Policy Governance

By Larry Wilson

Larry explains the difference between governance and management and why governance is important for the Water District.

There is a difference between governance and management. Most people have some training and experience in management but little or none in governance. There is a strong tendency to spend energy and resources on the means of accomplishing an objective (management) as opposed to concentrating on the outcomes that you want to achieve (governance). What benefits, for what people, at what cost.

The District plans, manages and carries out work to meet policies established by the Board of Directors. Under the District's form of policy governance these "ends" policies describe the mission, outcomes or results to be achieved by the district staff. Balancing these "Ends" are Executive Limitations, which set limits on staff activities in fulfilling the Ends. Alignment of plans and resources with Ends polices helps the Board fulfill the critical responsibility of defining, balancing and prioritizing "What benefits, for what people at what cost and enhances District staff's accountability in using budgeted resources to accomplish those ends.

In the process of developing policy governance the board must clearly state the outcomes it wishes to achieve. The board also needs to tell the chief executive officer (CEO) what limitation the Board is placing on him/her on the means of achieving those outcomes, the ways that the Board would monitor the activities and a clear understanding of the CEO's interpretation of the policies.

Over time issues arise that require the Board to refine existing policy or add new policy. When this occurs the Board can review and make changes or additions without creating conflicts. Refinements or addition occur on a regular basis. Policy governance improves thru this process and there is a clear and continuing connection between the actions of the board and established policies and responsibilities The Board establishes policy and the responsibility of the CEO is to execute that policy.

The introduction to Board policy GP-2 states the following: The Board will govern with an Emphasis on (A) Outward vision, (B) Encouragement of diversity of viewpoints, (C) Strategic leadership more than administrative detail,(D) Clear distinction of Board and chief executive roles, (E) Collective rather than individual decisions, (F) Future rather than past or present, and (G) Proactive rather than reactive

Visit my web site waterwilson.com and click on links. There you will find the water district web site .Go there and click on board policy to read the district governance policies.