Good governance begins with ethics-standards of conduct that guide the way the board reaches decisions and whose interests they serve. You'll hear more about this throughout the guide.
Note what our definition doesn't say: there's nothing there about managing the co-op.
The governance role is different from the job of managing and it's important that we're clear about that from the start. The role of the board in the co-op's management is to
Governance is about the ends-where you want to go. Your management takes care of the means-how to get there. Management takes care of the day-to-day running of the co-op. It's important that these two roles are well balanced in your co-op.
Many boards have made the mistake of thinking their job includes co-op management. If that happens, not only is your management going to suffer, but so will your governance. Good governance is a big enough challenge for volunteer housing co-op directors, and that's where their energies should be focused. Managing a co-op calls for a set of skills that are more technical and administrative. It is not a volunteer's job.
Of course the board needs to be sure that good management is in place, and it should look into things if it seems that the job isn't getting done. As the saying goes, it's okay for the directors to put their noses into the co-op's management, but not their hands. Although directors shouldn't carry out the work of managing the co-op, they should definitely make sure it is being done well.
You may find that your co-op act says that the board must manage the affairs of the association. It's important to be clear about what that means. What it doesn't mean is directors have to give up their day jobs to run the co-op's office. What it does mean is that the board is responsible for making sure that the co-op is properly run. Which is exactly our message in this guide.