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."
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