Hostname: page-component-77c89778f8-gvh9x Total loading time: 0 Render date: 2024-07-20T13:28:45.728Z Has data issue: false hasContentIssue false

A model for improving board performance: The case of a national sport organisation

Published online by Cambridge University Press:  02 February 2015

Lesley Ferkins
Affiliation:
Sport Management, School of Management and Marketing, Deakin University, Melbourne, Australia
Gael Mcdonald
Affiliation:
Faculty of Business and Law, Deakin University, Melbourne, Australia
David Shilbury
Affiliation:
Sport Management, School of Management and Marketing, Deakin University, Melbourne, Australia

Abstract

The transition of many sport organisations from being predominantly volunteer-administered and anchored in an amateur ethos to professionally managed entities has created unique challenges for the governance of sport. This paper provides a contribution to the governance literature through the presentation of a situational case where a four-stage model, drawn from an action research approach, has been used for developing a board's strategic capability and subsequent improvement in organisational performance. Action research is founded on the premise that change and research are not mutually exclusive and that dual foci on improving practice and developing theory are possible (Coghlan & Brannick, 2001). Utilising a national sport organisation (NSO) in New Zealand the study developed and tested a structured model for improving board functioning and, specifically, strategic contribution. While the case to which the model has been applied is an NSO, the model and the subsequent reflections have value for non-profit as well as commercial entities particularly with regard to a greater understanding of the mechanisms associated with balancing the performance and conformance roles of the board.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Argyris, C., & Schön, D. (1974). Theory in practice: Increasing professional effectiveness. San Francisco: Jossey-Bass.Google Scholar
Auld, C. J. (1997). Professionalisation of Australian sport administration: The effects on organisational decision-making. European Journal for Sport Management, 4(2), 1739.Google Scholar
Bart, C., & Deal, K. (2006). The governance role of the board in corporate strategy: A comparison of board practices in ‘for profit’ and ‘not for profit’ organisations. International Journal of Business Governance and Ethics, 1(1/2), 222.Google Scholar
Blau, P. M., & Scott, W. R. (1960). Formal organizations: A comparative study. San Francisco: Chandler.Google Scholar
Bosch, H. (1995). The director at risk. Melbourne, Australia: Pitman Publishing.Google Scholar
Bostock, R. (1995). Company responses to Cadbury. Corporate Governance: An International Review, 3(2), 7277.Google Scholar
Bradshaw, P., Murray, V., & Wolpin, J. (1992). Do non-profit boards make a difference? An exploration of the relationships among board structure, process, and effectiveness. Non-profit and Voluntary Sector Quarterly, 21(3), 227249.Google Scholar
Brown, W. A., & Iverson, J. O. (2004). Exploring strategy and board structure in non-profit organizations. Non-profit and Voluntary Sector Quarterly, 33, 377400.Google Scholar
Bury, S., & Leblanc, R. (2007). Corporate governance research on the free web: A selected annotated guide. Reference Services Review, 35, 497514.Google Scholar
Cardno, C. (2003). Action research: A developmental approach. Wellington: New Zealand Council for Educational Research.Google Scholar
Carr, W., & Kemmis, S. (1986). Becoming critical: Education, knowledge and action research. Geelong, Australia: Deakin University.Google Scholar
Carter, D. A., Simkins, B. J., & Simkins, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review February, 38(1), 3353.Google Scholar
Carver, J. (1997). Boards that make a difference: A new design for leadership in non-profit and public organizations (2nd ed.). San Francisco: Jossey-Bass.Google Scholar
Carver, J. (Ed.) (2002). John Carver on board leadership: Selected writings from the creator of the world's most provocative and systematic governance model. San Francisco: Jossey-Bass.Google Scholar
Chandler, A. (1962). Strategy and structure: Chapters in the history of the industrial enterprise. Cambridge, MA: MIT Press.Google Scholar
Chelladurai, P. (1987a). The design of sport governing bodies: A Parsonian perspective. In Slack, T. & Hinings, C. R. (Eds.), The organisation and administration of sport (pp. 3757). London, Canada: Sports Dynamics Publishers.Google Scholar
Chelladurai, P. (1987b). Multidimensionality and multiple perspectives of organizational effectiveness. Journal of Sport Management, 1, 3747.Google Scholar
Chelladurai, P., & Saleh, S. D. (1980). Dimensions of leader behaviour in sports: Development of a leadership scale. Journal of Sport Psychology, 1, 3445.Google Scholar
