"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Friday, February 4, 2011

What motivates your board members decisions?

Some may see previous posts as ranting.  I see it as releasing frustration caused from a board who doesn't listen to reason, logic, professionals, owners when the facts are in front of them.  For that reason, they deserve to be used as an example of how personal obsessions cause narrow minded, unreasonable, & illogical decisions which is behavior more representative of a child assigned to be a hall monitor, verses a responsible adults.  High School student councils function more professionally and efficiently than most HOA boards.  I would think that the embarrassment alone would stop the behavior, but it doesn't. 

So we have to approach it from a different angle and recognize how individuals think.  Being aware of the type of behavior to watch out for in others and themselves we can have a better understanding about what motivates them.  In using the stupidity of my HOA boards actions as examples, of how dysfunctional personal agendas cause a board to become and prevent a community's progress. I hope it causes more people to want to serve on HOA boards for the purpose of returning morality, values, honesty and action based on the greater good of the whole, back to communities.  As our focus on environmental issues and cost savings measures change so does our way of thinking about things.  We cannot change one without the other following. 

This knowledge can help to put struggling associations on the path to success and set the standard by, which all other communities are judged.  As volunteers, I believe that the duty to them should be held to higher standards, because their actions directly affect the affordability of the community.  Just because they are volunteers does not mean their ignorance should grant them immunity or allow them to act like a child with ADHD.  A judge once said (cannot remember who said it), "ignorance of the law is no excuse."  Meaning there is no such thing as an innocent mistake when acting as a fiduciary for an entire community.  After all you did volunteer.  That is just my belief.

  
I always saw board meeting being run like it was a think tank with respect to maintenance challenges.  Everyone gets together and shares their knowledge and experiences with similar situations.  Then after consulting professionals and physically looking at all the existing conditions all the feasible suggestions are put together to create several different possible solutions.  At which point costs associated with each option are then compiled, then analyzed, and the best option selected.  If the first option doesn't work then you either go to the next or modify the first one based on professional recommendations if possible to fit the situation.  Since every situation is different there isn't a cut and dry solution that can be applied to every situation, even if it appears to be the same.  Then again, I'm use logic, reason while visualizing the steps and final outcome and am a collaborative type decision maker when it comes to business.  Sometimes it take talking it out and hearing it verbally to realize it will not work or to perceive possible problems that may have to be over-come.  Plus, I don't know everything and there may be something I missed or failed to consider.  We are human after all with some being right brained and some being left.

We all base decisions on emotion mainly in our personal lives.  For some decisions are only based on emotions, social needs, and personal desires.  There is no logic or reasoning behind it thus no business judgement used.   A good example of basing decisions on emotion is from an essay I recently discovered.  It was about a women who loved something so much that she spent as much money as she could on it. Saying that she just loved it to much.    Laurie Notaro compared the emotional high of spending money on an obsession is putting cocaine on sale.  She became aware of her obsession when a package was delivered she did not remember making it made her ill resulting in her to become aware the obsession had gotten out of control.  Laurie writes in the essay, "So, when you take someone who loves something so much that her inappropriate emotional response to it nearly causes her to levitate, and then tell her she can make a dress out of it, the game is over."  or tell her she can spend community money on it, the game is over.

The act of spending money, produces an emotional response in some women and men and causes an endorphins rush.  You know, those people who buy things that they never use or bought because it was on sale.  For me, it's gadgets.  Going to the hardware store and all the neat gadgets which have no usable application since I'm not a construction worker, etc. brings me such joy.  Luckily I've always just been a looker and don't ever spend money on them.  Others aren't so lucky and its important to recognize them. 

Take note when a project is completed at the overall improvement to the entire picture.  If little is noticed point it out to the group.  Everyone should be made aware of it so it can be recognized in the future.  This does not mean stop listening to the emotional decision maker.  They still have something to contribute and they aren't wrong about everything, they just need help to see the big picture.

These are the people must be limited or weeded off the board.  Not because they are bad people or are in someway not qualified.  It's the inappropriate emotional response to spending other peoples money that violates the duty to protect association assets that is broken.  Since the obsession results in wasted money then may result into higher dues & shortfalls in the reserve fund assets and the ownership is no longer protected. 

