​The Support Of Good Management

The third building block of good governance is your co-op's management. First, let's say what we mean here by management. We mean the management staff you hire or the management services you contract for. Either way, we are talking about professional, trained management, not a member with some spare time or the spouse of a director.

Just as governments can't function without effective, professional public servants, boards will struggle without the support of skilled management. Your management gives the board the information and expert advice it needs to make good, sound decisions-decisions that your manager then carries out on your behalf. And remember: making sound, informed decisions is the basis of good governance.

While the roles of management and governance are different, they support each other, so it's important that they work well together. And because directors come and go with elections, stability and strength in your management are vital.

How successful you are at having a strong stable partnership with your co-op's management depends on you. Here are some tips to help you get the management governance relationship right.

  1. Choose sound management to start with. Whether you hire your own staff or contract with a management company, make sure they understand co-ops and co-op programs and have the skills needed to manage the different functions of your co-op's operations and offer your members good service.
  2. Management is not in competition with you, so don't battle with your staff or management company. They are there to help, so let them do that. As we said, the two roles are complementary. Try not to work against that by doing the management job yourselves, and count on your managers not to play the governance role that belongs to the board.
  3. Recognize that co-op management is an expert field. Make sure your managers have an opportunity for training and professional development, so they can keep up with the skills they need to do the job. If you employ your own staff, invest in training for them-it will pay off for your co-op.
  4. You want a professional standard of management; offer a professional employment environment. Offer fair salaries and benefits and a method of supervision that doesn't leave the manager taking directions from every member of the board. Offer a professional working environment too-a proper, well-equipped office that's free from unnecessary distraction. And evaluate your management periodically. This is not a finger-pointing exercise, but rather an opportunity to sit down with your management to see what's working well and what could work better - on both sides of the board management partnership.
  5. Make co-op management a stable career that's worth choosing. Many good people leave co-op management because they see it as a field that lacks stability. They see boards coming and going, each with an agenda to "fix" the management of the co-op. That creates uncertainty and distrust in managers and can send them off in search of different career options. The best advice for new boards? Don't assume your management needs fixing until you're sure it's broken. Chances are it isn't. Otherwise, fit your co-op's office with a revolving door. You're going to need it.

Good management is not a one-way street - it won't happen without the board's support. If you follow these few guidelines you can expect to attract and keep good people and have accountable, responsible management that works to support the board in its governance role.