Not for Profit Governance. case.2 Essay Example
‘Not For Profit Governance Case 2’
Governance problems that exist within the association in terms of the five governance principles outlined by the Australian Sports Association
The outlined principles include; board powers, composition and roles, board processes, systems of governance, board performance and reporting, stakeholders reporting and relationship, responsible and ethical decision making. The problems facing the association relate to control of the sporting activities.
The first problem relate to board fights over the place to host national league games and regional champions. Owners of facilities are board members and offer incentives to the clubs so as to be elected. The desire to maximize their revenues motivates them to give clubs incentives so as to be re-elected by the clubs in order to have sports held in their sporting facilities.
The second problem relate to poor growth of the players at the community level. This is attributed to heavy investment at the national league team at the expense of the community level. Sports ball is an amateur and receives little TV time. There is little ground development as the association has only hired national league players on basis to assist in development goats .There is low investment in the community level as the association focus s on national league team.
The third problem relates to division and frustration in key issues. This is because of the board table voting. This compromises independence in decision making. There is lack of continuity in leadership as thee is low turnover at the level of board. Within a short period of 6 years, the board has had at least four CEOs. The forth problem is lack of skills and experience to run the board. There is lack of requirement for skills and competence to join the board. Influence and ability to fund clubs assists board members to stay ad win assignments .the fifth problem is lack f board in engaging in performance evaluation, strategic level discussion and development work. The last challenge is in relation to lack of financial health. There has been short falls in financing operating expenses. There is vested interest as board members are the ones lending facilities to the sports fraternity.
Recommended Changes to the voting structure of the Victoria Sports Association
The current voting structure is on the basis of ability to influence clubs through giving them funds to vote for them. There is no need to abolish the board table voting system. The ballot or secret voting will eliminate compromised voting especially in relation to key issues facing the association. Board members who have vested interest in the operations of the association should abstain to vote. The voting structure needs to be aligned to reflex proportion of shareholding by the clubs and not only the board members. Voting on the basis of the number of clubs a board member can influence defeats the essence of competence and skills in regard to the members of the board. For a board member to participate e in an election there is need for minimum professional requirement to inculcate skills in the management of the Victoria sports Association (Steadward, pg485).
Steadward, R D, E J. Watkinson, and Garry D. Wheeler. Adapted Physical Activity. Edmonton: University of Alberta Press, 2003
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