Talk, Talk, Talk

EVERY BOARD faces goverance challenges that board members are not familiar with. As managing agent, being well organized and able to communicate efficiently and concisely are key to helping boards make informed decisions. We basically play the role of the facilitator. That starts at the monthly board meetings. It’s incumbent on management to track all the different issues and problems that are going on at the building and distill all the information to make it easily understandable. That way boards will feel comfortable about whatever they decide.

It’s always beneficial when boards are able to communicate well with shareholders, which is why we encourage sending out periodic newsletters or memorandums. Sometimes board members prefer to prepare the notification themselves. Sometimes they’ll ask us to do the job and then review it before it gets sent out under our letterhead. 

As for the timing of your communications, it depends on the situation. If there’s an unusual or unique challenge confronting the building and it can’t be easily distilled into a simple one or two-page memo, my recommendation would be to hold a special meeting to discuss the issue so people can understand it and ask questions. On the other hand, if you’re doing a major capital project and know well in advance that it’s going to require an assessment, you should notify people about what’s coming down the pike so you can manage their expectations beforehand.