What is Policy Governance anyway?

by Ingrid Kirst, Board Member

The Open Harvest Board of Directors uses policy governance as a structure for its work on behalf of the co-op. Over time, most board members find that policy governance is a useful tool which brings order to our tasks. However, it is a new concept for most board members and takes time to grasp how and why it works.

Policy governance establishes a method for the board to oversee the work of the co-op without getting in the General Manager's way. The board starts by setting out the Ends that it wants the store to achieve. Open Harvest's Ends statement reads, "Lincoln's trusted source for responsibly selected natural foods, products, and related outreach services for owners and the food buying community, while perpetuating the store and its policies." This overarching goal gives the General Manager a vision to strive for in running the store.

The Ends don't cover everything, however, so the board also sets out certain policies to follow. Some of these are for the board itself - for example, policy governance works because the board doesn't meddle in the daily operations of the store. The Board, as a whole, gives the General Manager guidelines, receives GM reports, and then makes any necessary changes. Individual board members can't tell the GM what to do - they must act as a cohesive group. There are also policies written about what the GM can't do - limitations that the board has established, such as ensuring that the financial conditions of the co-op don't negatively impact its future survival.

Finally, another key aspect of policy governance is that the board must operate by consensus. There are no votes in a board meeting - consensus means that everyone must agree on a decision of the board, or agree to stand aside and let the board proceed without their approval. At times, this means the board discusses an issue for a long time, but it means that everyone on the board gets a chance to have their perspective heard. Many times, one board member has changed the mindset of everyone, and thereby changed the ultimate outcome for the better.

Learn more about policy governance on the Board of Directors page.