Working towards better governance for the National Sport of Dragon

Boat.

What we will be doing today.

Looking at the 7 key responsibilities you have as Directors of your State or National bodies.Exploring strategies to help you manage the work that needs to be done under each one.Question time and planning the way forward…

I’m not sure if that would work in my Association!

Federation

Alfred Deakin at the Federation Conference, Melbourne, 1890

“His was the only memorable speech at the conference which was also noteworthy for the extraordinary level of antagonism between the colonies, namely New South Wales and Victoria who rarely agreed on a single issue.”

“Let’s establish a Federation to tell us all what to do!”Ian Fullager

Aims of Federation“The object in view has been to put principles before the public rather than details, because the subject itself is new to most of us; and unless principles are grasped it may not be easy to arrange the compromises on which all Federations are founded.”

Prepared from the print edition published by Sands & Mcdougall Limited, Collins Street Melbourne 1891

Where are you going?

If your Mission is not guiding the organisation, you need to ask: Why not?

Where are you heading?

MISSION

The Mission of Australian Dragon Boat Federation: “... is the management, co-ordination, development and promotion of Dragon Boat racing at a National level throughout Australia. To represent the interest of its members to the public, media, sponsors, government and international dragon boat associations”

Vision The Vision of Australian Dragon Boat Federation:

“The Australian Dragon Boat Federation is committed to providing its members with superior service in its management of National issues and the National agenda. The Federation aims to provide access and equity for all communities in Australia to participate in dragon boat racing while maintaining its traditions and values”.

Good GovernanceA ‘principle driven approach’ to bridging the gap between what ‘must’ be done, and what ‘should’ be done, for the good of the organisation and its owners.

Good Governance

Good Governance outlines 7 MAJOR RESPONSIBILITIES OF A BOARD

Get the Structure right Ensure good Processes Set the Strategic Directions

Manage the activity(or CEO)

Monitor the Organisation

Report to theMembers & Stakeholders

Take responsibility for the Culture

1.Establishing the LEGAL and GOVERNANCE STRUCTURE

Membership Structure

Management structure

Governance & Board Structure

Management Committees

Volunteers

The Constitution should be an ‘enabling’ document!

The Constitution is the system of fundamental laws and principles that prescribes the nature, functions, and limits of your Association as laid down by the Registering body.Incorporating separates the individual person (member) from the entity and makes the group (body) a single entity with certain rights and legal protections as well as some additional obligations.

Other matters relating to day to day issues on how the Board operates, how the organisation functions and the policies are best separated and placed in a:• Board Charter, • Operations manual• Policy Manual.

1. Board Policies2. Operational Policies3. Sport Policies (Public documents posted on your web site.)Don’t panel beat it, replace it!

Reviewing the Board structure

A Governing Board in the eyes of the law is viewed as a legal person - but only one legal person, which means that it can only have one opinion at a time.Board Solidarity is critical.For this reason I support the ASC principles of no Council, non-voting (Independent, skilled based) Directors and no Executive Committee.

Skill based nomination process.Before a vacancy arises, proactive Boards are looking for potential candidates to fill those positions.They have conducted a skills audit, identified where the current skill sets lie and identified any gaps to match the work that is forecast for the coming year. They then approach people directly to invite them to nominate for the vacant positions.

The key Good Governance principles.

Members are the ‘owners’. What flows from this principle?• Equality of ownership- one member one vote.

Therefore, no proportional voting.

Let’s bust a major Myth!The State or National Association is the Controlling body. It has the POWER! In reality:

The owners have the power and they give Authority to the Board at both the State and National level.

OWNERSHIP Vs STEWARDSHIP

2.ENSURING EFFECTIVE GOVERNANCE PROCESSES

Board Evaluation

Board Agenda

3 levels of policyBoard Solidarity

BOARD BUDDIESOne of the biggest complaints made against peak bodies by the members is that they are not consulted, and not informed about what is happening.

Consensus decision making

The majority of decision making at a Board or Committee meeting can be addressed by the Chair adopting a consensus model.The Board resolved to…Where the implications of a particular decision have the potential to make a significant impact on the viability of the Association, a poll may be called and voting recorded accordingly.

Annual Board Calendar

This would cover topics such as:• A schedule to review all policies • Financial reporting schedules • Board performance review • Chief executive officer performance appraisal process • Annual review of the organisation’s strategy • Preparation for the annual general meeting • Any changes to personnel on the board or in key management roles • Consultation with key stakeholders • Meeting the external auditor • Signing off on the annual report • Key events such as national championships • Other matters as required.

Running a SEE meeting

If you run a Short, Effective and Enjoyable meeting you are more likely to encourage people to switch off their phones and switch onto the meeting agenda!

Set up your sub committees for success!People sit on your committee with a variety of responsibilities. The aim is to get them to do their work outside the actual meeting and bring their findings to the meeting (not debate them when they arrive!)A well structured Committee can deal with the issues more effectively and efficiently.Papers presented are either:• for Approval (which means there is a recommendation) , • for Discussion (alerting to an issue or seeking guidance), • an Update (which is for information only.) For this to work, the sub committees must have terms of reference and delegations, which clearly outlines the extent of any decision making authority they may have.

