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The Policy Governance Model has as its starting point the principle that a governing Board exists on behalf of the larger group - NCFR Members - who legally own the organization. The governing Board is accountable for the organization it governs. Thus, the Board of Directors of NCFR must consider and answer the questions: From whom do we obtain our authority? To whom are we accountable? For what are we accountable? The job of the Board in answering these questions lies in developing policies that ensure that its expectations and those of its members are met. Expectations must be initially stated, then delegated, then checked for compliance. Through its policies, the Board defines ends, delegates authority, and monitors performance, but does not necessarily carry out organizational work.
The Board's expectations and values for the organization can be defined through either ends policies or means policies which underlie all action.
- ENDS policies describe the Board's expectations about (a) the benefit, difference or outcomes that the organization is to produce; (b) the persons for whom the difference is to be made; (c) the cost or relative worth of the benefit. These policies (see Governance Handbook) describe and compel organizational achievement and instruct the Executive Director.
- MEANS policies are any organizational issues that are not ends, and include methods, practices, situations, circumstances, and activities that are not direct results.
The Policy Governance model is shown as a nested set of concentric circles in five sections. The outermost circle represents the largest or global decisions/values of the Board and each subsequent concentric ring contains the smaller, more detailed decisions related to the global policy in that section. Policies should be defined until that point at which any remaining reasonable interpretation would be acceptable to the Board. At this point, delegation occurs.
In the Governance Process and Board-CEO Linkage sections the power to interpret and implement the Board policies is delegated to the President. In the Ends Policies and Staff means sections, the power to interpret and implement the Board policies is delegated to the Executive Director. This power applies in different domains and does not cross over a section. Lines of authority are clearly delineated.
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