Policy Governance

Policy Governance 1 Policy Governance, informally known as the Carver model, is a system for organizational governance. Policy Governance defines and guides appropriate relationships between an organization's owners, its board of directors, and its chief executive.

Policy Governance 1 The Policy Governance approach was first developed in the 1970s by John Carver who has registered the term as a service mark in order to control accurate description of the model. The model is available for all to use without royalties or license fees and has been adopted by commercial, nonprofit, and public sector organizations.

Policy Governance Claims for the model 1 Authors of the Policy Governance model say it is a paradigm shift from the traditional practice of governance and that it provides a clear differentiation between governance and management responsibilities in organizations. :2–3 :65– 67 :12

Policy Governance Claims for the model 1 Policy Governance begins with a definition of governance as "Seeing to it that the organization achieves what it should and avoids unacceptable situations." From this definition, board governance is at an arm's length from operations.

Policy Governance Claims for the model 1 In Policy Governance, the board has three primary jobs: Ownership Linkage - connecting with owners to learn their values about ends that are desired and means that would be unacceptable; Policy Development - writing those values as guidance for organization and for the board itself; and Assurance of Organizational Performance - monitoring to ensure the organization demonstrates reasonable progress toward desired ends and reasonable compliance with policy guiding means

Policy Governance Criticism of the model 1 Industry Canada in the Primer For Directors of Not-For–Profit Corporations expressed concern about Policy Governance. They argue that “Some models of board governance—notably originating in the United States—advocate that directors limit themselves to policy matters only and leave responsibility for administration and day-to- day matters with the executive staff of the corporation. This limited role for directors does not reflect the obligations that are legally imposed upon directors.” :64

Policy Governance Criticism of the model 1 Hugh Kelly QC of the Canadian legal firm Miller Thomson LLP responded directly to this criticism concluding that: “The board of a Canadian charitable corporation that adopts Policy Governance has performed 'due diligence', and fulfilled all legal obligations imposed upon its directors. On a comparative basis, such boards and directors are far ahead of most corporations, even those in the world of commerce, in observing their legal and moral obligations.” :9

Policy Governance Criticism of the model 1 Addressing the universality concern, proponents of Policy Governance argue that, because the model is rooted in the generic purpose and nature of board authority rather than current practice of the specifics of any industry, at the level of its fundamental principles Policy Governance is indeed applicable to all governing boards.:10 Proponents also argue that at times of crisis, holding onto the precepts of Policy Governance is in fact key to organizational survival and that rehearsing the use of the system in light of various scenarios can help build an organization's resilience to risk.:110

Policy Governance Criticism of the model 1 This interpretation is not supported by a close reading of the Policy Governance model

Policy Governance Criticism of the model 1 Carver notes this concern when he acknowledges that Policy Governance will not make "a bad board good."

Stem cell laws 1 'Stem cell laws' are the law rules, and policy governance concerning the sources, research, and uses in treatment of stem cells in humans

David Audretsch - Articles 1 * Entrepreneurship Policy and the Strategic Management of Places in The Emergence of Entrepreneurship Policy Governance, Start-ups, and Growth in the U.S. Knowledge Economy, ed. David M. Hart, Cambridge U. Press, 2003[ m041/ pdf]

EGovernment in Europe - Sweden 1 whose central goals were to rationalise policy governance; make the Swedish Administration the world's simplest Administration; and take public services delivery to a higher level than that of mere provider–customer interaction

European Fiscal Compact - Title V - Governance of the Eurozone 1 * 'Meetings for policy governance:' Title V of the treaty provides for Euro summits to take place at least twice a year, chaired by the President of the Euro summit to be appointed by Eurozone countries for a term that runs concurrent to the term of the President of the European Council

Heritage Baptist College and Heritage Theological Seminary - Governance 1 Heritage is governed by a Board of Governors composed of distinguished Christian leaders from across Ontario. Heritage has adopted a Carver Policy Governance model for the Board of Governors and the institution.

For More Information, Visit: m/the-policy-governance- toolkit.html m/the-policy-governance- toolkit.html The Art of Service