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. . . Thc Policy Govemanee@ Model Page 10 of ] 6 This view of organizational issues-as values that can be specified moving methodically from the broadest to more narrow levels-allows the board to manage the amount delegated. The board is always clear about the authority being given away. The recipient of the board's delegation is always clear about the amount of accountability expected in return. There is a continuum of sizes of issues upon which. in Policy Governance. the board owns the broadest level, then successively smaller levels until it decides to delegate, after which it is safe to allow the remaining decisions to be made by others. It is often observed by other governance authors that the distinction between what is board work and what is executive work is a na.ive distinction. There is no universal rule, they contend, to mark where board policy stops and administration begins. Indeed, they are right as far as traditional governance is concerned, for the conventional approach to the board job is unable to make a policy- administration distinction that holds up in the real world. Policy Governance, however, introduces entirely different, more powerful conceptual tocls- rigorous "one voice" clarity of delegation using descending levels of board control within the ends/means context. Even though there is still no predetermined or fixed point where board work automatically becomes executive work, each board using the principles we are describing can establish and, when necessary change. a distinct point of delegation applicable to its own organization. It is at that point. by the values of that board, for that organization. for that time, that governance stops and "sub-governance" begins. To summarize the policy development sequence, Policy Governance boards develop policies which describe their values about Ends, Executive Limitations. Governance Process, and Board-Staff Linkage. Each policy type is developed from the broadest, most inclusive level to more defined levels, continuing into more detail until the board reaches the point at which it can accept any reasonable interpretation of its words from its delegatee. A step-by-step guide to such development of policy documents is available (Carver and Carver, 1997). Ends and Executive Limitations are delegated to the CEO. who is held accountable by the board for accomplishing any reasonable interpretation of the boards expectations in these areas. Governance Process and Board-Staff Linkage policies are delegated to the board Chair. who is given the authority to ensure that the board governs in accordance with its own expectations of itself, using any reasonable interpretation of the policy language. Board Discipline, Mechanics, and Structure It is clear that the Policy Governance model requires a board to govern in an organized, planned and highly disciplined manner. Boards which are accustomed to talking about issues simply because they interest individual board members will find agenda discipline to be a major challenge. as will boards that rely on their staffs to supply their agendas. Not everything is appropriate for board discussion just because it is interesting or even because the staff wants the board to make the decision. Matters that have been delegated to the CEO should not be decided by the board or by board committees, for in making such decisions, the board renders itself unable to hold the CEO accountable. Policy Governance boards know that their job must result in the production of three deliverables. (1) The first deliverable is a systematic linkage between the organization and the ownership. This is not public relations. The board connects with the ownership in order to ascertain the range of ownership values about the purpose of the organization. If the board is to make Ends decisions on behalf of the owners. it must know what the owners in all their diversity think. (2) The second deliverable is written governing policies in the four areas. using the principles we have described. (3) The third deliverable is the assurance of organizational performance, that is, performance which can be shown to be a reasonable interpretation of the board's Ends and Executive Limitations policies. We use "deliverables" to mean job products, outputs, or values-added. Since these summarize the purpose for the board's job, producing these deliverables is what board meetings are for. In fact. the list of job outputs can be considered to be a perpetual job description. for every agenda is an instance of the board's working to perform its job. A board can decide how much. in what detail, and http://www.carvergovemance.com/model.htm 6112/2002