PolicyGovernance

Policy Governance is a governance framework for boards that emphasizes policy-driven oversight and a clear separation between board authority and organizational management. It was developed in the 1990s by John Carver and has been adopted by nonprofits, government bodies, and some for-profit organizations seeking greater accountability and strategic focus.

The model rests on four interlocking governance domains: Ends policies, Executive Limitations, Governance Process, and Board-Management Connection. Ends policies define the outcomes and benefits the organization seeks for its stakeholders. Executive Limitations prescribe the boundaries within which the chief executive must operate, prohibiting actions that would harm the organization or violate values. Governance Process governs how the board conducts its work, including board composition, meetings, and decision rights. Board-Management Connection specifies how information and authority flow between the board and the chief executive.

Policy Governance enforces a strict ends/means distinction and places responsibility for day-to-day operations with management, while the board focuses on results, policies, and accountability. The CEO or equivalent executive operates within the boundaries set by the board and is accountable for achieving the stated ends.

Implementation typically involves translating strategic intentions into policy statements, regular monitoring by management, and board evaluation of performance against Ends and adherence to Executive Limitations. The process emphasizes proactive governance, clarity of purpose, and minimal interference in operational decisions.

Policy Governance is widely used by nonprofit entities, some government agencies, and educational organizations. Supporters cite improved clarity, accountability, and strategic alignment, while critics note potential rigidity, heavy upfront work, and a need for highly committed, well-trained boards.