Put simply, Policy Governance is a complete system through which boards can effectively conceptualize, organize, and fulfill their mandate to govern (Caroline Oliver, 2010). Read on to learn more:

Conceptualizing Governance

Think of governance as creating a playing field for an organization. The organization scores points if it gets to the end zone or puts the ball or puck in the goal. In an organization, this means achieving certain end results that are defined by the board. Those end results could be things like graduates prepared to be contributing members of society, a healthy community, or children safe from abusive environments. Just like a playing field, there are certain “out of bounds” situations boards may decide are unacceptable. Don’t do anything illegal, imprudent, unethical or in violation of commonly accepted business and professional practices! Don’t allow unsafe working conditions for staff…don’t gather any more data from clients than is absolutely necessary…don’t fail to keep the board informed of real or potential legal threats to the organization! Once the edges of the playing field have been define - in other words – once management knows what the score represents and what situations to avoid, they have the freedom to move confidently down the field knowing that, as long as they play by the rules, the board will be fully supportive and not feel the need to micromanage (call in the plays).

Defining the playing field is just one of three unique jobs that define the work of Policy Governance boards:

1. linking proactively with the people they represent in order to get input and report back on organizational results
2. crafting policies that guide the organization and guide the board’s own performance
3. monitoring organizational performance

Organizing Governance

 This model is called Policy Governance for a reason. Boards using this approach to their job utilize policies to communicate their expectations for the organization (what to achieve and what to avoid), for themselves (our tasks and how are we are going to accomplish them), and for their relationship with the organization (how we are going to delegate authority and monitor its proper use). A glance at a board’s policy manual will clearly reflect these areas of concern and are the bedrock for every action taken by the board, committees, and individual members.

Fulfilling the Governance Mandate

Policy Governance recognizes that the primary obligation of a board is to those it represents; organizational owners. Traditional boards, drawn into duties helpful to management (fundraising, marketing, etc.), frequently assume their primary obligation is to the CEO and they neglect their legal governance responsibilities. Not so with Policy Governance. These boards actively link with those they represent, listening for their values and desired organizational end results in order to create a playing field on their behalf. The board’s relationship with the CEO, while critically important, is secondary. If they determine a need to be personally engaged in a management function (small staff, area of particular expertise to the board) they do so strategically by NOT delegating that particular authority to the CEO and complete their work efficiently and responsibly.

The Policy Governance model theory and policy framework allow boards to work with a clear understanding of their roles and their unique value to the organization. A rigorous system of monitoring achievement of desired end results and avoidance of unacceptable situations or actions provides regular, unambiguous compliance data critical to the board’s ability to be accountable to organizational owners.

Are you ready to take your understanding of Policy Governance to yet another level? 

Why is Policy Governance trademarked?

Policy Governance® is an internationally registered service mark of John Carver. Registration is only to ensure an accurate description of the model rather than for financial gain. The model is available free to all with no royalties or license fees for its use. The authoritative website for Policy Governance is www.carvergovernance.com.