1. Governance Issues in Professional Regulation CLEAR Seminar Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 © CLEAR 2011 Volunteer Boards – Is There a Better Way? Bruce G. Matthews Real Estate Council of Ontario

2. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Overview Challenging the status quo Characteristics of an ideal Board/Council and an ideal Board/Council member Compensation issues Operational issues Recruitment issues Education/Training issues Q & A

3. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Challenging the Status Quo What is the status quo? –Mix of professional and public members –Nominal compensation Travel expenses, perhaps small per diem –Misaligned interests between the individual members and the regulator “You get the government you deserve” 2 nd Law of Thermodynamics

4. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 An Ideal Council/Board… Appropriately sized Focused Organized Representative –of the profession being regulated –of the population being served Self-aware and self-correcting Embodies good governance

5. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 An Ideal Council Member… Prior Board experience –Understands policy governance –Understands meeting rules/procedures Interests aligned with that of the regulator Comes prepared Engaged –committee work; meets commitments

6. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Why Can’t We Have It? What are the impediments? –Qualifications versus interest –Expectations versus reality –Legislative constraints What can the regulator do to overcome them? How do we attract a wider pool of candidates? Can we enhance that pool?

7. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Four Areas for Attention Compensation Operational Issues Recruitment Education / Training

8. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Would Pay Make a Difference? Should Board/Council service be a purely altruistic endeavour? The “cost” of Board/Council service –Sacrifices made by volunteers –Does the level of employer support matter? $$ as a carrot to lure qualified candidates

9. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Would Pay Make a Difference? The “value” proposition –Do you get what you pay for? –Should compensation / reward reflect the organization’s perception of the role? Risks –Attracting those solely interested in the $$ –“Sauce for the goose is sauce for the gander” –Heightened performance expectations

10. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Operational Issues Is your organization attractive to potential Board/Council members? –Expenses reimbursed promptly –Expenses pre-paid vs. reimbursed –Other travel policies –Staff prepared / organized / responsive Would existing Board/Council members recommend the role to others?

11. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Recruitment Where do Council candidates come from? –What is the motivation? Should candidates be actively recruited? –What role can the regulator play? Nominating Committees –Perpetuating the status quo? Managing expectations Getting employer support

12. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Education / Training Board member training has become de rigueur –Typically delivered after a person has been elected / appointed to the Board/Council –Timing issues What about candidate training? –Maximize the opportunity for informed, focused candidates

13. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Summary Don’t have to settle for the status quo With effort, we can address the gaps and maximize the potential for improvement Four areas for attention: –Compensation –Operations –Recruitment –Education / Training

14. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Q & A

15. Council on Licensure, Enforcement and Regulation Toronto, Ontario March 24, 2011 Speaker Contact Information Bruce G. Matthews Deputy Registrar, Regulatory Compliance Real Estate Council of Ontario 3250 Bloor St. W., Suite 600 Toronto, Ontario M8X 2X9 T: 416-207-5149 E: bruce.matthews@reco.on.ca