Governance is the exercise of control and direction over a subject such as a society, an organization, processes, or artifacts, by using laws and policies that are defined, deployed, and executed. In this chapter we develop this definition into a formal conceptual model that can be applied to a variety of governance domains. At the heart of this model lies the concept of the governance solution and its lifecycle. The governance solution embodies the set of mechanisms—decision rights, policies, controls, and measurements—applied to a governance scope in order to achieve some governance goals. As part of the lifecycle, the effectiveness of the governance solution is measured, and corrections and alignments are made as necessary. We demonstrate how this model can be applied to multiple governance domains by providing examples from IT governance as well as software-development governance. We conclude by providing a detailed scenario in the software-development governance space, which looks at large software organizations undergoing transition to agile development methodology. We further demonstrate how the governance model is instantiated and evolved in the context of this scenario.
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