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. . e The Policy Governanee@ Model Page 8 of16 by which Ends were accomplished, though interesting, is of little importance to the board. This logic is largely accurate, but there is an important problem with it. Some means can be unacceptable even if they do work. Means that are effective. but still "unacceptable" are ones that are improper treatment of people or assets. that is, means that are imprudent or unethical. Consequently, although there is no reason for a board to control staff means decisions for reasons of effectiveness, there is reason to control staff means for reasons of prudence and ethics. Whoever is directly responsible for producing ends must decide which means to use. That is, one must be prescriptive about one's own means. But the board is not charged with producing ends, only with defining them, It is to the board's advantage to allow the staff maximum range of decision- making about means, for skill to do so is exactly why staff were employed. If the board determines the means of its staff, it can no longer hold the staff fully accountable for whether ends are achieved, it will not take advantage of the range of staff skills, and it will make its own job more difficult. Happily. it is not necessary for the-board to tell the staff what means to use. In Policy Governance the board tells the staff or-more accurately-the CEO what means not to usel Therefore, it is the board's job to examine its values to determine those means which it does not want in its orqanizatiol1 then to name them, The board can then tell its CEO that as long as the Ends are accomplished and the unacceptable means do not occur, the CEO can make all further decisions in the organization that he or she deems wise, It is in this way that extensive. albeit explicitly circumscribed, authority is granted to the CEO. Effectiveness demands a strong CEO; prudence and accountability to the board demand that the CEO's power be bounded. This unique delegation technique has a number of advantages. First, it recognizes that board interference in operational means makes ends harder and more expensive to produce. Therefore, delegation which minimizes such interference is in the board's interest. Second. it accords to the CEO as much authority as the board can responsibly grant. Therefore, there is maximum empowerment inside the organization to harness for ends achievement. Third, it gives room for managerial flexibility. creativity and timeliness. Therefore, the organization can be agile, able to respond quickly to emergent opportunities or threats. Fourth. it dispels the assumption that the board knows beller than the staff what means to use, Therefore, the board does not have to choose between overwork and being amateurs supervising professionals. Fifth, in this system all means that are not prohibited are. in effect, pre-approved, Therefore, the board is relieved from meticulous and repetitive approval of staff plans, Sixth, and perhaps most importantly, by staying out of means decisions. except to prohibit unacceptable means. the board retains its ability to hold the CEO accounlable for the decisions that take place in the system, Thus. when we say a board is responsible that its organization works, we simply mean that the organization (1) accomplishes the intended results for the intended people at the intended cost or priority-expressed in the board's Ends policies; and that it (2) avoids unacceptable methods. conduct, activities. and circumstances-unacceptable means expressed in the board's Executive Limitations policies. Expressing Expectations in Nested Sets We have established that Policy Governance boards express their expectations for themselves and for their organizations in four categories of board policies: Ends. Executive Limitations (the unacceptable means), Governance Process, and Board-Staff Linkage (the latter two are board means divided into two parts). The separation of organizational values into these categories is a major organizing principle for governing boards, These four categories completely embrace all possible organizational values (except those more pertinent to articles of incorporation/letters patent and bylaws)---no other policies or documents are needed, But another feature must be added to enable the board to address its desired level of specificity within these categories. To ensure precision as well as completeness in policy-making. Policy Governance provides an additional principle. one which recognizes the varying sizes of issues and values, One Ends http://w.Ww.carvergovernance.comJrnodel.htm 6/12/2002