What is Policy Governance?  
Policy Governance® is a governance operating system, developed by John Carver. It offers a rational framework for what governance can be. Built on the foundations of accountability, servant-leadership, clarity of group values and empowerment of both board and staff, the model creates an intentional and rational approach to policy-making, alignment and integrity in an organization.

Policy Governance places the board clearly in control of the organization, but at a very broad level. Through clear and proactive delegation of expectations and authority to the CEO, it simultaneously fulfills the board’s fiduciary role and empowers the CEO to flexibly and creatively perform what the board has defined.

Organizations that fully implement Policy Governance understand the boundaries and the accountabilities of both the board’s job and management’s job. As a result, the board and CEO can act as colleagues, both working to achieve the organization’s purpose, but each with a very different and distinct role.

Because the boundaries are clear, the board can focus on its value-added governance role of:
  1. Being a proactive owner/shareholder representative and acting as a direct link between them and the organization.

  2. Guiding the organization through very broad but complete policies.

  3. Assertively but fairly assuring that the organization, through the CEO, is performing adequately.

  4. Ensuring that unethical and unacceptable situations do not occur by proactively addressing these values in board policy.

Boards practicing Policy Governance® hold an outward vision and focus on the strategic future of their organizations. Policy Governance provides a new and fresh approach to board work that can allow an organization to more completely achieve its mission while simultaneously avoiding the tragic outcomes which can result when the board is leading in name only.

In today’s world, the importance of having both a strong board and a strong CEO, held together by a positive and healthy relationship, cannot be overstated. Policy Governance is the only governing system designed to make this so.

Specific Benefits of Policy Governance   Impact of Policy Governance
  • An ethical tone is set at the top of the organization through board developed policy.

  • Board work is distinctly different and independent of CEO work.

  • The board defines its own work process and outputs in policy.

  • Expected organizational outcomes and off-limits operational choices are proactively defined by the board.

  • A formal monitoring process is in place that allows the board to verify that those outcomes and off-limits are being adhered to.

  • The revolving door of staff reports is closed or, at the very least, minimized.
   Because Policy Governance offers a precise philosophy, structure and process for effective governance, Boards act from intentional decision-making rather than unspoken assumptions. It brings a dynamic process to board work that focuses on the future, observes clear boundaries, and creates accountability for both the board and staff.

When fully implemented in an organization:
  • The energy and resources of the organization are aligned and focused on creating results for your customers.

  • The Board brings added value to the organization, rather than duplicated oversight.

  • The CEO is empowered to choose the most effective means to achieve the defined outcomes.

  • Volunteer efforts are focused on broad strategic policy-development and linking with the community to keep the organization relevant to its community.