A brief Explanation of Policy Governance^®

Policy Governance^®, the process of board governance developed by Dr. John Carver, derives logically from the definition of governance as the method by which a group with authority and accountability over an organization, and representing its ownership, coherently (as a group) expresses its values and expectations to Management in the form of instructions and sees to it that its expectations are achieved, so that the organization accomplishes its intended purpose, producing something of value for its beneficiaries (what good it creates for others), and thereby producing ultimate value (tangible or intangible) for the ownership.

In accomplishing this within Policy Governance, the governance process contains a fundamental set of principles (seen as ethics or values) that constrain it. 1.) The board governs as a group on behalf of ownership (generally others with a real, moral, and/or spiritual investment) and owes this ownership quality and integrity in its governance, including the board monitoring itself. 2.) In governing on behalf of ownership the board must understand "the voice of the ownership." 3.) The board must balance its instructive authority between sufficient instruction to give strategic direction and prevent undesired actions while empowering Management. 4.) However the board conducts its business, it maintains the integrity and congruity between authority and accountability. From the above, the Ends/Means distinction for board policies provides the best logical solution to date meeting criteria for efficiency and integrity. Means are dealt with by proscribing unwanted (unapprovable) means and organizational Ends are expressed by prescribing desired results the organization is to effect in the world. (The global End often suffices as the vision statement.) 5.) The board achieves accountability with fairness and integrity by monitoring the organization against board written policies and not values it hasn’t stated. 6.) In order to assure logical coherence and clarity, policies are developed from general to specific, which is the natural linguistic manner of definition. The development of written policies also constitute the "voice" of the board, assuring the coherence of board instructions.

R. M. Biery, 2002

(A much fuller explanation is provided on the Carver website as the authoritative website, www.carvergovernance.com.)

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(Policy Governance is the registered service mark of John Carver; the authoritative website for the Policy Governance model can be found at www.carvergovernance.com.)

A brief Explanation of Policy Governance®

A brief Explanation of Policy Governance^®