Committee Report____________ Cover Sheet: Date______

Area:_____________________________Approval Discussion UpdateOverview:

Recommendation:

Attachments: Yes ______________No Signed:____________Outcome:_______________________________

Reports are not read out!Reports are sent/brought to the meeting with the action cover sheet. They report against progress, not activity!

Cater for people to participate in your meeting via Telecommunications.

• Ensure your Constitution, Board Charter and Committee Terms of Reference allow for meetings via telecommunications.

• Invite people to participate via phone for all or part of the Board or Committee meetings.

• Keep a record of the meeting!

3. Setting the strategic direction of the Association.

What’s in a name?• STRATEGIC PLAN• DEVELOPMENT PLAN• ORGANISATIONAL PLAN• OPERATIONAL PLAN• BUSINESS PLAN

• IS IT A SMART PLAN?

S.M.A.R.T Planning

• S- Specific•M- Measurable• A- Achievable• R- Realistic• T- Time linked

We aim to be the NationalChampions by 2014.

Currently ranked 7th.

3 Year Plans Vs Rolling Plans• Your plan will take as long as it takes.• Until you have written it, you won’t know what

time frames are involved.• If you regularly review and update the plan, and it

becomes a living document, it will guide your Association’s work.

What are your key strategic areas?

Competition

Athlete pathway

Participation #

Communication

Policy & Procedures

What direction is your NSO heading?

• Question: Are you setting a strategic direction that is congruent with the National direction?

• Question: Is there a risk of duplicating effort by not adopting National policies and programs?

4. Managing the work of the Organisation

Providing guidance to the Volunteers or Committees

Performance Review

Associations tend to attract two categories of volunteers:

Core Volunteers who are welded onto the organisation and can be relied on to be there year in and year out.

Peripheral Volunteers who come and go.

You need to treat each group differently.

Recognition of service over a number of years is irrelevant to peripheral volunteers. Give them a sausage sandwich and a thank you and they are probably good to go!

Core Volunteers value the recognition of ‘service over time’ and are the ones you look to recognise with awards and other forms of acknowledgement of their contribution.

5. CHECKING FINANCE, COMPLIANCE and RISK

Board Reports

Financial literacy

BUCKET BUDGETING

Fixed Income Fixed ExpenditureCash Reserves 10%

Fees, Grants, Sponsorship, Interest Rent, Ground Hire, Wages, Insurance, Affiliations

Net result + or - =$ (X)

Variable Income(Speculative)

Variable Expenditure(Discretionary)

Tied moneyDiscretionary Vs Non discretionary

Sponsorship, Grants, sales, etc Equipment, Trips, capital expenditure

Which bucket is this coming out of and do we have the money in the bank?

AUDIT AND RISK COMMITTEE

The role of an Audit and Risk Committee varies, but is typically to monitor and review, on behalf of the Board, the effectiveness of the control environment in relation to nominated functions which may include:• financial reporting, • legal/regulatory compliance, • fraud prevention and • risk management. The Committee is also responsible for review of performance and nomination of the external auditors.

The Finance report is explained and questions are encouraged.

• Tell the story and let the numbers prove it.

• A picture paints a thousand words, so use graphics if you can.

• The role of Treasurer is an ‘additional responsibility’ not a ‘sole responsibility’!

The role of ‘trust’ in your organisation

FRAUD It can happen to your Association!

Your Association is vulnerable to fraud for at least three reasons:

The person responsible for collecting and disbursing funds is likely to be the individual who provides the financial reports.

Associations tend to raise much of their funds in cash. Cash is more easily misappropriated than any other type of transaction.

Small non- profits are run by trusting and committed individuals. Sadly these individuals tend to be too trusting.

6. REPORTING TO THE BOARD, MEMBERS and STAKEHOLDERS

Annual Report & Audited Financials

The typical Annual Report will include:• Chairman’s statement • CEO’s statement (review of operations) • Description of the organisation’s purpose, vision, values,

services and programs and who’s who in the organisation • A copy of the audited account (funding and financial

overview - the story behind the numbers) • A corporate governance statement • A description of the major achievements during the past

year

7. Managing the Culture of your Board

As a Board your role is to Future proof your Association for the members.

A word of warning!

What do we know about NFP Boards?

PassionateLong history

Strong networksWell respected

Strong character

Inexperienced Limited finance skills

Fixed positionsPoor decision making skills

Reactive

ProfessionalConsultativeCollaborative

InformedProactive

“Let’s tip the balance!”

Strengths Weaknesses

Ideal Board

• Displays Leadership, Integrity & Good Judgement.

• They use these three attributes to ensure more effective decision making.

• They ensure the Association demonstrates transparency, accountability and responsibility.

Any questions?

Thank You!Paul GroganManaging DirectorMDO Consultingwww.mdoconsulting.com.au

M- 04 67 63 23 03

A final thought….