RESORT SOURCES Page 41
Sep / Oct , 2024 | TimeSharing Today
TIMESHARE BOARDMANSHIP : Assess your Board ’ s performance
By Lynne M . Kweder
Q . I know the Board of a timeshare is “ where the buck stops ” in terms of responsibility for everything in a timeshare resort . How do you guarantee a high-quality of performance of a board if the board is not accountable to any higher authority ?
A . In fact , a board is accountable for its performance . It is accountable to the members of the homeowners ’ association , the electors who can vote them out of office . It is also accountable to state and federal laws and regulations and associated regulatory bodies .
However , as we all know , boards of directors can function suboptimally for years , often neglecting important responsibilities . One such responsibility is to periodically conduct a Board Self-Assessment followed by a plan for improvement .
Take the initiative
To improve the performance of a board , the first step is to elect strong board members who aim to create a high-performing board . Then , the board must elect strong leadership to ensure the board understands its full range of responsibilities .
Too often , boards simply respond to what management brings to them for consideration . A high-performing , effective board takes the initiative to systematically perform a full set of responsibilities rarely suggested by management :
• Generate and Budget Revenue : Determine maintenance fees and budget operational and capital expenses .
• Strategic Planning : Take a long-term perspective , identify strategic issues , and set strategic goals .
• Evaluations : Periodically assess both management and board performance .
• Policy Development : Provide expertise on current policies and initiate the development of new policies as internal and external environments evolve .
• Hiring and Firing : Oversee the management of the resort .
• Recruitment and Orientation : Attract and orient strong board members .
The board also delegates the management of the resort to a manager or management company but should evaluate the quality of the oversight provided to management .
The accompanying illustration shows the two types of board responsibilities : ( 1 ) Board Initiated Functions and ( 2 ) Board Oversight Functions . The board delegates the authority to manage the resort to management but retains the authority to perform all Board Initiated Functions . Regardless of delegation , the board retains responsibility and liability for everything that happens and does not happen at the resort .
Assess performance
Board self-assessment often becomes “ the can that gets kicked down the road .” Everything else on the board ’ s plate seems more urgent and important . So how can you get your board to face its responsibility to take a hard look at its own performance ?
The number of important and urgent matters on a board ’ s plate can be overwhelming . If board leadership is clear that self-assessment is an important responsibility and creates the opportunity for the assessment , boards will generally cooperate . Making time for the activities involved is often the hang-up rather than any basic objection to performing the assessment .
Delegate and schedule
During my terms as a board president , I delegated leadership responsibility for major projects to vice presidents in charge of evaluation , strategic planning , and policy development . The Vice President for Evaluation ( now titled “ Quality Assurance ”) was responsible for initiating and leading periodic assessments of both management and the board of directors .
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