“Leadership is the ability to establish standards and
manage a creative climate where people are self-
motivated toward the mastery of long term
constructive goals in a participatory environment of
mutual respect compatible with personal values.”
Mike Vance
2
“Leadership is the willingness to to pay the price."
2
Mini-Government
(community)
vs.
Business Enterprise
3
Maintain - Protect - Enhance
4
Value Equals Curb Appeal
+
Perception of Quality of
Life
5
Fiduciary
Of or relating to a holding of something in trust
for another: a fiduciary heir; a fiduciary contract.
Of, relating to, or being a trustee or trusteeship.
Held in trust.
6
Fiduciary
“One, such as an agent of a principal or a company
director, that stands in a special relation of trust,
confidence, or responsibility in certain obligations to
others.”
7
Measuring Success
Value of assets year over year
Appraisal of standard units as base line
Communication of success
6
Measuring Success
All decisions are informed by the value of assets
affect
Budgets, expenditures and activities are
influenced and informed by total value of assets
6
Hierarchy Of Authority
ederal Laws
on-Profit Corporations Code
pecific HOA State Statutes
ounty & Municipal Ordinances
eclaration of Covenants,
Conditions & Restrictions
8
EXPECTATIONS
A Big Word
9
Member’s Expectations
Board will protect value of the asset
Board will act in a business-like way
Board will act in fiduciary capacity
Board will act lawfully
10
Member’s Responsibilities
11
Business Judgment Rule
Act in good faith
Fair dealing
Act within limits of expertise
Act lawfully & with ethical intent
12
Business Judgment Rule
Rely On Experts
Don’t Reinvent The Wheel
13
Board May Delegate All of It's
Authority and None of It's
Responsibility
14
PRESIDENT
CEO
Liaison to manager
Prepares agenda (input from others)
Presides at meetings
Sets a positive example
Prepares others for future leadership roles
Appoints & supervises committee chairs
Official representative
15
VICE PRESIDENT
Assist the President with all duties
Assume duties of President in President’s absence
16
SECRETARY
Maintain corporate record book
Maintain “Book of Resolutions”
Attest to authenticity of all corporate documents
Certifies all meeting notices and election results
Responsible for taking minutes
Responsible for all “official” corporate communication
with the members
Meeting timekeeper
17
Treasurer
Chief financial officer of association
Ultimately responsible for collection and expenditure of
all assessments & fees
Reviews and monitors financial statements
Reviews and monitors investment policy
Reports to Board at each meeting on budgetary
matters. Summarizes financial statements as part of
Treasurer’s report.
18
Treasurer’s Report
Example:
Cash on hand
Status of reserves
Amount of uninsured balances
Unusual accounts payable and receivable
Variance of actual to budget for month & year (if
substantive)
19
ALL
Come to meetings prepared - Do your homework
Maintain a professional demeanor
Ask questions ahead of time
Accept and support the President as the leader
Put personal issues aside
Encourage others to participate by example
Be open and fair
Avoid surprising members and the manager at meetings
Keep a healthy perspective
Have a little fun!
21
Elements of Effective Meetings
1.
Preparation
a.Reports
& Agendas
1.5 to 7 days prior
b.Room arrangements
2.
Conduct
a.Friendly
formality
b.Roberts Rules
3.
Roles & Expectations
1.Role
of President & Board
a.Role of the manager
4.
Management Reports – Purposes and Content
a.Informational
items
1.Action
items
a.Bids, analysis & supportive communication
a.
Follow-up
1.Management
summary for consensus
Elements of Effective Meetings
Agenda & Reports
3
to 5 days prior
Contact All Participants
Timed Agenda
Member Input
Parliamentary Procedure
FriendlyFormality
22
M
P
S
Theatrical - Presentational Style
Working Meeting Style
P
M
P
S
Working Meeting Style
Purpose Of A Board Meeting
To make effective decisions in accordance
with the “business judgment rule” which will
positively impact the value of the assets.
The Board
1.
Sets Policy
2.
Relies on experts
3.
Relies on staff/manager
4.
Exercises oversight
Purpose of Agenda
Road map of topics – not a report
Lists Reports
Secretary’s Report
Treasurer’s Report
President’s Report?
Management Report
Committee Reports (only if actions are requested)
Sets out order of topics
May include subtopic overview
“Delinquencies”
Action items under appropriate reports
Parliamentary Procedure - Victoria Cohen
Roberts Rules of Order
Sturgis
Jeffersonian
House of Commons
These are procedures – not laws
May be modified by motion resulting in “special orders”
that can be perpetual.
Member Input
Open Meeting Law
Members allowed to speak at meetings of board
& association (beginning & end)
Exception: executive sessions
Topics restricted to agenda items prior to
meeting
Board may impose time constraints on members
wishing to speak
Sample Timed Agenda
Working With Volunteers
Why People Volunteer
Altruism
Self-Esteem
Sense of Responsibility
Family Tradition
Self Protection
Issue Resolution
Sense of Community
Why People Volunteer
Maslow
Within 90 days of a major life change
Moving
Familial status
Divorce
Good fortune or tragedy
All Volunteers Need
To feel useful
Appreciated
The distinction: Board and Committees
The Board
1.
2.
3.
4.
Board sets policy & delegates/directs
Board and committees rely on experts
Relies on staff/manager and committees
Exercises oversight of all
Committees
1.
2.
Work at the will and direction of the board
Are an adjunct to the board
Standing vs. Ad Hoc or Task Force
Standing committees are often creatures of the bylaws:
Architectural, Finance, etc.
Ad Hoc committees are created for specific purposes
and are disbanded/dismissed and recognized for their
efforts when task is complete.
Task Forces function very much like Ad Hoc committees
in that they are tasked by the board with a specific
purpose and are recognized for their efforts when their
task is complete.
Some Typical Committees
Architectural Review (often established
in bylaws)
Finance
Rules
Welcome or Social
Newsletter/Communications/ Website
Landscape or Building & Grounds Social
Committee Volunteers?
Business Judgment Rule Applies to Committees
Act in good faith
Fair dealing
Act within limits of expertise
Act lawfully & with ethical intent
Business Judgment Rule
Don’t Exceed Your Personal or Professional Limitations
Rely On Experts
Don’t Reinvent The Wheel
Committees
Work At The Will And Direction of The Board
Are Most Effective When Assigned Specific Tasks
Effective Group Process - Committees
GoalReward –
a clearly defined and stated goal established by the board
adopt recommendations without debate & make a “big
noise” in newsletter, on website, at annual meeting & anywhere else you can
OrganizationUnityProcess-
clearly defined written committee structure
strong chair in agreement with committee’s goals
a defined process for reporting (in writing) ongoing progress
to the President or liaison and finally to the entire board.
Committees
Effective leadership
Specific tasks
Time frames to accomplish
Method to report progress
Method to report recommendations
Reward by adopting recommendations
without debate
Inspire others by public
acknowledgement
Focus on Process-Outcomes
Celebrate Success
Live Well
Cause Good
Try To Be Nice To Each Other
Larry J. Pothast, PCAM®
Vice President of Manager and Board Training
Associa®
lpothast@associaonline.com
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