Effective practice of the model results in a systems-driven organization rather than a personality-driven organization.
How Would you Know if You Need It?
Try answering the questions below:
- Is your Board struggling with how to be an effective owner-representative?
- Does the Board want to create accountability and an ethical tone at the top but does not quite know how?
- Is your Board stuck in operations and micromanagement?
- Are the structural boundaries between Board and Management fading or confused?
- Is the energy of your Board stagnant?
- Do you ever think there just has to be a better way?
If you answered "yes" to any or all of the questions above, Policy Governance just may be the answer you are seeking.
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.
For more information on how it can help and what it takes, see the articles: Keys to the Model's Effectiveness and Policy Governance Benefits and Challenges for Organizations.
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.
- Board efforts are focused on broad strategic policy-development, linking with the community to keep the organization relevant to its community and, lastly, assurance of operational performance.
- The CEO is empowered to choose the most effective means to achieve the defined outcomes.