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HOA Fishbowl Management

Homeowner association boards are elected to rule over HOA business. Some do it better than others because of training and natural ability. But resources are readily available to train even novice board members on the art of HOA governance. Regenesis.net, for example, has a vast collection of good HOA business practices and help designed to keep the Board pointed in the right direction. There is little excuse for mishandling this business other than neglect, intent or blatant conflict of interest.

While good business practices are fundamental to getting the job done right, "people" practices are equally important. While most HOA elections are not barraged with volunteer candidates, the membership does care what the Board does. When the Board doesn't do it right, some members simmer at a slow boil, some bellow a great hue and cry and others beat tar and feather drums. The picture isn't pretty for otherwise well intentioned directors.

A truly effective and perceptive Board understands the need to keep members in the loop and business open and transparent. This "fishbowl" style of management is difficult for some directors to deal with since it seems cumbersome and intrusive. In reality, running business transparently is largely symbolic and requires little more from the Board other than a few member friendly attitudes and practices. Here are a few of the most important ones:

  • Board Meetings open to members and held in guest friendly venues, locations and times.

  • Members may express dissenting opinions and question Board actions.

  • The Board responds respectfully to dissenters.

  • HOA website archives need-to-know information and facilitates information and maintenance requests.

  • Meeting minutes are distributed within a week of the meeting.

  • New owners receive welcome packets with need-to-know information.

  • Newsletters are distributed at least quarterly.

  • All rules and design guidelines are written and compiled in one location for easy access.

  • Rules are few and truly necessary.

  • Rules include the reason for enactment, a reasonable penalty and right to appeal.

  • Board policies that affect lifestyle and ownership responsibilities are circulated to owners for comment prior to enactment.

Using these member friendly business practices demonstrates that the Board operates in the open plus respects the other members and their opinions. Simply communicating that attitude will keep most members satisfied that the Board is doing a good job. Failure to provide these kind of services results in discord and suspicion which promotes hassles that the Board doesn't need.

Another benefit of member friendly business practices is that they get the Board organized and prepared to do business. With these systems in place, crisis management becomes rare and the directors can hang up their firefighter suits.

Still another benefit of this management style is that serving on a Board that has a clear plan of action is personally rewarding. As others observe the rewards, they too will volunteer to be part of a winning team. Getting things done attracts achievers. Success begets more success. Happy members mean a harmonious community. (Do I hear a sweet refrain of "carefree living"?) When it comes to HOA business, keep it transparent by practicing Fishbowl Management.

For more innovative HOA Management Strategies, see www.Regenesis.net "Planning Tools."

Published: October 13, 2004

Use of this article without permission is a violation of federal copyright laws.




Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues.

Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .




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