Should we go with this, or should we go with that? The decision-making process for HOA Board Members is serious business. After all, running an HOA is a business which can experience financial gains and losses, like any other business.

Decisions made by an HOA Board greatly impact community members lifestyles as well, especially in regarding association fees, common area maintenance, architectural change requests, amenity access and more.

      

Table of contents

• 5 reasons why a decision-making process is important to HOA Boards
• Effective decision-making frameworks HOA Boards can use
  • Example: Decision-making using S.W.O.T
• Strategies for better Board decision-making

      

Therefore, having an effective process(es) in place by which the HOA Board makes decisions will help the Board arrive at actionable decisions, especially when guided by effective reasoning and parameters that so that decisions are more:

• Deliberate
• Thoughtful
• Goal oriented

So, what is needed? Let’s start at the beginning by examining reasons why having an effective decision-making process is necessary.

      

5 reasons why a decision-making process is important to HOA Boards

A lack of process often results in chaos. Whereas an effective decision-making process leads to:

   

• Clear understanding

More often than not, Board members must sort through emotional distractions, misinformation, too much or too little information, and actual facts to get to a decision. Meaning, it’s not always obvious what the decision is about and what it’s intended to achieve.

Whereas, using a decision-making process will provide clarity, helping to push past confusion and useless information to better understand goals and the necessary actions that need to be taken.

   

• Multiple vs. singular options

Having a decision-making process fully implemented for your HOA Board is important because each decision delivers outcomes, and those outcomes must be in alignment with the goals they need to achieve.

For example, if there are parking challenges at your HOA, such as guests parking for multiple days in the same spot and not moving their cars, the Board may decide that no overnight parking is permissible. The assumption being that is if the guest can’t park overnight they’ll leave and the visitor spots will be available the next day.

On the surface, this may seem like a good decision, but it leaves guests who must stay overnight, possibly to help a sickly relative who lives in the community, in a bad situation as well the relative who needs help. It also makes community members feel like that are limited to when they can have guests.

However, with an effective decision-making process, the Board can consider more solutions and better ones, such as:

• Property management software to monitor and create visitor parking passes for overnight stays
• Paid visitor parking over 24 hours
• Allot a certain number of guest parking passes per week, per community member so its fair.  
• Empower security to issue tickets for rule breakers

As you can see, there is just more than one solution, and a decision-making process can give you a greater perspective.

   

• A fair process

While a final decision may be the result of a vote or is made by the Director of the Board, often within a group decision-making dynamic, there can be one or two individuals with stronger personalities and louder voices who take over and/or persuade others based on their bias.

This is very frustrating for others at the decision-making table. Decisions should be made from the perspective of what is best for the community, not just what a board member wants.

When there is a process in place everyone can see and take part in the process to arrive at a decision without being bullied to a conclusion; and create a culture that involves the whole Board.   

    

• Examining consequences and rewards

When you use a decision-making process it should take you through the positives and negatives of the end result. Of course, some outcomes you can’t always predict, but your Board will be able to brainstorm a lot of possible outcomes—both positive and negative.

This is good as you’ll be able to anticipate negative outcomes and prepare for them, as well as try to minimize the negatives and increase benefits.

   

• Efficient use of time

We’ve all been there. Circling around an issue without arriving at a decision. Time is better spent when the decision is helped along through a process. By adding structure to decision-making, Board members can be arrive at decisions more quickly and in an orderly manner without getting distracted with elements that can bog down the process.   

As you can see, having a decision-making process(es) in place prove valuable to your HOA Board and the community.

So, what does a decision-making framework or process look like?

   

Effective decision-making frameworks HOA Boards can use

There are several decision-making type frameworks that can be used by HOA Boards. A Board can select one that best suits the present scenario and can change and employ others when desirable.

The following are just a few decision-making frameworks that will take the Board through the process of deciding.

