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What is Governance

Governance is not management. What is governance?

The New Zealand pocket Oxford dictionary defines governance as a manner of governing and defines govern as, ‘rule or control with authority, conduct policy and affairs of; influence a course of action.’  

Policy governance is the development of policies to promote the purpose and values of the organisation. Management is putting those policies into action and co-ordinating the day-to-day activities necessary to realise the purpose. 

The board is responsible for the long-term health and prosperity of the organisation. Governance is fulfilling that responsibility. Governance can be defined as, 

"The processes or systems used by the board to:
  • Set the direction of the organisation;
  • Establish and monitor priorities;
  • Establish and maintain governance policies;
  • Ensure that the organisation has the capacity to implement the direction and board policies;
  • Oversee the risks regarding type, level and quality of products and services provided (or not provided) and ensure there are means in place to manage these risks;
  • Set management performance expectations;
  • Monitor achievements against the management performance expectations;
  • Be accountable to the key stakeholders."
One definition of governance I came across was:

'To make the choices that create the future for the people/community we serve'.

What I particularly like about that definition is the future focus and the obligation to the people who put the board in place.



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