Jun. 29, 2008 - Association Travel Policy

One of my current projects involves revising and re-writing some association policy manuals—and as a result I've been thinking a lot about manuals and the need for good ones in an association. This is especially true in Realtor organizations: because our governance usually involves an annual change of leaders (and, sadly, in some associations an annual change of AE's), it's imperative that there exists a good set of operating policies. These policies should be reaffirmed annually by the Board of Directors and both leadership and staff become familiar with the contents. It is within the policies that the association maintains its continuity and its history.

A big area of association misunderstanding is travel, and travel-related expenses. This is true in local and state associations: members often see themselves as travel 'have-nots', and imagine all kinds of excesses relating to volunteer and staff travel. When it's budget-crunch time, the jugular is the travel budget, even though it may be less than 5% of the total expenses—travel is where the majority of members envision the greatest misuse of “The Dues I Pay”.

AE's and past presidents can make great cases for the reason for making travel important. Particularly in the Realtor association, local boards are expected to fund participation in 3-5 state meetings, and equally as many NAR meetings (the Convention, Legislative Meetings, Leadership Conference, AE Seminar are a minimum number). And even though smaller associations have fewer resources, even one funded meeting is often subject to suspicion and scrutiny.

Can we avoid this? No, probably not. But as staff and leadership, we can treat the subject of travel with seriousness and accountability, and one of the first places to start is with a travel policy. Even if your association almost never subsidizes travel expenses, some day it will—and it's best to have your policies in place to avoid the misunderstandings which can arise after the fact (when you find the expensive bottle of wine on the president's expense request).

Here are some suggestions for what might be included in a comprehensive Realtor association travel policy:

Travel Arrangements and Reservation Procedures

Who Qualifies: what classes of members are reimbursed and for which specific events. Correspondingly, detail this in your annual association budget.

Air Travel: Reservations, reimbursement, class of travel, frequent flyer programs, cancellation or re-booking expenses

Hotel: Reservation Procedures, allowable expenses, cancellation procedures

Rental Cars: Guidelines for rental types, preferred suppliers, insurance, car accidents and/damage

Personal Car Usage: Usage guidelines, reimbursement guidelines

Personal Travel and Vacation Expense: when connected with a business trip

Telephone and Computer Expense: Allowable calls, personal cell phone reimbursement, air phones, hotel room phones and computer access, rental cell phones and temporary Internet access.

Payment Methods for Travel Expense: Corporate card usage; termination of corporate cards; corporate card billing and payment responsibility; personal use of corporate cards; travel advance policy; use of personal credit cards; per diem limits if any

Expense Reporting: Timing for submission of reports, documentation requirements, narratives or reports to membership requirements; approval authorization process; appeals

Now your association may not need all of these subjects included in your policy manual, but again, it's always best to imagine the worst cases that could happen and try to anticipate the occurrence in a policy that can be referred to when a dispute arises. In addition, a good policy manual will answer questions like:

1. Doesn't the AE book all the plane and hotel reservations?

2. Doesn't staff arrange for our dinners reservations?

3. Can you come over to the hotel and leave the credit card number before I check out?

4. What's the matter with ordering a $300 bottle of wine? We can afford it!

5. Can I bring my wife? (husband, girlfriend, partner, best friend, mother?)

6. Do I have to share a room?

And so on. Remember, too, that travel is not something that everyone has experienced—or wants to experience. Nor is it particularly pleasant in these times of airline disruptions, crime, and terrorism precautions. Best to do your homework as an association and try to prevent as much confusion as possible with travel policies everyone understands in advance of the trip.

Jun. 20, 2008 - Turn About

Turn about's fair play, as the saying goes.

I suspect some of my peers were a little uncomfortable about those high expectations the Board of Directors might have of them, but let's get real. Members of the Board of Directors often don't have a clue about what's expected of THEM, either legally or by the CEO who is employed at the Board's discretion.

Here are my thoughts on the matter of what CEOs expect from their Board of Directors:

Legal Compliance – The CEO is, after all, hired by the Board of Directors, and evaluated by them, and compensated by them as well. This means that the Board is an EMPLOYER (a term not all of them may understand). Usually the CEO grasps these responsibilities more accurately: she,after all, knows employment law and employer responsibilities. She knows how to evaluate employees, pay them fairly, and dismiss them in compliance with the law. My personal recommendation is that your association should annually provide a review of Director obligations under the law: be specific about the requirements of financial oversight, employee management, and other legal requirements. This education process needs to be consistent and unrelenting!