Emotional based decisions will lack logic, be made into a social issue, or said its old or dated and not because of an obvious need.  They may compare the community to another, always trying to "keep up with the Jones'".  They may even press for decisions with little discussion or seek a conditional approval then ignore the conditions.  The obsession may be so great that they go so far as to destroy it to force the need.  Because the obsessed person just needs to fulfill their needs to achieve the emotional high, costs will get out of control with very little impact on the entire community.  In most cases the element will be in the very same condition as it was to start with in a very short time. Don't get me wrong, things need maintenance like a new coat of paint, to hide imperfections & give the appearance of being in good condition.  Thus, causing one to use appearance to judge it's value, except common elements have no monetary value like a house does.  It's like a public pool owned by the city has zero impact on the sale price of the home.  It only serves as an example of cleanliness.

This type of person will have spent many many months researching, talking to vendors, picking out tile, etc. without even being on the board.  The obsession becomes so great that they will not understand or realize that the project does absolutely nothing to increase the value of anything.  Property values are not based on the condition of a pool bathroom or shower that should not be seen from any home.  Allowing homes near the pool area to use the pool as a means of increasing their property value leads to this kind of obsessions.  The only common property in an association which will affect property values is the landscaping in front of the home or immediate surroundings.  The condition of the streets, health of the reserve fund, conditions of the governing documents, how enforcements are handled, & conflicts between owners and the board. 

 If you can stay calm, listen, & ask questions you can identify them the kind of thinker they are and what motivates them.  Asking a few easy questions is all it takes to even make them realize that its a personal want not a need.  

Ask about alternatives; such as cleaning or resurfacing without replacing.  Ask about the cost of alternatives and why they are not an option.  In most cases this will show that the intention and if a real need exists.

Some people have almost an auto response to questions.  The responses are learned from experience.  They are destined to repeat history over and over again.  They figure if it worked once it will work again even if the conditions changed or not.  Sometimes theses types of thinkers are so programmed by previous experiences that they refuse to recognize other ways of doing things.  They try to use the one size fits all approach to everything.  For example, one word can have different meanings depending on the industry or context in which the word is used.  However, this type of thinker will take one meaning from one industry and apply it to all situations.  Not only does this confuse people, but it creates conflict and frustration among people.  This is why we have to listen to what people are saying closely.  It's kinda like the state saying after budget cuts they filled a short fall in budget with a 600 billion dollar loan.  No they did not! They created a 600 billion dollar bank loan or liability and borrowed who knows how much from Medicaid and Social Services.  Robbing Peter to pay Paul, digs the hole deeper when you already robbed Paul.  Now you get to pay the loan plus pay back the other services.  If our government can exist that way then why cannot we?  It seems to be HOA BoD thinking seems to be the emotion based decision makers thinking too. 

They see no reason why it would not solve the same kind of problem over and over and over again just because it worked once. They tend to be stubborn and are known for forcing something to work verses doing it a different way or admitting to defeat.  This kind of person will waste money in a different way from the obsessed person.  They tend to waste money on repairs which may look sloppy, is a short term fix, waits to long to replace elements causing the price to increase, or consistently repairs an item instead of replacing it.  This kind of person, you have to literally prove it to them, because they are just so stubborn.  Then make a point of pointing out that it was successful and showing the impact made on the whole. 

If they still resist then it wasn't the solution they had a problem with it was that they just didn't like what it would look like or thought it was too costly.  Oddly, some people say they don't like something, even if they really love it, just because of the cost.  It's one thing for someone else to mess with your head, it's another to mess with your own.  I'll let you draw your own conclusion on this part.


Provided that the board is a good mix of all the above types of decisions makers.  With nobody trying to pull one over on the others and are honest people without any personal agendas.  Then it can work.  I would still suggest weeding out the one obsessed with spending money.  These people can go find someone willing to let them decorate their home and design their landscaping.  They can also do their own home and landscaping over and over again to fill the need.  Using the association to satisfy an obsession is dangerous and opens the community to liability.  Plus the board has a duty to protect community assets (money, property, owners, values) and it includes protecting against losses.  There is also the issue of the lowered property values due to foreclosures making any large price tag projects unprofitable.  The amount of return to the ownership for landscaping the entrance or anything not directly in front of an owners home at the time of sale.  Will do nothing to increase property values for the association.  We really don't care about the appraised value of the common areas because they cannot be sold!  

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