.ac.uk/fass/resources/sociology-online-papers/papers/jessop-governance-of-complexity.pdf</a> <a href="#ref1">↩</a></li>

<li id="fn2">OECD-IOC Toolkit. "Institutional set-up and organisational management." <a href="https://www.oecd-ioc-olympics-planning-toolkit.org/risks-area/institutional-set-up-and-organisational-management/" target="_blank">https://www.oecd-ioc-olympics-planning-toolkit.org/risks-area/institutional-set-up-and-organisational-management/</a> <a href="#ref2">↩</a></li>

<li id="fn3">McKinsey. "Ready to board: CEO-board communication." <a href="https://www.mckinsey.com/locations/mckinsey-client-capabilities-network/our-work/strategic-and-change-communications/the-communications-exchange/ready-to-board-ascending-new-heights-through-ceo-board-communication" target="_blank">https://www.mckinsey.com/locations/mckinsey-client-capabilities-network/our-work/strategic-and-change-communications/the-communications-exchange/ready-to-board-ascending-new-heights-through-ceo-board-communication</a> <a href="#ref3">↩</a></li>

<li id="fn4">INSEAD Knowledge. "When Psychological Safety Has a Seat on the Board." <a href="https://knowledge.insead.edu/leadership-organisations/when-psychological-safety-has-seat-board" target="_blank">https://knowledge.insead.edu/leadership-organisations/when-psychological-safety-has-seat-board</a> <a href="#ref4">↩</a></li>

<li id="fn5">Healthcare (MDPI). "Speaking Up and Taking Action: Psychological Safety and Joint Problem-Solving." <a href="https://www.mdpi.com/2227-9032/12/8/812" target="_blank">https://www.mdpi.com/2227-9032/12/8/812</a> <a href="#ref5">↩</a></li>

<li id="fn6">CIO. "Breaking down silos: Boeing 737 Max case." <a href="https://www.cio.com/article/3603648/breaking-down-silos-strategies-for-cios-to-foster-cross-functional-collaboration.html" target="_blank">https://www.cio.com/article/3603648/breaking-down-silos-strategies-for-cios-to-foster-cross-functional-collaboration.html</a> <a href="#ref6">↩</a></li>

<li id="fn7">Ibid. <a href="#ref7">↩</a></li>

<li id="fn8">Global Public Policy and Governance. "Coordinating government silos." <a href="https://link.springer.com/article/10.1007/s43508-021-00004-z" target="_blank">https://link.springer.com/article/10.1007/s43508-021-00004-z</a> <a href="#ref8">↩</a></li>

<li id="fn9">Sport England. "A Code for Sports Governance." <a href="https://www.sportengland.org/funding-and-campaigns/code-sports-governance" target="_blank">https://www.sportengland.org/funding-and-campaigns/code-sports-governance</a> <a href="#ref9">↩</a></li>

<li id="fn10">IOC. "Basic Universal Principles of Good Governance." <a href="https://stillmed.olympics.com/media/Documents/Beyond-the-Games/Integrity/Bonne-Gouvernance-EN.pdf" target="_blank">https://stillmed.olympics.com/media/Documents/Beyond-the-Games/Integrity/Bonne-Gouvernance-EN.pdf</a> <a href="#ref10">↩</a></li>

<li id="fn11">ASOIF. "Fifth Review of IF Governance." <a href="https://www.asoif.com/news/all-ifs-meet-target-score-set-out-asoif%E2%80%99s-fifth-governance-review" target="_blank">https://www.asoif.com/news/all-ifs-meet-target-score-set-out-asoif%E2%80%99s-fifth-governance-review</a> <a href="#ref11">↩</a></li>

<li id="fn12">INSEAD Knowledge. "When Psychological Safety Has a Seat on the Board." <a href="https://knowledge.insead.edu/leadership-organisations/when-psychological-safety-has-seat-board" target="_blank">https://knowledge.insead.edu/leadership-organisations/when-psychological-safety-has-seat-board</a> <a href="#ref12">↩</a></li>