Additionally, Board members must be well of their responsibilities in matters of anti-trust, equal opportunity, and other legal and legislative requirements. Again, consistent and unrelenting education should be mandated for all members of the Board.

Support – Often the CEO is in the position of enforcing a Board of Directors program, let's say a dues increase. Directors need to support the Board's decision, rather than blaming the CEO messenger. It's also bad business—and unethical—to snipe at the CEO rather than bring performance dissatisfaction to this discussion table.

Hands Off Management - Micromanagement is the bane of the CEO's existence, particularly when that level of detail is engaged in by people who are not fully educated in the topic at hand. The Board and the CEO need to reach an agreement in this area by signing off on clear job descriptions and responsibilities of each. Board members also need to realize that they do not assign jobs to staff: the CEO is responsible for the allocation of all association resources, including staff time. I remember an exceptionally enthusiastic elected association treasurer who could consume 10 hours a week of the staff business manager's time. As a result, staff work was not getting done in a timely manner, and overtime expense grew and grew. The CEO and the Treasurer had to work out a compromise plan which would satisfy the Treasurer's need to know and the existing association resources.

Financial Support – The CEO expects financial support for personnel programs. That means that she expects to be compensated in a manner equal to her peers in the management field. Health insurance, retirement, and other benefits must be included in this calculation: again, the Board must remember that the standard is not the independent contractor arrangements with which they may be familiar. Surveys are available which define these levels in actual situations: NAR's Toolkit for Recruiting AE's

is available on realtor.org, and contains excellent resources for leadership to develop a wise salary and benefit program for the CEO.

The CEO must also have adequate resources to administer a salary program for the level of professional staff required by the association.

Participation – A good practice to follow is that clear and specific descriptions of what is expected in terms of a Board member's performance be developed, adopted by the Board, and put in the policy manual—with a copy given to every member of the Board at the beginning of each term. Include the attendance policy, appearance at association functions, behavior and protocol, preparedness for Board meetings, and requirements (such as a functioning, usable email address).

Personal Ethics – The Board members must display the highest standards of ethical behavior. Each Director should be required to sign confidentiality and conflict of interest statements, and these should be respected and enforced. In addition, Directors should avoid any indication of personal illegal or immoral conduct, and by no measure should the staff be expected to cover up such activities. Horror stories exist—you can imagine them, so I won't go into detail....

Confidentiality - The Board of Directors of a Realtor association is the 'court of last resort' in professional standards issues, and should understand that these matters cannot be discussed outside the board room. In addition, the CEO expects confidentiality in regard to her relationship with the Board, as well as in matters of business discussed in Board meetings.

And finally, the CEO expects the Board members to be the liaison with the community—both the membership community, the real estate community, and the public in general. It is Directors' familiarity of these areas which will govern the policies by which the Board operates and the direction it takes. An example of this is that of the CEO who, prior to beginning the budgeting process for the year, solicits information from the Directors about of the state of the real estate economy and its impact on business operations. Budgeting for dues income, for example, depends on knowing whether brokers will be hiring potential Board members, or cutting back; whether brokers are anticipating a good year of listings and sales, or a weak one. No budget can be realistic without this important information from the practitioners in the field.

In addition, it is the members of the Board of Directors who are elected to represent the membership community, and in order to do that they must be in contact with those members. Staff can do some of this work, but it is leadership which conveys information to and from the constituents. Each meeting of the Board might have time for this discussion on the agenda, or the association might set up an online discussion program for the Directors so that they can examine new information as the need arises.

As I mentioned in the previous post, people don't know things unless they are told. Directors run for the position for a variety of reasons—desire to serve, ego gratification, political agendas—but whatever the reason, they usually come into the Boardroom without a clear understanding of what's expected of them. Consider informing candidates for the Board of these expectations at the time a nominating petition is requested. Make sure that the Nominating Committee (if you have one) understands the requirements. And don't skip an orientation or a mentoring program for the new Directors as well as an annual review of expectations and requirements no later than the beginning of each new leadership year.

