Strategies to get winning sports administrators
Read Nicki Crauford's article (The Independent, 2 July 2009). As we prepare to host the Rugby World Cup in 2011, it's timely to reflect on governance in sport. American baseball great Babe Ruth said: “The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars, but if they don’t play together, the team won’t be worth a cent.”
Successful teams are characterised by their composition, combination of skills, clarity of purpose and determination to win. Enduring ones have an eye to the future, are adaptable and know when to bring in fresh talent.
A balanced board is just the same - it needs a broad mix of skills, including industry knowledge complemented by generic strengths such as policy, government, commercial, marketing and legal skills. Each member needs to demonstrate independence of thought and contribute not only within but also outside their own areas of expertise. A diligent board reaches collective agreement and continues to move forward. A value-adding board also has the ability to periodically refresh its directors while preserving the mix of well-developed professional and business skills.
In sport, the consequences of management incompetence and neglect can be poor elite performance, reputational damage, falling participation and leakage of supporters, funders and sponsors. More than 100 national organisations deliver sport and recreation opportunities to New Zealanders, with more than 10,000 clubs at a local level, with support from about 500,000 volunteers. Over the decades recreation and sport, for a long time central to New Zealand society, has steadily moved from a volunteer weekend-based activity to a blend of volunteer and commercially driven businesses with an annual real gross output of more than $2 billion.
Any successful organisation needs to acknowledge, accommodate and juggle the needs and expectations of such a diverse constituency. However, a ministerial report in 2001 identified growing evidence that this was not happening. New Zealand was losing its way. A picture emerged of a fragmented sector, lacking co-ordination and leadership, and Kiwis who were not getting enough exercise. Something had to be done. Sparc was created in 2002 "to promote, encourage and support physical recreation and sport in New Zealand".
Three key areas of focus were identified: participation in sport and recreational activity to get the nation off the couch, high performance programmes to nurture winners, and sports systems to deliver these outcomes. Government funding was increased from $2.5million to $69.5 m.
A 2003 Sparc study of 26 organisations found many had complex, antiquated and irrelevant governance structures and often failed to deliver. While most board members were well-motivated and some were of exceptional quality, many had received little or no governance training. Many boards did not contain the right mix of skills.
Sparc provided resources and training to ensure governance systems were appropriate. That included advice on board selection and composition, charters, setting and measuring performance, effective partnering with management and how to ensure board debate is focused on strategy rather than operation.
Sparc also released its Online Governance Evaluation System in partnership with the Institute of Directors, which enables sports and recreation bodies to assess performance and provide a basis for their own performance enhancement.
So is Sparc working? A review last year praised it for lifting the bar in terms of its own performance and across the board in sector capability. There is little dispute achievement in high-performance sports is enhanced by a focused organisation. There will also always be debate on sports funding, particularly when some is from the public purse.