G&M Process Flow

The Governance and Management Process

Pol

icy

Cre

atio

nP

olic

y C

reat

ion

Pol

icy

Op

erat

ion

Pol

icy

Op

erat

ion

Wor

k P

rodu

cts

Wor

k P

rodu

cts

Go

vern

ance

Go

vern

ance

Instantiated byDetailed in

Used By

Enforces (Measures)

Regulation

Implies a metric

Mediate/Adjudicates

BusinessRule

Enact

Policy

Decide

Fe

ed

ba

ck m

ea

suri

ng

th

e e

ffe

ctiv

en

ess

of

po

licie

s

Characteristics of Policies and Contracts

• Where they apply– Policies only apply within a single ownership domain– Contracts apply cross ownership boundaries

• Decided– Governance Decides on What Policies should be set– Governance Decides on Acceptable Terms and Conditions for Contracts

• Enacting– Policy Management enacts (sets) the Policies– Negotiation among managers/SMEs across ownership boundaries enacts or

defines contracts• Enforce

– To be a policy or contract, it must be enforceable; otherwise it’s simply “an admonishment to virtue”

• Remediation/Mediate/Adjudicate– To be a policy or contract, it must define one or more methods for remediation,

mediation, or adjudication

Examples• The Family

– Individuals can set their own internal policies of behavior– When a man and woman decide to marry, that’s governance within each

of their own ownership domains– The Marriage is “official” when the marriage contract is signed– Together, the married couple (an organization) decide, enact, etc.

policies for living as a unit– When children come, initially, they are “governed” by the policies of the

organization—”the family” (though the children may object strenuously)• A National Constitution

– A national contract for governance within a territorial (ownership) boundary

– Within the boundary the Nation’s policies (laws and regulations) apply• Incorporating a Business

– The Article of Incorporation (a contract among the owners) set the ownership boundary of what is owned and how much by whom.

– Within the boundary the organization’s policies apply