Valerie Moore invites you to enter the world of Policy Governance® (PG)
The Third Sector and PG
I have been involved for many years in different ways with what is now called the third sector and I
have always believed and acted on the assumption that organisations who are not motivated by profit
can still be run efficiently and effectively. However often in the past I have seen enthusiasm and
altruism go hand in hand with a casual unprofessional approach to running an organisation. I have of
course seen many examples of well run charities and voluntary sector bodies and in these cut throat
times, it is only the well governed organisation that will attract funding and survive.
When I first heard about Policy Governance® I thought immediately, this would suit the third sector in the UK. So in the summer of 2005 I signed up for the first UK based Policy Governance Academy. Like its North American predecessors, it was run by John and Miriam Carver, the inspirational couple who conceived and developed Policy Governance® as a comprehensive governance system back in the early 1990's. (www.carvergovernance.com)
For an update on developments in Policy Governance® read Val's latest blog post Refreshed for Easter, April 2007
What I heard at the Academy, struck me as straight forward and yet comprehensive and clarified for me that grey area between what an organisation wants to achieve and how it goes about doing it. The Carver approach also clarified the distinction between the role the Trustees or Board Members and the CE0 and staff so it is clear who is responsible for the "ends" and who was responsible for the "means".
PG in Health
However, the third sector is not the only sphere where Policy Governance® can show a benefit. Through
my connections with NHS Trusts and knowing of their difficult journey to Foundation Trust status, I thought
Policy Governance® would have something to offer them. And, whilst it is early days, several Trusts have
used the basic principles of Policy Governance® and found that it clarifies their thinking and focuses
their attention on ends. As anyone associated with the NHS knows, it is pre-occupied with means and process.
The NHS at all levels spends considerable time and resources targeting and measuring performance in terms of
what is done. There rarely seems to be time for people to get beyond the daily grind and look at what is being
achieved - the ENDS!
What is the Policy Governance® model?
The Policy Governance® model is an operating system that efficiently focuses a Board on their unique
contribution to an organisation's success and safety. Policy Governance® makes a clear distinction
between the leadership of the governing board and management. And it does this for several important reasons
of principle:
- Board governance is a function of ownership
- Boards are the highest and therefore the first authority within an organisation
- Board leadership is group leadership rather an individual
- Boards are accountable for everything about the operation of the organisation including their own conduct.
It is not always as easy for third sector or public sector bodies to define their owners as it might be for a commercial organisation with shareholders. However it is vital that a Board agrees who their owners are whether the definition is a tightly drawn legal one or a wider approach where the community or indeed the general public are seen as the 'moral' owners.
Within the complete Policy Governance® framework a Board is able to organise all its thoughts, activities, structures and relationships in one concise policy document. The only other necessary governing documents are the founding documents, legislation, by-laws and minutes of board meetings.
Ends, Limitations, Process and Relationships
In Policy Governance® the governing policies are categorised under four headings:
- Ends: the specific impacts the board seeks to have on specific people's lives and at what relative cost or worth
- Executive Limitations: the extent to which the Board decides to limit the ways in which the CEO fulfils those ends
- Governance Process: the rules the Board creates to control its own behaviour and operation
- Board Executive Relationship: the system of delegation and accountability between the Board and the executive (normally a CEO but not always)
Policy Governance® provides a Board with clear guidance on how to implement these categories and then how to ensure it is monitoring the implementation of its policies. In this way the Board can be truly accountable to its "owners".
Policy Governance has its own software specifically developed by an Academy graduate, Ray Tooley . OurBoardroom© is an internet based software incorporating tools that enable Boards to implement Policy Governance® and ensure that in governance terms, the right people are doing the right things at the right time.
PG in the UK
The inaugural meeting of the UKPGA was held in October 2005. The organisation was legally established and held its
first Board meeting in May 2006. At this meeting the UKPGA appointed as Chairman: Caroline Oliver of Good to
Govern who works in Canada and the UK and was the founding Chairman of the International Policy Governance Association.
The Board also appointed it's first CEO: Stuart Emslie. Stuart is a graduate of the UK PG Academy and a Visiting
Fellow of Loughborough University. He is well known for his past work with the Department of Health as a senior
official with responsibility for risk management and controls assurance. For information about the UKPGA, Stuart
can be contacted on . The whole UK association is grateful for this probono contribution.
The Board meeting in May was conducted entirely through OurBoardroom software: Policies and Executive Limitations, agendas, minutes and action plans were all created on the customised software proving that the software really works. It also demonstrated that the meeting could have taken place with Board members located throughout the UK or even abroad.
During that exciting week of May, the UKPGA also ran a free introductory workshop for Board Members and/or Chief Executives of organisations who see themselves as part of the third sector. Attended by people from widely differing organisations, the workshop showed that Policy Governance® is relevant and applicable to the third sector in the UK. Potential clients who attended that workshop are being followed up and offered a range of presentations, discussions and training sessions tailor made to suit the circumstances and needs of their individual organisations.
UKPGA future plans
The UK PG community is now looking at setting up:-
- Website with blog-type direct communication between people involved and interested in Policy Governance®
- Masterclass training session for new PG consultants
- London based Reception for the founders of Policy Governance® - John & Miriam Carver when they come to the UK this October
- Second UK Academy in March 2007
The M-A-C View
The Partnership sees Policy Governance® as a major growth area for the consultancy through 2006 and into 2007.
We will be committing more of our resources and time to this area with plans for more Partners and Associates to
attend future Academies.
For more details of our offer to assist organisations implement PG see our offer "Policy Governance®" (www.mooreadamsoncraig.co.uk/policy-governance.html)
Val Moore
July 2006