Las cruces first planning sessions

LCAR Strategic Planning 2014: JWL Associates

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Organizational Development & Strategic Planning Project

Best Practices Briefing Session

Goals for this Goals for this meetingmeeting

• Discuss the project, timeline, & deliverables

• Review and discuss trends that are important to our plan & leadership

• Discuss association development and exceptional Realtor association practices

• Have some fun and learn from one another


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The Capacity The Capacity AssessmentAssessment

• Organizational Capacity Building: Actions that improve association effectiveness including organizational and financial stability, program quality, and growth.

• 5 Elements:o Leadershipo Adaptabilityo Managemento Operationso Technology


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The Result?The Result?


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A GREAT Organization


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• Transformational governance

• Diversified funding

• Partnerships and regionalization

• Professional development

• Expanding Membership Structures

• Focus on serving members


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Boards of Directors:

• Foster and engage in breakthrough thinking that embraces emerging trends/developments

• Past focus on individual mission & survival give way to focus on shared vision-meeting community need

• Must be willing to ask the tough questions vs. acceptance of status quo


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• Create a culture of inquiry to create new models and solutions

• Recognize governance is a performance issue-legal and fiduciary requirements still apply, but only as a starting place

• Homogenous boards have enormous disadvantage to meet trends and demands-develop cross-sector and multifaceted communication skills

• Re-visiting term limits and board composition


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• “Old” sources of power, having control over information, disappear when that information becomes largely free

• Mutual back scratching replaced by dynamic groups committed to sharing power and knowledge

• New forms of relationships emerge or risk isolation and lack of resources

• Well designed strategic partnerships will maximize and leverage resourcesLCAR Strategic Planning 2014: JWL Associates

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• Fosters culture of inquiry• Standard practice in other industries• Helps boards gain expertise in their position• Helps staffs gain expertise to work the

association business model• Gives place to discuss complex problems• Get ideas for innovative solutions• Leverages shared information and ideas


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• Better meet member need/the mission & give context to work

• Alignment between mission, organizational capacity and capital that ensures continuation of the work, competency and impact and opportunity to grow and scale

• Steward & leverage community resources: work as efficiently, effectively, affordably and with least environmental footprint as possible


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• Strategic structuring/restructuring• Revenue diversification• Professional development in financial

management and capital structures• Professional development in technology &

evaluation to be a performance driven organization


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Organizational Life Cycle Stage Characteristics

Conception/ Infancy Voluntarily coming together to solve a problem; high energy & enthusiasm

Infancy Founder in charge; work expands beyond what the founder can do

Puberty Org. expands but is awkward in dealing with coordination & external affairs; professional management emerges

Young Adulthood More formal management, policies, and procedures; emerging politics

Adulthood Mastering environment; serving clients; established management;

New ideas contemplated; high energy; risk- trying to be everything


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Organizational Life Cycle Stage CharacteristicsLate Adulthood Excitement beginning to wane;

Past valued over innovation;

Complacency; no sense of urgency or need

Old Age Diminishing ability to serve others;

Lack of cohesion among leaders;

Little energy available for renewal and reversal of situation

Revitalization Revitalization of mission; re-defining service niche


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Where is the Las Cruces Association of Realtors in its life cycle?

What does this mean for its leadership?


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What major challenges will the Las Cruces Association of Realtors face over the next few years?

How will its leadership need to change to address these challenges?


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• Ultimately…EVERYTHING!– The board of directors has legal responsibility and

authority for everything the organization does.

• Accomplishes most daily activities by delegation to staff and volunteers.

• Mission development, policy, oversight and planning cannot be so easily delegated.


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There are three broad “legal duties” that form the standards of conduct that all boards of directors are expected to adhere to:

– Duty of Care– Duty of Loyalty– Duty of Obedience


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The level of competence that is expected of a board member.

o Commonly expressed as the duty of “care that an ordinarily prudent person would exercise in a like position and under similar circumstances.”

o This means that a board member has a duty to exercise reasonable care when he or she makes a decision as a steward of the organization.


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The board member’s standard of faithfulness.

– A board member must give undivided allegiance when making decisions affecting the organization.

– This means that a board member can never use information obtained as a member for personal gain, but must act in the best interests of the organization.


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A board member’s obligation to be faithful to the organization’s mission.

o They are not permitted to act in a way that is inconsistent with the central goals of the organization.

o Adhere to public laws and organizational policies.

o Members’ trust that the organization will manage donated funds to fulfill the organization’s mission.


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Duty of Confidentiality – Board Members must handle organizational

information with discretion

Duty of Transparency- Reporting & communication to members- Community responsibilities


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1. Determine the organization’s mission and purpose. Performance Goal (Recommended Practice) - At least every two years.

2. Select the chief executive. Performance Goal (Recommended Practice) - Establish an organizational transition plan.Conduct succession planning.


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3. Provide proper financial oversight. Performance Goal (Recommended Practice)-

Annually, the board should review and approve an annual budget for the organization.

Routinely review appropriate financial reports

4. Ensure adequate resources. Performance Goal (Recommended Practice)- Conduct financial forecasting.

Identify financial needs resulting from strategic plan.


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5. Ensure legal and ethical integrity and maintain accountability.

Performance Goals (Recommended Practices)-

Realtor Directors are responsible for making decisions in the interest of the organization.

• Board role description• Establish policies


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6. Ensure effective organizational planning. Performance Goal (Recommended Practice) – The board should play a leading role and make the strategic plan a “living document,” by using it to guide their on-going actions and priorities.

