Diversity in Action Part II

By Julie Adamen

Last month we began a new series on Board Development wherein we discussed some of the reasons why people volunteer to serve on their Board of Directors (if you missed that article, find it on our website in the HOA NewsLine Archives Vol. 8 No. 1 Understanding Board Development). To recap, I have found that board members all have some combination of (personal) Agenda, Ego, Available Time and certain Personality Traits. But I have discovered that in almost all cases Board members have a Sense of Duty to their community, which drives them to serve.

Beyond the above traits, the single thing they all have in common is their personal and professional diversity. From retirees to members of the workforce, from homemakers to executives, male and female, all racial and religious spectrums as well as those with or without association experience – Boards are an endless combination of 1) reasons they serve and 2) who they are personally and professionally. This incredible mix of dynamics affects how they develop as a functioning or non-functioning body. Understanding this development may make you have a better handle on how to interact with them and manage their community(ies). Let’s continue our exploration of this social phenomenon of Board Development.

The Leadership Structure of the Diverse Board

When any group of individuals is thrust together with a set of tasks to accomplish, they will sort themselves out in to a system of governance. It’s no different in HOAs, and we call it an Organizational Meeting.

Who takes what position on the Board can be very important in determining how well that Board functions overall.  These “structural dynamics” can have profound effect on whether or not the Board is able to gather information, deliberate, make decisions, take action and move forward. The structure of Board Leadership is such a large topic that it will be the subject of its’ own column; but suffice it to say that who becomes President affects the Board, the community and management in a very profound way.

How long will it take for the “leader” to shake out? As you can imagine – anywhere from right away to never, and all points in between. Depends upon the mix of your Board.

More Dynamics that Affect the Board

The Learning Curve.  Brand new Boards in brand new associations are often left holding the bag (handed to them deftly by a developer) when it comes to managing their association. If they are lucky and smart, they were able to retain the service of a good management firm or on site manager to help them through the transition, but even that has it’s own set of challenges. Even in well-established associations, many circumstances provide that new Boards are less-than-informed when they take office. So, here they are, all obtaining their positions for varying reasons, all from different backgrounds, thrust in to a situation where they aren’t sure what to do next, why to do it, or how. The Learning Curve may be steep or shallow, fast or slow, depending on their personal and professional experiences as a group.

The “scope of work” involved in being a Board Member.  Although it doesn’t apply to all associations, it has been my experience that most new Board members have no real concept of the scope of work facing them once elected. New Board members are often surprised to find much of that work is political within the community, in addition to the “normal” functions of setting policies, choosing contractors, etc.  As management, we know and understand that there is a lot more going on than meets the eye in any community, but to some members who become Board members it’s truly a shock.

Lack of a Bigger Picture. More than once I have witnessed a new Board member resign in frustration after a short amount of time, because they came to the conclusion that their agenda was a mere blip in the greater scheme of politics, financial issues and of course larger, more effectively pursued personal agendas of other Board members. 

Development of Trust.  In new or established communities, a new Board of Directors has not had the time to develop a sense of trust with management, vendors, or even each other. The hardest part for them is they must begin to develop trust to work together, but they must work together to begin to develop trust. This period, this “no-trust” zone, can be very frustrating for the Board and for management, though either seldom realize the source of that frustration.

The Manager’s Relationship with the Board of Directors

Taking in to account all the combinations available when community members are elected to serve on their Board of Directors, we are reminded of how complicated our jobs as managers can be.  Many times, we make split-second decisions on how best manage our new Boards without thinking about all of the variables that went in to each Board’s make up. Managers often make assumptions about their Boards that although may seem expeditious at the time; often prove to be counterproductive for everyone involved.  Here are some of the more common assumptions managers make about their new Boards:

The manager assumes instant cohesion among the Board.  Very seldom is a Board, especially a new Board, instantly cohesive. Remember – not only are they a product of their current or past work environment, the socio-economic background, ethnicity or what have you, they may not even know each other! Cohesion within a group takes time, and assuming otherwise is counterproductive. The Board members need to learn their own and each other’s boundaries, skills, strengths and weaknesses in order begin forming cohesion.

