“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

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“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.

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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



ylaws

8

EXPECTATIONS A Big Word

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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

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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

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VICE PRESIDENT



Assist the President with all duties



Assume duties of President in President’s absence

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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

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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.

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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)

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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!

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Elements of Effective Meetings

1.

2.

3.

4.

a.

Preparation a.

Reports & Agendas 1.

5 to 7 days prior b.

Room arrangements Conduct a.

Friendly formality b.

Roberts Rules Roles & Expectations 1.

Role of President & Board a.

Role of the manager Management Reports – Purposes and Content a.

Informational items 1.

Action items a.

Bids, analysis & supportive communication 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.

2.

3.

4.

Sets Policy Relies on experts Relies on staff/manager 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

1.

2.

3.

4.

The Board

Board sets policy & delegates/directs Board and committees rely on experts Relies on staff/manager and committees Exercises oversight of all 1.

2.

Committees

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

G

oal

-

a clearly defined and stated goal established by the board

R

eward

–

adopt recommendations without debate & make a “big noise” in newsletter, on website, at annual meeting & anywhere else you can

O

rganization

-

clearly defined written committee structure

U

nity

-

strong chair in agreement with committee’s goals

P

rocess

-

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 ® [email protected]

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