What makes a great Board member? Board Orientation 2018 Part 1 What makes a great Board member?

Agenda What is ABC? What is a Board? What does a Board do? Board Structure Board Dream Team Board Duties ABC’s purpose Strategic Plan Chapter Operations Finance

Principles of Merit Shop What is ABC? ABC is a 501(c)(6) trade association that is chartered as a chapter of the National ABC association. Principles of Merit Shop

What is a Board? The Board of Directors governS the association according to the bylaws.

What does a Board do? Sets policy Sets direction/strategic plan Hires President & CEO Establishes a balanced budget Has fiduciary responsibility What does a Board do?

Governs but does not manage day-to-day operations Board of Directors

How is the CFC ABC Board structured? Board of Directors Five Officers Immediate Past Chair Twelve Directors Four Supplier/Associate Directors Outlying Area Directors Advisors to the Board Treasurer General Council

Board Structure Officers / Executive Committee Chair Chair-elect Vice Chair & Secretary Vice Chair Vice Chair – Supplier/Associate member Immediate Past Chair

Board Structure Directors Advisors to the Board – At Large members (12) – Associate/Supplier members (4) – Outlying county members Advisors to the Board – Treasurer – General Counsel

Board Organization Board of Directors Executive Committee Membership at Large elects Board of Directors Executive Committee Chairman of the Board Chairman-elect Vice Chairman & Secretary Vice Chairman Immediate Past Chairman (not elected) Advisors to the Board General Counsel (Attorney) (not elected) Treasurer (Certified Public Accountant) Directors at Large Twelve At-large Directors Four Supplier/Associate Directors One Director may also be elected from each Outlying County (Brevard, Lake, Volusia, and Osceola Counties) President & CEO Board hires

Board Term of Office Board of Directors Executive Committee one year term of office Treasurer (Certified Public Accountant) one year term of office Directors three year terms, which are staggered Four at-large Directors 1 year remaining Four at-large Directors 2 years remaining Four at-large Directors 3 years remaining Two Supplier/Associate Directors 3 years remaining Two Supplier/Associate Directors 1 year remaining One Director may also be appointed by the Board from each Outlying County (Brevard, Lake, Polk, Volusia, and Osceola Counties); to serve annual terms

The Board / CEO Team The Board sets strategic policy and direction, based on mission The President & CEO makes it happen Honest and open communication is a two-way street, are necessary for the team to work well together

The Board Dream Team Knowledge & experience Balanced membership Think strategically Set expectations for success Hold each other accountable Visible leaders

Board of Directors’ Duties & Responsibilities

Follow the Law & Rules Federal and State laws Chapter Bylaws Policies and procedures Follow confidentiality policies Anti-trust policy Anti-discrimination policy Conflict of interest policy Whistle Blower policy Document retention policy Legal advice should not be ignored

Accountability breeds response-ability – Stephen R. Covey Responsibilities are in place for accountability. Accountability is critical for achieving winning results. Accountability breeds response-ability – Stephen R. Covey

Board Responsibilities Be informed – Mission & Purpose Services Programs Plan & Policies Strategic planning Ensure adequate resources Attend all scheduled board meetings Review materials prior to meetings Fiduciary responsibility

Fiduciary Responsibility Care Loyalty Obedience

Duty of Care Be active in organizational planning and decision-making. Exercise reasonable care in making decisions for the organization.

Duty of Loyalty Never use information gained through your position for personal gain. Always act in the best interests of the organization. Avoid conflicts of interest or the appearance of conflicts. Follow ABC’s ethics policies.

Duty of Obedience A board member must be dedicated and knowledgeable to ABC’s mission and goals. Make sure ABC is abiding all laws and regulations.

Why is ABC here? Core Focus Purpose: To create common community success Our Niche: Through advocacy, education and connectivity Why is ABC here?

Target Market Demographics commercial construction contractors 20+ employees over $3 million in annual revenue who are seeking or doing business with ABC members Marketing Strategy

Marketing Strategy Target Market Geographics located in or doing business in the five county areas around Orlando Orange Seminole Lake Osceola Volusia Marketing Strategy

Target Market Philosophical community minded believes in free enterprise produce a quality service have merit shop mentality get involved gives back to the industry Marketing Strategy

Marketing Strategy ABC Uniques Connections Education Protection networking Education industry specific workforce development Protection protecting your business Competition offering tools and resources for competing Help increase profitability Marketing Strategy

Strategic Plan Focus Target Market Connections Education Protection Competition Target Market

Strategic Plan

Assess where the organization is. Define goals for where it should go. Strategic Planning Assess where the organization is. Define goals for where it should go.

Chapter Operations Things are accomplished through committees and staff. Committees and staff are extensions of the Board, both doing work for and reporting to the Board.

Why Committees are Essential CFC ABC Board Orientation Why Committees are Essential The Board cannot do everything themselves Involve members in development in delivery of services Engage members Represent member opinions Opportunity for interaction Forum for presenting multiple points of view Training ground for future leadership

Types of Committees Standing Committees are specified in the organization’s By-Laws: Nominations Finance & Audit Investment Workforce Program & Service Committees have regular members & board members Short term or on-going Task Force Single task Short term

CFC ABC Board Orientation CFC ABC Organizational Chart 2019 Board of Directors Business Development Legislative Affairs Training & Development Membership Governance Business Development Legislative/PAC ABC/UCF Student Chapter Membership Development Finance Excellence in Construction ABC of FL Safety Nominations Golf Workforce Poker Run Young Professional Programs & Events Reference – C –

Finances Income Expense Financial Health $

$ Income Membership dues Program fees Sponsorships Donations Fund raising activities Rentals and leasing income Product sales Investment income $

$ Program Expenses State and National dues Educational program expenses Meetings expenses Publication expenses Cost of goods for resale $

General & Administrative Expenses Personnel Travel, Meetings & Conferences Communications Expense Occupancy Expenses Office Expenses Other G&A Expenses $

Other Expenses Depreciation Workforce Contributions $

$ Financial Health Profitability Assets & Liability Membership Retention $

$ Profitability Non-profit is a tax status Break even or surplus Balanced budget $

$ Assets & Liabilities Cash = $900,000 ABC owns building and land Fixed assets = $1.7 million Total assets = $2.9 million Liabilities = $660,000 Retained earnings $2+ million $

Membership Retention in Units

$ Financials Fiscal year – January 1 through December 31 Accrual Method Monthly financials Balance sheet Profit & loss compared to budget Profit & loss compared to previous year CPA Review/Audit $

Board Member Success

Board Member Success What ABC is What a Board is What a Board does How a Board is structured The making of a Dream Team Director duties Purpose and reason for existing Importance of strategic planning How CFC ABC operates CFC ABC financial health

Is Bright