Structure is the foundation of a great association. From structure, processes and systems are developed to guide successful boards. When structure is missing or weak, the association will suffer. — Bob Harris, CAE

Every association has a framework. A solid and well-built framework promotes sustainability and a strong structure. The following are the key structural systems and processes for performance excellence.

If one is missing, the organization is not “firing on all cylinders” and will need a tune up. We will explore each of these areas one by one and the essential items in each area that should be in place to run at peak performance.

• Governing Documents
• Strategic Direction
• Performance Measures
• Protocols and Behaviors
• Committees and Task Forces
• Financial Oversight

Governing Documents

The United States Internal Revenue System states that,

“an [association] that has clearly articulated purposes that describe its mission, a knowledgeable and committed governing body and management team, and sound management practices is more likely to operate effectively and consistent with tax law requirements. And while the tax law generally does not mandate particular management structures, operational policies, or administrative practices, it is important that each [association] be thoughtful about the governance practices that are most appropriate for that [association] in assuring sound operations and compliance with the tax law.”

Good governance is also the bedrock of any association; without it, there is no strategic plan, there is no growth, and there is no value delivered to the members. These are some key governing documents that should be in place in every organization.

Bylaws: Governing rules of the organization that specifically outlines its purpose, membership categories, board authority, indemnification, voting authority, special meetings, and other important items. Bylaws are very different from policies and procedures and should never be intertwined. Bylaws should be simple and minimalistic while conforming to all state and country laws to allow the board as much flexibility as possible to govern.

Registration with Government (i.e., Ministry, Corporate Authority): Copies of registration documents with the appropriate ministry (if outside of the United States) or articles of incorporation, federal tax exemption registration, etc. (if in the United States).

Policies: A set of guidelines providing a framework for developing and adopting rules to guide the work of the organization and to maintain high standards of integrity and practice among its members.

Organizational Chart: Diagram showing the positions in the organization, lines of authority, and how they relate. The organizational chart also shows the relationship between key functional areas in an organization.

Strategic Direction

Strategic direction is a well-thought-out plan that is executable by the professional staff team, committees, and task forces. The strategic plan serves as the roadmap for delivering member value and utilizing the organization’s resources effectively.

A good strategic direction also creates a sense of unity within all levels of the organization and is the glue that ensures everyone is rowing in the same direction.

Road Map: Serves as a road map for an organization for several years. It clearly defines what the organization wants to accomplish around the context of its mission and vision, and is empowered by specific strategies and performance measures that ensure the organization is moving forward towards those goals.

Program of Work: Management by staff with interim deadlines and accountability. The program of work includes general operations as well as execution of strategies set in the organization’s strategic plan.

Performance Measures

Performance excellence in an association cannot occur without performance measures. Performance measures help an organization to determine if their initiatives are successful, failing, or need improvement. The following are some processes and tools for measuring performance.

Metrics and Dashboards: Monitoring tools that allow for realistic and unbiased assessment of progress and create accountability. Dashboards also provide a focus for the board and professional staff team. A strategic plan and finance dashboard is recommended along with an organizational dashboard that tracks key information such as membership numbers and retention, event attendance, etc.

Staff Evaluation Processes: A regular and impartial review of staff performance, identifying strengths and highlighting areas for growth. The professional staff team should be assessed on an annual basis for the purpose of continuous improvement and identifying areas of need. Benchmarking the results of the assessments year-over-year will show if these improvements are working or need to be re-assessed.

Board Evaluation Processes (Assessment): A recommended annual assessment for the Board to gauge effectiveness in performance as a group, board composition and quality, strengths and gaps in the policies and procedures used to support the board and the executive director relationship (if staff managed), and other categories as needed. Benchmarking the results of the assessments year-over-year will show if these improvements are working or need to be re-assessed.

Protocols and Behaviors

Thefreedictionary.com defines protocol as forms of ceremony or etiquette. Merriam-Webster.com defines behavior as the manner of “conducting oneself.” The following are protocols and behaviors for your board of directors and other leaders in your organization.

Orientation Process: Outlines critical information, responsibilities and other expectations to educate new board members and to also reinforce this information with seasoned board members. An orientation should be conducted annually with the entire board, including any incoming board members that may not yet be on the board

Code of Conduct/Code of Ethics: Values, beliefs and key principles that an organization uses to guide decision-making. The code of conduct is aligned to the core values of the organization and outlines specific behaviors that are expected or prohibited.

