25 Common Board Member Mistakes

Board members are subject to many demands and expectations. Serving on the board of an association can be a rewarding experience. The majority of board members have strong ideas of what being on a board is all about. Capturing the board's eagerness, enthusiasm, and will to govern for the common good of the community can be accomplished in conjunction with the manager's experience, knowledge, and guidance. Managers are licensed professionals and have specific knowledge that is required of them to maintain their license and a code of ethics that must be followed.

To be effective, managers need the cooperation of all board members. Experienced managers are knowledgeable and educated. Once trust and confidence has been established, the board of directors should consent to allow their manager to manage and provide guidance in leading them in the right direction. Here are 25 common mistakes that boards make: 

1. Failure read and understand their governing documents, rules and regulations, and State Statutes. 
2. Failure to be prepared for meetings and follow the meeting agenda. 
3. Selective enforcement of the rules and regulations or the governing documents -- playing favorites. 
4. Failure to conduct open meetings and elections. 
5. Failure to maintain confidentiality or generating gossip. 
6. Ignoring responsibilities to fulfill fiduciary duties in maintaining the property - - overlooking needed repairs due to costs. 
7. Failure to hire experts and professionals in their respective fields - - engineers, managers, attorneys, etc.
8. Being emotional and hindering their capacity to make business decisions. 
9. Being swayed by others when making business decisions. 
10. Being swayed by others and not voting their conscience. 
11. Micromanaging and abusing their power and authority. 
12. Failure to disclose personal interests and considering taking kickbacks and/or hireing someone that creates a conflict of interest that may involve self-dealing. 
13. Harassing community members and slandering them. 
14. Failure to clearly define the roles and responsibilities of the board of directors, committee members, and management and taking action contrary to the board's decisions or acting unilaterally. 
15. Failure to obtain two signatures on checks and contracts.
16. Not taking the time to read and understand the financials and budget, and not asking questions about them.
17. Failure to follow a consistent collection policy - - playing favorites.
18. Failure to act professionally, courteously, and respectfully at meetings. 
19. Failure to outline and summarize their expectations and establish that everyone is on the same page. 
20. Self-serving interests -- rather than making decisions to serve the community as a whole, decisions are made in favor of themselves personally, breaching community trust. 
21. Failure to post notices, newsletters, and memos, communicating the board's activities. 
22. Failure to review and evaluate contracts and decide how and when the various maintenance tasks will be performed. 
23. Failure to plan, focus, and follow through. 
24. Failure to make timely decisions. 
25. Attempts to institute new policies and ground rules without doing their homework.

Board members are usually elected because they are movers and shakers. They have the ability to get things done. The board should expand upon defining their overall goals of the association and communicate them to the manager. Very often boards micromange because they think that is what they should be doing.

The board needs to have a clear idea of their role in the community. Management of day-to-day activities is the responsibility of management. Boards are to lead and serve in the capacity as an advisory body. As managers, we can navigate and guide the board to focus on ensuring that the community will function in a positive direction, providing a safe and healthy community and follow the path and mission that the board will lead.

Nevertheless, everyone needs a clear understanding of what is expected of them and must have concise expectations in order to measure performance. A competent manager knows the ropes and need for improvements. Boards spend an exorbitant amount of time discussing possible scenarios and solutions. Managers have the ability to make recommendations and save precious time in fully addressing the issues.

Therefore, good communication will aid the process. Sharing information on the issues and discussing issues with the members gives them a sense of purpose in the operation of the association. Board members that rely on seasoned managers can effectively approach a variety of issues and deal with the challenges of managing a successful community association. Listening is the most essential tool for all.

The purpose of the Board is to represent the interests of the owners as a whole, as these interests relate to the property. They are responsible for making timely decisions on behalf of the owners. Being a board member is not a casual undertaking. By working closely and proactively with management, the board can spend its time on areas that can move the community forward, enhancing results and solutions. Mistakes will occur, but with proper guidance and the hiring of experts in their respective fields, the board can reduce the number of mistakes and develop a full understanding of what it takes to manage the community.

I hope that these suggestions will offer a positive and satisfying direction in which the community can work together for the best interests of the association. 

Taken from http://www.caionline.org/