The manager assumes the Board will get up to speed very quickly on the issues facing them. When a new Board comes in, often times the manager assumes that if they give the Board a packet of contracts, the governing documents, a list of what is currently going on and, more importantly, a list of things that need to be taken care of immediately, the Board will just fall in lock step behind the manager, immediately understand the issues, trust the information given them and make decisions right away.  Usually, this is not the case. In fact, overwhelming a new Board with information will more likely paralyze them with Information Overload rather than move them towards making decisions.

The manager assumes the Board has, or should have, complete trust in him/her immediately.  Would be that it were true, but it is not. Why? Well, think about it: They don’t know you, they don’t know each other, they don’t know the business, and they’ve never worked together as a group. To top it off, they have been thrust in a role of responsibility and accountably (well, almost) usually far greater than they anticipated. This scenario is not conducive to trust because they have no certainty based on past experience. Trust is developed through experience and over time, and we have to live with it.

The manager assumes it is their job to instruct the Board on what to do.  Well, yes and no. Although it is your job to impart your expertise to the Board on community management in general and their property in particular, how skillfully you do so can be critical to your success at that time and in to the future. If you find yourself acting and feeling like a taskmaster, stop, take a step back, and evaluate your approach.

So What?

Overall, there are some adjustments you as a manager can make to your management style to help you through these Board transitions so you expend less time and emotional energy on situations you can’t “fix” immediately. I know that goes against your nature, but here goes:

1.      Assume a lack of cohesion among the Board, especially at first. This means lowering your expectations on the quality and quantity of their decisions made in the first month(s). Let them sort themselves out with little input from you. Provide information and advice when asked, or when you see things are truly falling of the track. Thus, you will establish yourself as an impartial consultant – a big step on the way to gaining trust.

2.      Assume the Board is moving at a regular speed, not Mach 10 like you.  Give them all the association information they need, but don’t expect instant absorption. If you have specific, critical decisions that need to be made right away, go over them separately with the Board President, and allow him or her to take them to the Board for consideration, or take the lead on those issues at the next meeting. When a Board is new, they will many times work better with “one of their own” (another member) than with an “outsider”  (you). It also allows the Board President to establish his or her political position with the rest of the Board.

3.      Assume that, despite your expertise and knowledge, you will have, to some degree, earn the trust of the Board of Directors. Despite the fact that they have your contract and may have gone over it with a fine-toothed comb, they really don’t know what you do. Show them what you do by example and accomplishment. Remember, the more you push, passively or aggressively, about how much you know and how they should trust you, the longer it will take them to do so. Relax, and see #4.

4.      Probably the biggest and most effective change you can make to your management style is to make the conscious decision to GUIDE, not INSTRUCT, the Board.

When you make the mental switch to GUIDE (“Show the way by leading and advising”) instead of INSTRUCT (“Give directions for some task”), you are allowing a new Board the freedom to sort themselves out as they see fit, take the time they need to get up speed and begin to trust you as an advisor. You are also giving yourself the gift of professionalism and credibility by being an impartial consultant, at the ready with information or advice, and stepping in only when necessary and appropriate.

Whether we want to or not, by recognizing the many facets of the people who make up the Board of Directors, we acknowledge the community they govern is their world and management’s role is that of the outside consultant – despite our experience and desire to show the Board what we know and tell them what they should do. In the early stages of Board development, there is much to be said for management standing back and allowing that Board to grow into its own identity. By doing so, you acknowledge their diversity: Their backgrounds, professional experience, knowledge and abilities. Recognizing the diversity of your Board(s), and allowing them to develop with appropriate input from you can make your life as management easier, and the Board, and the community’s, life better.