Governance in Industry 5.0

Governance in Industry 5.0: Less Red Tape, More Trust

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Governance in Industry 5.0: Less Red Tape, More Trust

Governance in Industry 5.0 has transformed traditional notions of control—policies, audits, escalation paths, and approval gates. While structure is necessary, the governance models of Industry 4.0 often stifled innovation, disempowered teams, and created bureaucratic drag.

Industry 5.0 introduces a new challenge: how can we govern in a way that protects value while promoting trust, autonomy, and inclusion?

In this blog, we explore how governance is evolving in the age of Industry 5.0, how ITIL 4 and PRINCE2 7 support this evolution, and how PDCA Consulting helps organisations design governance that enables, rather than restricts, human-centric value creation.

Why Traditional Governance Models Are Breaking Down

Governance was traditionally about control—ensuring people followed the rules, risks were minimised, and outputs stayed within tolerances. It operated on the assumption that:

  • The future was predictable
  • Expertise lived at the top
  • Compliance created quality

But this doesn’t match today’s world:

  • Decisions need to happen faster
  • Innovation comes from everywhere
  • Employees expect autonomy
  • Stakeholders demand transparency

Projects stall waiting for approvals. Services deteriorate under rigid compliance. People disengage. Governance becomes a burden—not a benefit.

Governance in Industry 5.0: A New Purpose

Governance in Industry 5.0 still serves to protect the organisation, but the means have changed.

It must now be:

  • Transparent – Policies and decisions are visible, explainable, and inclusive
  • Participatory – Governance involves teams and stakeholders, not just gatekeepers
  • Responsive – Frameworks evolve with context and user feedback
  • Trust-Based – Controls exist to guide, not to micromanage

Instead of just asking, “Did we follow the process?”, we must also ask, “Did we build trust?”

ITIL 4: Enabling Adaptive Service Governance

ITIL 4 embeds governance as one of the five components of the Service Value System (SVS)—positioning it not as an overhead, but as a key contributor to value.

It encourages:

  • Alignment between governance and business values
  • Feedback-driven policies (e.g. via Continual Improvement)
  • Clear visibility of decision-making processes

Most importantly, ITIL 4 doesn’t prescribe rigid rules. It gives guidance to tailor governance to maturity, context, and need—essential for Industry 5.0. This approach aligns with Agile Governance, enabling rapid adaptation to changing priorities while maintaining alignment with organisational goals.

PRINCE2 7: Governance that Adapts with You

PRINCE2 7 reflects the reality that successful governance isn’t about documentation—it’s about meaningful decision-making.

Key updates include:

  • People-Centric Design – Recognising humans as contributors, not just resources. This shift towards Human-Centric Management prioritises empathy and collaboration, ensuring governance supports both people and outcomes.
  • Tailored Governance Structures – Scaling roles and checkpoints to suit the environment
  • Stakeholder-Centric Engagement – Making stakeholder input a formal governance component
  • Focus on Benefits Realisation – Ensuring projects don’t just deliver outputs but real outcomes

By design, PRINCE2 7 allows organisations to pivot from gatekeeping to guiding.

How PDCA Consulting Designs Trust-Based Governance

At PDCA, we approach governance transformation by focusing on alignment, transparency, and empowerment.

We help organisations:

  • Redesign decision frameworks to reflect core values
  • Foster Transparent Leadership to build trust through open communication and accountability
  • Introduce distributed decision-making models without losing accountability
  • Align compliance with culture, not just risk logs
  • Facilitate conversations that turn “policy” into shared responsibility

Our blend of coaching, consulting, and facilitation ensures governance works with people, not against them.

Final Thoughts: Trust is the New KPI

Governance still matters—but its job description has changed. In Industry 5.0, your ability to build trust, empower stakeholders, and adapt policies is more valuable than strict adherence to predefined workflows.

Governance must evolve from red tape to relational trust.

With ITIL 4, PRINCE2 7, and PDCA Consulting, you can create frameworks that uphold ethics, enable innovation, and strengthen confidence across your service and project portfolios.

How PDCA Consulting Helps with the Transformation

PDCA Consulting empowers organisations to navigate Industry 5.0 by delivering:

From blueprinting to behavioural change, PDCA enables human-centric innovation—practically and sustainably.

To find out more about PDCA Consulting’s expert consulting services either:

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