• Policy Governance

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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.

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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.

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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

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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.

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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

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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

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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

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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

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Policy Governance Criticism of the model

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

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Policy Governance Criticism of the model

1 Carver notes this concern when he acknowledges that Policy

Governance will not make "a bad board good."

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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

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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[http://catdir.loc.gov/catdir/sam

ples/cam041/2002041554.pdf]

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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

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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

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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.

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