1. G&M Process Flow

2. Characteristics of Policies and Contracts Where they apply –Policies only apply within a single ownership domain –Contracts apply cross ownership boundaries Decided –Governance Decides on What Policies should be set –Governance Decides on Acceptable Terms and Conditions for Contracts Enacting –Policy Management enacts (sets) the Policies –Negotiation among managers/SMEs across ownership boundaries enacts or defines contracts Enforce –To be a policy or contract, it must be enforceable; otherwise it’s simply “an admonishment to virtue” Remediation/Mediate/Adjudicate –To be a policy or contract, it must define one or more methods for remediation, mediation, or adjudication

3. Examples The Family –Individuals can set their own internal policies of behavior –When a man and woman decide to marry, that’s governance within each of their own ownership domains –The Marriage is “official” when the marriage contract is signed –Together, the married couple (an organization) decide, enact, etc. policies for living as a unit –When children come, initially, they are “governed” by the policies of the organization—”the family” (though the children may object strenuously) A National Constitution –A national contract for governance within a territorial (ownership) boundary –Within the boundary the Nation’s policies (laws and regulations) apply Incorporating a Business –The Article of Incorporation (a contract among the owners) set the ownership boundary of what is owned and how much by whom. –Within the boundary the organization’s policies apply