Part I: Developing an Effective Board of Directors

According to the Community Associations Institute, homeowner associations govern 23 million U.S. homes and an estimated 57 million people. A lot of people are governed by boards of directors--many mediocre; others quite successful. This three-part series addresses some quick and easy methods to find and retain good board members.

First of all, let’s agree on one thing – being a member of a board of directors is not an easy role, so don’t be discouraged if your board isn’t perfect. It will never be perfect, but that is no reason to think it can’t be effective.

An effective board of directors can be the difference between a harmonious, smooth-running community and one filled with tension, bickering and strife. Whether a community falls into one category or the other often depends on whether it actively recruits and trains its best qualified residents for the board of directors. The process of successfully filling seats on the board of directors is a three-fold task: The first step is defining what skills, knowledge and personal traits are required; the second step is identifying members with these qualities, and the third is recruiting them to serve.

The task of recruiting appropriate members for board roles should begin by preparing and publishing job descriptions and determining, on a position by position basis, whether specific experience or knowledge is mandatory or just desirable. For example, it would be advisable to require candidates seeking the position of treasurer to have some background in accounting or other financial matters. On the other hand, most board positions are best filled by generalists who are not fixed on issues that only relate to their backgrounds or previous employment.

In order to make a better assessment of qualified candidates available in the community, distribute a questionnaire to the residents in the community. The questionnaire should ask career or job experience, hobbies, special talents and allow space for the member to offer constructive criticism on community matters. Often times a response to this item identifies a prospective candidate.

What traits do you look for in a candidate for the board of directors?

• VISION: Can the person formulate goals and keep firmly focused on them until achieved.
• OPEN MIND: Does the person have the ability to see things from a fresh perspective--a perspective that could be very different from their own?
• COMMUNICATION: Does the person express ideas clearly and persuasively? The best thoughts can be lost if not articulated in a convincing and well reasoned manner.
• ENTHUSIASM: Is the person able to encourage and compliment others?
• JUDGMENT: Does the person have the ability to identify issues that are important and then prioritize them?
• DECISIVENESS: Can the person make a decision and be willing to accept the results of that decision – good or bad?
• SENSITIVITY: Does the person have a sincere care and concern for the community and its residents?
• ABILITY TO TAKE CRITICISM? No board member will escape criticism. Does the person have the ability to discern which criticism is valid and which is not? How do they react to it?

Another factor to consider is how much interest a member has shown in the community to date. Even if a person has not been actively involved, have they regularly attended association meetings? Have they voted on all important matters? Be particularly careful about “one-issue candidates” who want to run for the board because they have their own agenda regarding a single issue that is troubling to them.

Not to be overlooked are what other commitments a member has that might take priority over their involvement with the community. Clearly, the person who regularly takes three-month cruises or the spouse of someone seriously ill might not be the ideal candidate at that time.

--by Marty Pozgay, President, FCSG