A Board of Managers or Administrators?

That's a question I have about our "Board of Managers." However, this should not obscure the more important function of the board which is that, as elected representatives of the owners of BLMH,  our board functions as our "stewards."

In the "Comments" at the end of the post, I have included some information directed toward new readers.

This is one of a series of posts which delve into issues and possible problems facing associations and boards. In this post, when I use the term "manager" or "managers" I am referring to the board of managers. This is separate and distinct from our professional management company.

If you want to skip to the chase, then go to the section below labelled "Where is the Board in This?" However the background information does set the stage, and provides some perspective for the purpose of providing clarity.

Some Essential Background Information
What is a steward? A steward is someone who manages property or other affairs for someone else. There is an interesting definition that expands this to include a steward as "a person who takes the responsibility of making decisions that will allow resources to be maintained for future generations." Here at BLMH, future generations would obviously mean "future owners." Such inclusion would seem appropriate, because we have new owners at BLMH each and every year.

What is the difference between a "manager" and an "administrator?" Is this significant? The Illinois Condominium Property Act refers to our board as a "board of managers". They are not a "board of administrators." Here are two popular definitions:

"Administration" is a method of tending to or managing the affairs of a group of people (especially the group's business affairs).

"Management" in all business and human organization activity is the act of getting people together to accomplish desired goals and objectives.

There are differences. Management implies achieving those specific goals and objectives. Managers are often accountable for improving performance. "Management" may include creative acts and the setting of policy.

Is the Difference Important or Significant? 
Is there a difference and is it relevant? Yes! Administrators are trained in management techniques, for the purpose of organizing and managing the administration that facilitates the effective running of an organization. However, administrators sometime function primarily as "delegators." They review information, are given instructions by others, transmit those orders, and may be policy directors. Administrators do not create policy; they are given policy to implement. 

There are distinct differences between administrators and managers; most administrators think of themselves as managers. The distinction and titles often collapse, because administrators do use management techniques.

There are differing styles of management. For example, one is an "authoritarian" model and another is a "participative" model. Many managers practice a hybrid with components of these and other models. There are other styles, and different names. Literally thousands of books and college level or post-graduate courses have been created dealing with all aspects of management, including diverse subjects such as practical issues, methods and ethics. Much has been written in the past two decades on "managing change."

In the "authoritarian" model, which in my experience is more widely practiced, the manager's job is to do as they are instructed and transmit those instructions to others. Decisions are more likely to be made at the top and passed down to the manager, and then to subordinates. The "authoritarian" model has been characterized by some as assuming that people hate to do work, require certain coercion to achieve goals, and generally respond better to fear than to reward.

In the "participative" model, work including responsibility, is delegated. The model requires co-operation and co-ordination.  The manager co-ordinates the work of his group, with that of the group in which he is a subordinate. The manager removes or clears any problems or difficulties from the paths of his subordinates. This model has been characterized as one in which work can be a source of satisfaction and is voluntarily performed. Punishment is avoided. It is assumed that workers participate in decision making, can learn not only to accept but to seek greater responsibility, and that people respond better to reward.

Where is the Board in this?
Our board is comprised of individuals who seem to be more familiar with administrative concepts than they are with management. This is a broad statement, and I am aware that both current and recent boards have included several individuals who have or profess to have communication skills and have functioned in management or administrative positions. It is possible that the overall makeup of the board skews the style of the entire board. I base this assessment on observation, the Manor Briefs newsletter, emails, interviews or discussion with board members, and the events at association meetings.

Our board also seems to be a hybrid. There seems to be a desire for a more participative management style which, based on the languaging of board members, would include such approaches that appear to favor "well-being" and "empowerment." However, the practice is "top-down" authoritarian with compartmented individuals and individual turfs. Committees or focus groups can be dominated by one or another individual, and there is little public debate of the issues, and more importantly of the process of selection of the issues.