(writer's note: don't read anything into the fact that some of this text is underlined and blue.  I just couldn't figure out how to turn it off.....j )

Jun. 15, 2008 - What the Directors Expect of the AE

In the introduction to this series, I talked about the need to establish regular, meaningful communication between the president-elect and the staff manager, or AE. I urged you do to this regularly—maybe a weekly coffee, or regular phone call. It's important to be there, to gain cultivate familiarity and confidence—not to mention trust.

One of the most significant interruptions in the circuitry between the leadership and the staff is the lack of understanding of the differing roles of the two. Perhaps the best way to mitigate this hazard is to approach it directly: develop a written list between the President and the AE about the expectations one has of the other.

Begin first with the larger statements. Those are really the most difficult to talk about, but once you have an agreement, then the smaller duties ascribed to each party will become more clear and any disjunct will be apparent. As an example, I have a friend who is the CEO of a mid-sized Michigan association. Her Board of Directors went to a leadership conference and decided that she needed a new title: “Board Executive Officer” just wasn't enough: it was much more prestigious to be called “CEO”. And so they bestowed the title (needless to say, with no new job description or salary increase). I was talking to her the other day, and she told me the phone lines into the association office were clogged with calls from morning to night—not unusual when an association has grown 40% in three years. “Get another line,” I counseled.

“Well”, she said, “I could take that the the Board for their approval....”

Egad! A CEO who can't order in a telephone line?

Let's begin by looking at what a Board of Directors might expect from a CEO. What specific attributes can be defined by the Board? Of course many of these characteristics will be defined by the inner workings of the Board itself, but certainly there are some 'best practices' that can be articulated.

Leadership! This is not the familiar (and often meaningless) question of whether or not an association is 'staff driven' or 'leadership driven'. A well-run Board of Directors has specific goals (can you say “strategic plan?”) and the CEO (or AE, or EO) should have the ability, influence with members and community, and charisma to guide the organization on its stated path.

Team Player. It's not enough for the CEO to be a member of the staff. She is, in fact, THE member of the staff—she's in attendance at the pig roast and the bowling tourney, she's the cheerleader for Realtors, she's a performer. Staff members are often, by definition, followers. The Board expects a well-run, supportive team, and that will only come from a participating, interactive CEO.

Staff Manager: In addition to wielding the broom on association office clean-up day, the Board expects the CEO to manage the staff. The Board of Directors does not want to handle personnel problems, staff development issues, or retention problems. The Board members want a well-running and competent staff team, and they expect the CEO to bring this about.

Business Manager: In addition to being a staff manager, the CEO should be competent in the day-to-day management responsibilities of the organizational operations. In a Realtor association, this means knowing about issues and trends, volunteer management, program management, membership records and financial direction. It means that the Board expects the CEO to solve the problems that arise as they do in ant business, and to find help from delegation of responsibility and available resources.

Communication skills are also a key expectation for the CEO. The CEO must be able to convey the goals and programs of the association, and keep key players informed—be those players leadership, members, or staff. The Board of Directors does not want to be caught by ignorance, and the CEO must assume the responsibility of informing them IN ADVANCE of their need to know.

Picture this scenario: a Realtor comes into the Board president's real estate office and says, “Hey, Jack! I was just over at the Board office in this rainstorm and guess what! There's buckets and garbage cans all over the place collecting water. There's buckets of it! Everywhere! I betcha you're gonna have to raise dues for a new roof, eh? Probably you should think about cutting out those expensive trips you guys take to places like Las Vegas first. And staff salaries, don'tchaknow?”

The impending disastrous dialog would never take place if the President could have replied, “Yeah, I know. The AE has called the roofer, and we're still under warranty. Not to worry.”

Community involvement. Most Realtor associations are concerned with their community image—that's no surprise. And so it is that the CEO represents the community just as much as the association headquarters building or the media ads in which many associations invest. The CEO must be visible and active in the community, holding leadership positions in visible community groups and being an industry spokesperson in appropriate discussions.

Personal Ethics. The Board expects the CEO to behave in a manner consistent with the highest propriety. Without this reputation, the association cannot gain strength in the community.

Impeccable Financial Management and Control. Probably this requirement should be at the top of the list! By law, the members of the Board of Directors are the stewards of the organization's assets,and it is through the CEO that these responsibilities are implemented. If you as CEO or elected leader have any questions in this area, I invite you to refer to my Financial Operations Checklist ( http://www.judithlindenau.com/financial_checklist.pdf) which is available for your use on my website.

