GOVERN Update - September 2021 - Article 2
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GOVERN Update - September 2021
Article 2
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ISO/DIS 37000 - Guidance for the governance of organizations is launched

 

What is ISO?

ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies (ISO member bodies). The work of preparing International Standards is normally carried out through ISO technical committees.

Acknowledging the GOVERN for IMPACT ISO Governance of Organizations Contribution

Hartger WassinkWe are pleased to advise you that the ISO 37000 Guidance on the Governance of organizations was published Tuesday, September 14, 2021.  Caroline Oliver, Hartger Wassink, and Dick Biery Dick Bieryhave contributed over the years to meetings on this guidance and this has led to a clearly recognizable Policy Governance ‘fingerprint’ on the guidance. Notably, the clear distinction between governance and management, the centrality of purpose (Ends), the use of policies for governance, the distinction between ‘member stakeholder’ and ‘reference stakeholder’, and the separation between accountability on purpose and risk management are testament to ‘original' Policy Governance thinking.

“I must admit the Guidance somewhat lacks the simplicity of the original PG principles, but because this is a document has such a broad backing that we still can consider this as a major step forward in international thinking on what constitutes good governance.” – Hartger Wassink

As a Policy Governance community, we can be honored and grateful to have been able to contribute to this development. It is important to recognize Caroline’s indispensable contribution in this, first by greatly influencing the BSI code that has been a stepping-stone to this guidance, and then by laying the first connections between the ISO working group for this standard and Govern for Impact. Without her optimism and energy, we might not have come this far, and the world would have missed an opportunity to benefit from the rigor of the Policy Governance system.

https://committee.iso.org/ISO_37000_Governance_published

Our GOVERN for IMPACT team will continue to be involved in the next ISO project, where they will be developing criteria for good governance based on the guidance document.

Scope of Guidance

Good governance of organizations means that decision-making within the organization is based on norms, practices, behaviours, organizational ethos, culture, structures, and processes to create and maintain an organization with clear purpose that delivers long-term value consistent with the expectations of its stakeholders. The implementation of good governance of an organization includes a framework of mechanisms, processes, and structures that are appropriate for its internal and external context. This guidance is directed at governing bodies but may also be useful to those that support it in discharging its duties such as: — those who govern organizations; — managers and staff; — governance practitioners; — other interested stakeholders. Organizations that apply this guidance will be better equipped to understand the competing expectations of their stakeholders and to apply the required creative entrepreneurship, culture, principles, performance, and accountability that are necessary to deliver the objectives of the organization according to its purpose and values. Governing bodies hold management to account and ensure that the culture, norms, and practices in the organization align with its purpose. This guidance sets out principles that will assist governing bodies in discharging their duties effectively and efficiently, enhancing trust, inclusion, accountability, responsiveness, and equity. Governing bodies that apply this guidance can achieve effective performance, responsible stewardship, and ethical behaviour.

Need for Guidance

Society, policymakers, and other stakeholders are seeking, and have an increasing expectation of, “good governance” and “good citizenship” from the organizations that impact their lives. This results in the need to develop a common understanding of what constitutes good governance of organizations across all jurisdictions, and therefore, a global consensus-based approach is needed. This document on governance defines key principles and recommends best practices that guide the governing body to meet its responsibilities so that the organization can fulfill its purpose. This guidance is for the members of the governing body, those they oversee, and those to whom the governing body is accountable.

“Effective governance is a prerequisite for organizations and businesses to deliver on their purpose and to achieve their desired outcomes aligned with their values and within their risk boundaries.  Our appreciation is expressed to ISO for their collaborative efforts in achieving the ISO 37000 international guidance on governance.  There will now be worldwide recognition of the importance of a systematic framework for governance, something GOVERN for IMPACT has been advocating for over 20 years, inspired by the principles of Policy Governance®. We expect ISO 37000 to have a profound impact on board governance excellence.” – Karen Fryday-Field, CEO GOVERN for IMPACT

Our GOVERN community warmly expresses our gratitude to Hartger and Dick for their tireless work to press for building these key principles into ISO 37000!  Thank you gentlemen for sharing your time and your talent.

Karen Fryday-Field
CEO, GOVERN for IMPACT