The Possible Complexity of Volunteers
Another layer of complexity occurs because members of the board are "volunteers" with no specific compensation or reward. The performance of tasks and the achievement of goals is completely voluntary. Management in volunteer groups can be difficult. Agreements may be "open ended" which means lacking specific deliverables and structure. In a volunteer organization such as our board, there is no specified work schedule, and there may be no finite end to that which must be done. For comparison, in the work place a manager may ask an employee to do certain things, but the work week is generally 40 hours and at the completion of that time, the week is over and with it, the worker's obligation.

Experts cite many reasons for volunteering. These include the gaining of recognition, the accomplishment of something that is felt to be important, the exercise of power, concern about well-being, safety and security, or as a means of achieving retribution for perceived prior personal attack.

Volunteers may seek to be volunteers as much for companionship and camaraderie as for anything else. This can result in a club like atmosphere in which the equitable assignment of duties and responsibilities may be difficult or impossible. In our association, the board members generally choose the duties and assignments they prefer or feel comfortable with, and there may be insufficient skills. This results in uneven distribution of duties and responsibilities. There may be obvious gaps. For example, at BLMH, we at one time had a single member of the board of managers responsible for architecture and was also treasurer.

It may also be difficult for such a group to include others, or to tackle issues that are uncomfortable or challenging, because to do so violates the comfortable atmosphere. In such a situation, issues are therefore identified and selected for their relative ease, to foster agreement and maintain the perception of the group, while other issues more significant, are rejected. In such a situation, we find we have something like an "elephant in the room", which is an idiom for an obvious truth that is being ignored or goes unaddressed. In the case of the board, the "elephant" is a problem or problems which are perceived to be too difficult, too large, too divisive to the group. Or, it may be something that interferes with the preconceived notions and positions or beliefs of a member or members of the group. So it is ignored or passed over.

Volunteers may not have professional backgrounds, training or experience. They may also have personal agendas. In the representative workplace model, it has been stated that the employees involved in representing others receive more benefit than those they represent. For that reason, some say that representative participation is a poor choice for improving performance or morale. In other words, for getting the job done.

The Board, Owners and Conclusion
Observing the members of the association as a whole, there are two distinct groups at BLMH. One is the board and the other is the owners. There has been little done to promote unit owner participation as responsible members and owners, and in my case, this has been discouraged. Open discussion of vital concerns is discouraged. Agreement is solicited. The neighborhood club appears to be an adjunct to the board and I suspect it provides the only source of what the board seems to believe is reliable unit owner feedback and desired agreement. Many of the same unit owners participate on the board committees or focus groups, and also as members of the neighborhood club. I understand dues paying membership in the club number approximately 10% of the owners.

I have concluded that some of our problems may be sourced by an administrative mind-set in which our managers now have the expanded assignment of creating policy, with minimal direction by others, little structure for accountability and responsibility. As I have sometimes said here "Who is managing the managers?" Let me also state, that our association is supposed to be a representational model. So anyone with administrative tendencies, who is elected, might have some difficulty in expanding from an authoritarian, policy enforcing role to one in which they are to be participative and are provided with the added opportunity of creating policy, such policy designed in accordance with broadly defined and difficult to grasp (in their eyes) "fiduciary duties" and the real needs of this association. Such needs including those of a business.

There is no "broad mandate" for the board to do whatever it desires. There is a mandate to operate in stewardship as an elected fiduciary, and to represent the owners. This is in stark contrast to managers who sometimes view their areas as private fiefdoms. Consider the additional issues of equality. Board members are the equals of their unit owner peers, but have agreed to work, uncompensated, for those peers. On the board, all members are equals; duties are to be shared and all are, in fact, responsible for financial issues, providing thorough understanding and debate of all issues, etc.

All monies flow from unit owners' pocketbooks via fees. Resources are scarce and failure in one area affects overall management and success of the association. If the association is over-budget in any one area, there is little cause for celebration in another, as contrasted to managers who revel in moving costs to another's areas of responsibility, and other politically or personality inspired games. In fact, if there is financial failure, we, the unit owners all lose.

"Compartmentalizing" duties and responsibilities may reduce the effectiveness of the board. However, this can be offset by equitable and realistic distribution of tasks, thorough preparation, the proper use of "Robert's Rules of Order", the thorough discussion of all of the issues including the uncomfortable ones, co-operation, co-ordination and the inclusion of the unit owner body.

