Governance
Governance is about the framework for decision making and collaborative action which formally specifies how a group of stakeholders organizes themselves and makes decisions and otherwise collaborates within some specific system or context to get things done and/or to achieve some common goal or objective. Governance is the system of rules, roles, processes, and relationships that guide how the group of stakeholders operate. Governance is the meta‑layer that, at it's core, ensures:
- Accountability: Who is responsible. It establishes who decides what. Performance.
- Procedures: How are decisions made. It establishes protocols. Controls. Process.
- Authority: Who is allowed. It ensures people are following the rules. Permissions.
- Alignment: Are we following our defined purpose. It checks to determine whether the group is on track. Predictability. Safety. Transparency. Openness. Integrity. Effectiveness. Collaboration.
- Assurance: Are we doing what we said we would do. Auditability. Traceability.
Governance is the control framework that keeps a system coherent. Governance is how a group makes sure things are done properly.
Management is about doing the work. Governance is about making sure the right work is being done in the right way. Governance prevents "wild behavior", "anarchy", and "chaos" by defining who can do what and under what conditions.
Here is a tangible example. Think of a homeowners association of a condominium. Governance is the bylaws, voting rules, committees, and enforcement mechanisms of the homeowners association. Management relates to the landscapers, maintenance crews, and administrators who carry out the work that needs to be performed to keep the condominium functioning. Governance says “Here’s how we decide what the landscaping should be.” Management says “Here’s how we mow the lawn.”
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