One of the biggest mistakes organisations make is assuming
that governance must be all or nothing.
Either:
• a thick rulebook,
• multiple committees,
• heavy compliance,
or nothing at all.
Both extremes fail.
Real-world procurement needs graduated governance —
just enough structure for the risk at hand.
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Governance is not a monument. It is a stack.
Think of procurement governance as a stack, not a single system.
You don’t install everything on day one.
You add layers as:
• volume increases,
• risk rises,
• and complexity deepens.
Overbuilding early suffocates operations.
Underbuilding late destroys trust.
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Level 1: Lite Governance — “Don’t Hurt Anyone”
This is where most pilots and early-stage initiatives should begin.
It includes:
• clear buying authority,
• explicit refusal criteria,
• transparent pricing logic,
• fixed payment timelines.
No fancy tools.
No heavy reporting.
Just predictability.
This level protects:
• farmer dignity,
• staff sanity,
• and organisational reputation.
Anything less is reckless experimentation.
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Level 2: Basic Governance — “Learn and Stabilise”
Once volumes repeat and relationships form,
memory becomes important.
This level adds:
• basic traceability,
• simple classification rules,
• documented exceptions,
• and dispute resolution paths.
Not to control —
but to remember.
At this stage, governance begins to reduce conflict, not just prevent harm.
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Level 3: Intermediate Governance — “Absorb Shocks”
This is where systems face stress:
• seasonal volatility,
• staff turnover,
• market swings.
Governance here introduces:
• incentive alignment,
• loss-sharing logic,
• and formal escalation mechanisms.
This level allows the system to survive bad seasons
without rewriting rules each time.
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Level 4: Advanced Governance — “Scale Without Losing Soul”
At scale, governance must handle:
• large volumes,
• multiple crops,
• diverse regions,
• and partner organisations.
This level includes:
• robust traceability,
• partner governance,
• processing risk controls,
• and brand protection logic.
Importantly, it also includes ethical exit protocols.
Scale without governance is extraction.
Governance without scale awareness is bureaucracy.
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Level 5: Full Governance — “Institutional Memory”
Very few systems reach this level —
and even fewer sustain it.
Here, governance becomes:
• culture,
• habit,
• and shared understanding.
Rules are known implicitly.
Signals are trusted.
Conflicts are resolved calmly.
At this level, governance stops feeling like governance.
It feels like maturity.
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One size does not fit all
A small FPO does not need the same stack as a national brand.
A milk cooperative does not operate like a vegetable aggregator.
A pilot does not need enterprise compliance.
Governance must match:
• risk,
• reversibility,
• and consequence.
Excess governance is as dangerous as none.
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The danger of copying governance
Many organisations copy governance from:
• corporates,
• donors,
• or certification bodies.
This often fails because:
• context differs,
• incentives differ,
• and pressure points differ.
Governance must be grown, not imported.
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Governance must be visible where it matters
The best governance is not hidden in manuals.
It is visible at:
• collection points,
• payment moments,
• rejection conversations,
• and exits.
If governance is invisible at stress points,
it doesn’t exist.
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A simple stack governance test
Ask this:
“If this system doubles in volume next season, which part will break first?”
The answer tells you which layer is missing.
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Why this chapter matters
Many procurement failures are not about intent or competence.
They are about mis-sized governance.
Too much too early.
Too little too late.
A stack allows growth without betrayal.
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What comes next
Governance only works if people can learn it.
SOPs don’t teach judgement.
Stories do.
That is where we close this doctrine.
