Define, measure, track, share, succeed.
Most business people have heard of KPIs or Key Performance Indicators and understand their value when it comes to evaluating success at reaching goals. But did you know that your community association board can use your own set of KPIs? It makes perfect sense, especially for those associations who view themselves as a business and have implemented many of the facets to running a company into their board processes. So let's take a look at the KPIs your association can measure and why they will be beneficial:
Depending on how often your board meets and the requirements you've set forth in your documents, measuring the number of meetings you've held during a time period (monthly, bi-monthly, etc.) is a good KPI. You could further refine your meeting KPI to include:
- How many regular meetings are held and how often?
- What percentage of the board is showing up (defining first the ideal % of attendees)?
- Are meetings starting and ending on time?
- Did the management report get distributed 3 days before the meeting?
- Were elections, budgets, planning, and reporting documents done on time?
- Do you have a three year plan?
All of these aspects of meetings can be measured, recorded, and discussed to determine if the board meetings are effective, if attendance is the desired percentage and if agendas and other necessary documents are being created on time and used properly.
When it comes to your community as a whole, it is a good idea to look at and measure certain key facets to ensure that participation is at the desired level and that the HOA is responding to the needs of the residents appropriately. Some indicators to look at include:
- Are people volunteering to run for office?
- Do you have more than one candidate for each office?
- How many surveys were conducted and how many did you get back?
- What kind of feedback was received?
- Are homeowners comfortable sharing ideas?
Another important responsibility of the board is to ensure that the association is practicing sound financial judgment and managing the budget and other financial aspects of the community effectively. Important KPIs that should be measured include:
- Percentage of financial reports delivered on time
- Cycle time to perform periodic close
- Accuracy of financial reports
- Net income
- Percentage of delinquent payments
- Average number of tenants managed by property manager
Implementing your KPIs
KPIs are only useful if they are implemented properly. The key to this is to ensure that the data is measured, tracked, and that positive results are rewarded. It's also imperative that data is gathered and analyzed accurately. Following the steps below can ensure that you are able to use KPIs to improve results in your board.
When you're ready to start determining your board's KPIs, get key individuals involved right away. Including them in the process will ensure that everyone is onboard which increases the likelihood of success.
Whatever aspects you intend to measure, make sure you assign someone the task of conducting measurements either through surveys, ratings, or other accurate measuring format.
Track and distribute
Tracking and sharing the results of your measurements is key to your success when it comes to using KPIs. This should be ongoing and consistent so there's no slippage in positive behaviors.
Incentivize behaviors that drive KPIs
Another key aspect to KPIs is ensuring that you offer an incentive for achieving the desired results. Be sure to recognize and properly reward those behaviors that are producing positive results and make your recognition meaningful and appropriate.
Revisit and revise
Once you've implemented your KPIs and had some time to evaluate how they are working and the results that are being achieved, it is always a good idea to go back and review what you're measuring to ensure they are effective. KPIs do not have to be set in stone and can be revised or tweaked.
Running your association board can be easier, more effective, and enjoyable if you follow these tips and remember to view yourselves as a business. When you implement KPIs, you'll find that getting results that benefit the way the board and the community are run is easily achieved.
For more useful information of matters pertaining to your association board, get in touch with us. PeytonBolin specializes in Community Association Law and provides a myriad of services to assist you in all matters related to your board.