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14 THE CHICAGOLAND COOPERATOR —FALL 2019 CHICAGOCOOPERATOR.COM BOARD OPERATIONS Board Optics The Perception of Performance BY MIKE ODENTHAL Community association and co-op positive results from the board’s endeavor. boards typically consist of elected volunteers whose job is to serve the best interests of the community in day-to-day decisions both big Thomas O. Moriarty, a principal at the law ers, owners nearly always perceive that as and small. In an ideal world, every board firm of Moriarty Troyer & Malloy, which negative. “While there are always exceptions would live and die by its fiduciary duty, mak- ing well-informed choices that not only keep chusetts. “While perception of performance attorney-client privilege, for example -- or its community or building solvent, but also alone is obviously not enough to deliver because statutes may prevent the disclosure maintain a pleasant environment in which results, results alone are not enough to en- to live. But would even that ideal scenario sure contentment among unit owners. The other circumstance it is almost always bet- be enough? If a board is doing all the right fact of the matter is that unless a board has ter to communicate as much information as things but fails to communicate the hows systems in place to ensure that unit own- and whys of its decisions to its constituents, ers believe they have a voice in the process the owners want to hear. Reasonable unit will those decisions be received approvingly? of governance, those owners may never be owners will understand that not all news is Truth is, in addition to making good happy with the results. In addition, if the ac- decisions, it also falls to the board to com- municate those decisions – as well as how transparent, unit owners may not even be they have more accurate and reliable infor- they were reached - to its community in a aware of the issues the board is confronting mation, good or bad.” clear and digestible way. The reasoning for —never mind whether the board has done a this goes beyond just getting reelected; to a competent job pursuing resolutions. diligent and capable board, optics may seem performative—but they’re actually a crucial and expect that when they buy a unit, they methodology. “It’s essential to pay attention part of being open and transparent with the become members of a self-governing asso- residents that board represents. A certain ciation,” Moriarty continues. “While they the future,” warns Mark N. Axinn, a partner amount of marketing and salesmanship is of- ten needed to get buy-in from the folks most they nevertheless have an important eco- directly impacted by a given board decision. nomic and personal interest in how the reviewed by a future board, it should be clear A board that does the right thing without board conducts its business. A unit owner what the people at the time were consider- showing its work can still face backlash from who cannot obtain enough information to ing, and why a particular decision was made. residents who interpret the board’s discre- tion as secrecy, or who don’t see immediate board’s decision-making is not going to de- The Messaging Matters “Optics are extremely important,” says fail to communicate their process to own- has offices in Boston and Braintree, Massa- tions and deliberations of the board are not with board operations and governance if “Knowledgeable unit owners understand by being explicit with its decision-making might not volunteer to serve on the board, with the New York City-based law firm of reasonably assess the merits of his or her Records should be kept in such a manner velop confidence and trust in that board. This can lead to frustration and skepticism.” Moriarty goes on to say that when boards based upon the need for confidentiality -- of certain information,” he says, “in every possible, even if the information is not what good news, and they will be more content A current board can make association business easier for its eventual replacement to the details, or there can be problems in Brill & Meisel. “For example, when files are that someone who is not familiar with an is- sue can easily ascertain what happened and why certain decisions were made.” According to Jacqueline Abraham, Re- gional Director for Lieberman Management Services, which has offices in Chicago and Elk Grove Village, Illinois, a resident will occasionally run for the board with the in- tended goal of improving its optics. “Once elected, these board members realize that there is a need for greater transparency, and make efforts to steer the other members to communicate more with the community,” Abraham says. “This could mean forming a committee to create and send a monthly or quarterly newsletter, sending meeting min- utes to owners electronically immediately following a board meeting, installing a bul- letin board in the common area on which they’ll post community updates and notices, or utilizing a community website to store documents and share information.” Backlash For a board, neglecting optics and ignor- ing the public relations aspect of its job can have abject consequences. “Boards often forget the messaging aspect inherent in getting information to owners before a new policy takes effect,” notes Ax- inn. “This is especially true if there is a new restriction or a new charge being considered. For example, if a board decides to imple- ment a fee for subletting, it is important to convey to the owners that \\\[the purpose\\\] of the fee is to raise funds to help limit future maintenance increases.” Different states have different laws con- cerning how information can be distributed to condo or co-op residents; some allow for electronic communications, and some re- quire actual hard copies to be sent via reg- istered mail or hand delivered. Regardless of the rules where you live, it’s important to note that impersonal methods of outreach – like email – should not be a substitute for actually interacting with constituents in per- son. “Email should not be used to eliminate or avoid discussion at board meetings,” warns Allison L. Hertz, a senior associate with Kaye Bender Rembaum, a law firm with locations in Pompano Beach, Palm Beach Gardens, and Tampa, Florida. “In most circumstances, board meetings are required to be open to members \\\[so\\\] the members of the associa- tion are able to hear how the board makes continued on page 36