Board orientation 1 2011

Leadership Orientation

2

Topics

Purpose Mission, Vision Board-Staff Team Board Responsibilities Practical Board Tips Board Meetings

Recruiting Leaders Committees Financial Issues Goal Setting Insurance Office Operations

Board Orientation

3

Purpose of Board Orientation

There are 1.4 million non-profit organizations in the USA.

The average number of directors is 19. About 26 million persons serve on boards. Training tends to be categorized as “on the

job.” We’re glad you’re serving on this board!

Board Orientation

Board Orientation 4

Purpose of Board Orientation

To share key information about the organization.

To focus on the strategic direction, mission and goals of the organization.

To encourage questions and to explore opportunities for the organization.

To manage risks associated with leadership.

Board Orientation 5

The Mission Statement

The Builders Association of the Twin Cities’ fundamental purpose is to foster a healthy business environment for the homebuilding and remodeling industry, and to engage in activities that strengthen competitiveness, professionalism, and the public’s confidence in the industry.

Board Orientation 6

How We Work (handout)

Place members first Avoid becoming defensive. Keep an open mind Maintain the highest professional standards Initiative and execution are key to success Perform as an unparalleled staff team Work hard and be thorough Reinvent ourselves Seek out new opportunities Act with courage, consideration and discretion Constantly evaluate our operations

Failure is Not an Option

BATC Board Orientation 1/26/2011 7

Board Orientation 8

Goals for 2011

1. Cultural Shift for Staff – Tighten Operations, Reduce Expenses, Raise Revenue

2. Voter Voice Grassroots Action Network

3. Parade of Homes I-phone App and Mobile Site

4. New Membership Database

5. New Membership Website

6. Green Building Program

7. Online Education – LMS

Board Orientation 9

Board Orientation 10

Major Benefits of BATC

Consumer Marketing Parade of Homes / Remodelers Showcase Builder / Remodeler / Associate Online Directory Parade 365 Website

Education BATC University Council Educational Events Online Learning Builder Remodeler Product & Service Show Builders Digest

Board Orientation 11

Major Benefits of BATC

Government Affairs Advocacy Local, State and National (BAM, NAHB) In House and Contract Lobbying Team

Networking Member Mixers Builder Remodeler Product and Service Show Council Events Annual Gala and ROMA Golf, Saints Night, IBS Reception and More

Board Orientation 12

Major Benefits of BATC

Bottom Line Benefits The Builders Group WC Insurance Continental Western GL Insurance Verizon Phone Program Super America Gas Program (Future) 401k Program

13

The Governing Documents

Board Orientation 14

The Tools of Governance

The Bylaws Articles of Incorporation Strategic Plan or Goals Budget for Current Year Position Statements or Platform

Board Orientation 15

Board Responsibilities

Determine and understand the organization’s mission and purposes.

Select the Executive Director (ED).

Support the ED and assess his or her performance.

Ensure organizational planning and goal setting.

Board Orientation 16

Board Responsibilities Manage the organization’s resources. Determine, monitor and strengthen programs

and services for members-constituents. Promote the organization’s image. Ensure legal and ethical integrity. Help recruit new leaders. Assess and measure organizational

performance.

Board Orientation 17

The Board - Staff Relationship

Two Elements, One Team Board focuses on governance; being

visionaries; strategically moving forward. Staff manages the day-to-day operations. Consider it a partnership, alliance,

collaboration between board and staff to achieve the goals of the organization.

Avoid micromanagement.

Board Orientation 18

Practical Steps for Bd. Service Attend all board meetings. Study and understand the mission

statement, bylaws, policies and goals. Prepare for meetings by reviewing the

agenda and supporting documents. Treat information and discussions as

“confidential.”

Board Orientation 19

Practical Steps for Bd. Service

Promote the organization to others.

Stay current on issues and trends impacting the organization and the membership.

Get involved in committee work.

Make contributions and assist with fund raising.

Board Orientation 20

Practical Steps for Bd. Service

Refrain from going around the Executive Director and making special requests of the staff.

Readily communicate with the office for needed information and assistance.

Recruit future leaders to help govern the organization.

Show Me the Money

BATC Board Orientation 1/25/2011 21

Board Orientation 22

Financial Responsibilities

The board should carefully review all financial reports.

The Executive Board and Board will review and approve the annual budget.

The treasurer, with staff assistance, will present a financial report for the previous period, at each meeting.

Quarterly Review of Investments

Board Orientation 23

Committees/Councils

Most organization’s utilize committees/councils.

They help the board get work done. They identify potential leaders. They serve as a way to segment and serve

the interests of subgroups of members.

Board Orientation 24

The Committees

Standing Committees Associates Awards Builders Outreach Foundation Education and Certification Large-Volume Builders Membership Parade of Homes Public Policy Remodelers Showcase Small-Volume Builders

50+ Housing Developers Professional Women in Building Remodelers (BATCR) Sales & Marketing

BATC Board Orientation 1/26/2011 25

The Councils

Group/Task Forces

Young Professionals Group Green Path Task Force

BATC Board Orientation 1/26/2011 26

Board Orientation 27

Committee Trends

Standing Committees - found in the bylaws, ongoing.

Ad Hoc & Task Forces - appointed as needed, disbanded upon completion of task.

Work Groups, Knowledge Networks and Special Interest Groups (SIGs) - specific in nature.

Virtual Committees - solves a problem without meeting in person.

Board Orientation 28

Board Meetings

The Preparation Notice and materials will be distributed well in

advance of meetings. Review the agenda to determine how you should

prepare for the discussions. Prepare any written reports and provide to staff

in advance of the meeting. Whenever possible, formulate and ask your

questions before the meeting.

Board Orientation 29

Board Meetings

The Agenda The agenda is prepared with the input of the

President, Executive Director and staff, with consideration of current issues, member needs and pending business.

If you have input for the agenda, be sure to provide it to the President, Executive Director, or appropriate staff, well in advance of the meeting.

Recruiting Leaders

BATC Board Orientation 1/26/2011 30

Board Orientation 31

Recruiting Leaders

A responsibility of board members is to identify future leaders.

The nominating committee plays a key role, but so does every board member.

Committees may be a source of future leaders.

Please get names of possible future board members to Executive Director.

Board Orientation 32

Goals Set in a Strategic Plan

Most organizations have a strategic plan that can be used as a road map for the leadership and staff.

A strategic plan should be updated regularly.

Allows members and prospects to see the direction of the organization and understand better the ROI - return on investment.

Board Orientation 33

Common Insurance Coverages

General Liability - covers property damage. Directors and Officers Liability (D&O) -

covers the actions of the leadership, for example antitrust violations, wrongful hiring, etc.

Meeting Cancellation - covers canceled meetings and the loss of anticipated profits.

Board Orientation 34

Board Legal Considerations

Duty of Care Good business judgment at all times. Due diligence in decision making.

Duty of Loyalty Avoid conflicts of interest.

Duty of Obedience Faithful to the mission and goals. Follow the governing documents.

Board Orientation 35

Risk - Special Precautions*

Antitrust Avoidance Avoid discussion of pricing. Issue rejecting or removing a member.

Apparent Authority Committees may not usurp the authority of the

President.

IRS Issues Unrelated Business Income Tax

A Great Opportunity

BATC Board Orientation 1/26/2011 36

Board Orientation 37

Thank You for Serving!

The board experience should be a positive one.

The board is the caretaker of the organization.

The board speaks as a whole, no board member

should have more input or authority than others.

Always ask questions as they arise.

Thank you for serving on the board!