Board Commitment Form (conflicts, confidentiality, etc.): Outlines theexpectations of board around their role, duties, time commitments, avoidance of conflicts of interest, confidentiality requirements, attendance, and any other key areas.

Board Meeting Agendas: Time-based and strategically structured to address strategic issues with outcomes defined.

Meeting Expectations and Protocols: Outline of group norms and expectations for board meetings, to include how information is shared and organized. These protocols are essential for meeting efficiency and the ability to make decisions effectively. Group norms also should identify how to handle conflicts, rules of order, time management, commitments, and other responsibilities that are essential to executing on the organization’s strategic plan.

Committee Descriptions: Committee descriptions identify responsibilities in three areas — supplementing the work of the board and staff, engaging members, and developing leaders.

Staff Job Descriptions: Clearly spells out each paid position in the organization including their specific role and accountability. The objective of each staff person is to aid in the execution of the strategic plan set by the board. Staff serves the ultimate role as the management arm of an organization.

As Bob Harris points out, the board governs and staff manages. This creates a clear delineation between governance and management and allows both groups to function as one team.

Board Job Descriptions: Clearly spells out the role of each director on the Board in detail including time commitments and expectations. The board’s overall role is to set the vision through the strategic plan, set the budget, set policies and positions, and to serve as a fiduciary. Board serves the ultimate role as the governing body of the organization.

Procedures Manual: A set of guidelines and processes providing framework for day to day operations. The Procedures manual should be reviewed annually to ensure if processes outlined in each procedure are still applicable. A good procedures manual will have a cover page listing all procedures, the procedure name, brief description of the procedure, date revised, and date reviewed.

Committees and Task Forces

Committees and task forces are integral in executing upon the organization’s strategic plan as well as a resource for other key tasks that are instrumental in the organization. Committees and task forces free up the board to stay strategic and not get bogged down in organizational details. When there is harmony between these three bodies, there is efficiency and a true focus on member value.

Committees and Task Force Charges/Descriptions: Details the goals, composition, term limits, expected time commitment, appointment or selection process, requirements for serving and the roles and responsibilities.

It is important to note in each charter that the work of the committee or task force is at the direction of the board of directors and in furtherance of the strategic plan. The main responsibility of a committee or task force is to help with the execution of the strategic priorities set by the organization in its strategic plan.

Definitions of Committees & Task Forces: Committees are typically used for longer-term efforts such as an events committee, budget & finance committee, etc. Task forces are designed to carry out a focused task and have a shorter service time commitment.

It is more and more common for associations to use task forces vs. committees as task forces are finite in length, the scope of their work, and the ability to engage members via a shorter commitment, which is now ideal as it is becoming harder and harder to give time as a volunteer.

Committee Work Plans: Committees should be aligned with the strategic plan by developing work plans that are tied closely to the organization’s strategic plan. These work plans are approved by the board. The work plans are also aligned with the budget set by the organization. Committees should not have their own, independent, strategic plan.

Internal Controls/Financial Oversight

In the toolkit by Association Options, “Financial Resources: Internal Controls & Financial Dashboards,” internal controls are defined as a “process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.” Financial oversight is ensuring that the resources of the organization are managed appropriately to provide maximum member value.

The following are some items to consider.

Budget: A centralized financial plan, developed annually, for tracking resources, to include incoming and outgoing funds. It is important that this document stay up to date, organized, and accurate.

Financial Reports: Written records that convey the organization’s business activities and its financial performance. Best practice is to produce the statements monthly if resources allow but at a minimum of once per quarter. The board should be reviewing financial statements as part of their fiduciary role.

Audits and Safeguards: A system that creates a separation of duties, proper documentation, authorizations and approvals, security of assets, and reconciliation and review. An audit is also recommended and designed to perform an annual inspection of the organizations finances and processes (board approves audit results). In addition, the recommendation is that there is an independent Audit Committee comprised of board members and one financial expert free from conflict.

Alignment to Strategic Plan: The relationship of the budget to the strategic plan is critical and should not be overlooked. The strategic planning process should take place prior to the budgeting process in order to identify resources to be built into the organizational budget. Strategic planning should always inform the budgeting process so there are no missed opportunities.

Richard Branson, CEO of Virgin, said, “The important thing is that you have a strong foundation before you start to try to save the world or help other people.” As we work to build member value and create relevance, we must be ever conscious of building a strong foundation so that your organization is well-poised to deliver on its mission.