What is the Difference Between Governance and Management?
🆚 Go to Comparative Table 🆚The difference between governance and management lies in their roles, responsibilities, and the scope of their actions. Here are the key distinctions between the two:
- Governance refers to the process of decision-making and oversight by a board of directors or a governing body. Their primary responsibilities include setting the organization's goals, direction, limitations, and accountability frameworks. Governance focuses on the organization's health, enterprise structure, strategic relevance, and institutional results.
- Management is responsible for the allocation of resources and overseeing the day-to-day operations of the organization. Management makes decisions, identifies issues, gathers and analyzes data, identifies and weights options, and consults before coming up with recommendations.
In summary, governance is about vision and organizational direction, while management deals with day-to-day operations and implementation of policies and programs. Boards govern, managers manage, and the CEO serves as the bridge between the two. The distinction between governance and management can be described as a matter of scale.
Comparative Table: Governance vs Management
The difference between governance and management can be summarized as follows:
| Governance | Management |
|---|---|
| Focuses on oversight, strategic planning, decision-making, and financial planning | Focuses on daily operations and implementing the plans and policies set by the board |
| Responsible for creating the company's bylaws, which are a set of core policies that outline its mission and structure | Responsible for running the organization's daily operations, including processes and tools to ingest, store, catalog, prep, explore, and transform data |
| Involves setting goals, creating policies, and overseeing the performance of the organization | Involves administering and managing the organization's resources, including people, finances, and assets |
In simple terms, governance is concerned with "doing the right thing," while management is concerned with "doing things right". The roles of governance and management should not be blurred, as a clear distinction between the two is essential for the smooth functioning of an organization.
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