We all, which is to say, the entire association, either win or lose as a group. If this were a "flat" playing field, which included open and honest debate of all sides of all issues, we would have a better awareness of the loss and consequences we are in fact, experiencing. However, in the skewed model, these issues are hidden and discussed behind closed doors, or simply ignored. Why are some problems addressed and others are not? Why the current priorities? Was the list of possible "Top 20" vital concerns, from owner apathy to renter's rights even discussed before the ownership here? Is there such a list? I'm unaware of one.

It may also be difficult to function in a management system which is less about delegating than it is about participation in decision making at all levels. There is no one to delegate to, or, give the work away to. Of course, that won't stop some from trying. Passing work off to paid professionals simply increases the costs of the association, or reduces the effectiveness of our professional managers who have finite time to spend on association business. Attempting to "look good" if that is the primary goal of the administrator or manager, is an impediment to performance. Lack of skill is obviously, another.

Owner Disenfranchisement and Apathy
The operation of the board is a contributing factor toward owner disenfranchisement, and it's natural consequence, owner apathy. There are many definitions, but generally it is a state of indifference and the feelings of powerlessness to change. This will be the subject of a future post. However, consider that experts have stated that "A thriving association is marked by members who show concern for the association and by a board that promotes member awareness and responds to member concerns." A board which is selective in the choice of owner concerns it will address, is promoting and creating "winners" and "losers".

Comments, Corrections, Omissions, References, Miscellaneous News
Note 1. If you are a "new reader" here, you may have a few questions. Posts are sometimes prepared in advance and posted as scheduled, as this one was.

This blog, which is to say http://briarcliffelakes.blogspot.com includes my observations and those of some of my neighbors. It includes facts, but also my assessments and my opinions.

We live on about 30 or so acres of prime real estate in Wheaton, Illinois. This condominium association is unusual. It is a PUD or "Private Urban Development." We own everything! We are situated near the College of DuPage and we are immediately adjacent to a large public park and two lakes; significant portions of the shorelines we own. Our association has a value of at least $60 million, based on today's depressed real estate market. The replacement cost? That is to say, to build a similar facility with about 800 trees, streams, two lakes, roads, infrastructure, extensive landscaping and manicuring, and 84 buildings of excellent construction? Don't even ask!  As a group, we pay about $1 million in real estate taxes each year. We pay association fees of about 25 cents per square foot, per month.

Having an association on such extensive grounds creates some wonderful benefits, opportunities, challenges and some problems. We are a part of the City of Wheaton, and have the benefits of fire and police protection. However, we also have completely private streets and parking. We are a "city within the City" and could be "gated" community but we have no gates! Our acres are manicured and laced with streams and many walking paths.


As an example of some of the more unusual issues, our association pays about $6,000 per year for "critter control." because we have abundant "wild life" which is fed by some of our residents (owners and renters). It's a small price to pay, I suppose, for entertainment.


We have some of the apathy problems which I understand other associations experience and about one-half of our unit owners don't vote, preferring to place their trust in "representatives" elected by others.

We are governed by the same laws, the Illinois "Condominium Property Act" and the "Non-Profit Act" as are every condominium association in this state. These range from associations such as 5 unit condos which are obviously easier to manage, and much larger associations with 336 units, such as ours.

If you want more background information, email me, or go to the official BLMH.org website, where you can find all kinds of information, our newsletters and even our most recent audited financials. I looked today (August 31) and the dates of our board meetings have been updated in the "events" tab. The next association meeting is no longer listed as occurring in "April 8, 2010" as it was as of August 25th. Board meetings are currently for voting members, which is to say, "unit owners". However, our board has been diligently working to expand that to include renters.

I also suggest the city website at http://www.wheaton.il.us/

Note 2. Major portions of this were written in the weeks prior to posting. I always re-read this blog immediately prior to automated posting in order to get updated information into it. However, it's impractical to check everything and for example, the BLMH.org website immediately prior to posting. I am provided with no "heads up" information by the board of BLMH, so my posts may not, for example, reflect that website's current information.

Note 3. Including this post, 185 have been published and another 25 are "works in progress." This is becoming a major work!