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.
- 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.
- 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.
- 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.
- 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.
- 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.