It’s been a while since I’ve written on association governance, the other half of PCAAE’s advocacy, which is association management. The last was on April 16, 2020, on “Association Leadership in a Pandemic,” which chronicled what the Board and management of associations around the world have done to help members and the communities they serve meet the challenges of the COVID-19 pandemic.
So when good friend John Peacock, CEO of Associations Forum and one of Australia’s most experienced advisors to associations and charities, volunteered to speak on association governance in our monthly webinar, I immediately grabbed the opportunity, with the aim to write about it as well.
“Is there a change in the way associations are governed during COVID-19, prior or perhaps even after it?” This was the question posed by John to the attendees at the opening of the webinar. The short answer was, “no, governance principles have been there and will still be there regardless of the pandemic.”
This was, of course, premised on good governance essentials and the role of the Board in this regard. So what are these association governance essentials?
First is the Board’s faithful adherence to its fiduciary responsibility. A British law defines a “fiduciary” as “someone who has undertaken to act for and on behalf of another in a particular matter in circumstances, which give rise to a relationship of trust and confidence.” Since the Board is elected by association members, it represents them and is trusted by them. As such, the Board must act honestly, in good faith and to the best of their ability in the interest of the association.
Second is the Board’s knowledge of the content and spirit of the association’s constitution—the articles of incorporation and its bylaws. It is of critical importance that the Board reads and understands the provisions of the constitution. Other key documents to know are the statement of purpose, strategic plan, budget, list of Board members and office bearers,staff organizational chart, annual report, audited financial report and minutes of Board meetings, committee meetings, and general meetings.
Third is the Board’s capacity to transform itself from a management posture to a real governance role by its ability to raise funds and generate enough revenues to hire an association professional, e.g., a CEO who will manage the day-to-day operations of the organization and execute the plans and aspirations of the Board. This governance leadership team of the Board and a CEO-led management staff is an ideal setup for an association wanting continuity of mission and financial sustainability.
As a concluding message, John gave the following advice:
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Set governance practices before problems occur.
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Work under the most suitable legislation.
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Keep constitutions relevant, clear and current.
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Have a plan that is updated, as needed.
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Understand the difference between governance and management.
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Develop best practice processes for induction, training, plans, agenda and minutes.
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Be vigilant and manage risk.
Association Man 