“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
36