Governance Basics

Where governance fits

There are three distinct roles that are necessary in order for an organization to fulfill its mission:

Work - Performing the tasks required to fulfill the mission

Governance - As defined above: the interface with stakeholders, the source of strategic decisions that shape the organization and its work, and ultimate accountability for the work and actions of the organization

Management - The link between governance and work. The organization of tasks, people, relationships and technology to get the job done

In theory the divisions between these roles are clear. However, in practice the divisions become blurred, disappear altogether or, more dangerously, become confused. In the non-profit sector, the primary charge of boards is the governance role but their responsibilities might often cross over into the management and work roles of the organization. Senior management is almost always heavily involved in the governance role. The real danger is not the mixing of these roles, but unclear definition of responsibilities and lost lines of accountability.