7. Recruit and orient new Board members. Performance Goal: Systematic Leadership Identification and Development Program.


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Assigned Duties Ten Basic Responsibilities

8. Enhance the organization’s public standing. Performance Goals: Proactive Legislative

Department, Competent Public Relations9. Determine, monitor, and strengthen the

organization’s programs and services. Performance Goals: Strong and competent

administrative department. 10. Support the chief executive and assess his or

her performance. Performance Goal: Annual reviews, personnel policies, legal compliance.


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Process ToolsBrainstorm possibilities, evaluate org. assets, develop criteria for

successful social enterprise, rate options Revenue Diversification Process developed by Fieldstone Alliance, NorthSky approved administrator

Develop business model for each social enterprise optionCFNE/NECE Business Planning Tools-in NS Resource Center

Determine legal and tax implications-strategic structuring or restructuring Lawyer, CPA-bring outline of business plan

Better the information-more tailored the advice

Launch social enterprise: anticipate start up characteristics Utilize internal systems and tools and templates in NS Resource Center to minimize start up needs

Operate-evaluate-modify Evaluation tools, strategic initiatives process

• Deliberately create a culture of inquiry to pursue new models and solutions

• Stop looking in rearview mirror/ set up GPS• Recognize governance is a performance issue-

legal and fiduciary requirements still apply, but only as a starting place

• Pursue diversity in board composition• Develop succession plans• Adhere to term limits, position descriptions,

and board policies


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How to be a “best practicing” Board?

Next StepsNext StepsGovernance Briefing Session

Organizational Capacity Assessment ReviewBegin planning—Mission Statement and Goals

MLS Mission and Business Plan Strategies

Consultant offers draft of plan. Complete Plan Review, submit to Board of Directors Directors implement and evaluate progress


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MLS SessionMLS Session• Review yesterday• Capacity Survey• Biggest Challenges• Mission Statement• Business Model• Develop Strategies• Consultant Drafts Plans• LCAR reviews, adopts, implements


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Capacity SurveyCapacity Survey


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Highest MarksHighest Marks• Leadership roles are clearly defined• Board appropriately sets governing policy• Association governance structure is clearly defined

• Almost there:o Physical space is suitable for current and future

association needso A cooperative relationship between state and national

associationso Legal support is readily available


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Lowest Marks—Professional Lowest Marks—Professional

Staff and LeadersStaff and Leaders• Staff actively participates in decision-making

• A professional development plan is in place for Board and staff

• All volunteer roles have clear written position descriptions and expectations

• All volunteers are trained before they begin working


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Lowest Marks--Lowest Marks--GovernanceGovernance

• LCAR and SNMMLS have clear mission statements

• The association has a compelling vision• The vision is reflected in clear goals• Decision-making processes are open and transparent

• LCAR and SNMMLS has whistle blower and conflict of interest policies in place


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Lowest Marks—Lowest Marks—Communication and Communication and

PRPR• The association has an external communications program.

• There are regular external communications such as press releases, news conferences, social media

• The association uses high quality marketing materials for external communication

• The association is viewed as a community leader

• Website visitor statistics are captured and reviewed on a regular basis by staff


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Lowest Marks—Fiscal Lowest Marks—Fiscal Management 1Management 1

• An annual work plan guides the achievement of the goals and objectives of the association and the MLS

• The decision to use volunteers for projects rather than paid staff is based on cost benefit analysis

• The association and MLS have sufficient financial resources to meet the goals

• In addition to member dues, the association implements sustainable income development

• Leadership regularly identifies and assesses revenue-generating activities


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Lowest Marks—Fiscal Lowest Marks—Fiscal Management 2Management 2

• When revenue-generating opportunities are identified, business plans are developed

• Leadership regularly identifies and assesses opportunities for various types of partnerships with associations and businesses

• Financial accounting records are maintained and easily available to members


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What members and What members and leaders donleaders don’’t knowt know

• Does LCAR and the MLS have a clear purpose and mission?

• Does the association have written policies and procedures for personnel, operations, and volunteers?

• Is the BOD meeting attendance consistently strong?

• Are BOD and Committee meetings well planned and purposeful?

• Does the association have an external communications plan?

• Is strategic planning a regular activity?LCAR Strategic Planning 2014: JWL Associates

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What members and What members and leaders donleaders don’’t know t know

22• Is there an annual work plan to help the association and MLS move toward its mission?

• Is the staff personnel records and employer-employee requirements effective and legally adequate?

• Do volunteers have clear job descriptions and are they well trained?

• Are volunteers used after a cost benefit analysis?

• Does the association and the MLS have adequate funds to achieve the mission and goals?


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33• Do we have sustainable income development in addition to dues?

• Is the association/MLS insurance coverage regularly evaluated?

• Does LCAR and SNMMLS produce regular financial reports comparing actual and budgeted expenses?

• Does the association follow accepted financial control procedures?

• Has the association met mandated procedures from IRS


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44• Are our financial and accounting records maintained and easily available to members?

• Does the association participate in regional or state policy decisions?

• Do we monitor statistics on visitors to our website?


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Final Comments from Final Comments from Survey ParticipantsSurvey Participants


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Mission StatementMission Statement


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Vision: If we Vision: If we achieved our achieved our mission….mission….


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Business Model Business Model StatementStatement


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GoalsGoals


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Strategy ComponentsStrategy Components• Clear Statement of

strategy• Strategy Manager (name)• Timeline for benchmarks

and completion• Resources needed


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Strategic PlanStrategic Plan• Mission statement everywhere!• Use the strategy screen• Strategic thinking on every agenda

• Plan reports at least quarterly• Annual Work Plans• Communicate!


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LCAR Flow ChartLCAR Flow Chart


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MLS Flow ChartMLS Flow Chart


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MLS Committee WorkMLS Committee Work• Rules/Enforcement• Policy• Vendor relations/contracts• Finance/Business Administration• Governance• Member Service• Public Image


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Documents

Las cruces first planning sessions