When Dr. John Carver introduced his Policy Governance to the PUD Board in November 1998, he summarized this governing model as a way for the Board to do its job, not in the here and now, but in the tomorrow by governing the utility, rather than managing it. Designed for both non-profit and private companies, this governing model helps boards reach decisions in healthier, more effective ways because it clarifies roles and directions for both Board members and executive management staff.
Ends are results and are defined in terms of costs or priorities.
Means are everything else, including methods, practices, conduct, services, and programs. The Board is responsible for defining the ends , while the general manager is responsible for the means used to accomplish the ends . The Board, however, retains control over the means by placing executive limitations on the general manager, as well as monitoring the activity. One significant principle of governance is that the Board speaks with one voice through a vote. Even if all board members do not agree with the vote, all board members must support the final outcome.