   

SPIDER
This framework will help your board consider:

• Situation – What is the problem, what needs to be solved and why now
• People – Who is involved, who will be impacted and to what extent
• Ideas Decision – Brainstorm as many solutions as possible, extracting best possible solution(s)
• Explanation – Justify why proposed solution(s) is the best option
• Rollout – Plan what actions will be taken to implement the solution. 

   

S.W.O.T
A process that can help the Board arrive at a decision is by using S.W.O.T analysis.

• Strengths – Examine what is going well, what the positives are
• Weaknesses  – Examine what the shortcomings of a situation is and what makes the community vulnerable
• Opportunities –When, where and how can the community benefit
• Threats –What negatives can come about as a result of making a certain decision or not making it.

   

Agile

Agile decision making is used often when situations are changing and the decision-making process requires a level of flexibility.

• Open, frequent and transparent communication is a must; both verbal and written communication should be consistent and ongoing.
• Collaboration. Everyone on the Board is actively involved, sometimes put together to work in pairs to increase collaboration and regular meetings are scheduled.
• Pivot.  Agile decision-making embraces that the reality that as situations progress the decision made along the way may need to change and adapt and encourages adapting to what is needed at the time.
• Continuous improvement. Always look for ways to improve the deliverables based on decisions made along with continuous learning.
• Responsibility. Each board member is fully engaged in their tasks and the over all project’s goals and fully involved in their role.

These are just a few of the decision-making frameworks that are available. There are over 35 decision-making frameworks that can be considered and used if appropriate. 

Let’s see how one of these frameworks can be used by the Board to make a decision.

   

Example: Decision-making using S.W.O.T

In this example an HOA Board needs to decide whether or not to invest in property management software to better operate its community.  If the Board uses the S.W.O.T framework to make their decision it may look something like this:

Decision to be made: Should our HOA get property management software?

Context: The HOA has been considering investing in property management software and wants to consider the option at a high level. It chooses the S.W.O.T framework to help them see the big picture and which direction they should go.

Based on this S.W.O.T analysis above, the Board can better identify:

1. How investing in property management software would be a good decision
2.  Clearly justify the reasons for getting the property management software

In addition to using decision-making frameworks, HOA Boards can use other strategies.

   

Strategies for better Board decision-making

It’s a good idea that HOA Boards use tools and resources readily available to them. These may include:

Thorough policies
Policies that are vague or not well documented lead to confusion. Make sure your HOA policies are current and updated with amendments as needed. Decisions will be easier to make when based on clear, current policy.

   

Feedback and voting
HOA Board decisions should not be made in a bubble. Ask for feedback about decisions to be made about the community and give homeowners their chance to vote on an agenda item well in advance.

   

Digital tools
Time and access to information are always two important elements when a decision needs to be made. Both greatly influence decisions.  

For example, if a decision arises that needs to be made quickly then digital tools, like HOA software, can act as a hub for all information pertaining to that decision so it’s accessible those who need to have quickly. The information can also be distributed in real time to decision-makers, capturing their input and even their votes.

   

Correct data
A decision is only as good as the data/information its based on. Make sure there are detailed reports and data available when necessary to reflect and support the decisions being made.

   

Reflect

Finally, regular reviews should be taken of the Board’s:

• Decision-making processes. 
• Decision outcomes.

This look back will help the Board to see what it is doing well and what needs to be worked on.

   

Improved decision-making process for HOA board members means better community living

When a board of directors comes together to plan, manage and make decisions on behalf of their community they need as much assistance as possible. They are community members who have the best interests of the community in mind, but they still need help arriving at the best decisions possible.

Using decision-making frameworks can move the Board, as a group, through the process of decision-making; giving everyone a clearer path to arrive at a majority decision. It helps to remove emotional and domineering opinions and helps everyone to stick to facts.

This, along with tools to facilitate decision-making like data, reports, policies, feedback and digital tools helps your Board make reliable information-based decisions.