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Principle 10

By: Helsing Admin

[NOTE: This article is Part VI in a series where each article builds on the previous articles. We recommend you start with Part I first.]

Principle 10 – Performance Assessment

HOA board duties include evaluating the manager’s performance against stated criteria

In order to effectively evaluate the manager’s performance, the board must answer one key question: “Is what happened what we asked for?”

Answering this question fairly and accurately requires that:- The board has clearly stated performance standards/criteria (i.e., Ends and Management Limitations policies).

– The board considers whether a reasonable interpretation of its Ends policies is being achieved within the boundaries set by its management limitations (staff means) policies.

In assessing the manager’s performance, the board relies on objective data that can be gathered through various methods, the most common being the manager’s regular reports to the board.

In your Association, how does the board currently assess the manager’s performance? Is the performance assessed against clearly stated criteria?

Management Contracts

It is important that the governing policies do not contradict the management agreement between the association and the management firm.

Following are two examples of provisions that can help management contracts align with Principle 10:

– It will be the responsibility of Agent during the term of this Agreement, to perform the duties as set forth in this agreement, consistent with the Governing Policies of the Association’s board of directors (attached as Addendum A to this agreement) and to perform such other acts as are reasonably necessary to discharge Agent’s responsibilities.
– The board of directors will review the manager’s performance, in accordance with its Governing Policies, throughout the year. If any material concerns arise, the board shall notify Agent of such concerns. On an annual basis, in the month of ________, the board shall summarize and convey to Agent its overall assessment of the manager’s performance, based on the criteria established in this Agreement and the Governing Policies.

The examples above are for illustrative purposes only; boards should seek input from legal counsel before making changes to their agreements.


The Policy Governance board leadership model provides a systemic approach to HOA board duties for clearly establishing relationships, goals/responsibilities, and boundaries between the board, the manager, the staff, and homeowners in the association. This series of articles has provided foundational information about Policy Governance – its principles, the terminology it uses, and the roles and responsibilities it requires. However, it provides a framework with direction, responsibilities, and accountability that should assist your association in operating in a manner that is efficient and has focus.

The Policy Governance Series draws heavily on John Carver’s service-marked endeavors and much of the Homeowner Association model relies on and is reproduced with permission from and is Copyrighted by The California Association of Community Managers (CACM). Articles are for advertising and general information by The Helsing Group, Inc. They are not intended to provide legal advice, but rather reflect our opinions as Community Association managers and Consultants. Readers should not act on issues raised in our newsletters or websites without consulting legal counsel.

Copyright 2012

The Helsing Group, Inc.

All Rights Reserved

[i] Policy Governance® is a registered service mark of Dr. John Carver. The authoritative website is www.policygovernance.com