Business Development: Certainly over the last ten years the watchwords of “non-dues income” and “run like a business” have been increasingly more frequent in Realtor hallway discussions. Some of that is due, of course, to the failing economy in some areas, and the loss of association income due to declining membership. Expense cutbacks are the word of the day for many Realtor associations, and accompanying that is the need for CEOs to look for new income sources. When I was the manager of a small association, I used to call us the “Bake Sale Board of Realtors”, because it seemed that ever project needed to develop a funding source. But above and beyond that, CEOs need to be alert to the income potential available to them, and take the initiative in bringing to the Directors some new income—perhaps a new membership category, an income producing website, or an online class. Directors (and members) are busy with their own business development, and they expect the CEO to produce results in this area.

The buck stops here. Well, that's the bottom line, isn't it? Board of Directors don't want excuses as to why something didn't happen, or was unsuccessful. They want to have it HAPPEN, no matter how difficult. In that respect, Realtor association Directors are no different than Directors of large corporations and cause-driven non-profits.

Once again, the important lesson here is to talk about these expectations in a no-holds-barred conversation between leadership and CEO. Often, Directors have not allocated resources (either staff or financial) to meet their needs. In that case the Board must evaluate the compromises necessary to meet their goals. In other instances, the association staff person has been hired without any expressed expectations and have no idea that her former experience as a secretary or librarian (or even real estate salesperson) does not provide adequate knowledge and experience to move the organization on the right path.

Next: What the CEO (and staff) expects of the Board of Directors.

Jun. 15, 2008 - Leadership Techniques, Part 1

Recently, the National Association of Realtors announced that its annual Leadership Conference was 'sold out' in a matter of hours after reservations opened. Long waiting lists were created, and grumblings and mutterings were heard among the ranks of Presidents and association staff.

It was a first—a national leadership conference that popular and so much in demand. Perhaps the reason lies in the poor economy throughout much of the US, and the need for elected leaders and AE's to gather together for support, reassurance, and new tools for association productivity in these difficult times.

An AE voiced another type of concern on a professional email list: “I've got to find a way to spend some quality time with the incoming president and figure out how we can work best together in the coming year. “

And yes, the NAR Conference was in fact more than a 'meet the bigwigs' opportunity: it was a time to share knowledge with peers and NAR staff, and a time to create valuable bonds between elected leaders and staff—a need which needs to be addressed no matter what the size of the association or the resources available to it.

Well, you don't have the NAR Leadership Conference to do this for you—so how do you as a local association staff member recreate the opportunity for yourself and your president? Here are a few ideas.

Does your state association have a leadership conference? Many do, and they are usually pretty good at building the awareness of the elected leaders of the great big world outside local association boundaries. But in addition, remember that getting away is one of the building blocks—it's a chance to have meaningful conversations on the trip to the meeting site, and a chance for you as the AE to find out more about your President. I once had a checklist of items that another AE provided me—personal questions like 'what does your President like to drink with meals?', And 'Does he/she expect to go to church while at a meeting or convention?' Make a list of all the questions you have which will make your time together easier because you've answered a lot of the logistical questions before you get started.

Use other available resources. The American Society of Association Executives sponsors a series of workshops for Elected Leaders and CEOs—and those opportunities are really worthwhile. The ones I've attended have been filled with interactive exercises designed to develop communication skills and partnerships between elected leaders and staff. It's also an eye opening experience to realize that the Cattlemen's Association, Leaf Peepers International, and Realtor leaders have many of the same issues .

The same can be said for other groups in your area: see what resources are available. Your local Chamber of Commerce might co-sponsor a leadership training event with you, or there may be a resource in your local college or high school who can provide mentoring or training for several of your leaders. Even hiring a personal coach to work with the two of you would be a real step in building a good, productive, smooth running team.

Whatever tactic you choose—a list of your President's personal preferences, an ASAE Leadership Training Opportunity or – if you are one of the lucky ones—the NAR Annual Leadership Conference, remember that leadership and teamwork don't just appear like magic. These are learned skills which come not as a divine gift, but as a result of hard work, training, and good communication.

I will continue this series with additional resources and suggestions—but don't wait for me. Start meeting with your incoming president on a regular basis and start this important process now.