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What is Policy Governance?
The Policy Governance model of board leadership is universally applicable
- To any governing board
- Of any type of organization
- In any culture and
- At any stage of development.
The model is values-based, conceptually coherent
and comprehensive. It is not a model of structure, but an integrated system of concepts, process and philosophy
of governance.
The Policy Governance model describes the responsibilities and functions of a board of directors. It defines the
work of the board as 'governance' and makes the distinction between governance and management.
It begins with a premise that the board does not exist as volunteers who advise management, but, rather, as trustees
on behalf of a larger ownership. This ownership is not necessarily a legal or fiduciary one. It may be more of
a moral ownership. Every board must determine who that ownership is. For a city council it may be the residents,
for a school board it may be the district taxpayers, for a membership association it is the members. For many community
nonprofits it may be the community it serves. Once the board recognizes who their ownership is, they have a responsibility
to communicate with them and take the ownership's concerns into consideration.
In Policy Governance the board must determine why the organization exists. This forces the board to answer the
questions of what difference does it make in the world, for whom, and at what cost. John Carver calls the answers
the "ends" of the organization. The "ends" are not easily determined but they are the primary
focus and responsibility of the board. The CEO is entirely responsible to see that those ends are achieved. When
they have been concisely expressed the ends hold staff accountable in a way that no strategic plan can.
Having given staff direction through the Ends Policies, Policy Governance then does something rather counterintuitive.
Rather than attempt to tell the CEO how to achieve the ends, the model assumes that the CEO is an expert and creative
in fashioning the means. However, there are some means that would not be acceptable. Polices called "Executive
Limitations" instruct the CEO what not to do. They are generally issues of law, ethics, values, and morals.
They change the focus of the CEO from the approval syndrome, i.e.,"How can I get the board approve an action?"
to a focus of achieving results within specified boundaries.
To ensure that the CEO is achieving the Ends and avoiding the Executive Limitations, the board develops a Monitoring
Plan. If policies are worth creating, then they are worth monitoring. These reports may come from the CEO, from
an outside consultant or, more rarely, direct inspection by the board. These reports are part of the policy section
called Board/Staff Relations where portions of the authority of the board delegated to staff are delineated.
Finally, the board must govern itself and so develops Governing Process policies. By structuring its conduct, personalities
control the board less. The whole board disciplines itself to abide by its policies.
Generally, all of these policies total no more than 30 pages. Rather than a document that is left on a shelf, these
policies are referred to at every board meeting. Before an action is considered, the board considers: it is a board
or management issue and if it is a board decision,
- Have they already spoken on the issue?
- If they have, what did they say in
their policy? Is it adequate?
- If further detail or a change is
necessary, then they can change the policy or go into further detail.
Board meetings are radically changed with Policy
Governance!
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