board of directors governance policy manual - SAE International

INTRODUCTION
Effective leadership requires that the Board of Directors (BOARD) provide the Society’s vision. To do
so, the BOARD must first have a comprehensive vision of its own job. That role is best conceived
neither as volunteer-helper nor as a watchdog; but as trustee-owner. The policy-governance process
is an approach to the job of governing that emphasizes values, vision, and empowerment of the
BOARD, BOARD Committees and Subteams, the Chief Executive Officer and the strategic ability to
lead leaders.
Observing the principles of the policy-governance process, the BOARD crafts its values into four
policy types. These policies enable the BOARD to focus its wisdom into one central, brief document
the Governance Policy Manual.
1. ENDS POLICIES
Through Ends policies, the BOARD defines which human needs are to be met and for whom. Ends
policies are written with a long-term perspective; these policies embody most of the BOARD’s part of
long-range planning.
2. GOVERNANCE POLICIES
Through Governance policies, the BOARD determines its philosophy, accountability and specifics of its
own job.
3. RELATIONSHIP POLICIES
Through Relationship policies, the BOARD clarifies the manner that it delegates authority to Operating
Boards and the Chief Executive Officer as well as how it evaluates performance.
4. LIMITATIONS POLICIES
Through Limitations policies, the BOARD establishes the boundaries of acceptability within which
subordinate group methods and activities can take place. Limitations policies, therefore, apply to the
President, Treasurer, Chief Executive Officer and Operating Boards means rather than to the Ends.
• How we Govern
Governance
Policies
Ends
Policies
• What Good?
• For Whom?
• Delegation of Power
• Its Use
Relationship
Policies
Limitations
Policies
• Cannot do
SAE INTERNATIONAL
BOARD OF DIRECTORS – GOVERNANCE POLICY MANUAL
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