Mgmt case study #1 – update3

SCG BOARD CONTINUES TO DEMONSTRATE THAT IT’S A ROGUE BOD

Management Case Study #1 update3 — BOD good faith conduct

George K. StaropoliJanuary 16, 2022

This study will proceed to a climax late this month with the board elections.  The BOD has remained silent with respect to the allegations and the members have also remained silent. However, the BOD has handled their problem with a campaign of propaganda.

I challenged the BOD and the members in a post to the SCG FB private member group, stating in part:

PROPAGANDA. I have studied the recent weekly posts, releases, enotifications, “news of the day” etc. from the BOD. My  conclusion was that I was witnessing a very slick and effective propaganda campaign.  (“Propaganda” is false statements, half-truths, omission of facts, and misrepresentations designed to produce a favorable attitude and mindset in the targets). What has been presented to the membership has been happy, smiling faces, eating good food at the Café, enjoying the club and sports amenities, and beautiful pictures of the landscaping. A picture of happy land and playing to the wishes, desires, and wants of the members.

All designed to elicit “what a great place this” and “what a great job the BOD is doing.”  I agree!  Meanwhile they have failed and continue to fail to address documented criticisms and charges of violations.  Completely ignoring these serious aspects of BOD duties and obligations under state law and the governing documents.  Will the new BOD follow in suit?  “For they are all, all honorable men.”

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Please feel free to provide posts on this open SCG member FB group: any  feedback, your views, any questions about me, who I am, what I stand for, or what I wish to accomplish. 

PLEASE ENTER MY NAME AS YOUR WRITE-IN NOMINEE FOR A CHANGE FOR THE BETTER: GEORGE K. STAROPOLI.

HOA management (BOD) is more than property management (CAM)

I continue to be baffled as to how real estate attorneys and property managers, unlicensed in most states, have been allowed by state legislatures to advise and dictate to HOA boards (BOD) on how to govern a community by an Association that  is very similar to a local government body.  Governing a community is more than managing a property in a subdivision.   

 Many other experts and authorities have attempted to explain this complex concept of “what is management”  — including the renowned Peter F. Drucker. (The Practice of Management and Management). My take is a simple, down-to-earth explanation as part of “Reorienting the BOD and its followers,” the first step in A Plan Toward the Restructuring the HOA Model of Governance. 

Management (noun) – Management is an entity — an organization whether a business, a nonprofit, an HOA, a charity, a club, a group, or a person. It applies to any person, or organization, or entity at all levels with respect to its level of authority and responsibilities — CEO, president, division director, department manager, supervisor, or committee chair. The difference in organizational type is related to their purpose and mission. Businesses  are to make a profit for their stockholders. Nonprofit membership organizations, like HOAs,  have a mission or goal as  laid out by the founders and initial directors that is designed to attract and maintain members — for $$$$$  — who identify with the mission.

Management (function) —  Management is a practice (as first described by Drucker in 1973). It’s an actual application by practitioners/managers — whatever the designation: manager, governor, administrator, board of directors, trustee, etc. — of the set of beliefs, principles, and values held by the organization. The quality and success of the management function is measured by its performance in attaining its mission, objectives, and goals. They may set by its constitution, charter, bylaws, Declaration of CC&Rs, or by department/section/committee descriptions.

Executive level management — at the state legislature through its lawmaking authority or at HOA board of directors level — has final and total responsibility for the successful performance of the organization and sets the mission, goals, conduct and operation of the entity. It has the duty to 1) set policy, plans, rules, regulations, controls, procedures, etc., and 2) organize and structure the entity. All in keeping with its powers under the legal documents and laws granting it the authority to so act.

The very first task for the BOD is to determine just what is the purpose of the entity, and what should it be. Once this reason for being has been determined and stated in terms that permit the evaluation of performance, a valid mission statement can be issued.  From the mission statement a single goal  or set of goals can be issued that permit a measurement of the entity’s performance.  Value statements can be adopted to guide the BOD and members with respect to acceptable means and methods for achieving the goals.

A mission  statement has to be operational; otherwise it’s just good intentions. A mission statement has to focus on what the institution really tries to do.” (Managing the Nonprofit Organization, Peter Drucker, 1990).

The mission statement by the HOA Management Case Study #1 subject, SCG for example, speaks  in the present tense using the word “IS,” making it more of a propaganda statement — it already exists or has already been accomplished — rather than a condition, an ideal,  to be achieved.  Consequently, SCG’s mission serves no value for the establishment of goals that can measure performance, leaving the HOA essentially without any direction.

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Cautionary note:

Management when it fails to abide by the authorizing documents and marketing materials that appeal to the wants, desires, and wishes of the members will result in members exiting  the organization, taking their future member donations, dues, fees, etc. with them. With businesses, except small, closely held businesses, exiting is a simple task of selling one’s stock and buying another.

HOAs are more like a small, closely held businesses where exiting is not a simple task primarily due to the need to find some other private buyer (investor) willing to ignore why you are leaving. The status and situation of members can be viewed as a form of indentured servitude: you can’t leave unless you have  money to leave (like having paid off your servitude obligation), or you die.

Consequently, management in membership nonprofit organizations, like local governments, must keep the members happy.  Any changes or  modifications to the purpose, or mission, or goals of the organization must consider  the effect on the members.  And must follow the law and the controlling documents – the CC&Rs in HOAs.  The BOD is not a free agent to do as  it pleases as if the HOA were its own private club.

Management Case Study #1 – update1

Events at the HOA featured in this study continue to unfold. The board has been silent since the Dec. 16 email from the president. A question was addressed to the Executive Administrator of CAM asking whether or not she was in charge. The general manager (GM) had quit and there was no announcement whatsoever as to the status of CAM. She was listed on the staff of CAM, without any statement regarding the status of the GM.

In 2 days of this writing, Dec. 30, the SCG will hold a planned Q & A session where members can ask the BOD questions, sort of a townhall meeting. Would you advise the BOD to hold the meeting? If so, how should it deal with hard questions concerning its past performance?

January 2022 will see the campaign and election of board directors, and the right of members to write-in names of members not approved or subject to the SCG election and voting process. The BOD controls and approves the selection of “candidates” and regulates their campaign procedures — can they speak at clubs, what can be said, failure to attend a meeting disqualifies a potential candidate, etc.

A majority of the directors will be elected at this time, as a result of resignations, permitting an organized membership to gain control of the board. As in the case of our national politics, should the old BOD deny the results — as it seems to be the posture it is taking — or accept the reality of the vote?

HOAs against protected member speech on social media

In contrast to the authoritative evidence supporting free speech for HOA members criticizing their BODs, the Tinnelly Law firm blog states up front in big letters, “HOA LAWYER BLOG.”  As for the content, the following quote sums up the view of the Tinnellys.

“The lack of regulation on social media communications can cause neighborhood tensions and smear the reputation of a community, causing a negative effect on property values.  This has led many homeowners associations to develop protocols and guidelines with regard to social media. “

(Some research shows Tinnelly is solid CAI with the owners, Richard and Stephen Tinnelly as members, as well as Director Acosta and article attribution to lawyer Kim.)

Read the full 4-page paper at social media free speech