<li id="fn13">EIT Deep Tech Talent. "Applying the sense-making approach." <a href="https://www.eitdeeptechtalent.eu/news-and-events/news-archive/applying-the-sense-making-approach-for-better-decision-making/" target="_blank">https://www.eitdeeptechtalent.eu/news-and-events/news-archive/applying-the-sense-making-approach-for-better-decision-making/</a> <a href="#ref13">↩</a></li>

<li id="fn14">NHS England. "Oversight roles and responsibilities." <a href="https://www.england.nhs.uk/wp-content/uploads/2022/08/B1465-4.-Oversight-roles-and-responsibilities-specification-v1-FINAL.pdf" target="_blank">https://www.england.nhs.uk/wp-content/uploads/2022/08/B1465-4.-Oversight-roles-and-responsibilities-specification-v1-FINAL.pdf</a> <a href="#ref14">↩</a></li>

<li id="fn15">IOC. "Risk and Assurance Governance Model." <a href="https://olympics.com/ioc/integrity/ioc-governance-model-to-ensure-organisational-integrity" target="_blank">https://olympics.com/ioc/integrity/ioc-governance-model-to-ensure-organisational-integrity</a> <a href="#ref15">↩</a></li>

<li id="fn16">Chronus. "Breaking Down Organizational Silos." <a href="https://chronus.com/blog/organizational-silo-busting" target="_blank">https://chronus.com/blog/organizational-silo-busting</a> <a href="#ref16">↩</a></li>

<li id="fn17">ODI/ROMA. "Making sense of learning and decision-making." <a href="http://odi.bwa.design/making_sense_of_learning_and_decision_making.html" target="_blank">http://odi.bwa.design/making_sense_of_learning_and_decision_making.html</a> <a href="#ref17">↩</a></li>

<li id="fn18">NHS England. "Safety culture: learning from best practice." <a href="https://www.england.nhs.uk/long-read/safety-culture-learning-from-best-practice/" target="_blank">https://www.england.nhs.uk/long-read/safety-culture-learning-from-best-practice/</a> <a href="#ref18">↩</a></li>

<li id="fn19">Sports Governance Academy. "Code for Sports Governance." <a href="https://www.sportsgovernanceacademy.org.uk/resources/knowledge-base/code-for-sports-governance/a-code-for-sports-governance/" target="_blank">https://www.sportsgovernanceacademy.org.uk/resources/knowledge-base/code-for-sports-governance/a-code-for-sports-governance/</a> <a href="#ref19">↩</a></li>

<li id="fn20">McKinsey. "Coping with complexity." <a href="https://www.mckinsey.com/industries/public-sector/our-insights/coping-with-complexity" target="_blank">https://www.mckinsey.com/industries/public-sector/our-insights/coping-with-complexity</a> <a href="#ref20">↩</a></li>

<li id="fn21">OlympicRwanda. "IOC Executive Board reviews governance reforms." <a href="https://olympicrwanda.org/ioc-executive-board-reviews-progress-of-governance-reforms-decides-on-further-action/" target="_blank">https://olympicrwanda.org/ioc-executive-board-reviews-progress-of-governance-reforms-decides-on-further-action/</a> <a href="#ref21">↩</a></li>

<li id="fn22">NHS Confederation. "NHS Oversight Framework 2022/23." <a href="https://www.nhsconfed.org/publications/nhs-oversight-framework-202223-what-you-need-know" target="_blank">https://www.nhsconfed.org/publications/nhs-oversight-framework-202223-what-you-need-know</a> <a href="#ref22">↩</a></li>

<li id="fn23">ASOIF. "Fifth Review of IF Governance." <a href="https://www.asoif.com/news/all-ifs-meet-target-score-set-out-asoif%E2%80%99s-fifth-governance-review" target="_blank">https://www.asoif.com/news/all-ifs-meet-target-score-set-out-asoif%E2%80%99s-fifth-governance-review</a> <a href="#ref23">↩</a></li>

<li id="fn24">Sports Governance Academy. "Board evaluation." <a href="https://www.sportsgovernanceacademy.org.uk/learning/webinar-archives/board-evaluations/" target="_blank">https://www.sportsgovernanceacademy.org.uk/learning/webinar-archives/board-evaluations/</a> <a href="#ref24">↩</a></li>
</ol>
</section>
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