Ten Mistakes Affiliates Can Avoid OR/WA/HI 2015 Habitat for Humanity “Habitat Heroes” Fall Conference October 23-24,2015 Phillip Bridgewater Organization Development Consultant - Mergers

Ten Mistakes 1. Role Confusion for Board Members 2.Un-enforced Board Term Limits 3. Lack of Enforced Fiscal Controls 4.Untimely Transference of Mortgages 5. Poor Communication with Homeowners 6.Unmanaged Conflicts 7. Conflicts of Interest 8.ReStores – oversight and mission 9. Lack of Advocacy Base 10.Weak Personnel Management

1.Role Confusion for Board Members PROBLEM: Boards in general fail to understand the responsibilities of their role SOLUTION: Proper orientation to include board expectations and board job description

2. Un-enforced Board Term Limits PROBLEM: It is difficult to let good people go; some people want to stay on; people who stay tend to burn out; can’t attract new people and new ideas POLICY: Board of Directors Governance (#2): Adhere to term limits which do not exceed eight consecutive years of board service. SOLUTION: Ongoing recruitment; advisory councils; past board members in other good-fit roles. Look to turnover as “revitalization.”

3. Lack of Enforced Fiscal Controls PROBLEM: Potential for fraud; lack of protections for staff, board, and volunteers who handle monies; environment ripe for confusion POLICY: Comprehensive Financials (#5); Financial Affiliate Operations Manual SOLUTION: A transparent, fair, and applied protocol calling for checks and balances and segregation of duties in order to protect staff, volunteers and the affiliate’s resources

4. Untimely Transference of Mortgages PROBLEM: Not transferring the mortgage becomes leasing or renting; can be seen as testing; creates legal limbo POLICY: Quality Assurance Checklist (2E) SOLUTION: Just do it. Change the expectations of everyone. Let even pro bono attorneys know “it’s the law!” (or at least Habitat’s law). Paying for legal services is worth it if necessary.

5.Poor Communication with Homeowners PROBLEM: Payments which are late are unfair and create bad feelings; homeowners may be confused about escrow (taxes and insurance) and not understand the reality of foreclosure POLICY: Quality Assurance Checklist (Section 3, Item H and Section 5, Item 4) SOLUTION:  Have a clear protocol for monthly mortgage payments, delinquencies & foreclosures which homeowners see and understand. Make this part of homeowner education and demonstration of respect for partners.

6.Unmanaged Conflicts PROBLEM: When conflict erupts between any within the Habitat community, affects all POLICY: Common sense, but in part implied in the Covenant SOLUTION: Address early; encourage boards to take responsibility for the whole of the organization; bring in a third party if necessary.

7. Conflicts of Interest PROBLEM: Benefiting from a business opportunity that rightfully belongs to the affiliate; benefiting financially from the affiliate’s work; receiving unfair, biased, or favored treatment as a result of their family relationships; the perception that any of these circumstances can or do take place at the affiliate POLICY: Conflict of Interest (#6), Quality Assurance Checklist (Sect. 3, Item C) SOLUTION: Have and abide by a policy, making sure that people understand it as part of their orientation; correct existing conflicts in order to maintain perceived integrity of the affiliate

8.ReStores – oversight and mission PROBLEM: Improper ReStore management and oversight can create a multitude of risk opportunities for an affiliate; also, ReStore operations can cause mission creep POLICY: ReStores are the legal responsibility of the affiliate board just like all other operations of the corporation. Policy 30 addresses possible issues with ReStores, and HFHI requirements for their operations. SOLUTION: Ensure proper oversight, evaluation and planning surrounding ReStore Operations; ensure the affiliate does not become the ReStore.

9. Lack of Advocacy Base PROBLEM: The affiliate has an inability to articulate a clear housing need or the what makes Habitat a relevant housing organization. Therefore, they lack a context for the mission POLICY: Advocacy (#1), Covenant SOLUTION: Learn the facts. Articulate the need and the solution.

10. Weak Personnel Management PROBLEMS: Lack of clarity about roles and expectations; lack of a job description and job plan; lack of performance evaluations; failure to address performance concerns; weak communication systems POLICY: Quality Assurance Checklist (Sect. 4, Personnel, Item A); Personnel and Volunteer Protocols Policy (#16) SOLUTIONS: Adopt and abide by clear policies for volunteers and staff; provide job descriptions, job plans, and performance evaluations