Policy Governance Quick Guide Policy Governance is an operating system for boards of directors. As with operating systems for computers, the system itself is not the of the board’s work; the system simply provides an underlying framework on which boards can build further agreements and activities. Policy Governance does not mandate specific decisions, but does highlight the kinds of decisions a board should make. These decisions include agreements about how the board will work together, how the board will empower and hold accountable the cooperative’s management, how the board will articulate the cooperative’s purpose and set up the cooperative for movement in that direction, and how the board understands the role of member-owners and others in the governance of the cooperative. The Policy Governance operating system is essentially an integrated set of principles principles that – gain their power when used together. Key to the principles is the meaning of the word Within “policy.” the context of Policy Governance, policies are the proactive articulation of values or principles that guide action. Policy Governance principles: Ownership The cooperative is owned by its members. The board exists to act and make decisions on behalf of and in the best interest of the owners. Position of The is a distinct link in the chain of empowerment and accountability within the cooperative. The owners empower the board through the bylaws, and the board is accountable to owners for the success of the cooperative. In turn, the board empowers and holds management accountable, delegating authority to management through Ends and Executive Limitations policies. Board Holism The authority of the board belongs to the whole. To say that the board with one voice” “speaks means that the board’s authority is a group authority. The of the board is expressed “voice” through the written policy decisions. Directors can work to persuade and influence the board in its deliberations and decision-making; beyond that, individual directors or subsets of the board have no authority to instruct staff. Board Means Policies The board defines in writing its own job and how it operates. These decisions are agreements about the board’s means, categorized as Board Process policies and Board-Management Relationship policies.
Policy Governance Quick Guide Policy Governance is an operating system for boards of directors. As with operating systems for computers, the system itself is not the of the board’s work; the system simply provides an underlying framework on which boards can build further agreements and activities. Policy Governance does not mandate specific decisions, but does highlight the kinds of decisions a board should make. These decisions include agreements about how the board will work together, how the board will empower and hold accountable the cooperative’s management, how the board will articulate the cooperative’s purpose and set up the cooperative for movement in that direction, and how the board understands the role of member-owners and others in the governance of the cooperative. The Policy Governance operating system is essentially an integrated set of principles – principles that gain their power when used together. Key to the principles is the meaning of the word “policy.” Within the context of Policy Governance, policies are the proactive articulation of values or principles that guide action. Policy Governance principles: Ownership The cooperative is owned by its members. The board exists to act and make decisions on behalf of and in the best interest of the owners. Position of The is a distinct link in the chain of empowerment and accountability within the cooperative. The owners empower the board through the bylaws, and the board is accountable to owners for the success of the cooperative. In turn, the board empowers and holds management accountable, delegating authority to management through Ends and Executive Limitations policies. Board Holism The authority of the board belongs to the whole. To say that the board “speaks with one voice” means that the board’s authority is a group authority. The “voice” of the board is expressed through the written policy decisions. Directors can work to persuade and influence the board in its deliberations and decision-making; beyond that, individual directors or subsets of the board have no authority to instruct staff. Board Means Policies The board defines in writing its own job and how it operates. These decisions are agreements about the board’s means, categorized as Board Process policies and Board-Management Relationship policies.
CBLD-Policy-Template-v20150302.docx