Boards & Committees

ROLE OF THE COMMITTEE

A club's management committee ("committee') is the governing authority responsible for overseeing the affairs of the club.

Effective governance protects the rights of club members and stakeholders and assists in achieving the continued growth and success of the club. A club that demonstrates good governance:

• develops strategic goals and direction;

• monitors the club’s performance to ensure it achieves its strategic goals;

• has effective financial and non-financial systems in place;

• complies with its legal and regulatory obligations; and

• acts in the best interests of its members.

The success or failure of a club largely depends on the vision, skills and diversity of its committee.

composition of the COMMITTEE

The composition of the committee varies between clubs and is influenced by:

• Legal requirements including the club’s constitution and purpose;

• Club size;

• Committee member competencies;

• Terms of office for committee members; and

• The structure of the club's membership.

Stable committees with long-serving, committed members will have the advantage of a thorough knowledge of the club and its mission. However, it is important that the committee represents and reflects the interests of the club's members and industry by injecting some new blood occasionally.

Building the right committee is one of the most important things your club can do to give it the greatest opportunity for growth and success.

COMMITTEE MEMBER COMPETENCIES

Clubs should adopt a structured process for committee member selection that takes into account:

• Alignment of skills with strategic direction;

• Value added to the current committee composition;

• Cultural fit with the committee;

• Time it will take to be an effective contributor; and

• Succession planning.

Building the right committee requires an understanding of committee member competencies, which involves consideration of each committee member’s experience, skills, attributes and capabilities. Committee member competencies encompass two distinct areas: technical competencies and behavioural competencies.

• Technical competencies are a committee member’s technical skills and experience (“what you need to know and are able to do”) such as accounting or legal skills, industry knowledge, experience in strategic planning and corporate governance.

• Behavioural competencies are a committee member’s capabilities and personal attributes (“how you apply what you know and your personal and interpersonal skills”) and include, for example, an ability to positively influence people and situations; an ability to comprehend potentially complex information; time availability; honesty and integrity; and high ethical standards.

All committee members need to have the ability to make points succinctly and effectively at committee meetings and not be either the “silent” committee member who never speaks or the “loudmouth” committee member who seeks to dominate all discussions.

Prior to nominating, electing or appointing individuals as committee members, members should:

• Consider what competencies and skills the committee, as a whole, should possess, recognising that the particular competencies and skills required for one committee may not be the same as those required for another;

• Assess what competencies and skills each incumbent committee member possesses. Since it is unlikely that any single committee member will possess all the competencies and skills required, the committee should be considered as a group in which each individual makes their own contribution;

• Consider the character of committee members and their fit with the current committee culture. Some attributes worthy of consideration include self-awareness, integrity and high ethical standards. Committee meeting dynamics will be impacted by the personalities and behavioural types present, so attention should also be paid to these qualities.

A Board Competency Skill Matrix can be employed to assess the committee’s capability requirements against the mix of current members.