5.3.1. Defining Governance
💡 First Principle: Governance is the means by which an organization is directed and controlled — three activities sit at its core: evaluate (assess the organization and its environment), direct (set strategy and policy), and monitor (check performance and compliance).
Governance is the system by which an organization is directed and controlled. Its core activities are to evaluate the organization, its strategy, and its environment; to direct by setting priorities, strategy, and policies; and to monitor performance, practices, and compliance against the agreed direction. Governance is typically the responsibility of a governing body (such as a board) accountable for the organization's overall direction and conduct.
⚠️ Exam Trap: Governance is about direction and control, not about doing the operational work. Evaluate–direct–monitor is the governance cycle; don't confuse it with management activities like planning a specific project or running a service.
Reflection Question: Which of evaluate, direct, and monitor is the organization neglecting if it sets a clear strategy but never checks whether it's being followed?
