The Pitfalls of Ego in Condo Governance

Understanding the Roles: Directors and Managers

“Directors direct, managers manage” has almost become a cliche in condo governance. Of course, this is how it is supposed to be. After all, directors are almost always owners themselves, with a vested interest in the condo corporation, and are the owners’ elected representatives. They even live in the community for the most part, although being an off-site owner is not uncommon for a director.

As the first part of the cliche says, directors… well, they direct. They are the ones that get to make all the decisions at the board meetings on how the community will be managed and where the budgeted dollars will be spent. Managers take notes and act on those directives during the month and report their progress at the next meeting.

Dealing with Board Limitations: Directors’ Power vs. Managers’ Expertise

One can clearly see directors have a lot of power vested in them by the one and only Condo Act 1998. They have the power to hire and fire various contractors, the property manager, and even the management company, from the easiest to the hardest, in that order.

It should be easy to see for anyone that there is usually, but not always, a disparity between the manager’s practical knowledge of many aspects related to the corporations they manage and that of anyone director. But managers can only offer advice and suggestions to the board. And this is fine for as long as they are dealing with a “good” board that puts the corporation’s interest first instead of their own. An experienced manager will provide the board with enough information for them to be able to reach a conclusion, but not to the point where it becomes overwhelming and renders the board frozen with indecision like a deer in headlights.

The Real-World Challenges: Human Limitations and Personal Agendas

So far so good. This is the theory, and everything should work like a Swiss clock without any significant problems. However, in the real world, the directors are only humans with their limitations and agendas, just like everyone else. Some of them are followers, while some others are leaders in that they set the tone of the discussion during the board meetings. Many have good intentions and a desire for their community to prosper, while a few others seem to have other priorities.

“What are those priorities?” you might ask? Well, there are many, but one of the most common ones that tend to get in the way of the job of a good manager has to do with the human ego. It seems that for some directors, it matters not what is right or wrong for the corporation they are a part of, but only that which strokes their ego. They become petty and vindictive and seem to be perpetually caught on trivial issues that are not even worth the ink on the paper they are written on at the end of the day. And when they flip the switch, they get on a roll, picking up speed around an ever-increasing supply of petty issues as they roll downwards from the top of their ego mountain.

The Impact of Negative Dynamics on Managers

Think about it – on the one hand, there is a manager who is trying to do their job the best way they can, and, on the other, a director with unlimited power who is constantly jamming sticks in the manager’s wheels. What’s worse is that such a director is the one that usually makes a lot of noise at the meetings, strong-arming other directors into the submission of their colleague’s points of view. As a lid that perfectly fits its pot, such individuals also happen to be masters of manipulation, spewing all kinds of untruths and inciting dissent towards the manager.

Not only that, but such a director is also often known to undermine a manager’s authority with the building staff, especially the security individuals. It may have so happened that said manager had caused some grievances among certain security individuals by holding them accountable for the lack of performance of their duties. And when our story’s director attempts to measure their pulse and realizes they are allies, a coalition is formed. I probably don’t need to say this but it should be clear to anyone that such behaviour on the part of the director is entirely unethical and unacceptable and in breach of the Act.

Imagine how the manager feels about all this. As if it weren’t enough that they are highly preoccupied with many things at once, so much that even when they hit the sack, they find themselves thinking about, say, tomorrow’s scheduled plumbing work, but now they have to also swim against the current while pulling a dead weight with them. And it is not like the manager will find any consolation with the management company, either, for they do not want to risk losing a client.

The only logical choice for the manager is to resign, of course. But some others simply choose not to quit and decide to carry on normally, trying not to let it affect them while hoping it would eventually change for the better. Much of the time, the enraged director has already caused enough unrest at the board meetings that the other board members are simply tired and no longer willing to fight their colleagues. They end up doubling down on a string of bad decisions by removing the manager from the site or even firing the management company altogether.

The Result: Mismanagement and Financial Issues

Could this possibly be in the best interest of the owners? Of course not, and it is one of the main reasons for the mismanagement of so many condo corporations which eventually run into financial issues requiring drastic fee increases. But then again, so what? Any director could decide at any moment to sell their unit and move on to their next victim condo corporation. And will they leave with a heavy conscience at all? You bet they won’t! In their eyes, they have no doubt the manager was to blame all along, even when it rained on the building.

Hope Amid Challenges: Good Boards and Good Managers

Fortunately, many boards are made of fantastic, hard-working individuals who care a lot about their fellow owners and other community members. I have had the good luck of working with a few of them, which has motivated me to go the extra mile to help their communities. A good manager has many options, and there is always a good board somewhere looking forward to welcoming such a manager. All one needs to do is to not become demoralized and allow such sour experiences affect them.

Concluding Thoughts: The Manager as the Keystone

Boards are a critical piece of the puzzle in condo governance – there is no doubt about that. However, in my experience, it is not the corporation’s business partners, it is not the board, and not even the management company, but only the manager that can make it or break it for the owners in the long run. All I can say to the boards is that take my advice and hold onto them for dear life when you come across such a manager. Swallow your ego and pride, and do what you set out to do when you volunteered for this honourable position, which is to “act honestly and in good faith” in the interest of all the owners you represent.