February 2022
Not all boards and board meetings are productive. Some boards are unable to make decisions in a timely manner. Important and unimportant items end up being deferred for weeks, months and sometimes years!
Unproductive condo boards can learn to avoid board paralysis. They can save their community further pain by understanding and dealing with their decision roadblocks.
Boards unwilling to make decisions or which take a very long time to do so are not clear about the importance of timely decision making, or simply fail to understand their role and how to act as a governing body.
The single greatest roadblock to effective decision making is lack of leadership. The President or a designate is expected to run meetings. Their role is to lead and provide focus. Once a matter is discussed a vote is typically called for. Fear of making a poor decision can be cause for infinite delays of indefinite length claiming “more information” is needed. It may be considered prudent to gauge resident views and vote in the least controversial way.
Some directors fail to understand their role is that of a trustee and fiduciary. They are expected to preserve, protect, maintain and sometimes enhance the property. It can be easier and safer to sit on their hands rather than act within their authority and duty of care to administer the property to the best of their ability.
When addressing board business certain failures are common.
Failure to understand an issue can paralyze a board that fails to obtain external consulting advice and act on information provided to them.
Unwillingness to accept or approve building-scale costs can paralyze. Individuals accustomed to home-scale expenditures are unable to effectively deal with the larger costs of maintaining or enhancing a high-rise community housing hundreds of people.
Recognize that “no decision” is a “decision” to delay or defer. It is a failure to accept the comfort of inertia over the risk of making a decision. It is a willingness to allow things to continue, no matter the outcome, rather than risk the unpopularity that comes with effective decision making.
Political repercussions are overwhelming. Nearly every decision is unpopular with some. Special assessments, raising monthly condo fees and enforcement of rules can be extremely unpopular. Individuals supporting unpopular decisions can be harassed by residents when walking the halls, checking mail or socializing.
Effective boards get in front of the issues presented to them. They are proactive in evaluating options and making decisions within a definite period of time.
Resources for condo boards, management and residents
- Toronto Condo News – This is what condo dwellers are reading. Stay current on all things relating to condo living and condo management. Free subscription at www.tocondonews.com/contact-us .
- Condo Archives – Comprehensive condo-focused library you can search for answers to questions about condo living and condo management. Access Condo Archives at www.tocondonews.com/archives .
- Condo Resource Guide – Vendors and service providers for condominium managers, condominium directors and condominium residents. Condo Resource Guide is Toronto’s #1 source for the Condo Professionals you need. Access Condo Resource Guide at www.tocondonews.com/condo-resource-guide/ .
