At member-driven organizations such as CREB®, governance is a word that is often mentioned at meetings, in strategic plans and in member communications. What we don’t often hear are discussions about what the heck governance is, what it isn’t, and what good governance looks like. Most importantly, not much is said about why it matters to you, a busy REALTOR® out there earning a living.
Over the next several weeks, we’ll answer those questions and more in this series as we explore aspects of CREB®’s governance and how they affect you.
To break this down, we’ll start with something we all know and see. Naturally, when we hear the word “governance” our first thoughts go to how the government works (or doesn’t, but that’s another article). However, the term governance also applies to many different types of non-government organizations, from private companies to professional organizations such as CREB® to the charities that the CREB® REALTOR® Community Foundation funds and even the Foundation itself.
The CREA Leadership courses that are available to all members define governance as “the rules and practices by which the board of directors ensures accountability, fairness, and transparency in its decision making….The rules for governing are defined in the association’s by-laws and other governance documents.” At CREB®, the board of directors is elected by members, so you all have a direct role in the organization’s governance, too.
As an analogy, let’s take your brokerage. A good brokerage has strong, focused leadership whose vision aligns with the agents and staff who all call it “their” brokerage. The key right from the start is that you won’t have a strong culture and viable long-term outlook if the leadership is going in one direction and everyone else in another. There may not be elections, but agents and staff can and do vote with their feet.
The next thing you observe about great brokerages is that they have strong systems, policies and processes to keep things organized and efficient. You could say these govern how the operational affairs of the brokerage are managed or overseen by the people who are accountable. Although most people wouldn’t refer to this as brokerage “governance,” that is essentially what it is. Various levels of government also have oversight of the brokerage in the form of financial and other filings, which in effect measure whether the brokerage’s governance meets required standards in these areas.
Just like there isn’t one right way to run a brokerage, there is no definitive right or wrong way to do governance at an organization such as CREB®. Understanding how an organization’s governance works—and why it works that way—is the first step towards ensuring it is delivering what you need, whether it is your brokerage, your real estate board or any other organization in your life.
Over my 26-year career as a REALTOR®, I was a broker and I had brokers work for me. I always had the approach that I worked “at” a brokerage, and the broker was there to work for the agents. In the short time I was a broker, I quickly learned the importance of not only listening, but being open about the limitations our tiny brokerage had in serving our agents. Managing expectations is a challenge in every business and CREB® is no different.
Some of the offices I worked at in Airdrie were small, some medium sized and for a time, I was at one of the largest Calgary brokerages—believe me, I had thoughts on how well each was run or governed. The brokers I learned the most from, and who had the best operations, were extremely good listeners and even better at welcoming suggestions.
Listening is a key part of effective governance, as well as operations, and that will be the topic of my next article. In the meantime, does the analogy to brokerage operations help explain what the heck governance is, really?
I look forward to exploring the question: “What the heck is governance” with you in the comments below, at our events, on the phone or you can pop by my office in the SW corner of the main floor at CREB® Campus. Let’s get the conversation started!
Alan.Tennant@CREB.ca
403-461-2987
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