Coghlan, D., & Brannick, T. (2001). Doing action research in your own organization. Thousand Oaks, CA: Sage.Google Scholar
Conyon, M. J. (1994). Corporate governance changes in UK companies between 1988–1993. Corporate Governance: An International Review, 2(2), 97109.Google Scholar
Cornforth, C. (Ed.). (2003). The governance of public and non-profit organisations: What do boards do? London: Routledge.Google Scholar
Cuskelly, G., Taylor, T., Hoye, R., & Darcy, S. (2006). Volunteer management practices and volunteer retention: A human resource management approach. Sport Management Review, 9, 141163.Google Scholar
Daily, C. M., McDougall, P. P., Covin, J. G., & Dalton, D. R. (2002). Governance and strategic leadership in entrepreneurial firms. Journal of Management, 28(3), 387412.Google Scholar
Dalton, D. R., Daily, C. R., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19(3), 269290.Google Scholar
Dick, B. (2002). Action research: Action and research. Retrieved February 3, 2007, from http://www.scu.edu.au/schools/gcm/ar/arp/aandr.html.Google Scholar
Doherty, A. J., & Chelladurai, P. (1999). Managing cultural diversity in sport organizations: A theoretical perspective. Journal of Sport Management, 13, 280297.Google Scholar
Dulewicz, V., MacMillan, K., & Herbert, P. (1995). Appraising and developing the effectiveness of boards and their directors. Journal of General Management, 20(3), 119.Google Scholar
Edwards, A., Gilbert, K., & Skinner, J. (2002). Extending the boundaries: Theoretical frameworks for research in sports management. Altona, Australia: Common Ground Publishing.Google Scholar
Edwards, C., & Cornforth, C. (2003). What influences the strategic contribution of boards? In Cornforth, C. (Ed.), The governance of public and non-profit organisations: What do boards do?, (pp. 7796). London: Routledge.Google Scholar
Eisenhardt, K. (1989). Agency theory: An assessment and review. Academy of Management Review, 14, 5774.Google Scholar
Enjolras, B. (2002). The commercialization of voluntary sport organizations in Norway. Non-profit and Voluntary Sector Quarterly, 31, 352376.Google Scholar
Ferkins, L., Shilbury, D., & McDonald, G. (2005). The role of the board in building strategic capability: Towards an integrated model of sport governance research. Sport Management Review, 8, 195225.Google Scholar
Ferkins, L., Shilbury, D., & McDonald, G. (2009). Board involvement in strategy: Advancing the governance of sport organizations. Journal of Sport Management, 23, 245277.Google Scholar
Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of Management Review, 24, 489505.Google Scholar
Forster, J. (2006). Global Sports Organisations and their Governance. Corporate Governance, 6, 7283.Google Scholar
Francis, I. (1997). Future direction: The power of the competitive board. South Melbourne, Australia: Pitman.Google Scholar
Frisby, W., Crawford, S., & Dorer, T. (1997). Reflections on participatory action research: The case of low-income women accessing local physical activity services. Journal of Sport Management, 11, 828.Google Scholar
Garratt, B. (1996). The fish rots from the head. London: HarperCollins.Google Scholar
Gay, K. (2002). Boards, theories and governance practices: Agents, stewards and their evolving relationship with stakeholders. Journal of General Management, 27(3), 3662.Google Scholar
Gray, J. (2007). Myths and reality. Canadian Business, 80(16/17), 6063.Google Scholar
Greenwood, D. J., & Levin, M. (2000). Reconstructing the relationship between universities and society through action research. In Denzin, N. K. & Lincoln, Y. S. (Eds.), Handbook of qualitative research (2nd ed., pp. 85106). Thousand Oaks, CA: Sage.Google Scholar
Grosvold, J., Brammer, S., & Rayton, B. (2007). Board Diversity in the United Kingdom and Norway: An exploratory analysis. Business Ethics: A European Review, 16, 344357.Google Scholar
Guo, C. (2007, 05/June). When government becomes the principal philanthropist: The effects of public funding on patterns of non-profit governance. Public Administration Review, 67, 458473.Google Scholar
Guo, C., & Musso, J. A. (2007). Representation in non-profit and voluntary organizations: A conceptual framework. Non-profit and Voluntary Sector Quarterly, 36, 308326.Google Scholar
Gustavsen, B. (2001). Theory and practice: The mediating discourse. In Reason, P. & Bradbury, H. (Eds.), Handbook of action research: Participative inquiry and practice (pp. 1726). Thousand Oaks, CA: Sage.Google Scholar
Hammersley, M., & Atkinson, P. (1995). Ethnography: Principles and practice (2nd ed.). London: Routledge.Google Scholar
Harris, M. (1989). The governing body role: Problems and perceptions in implementation. Non-profit and Voluntary Sector Quarterly, 18, 317333.Google Scholar
Heimovics, R. D., & Herman, R. D. (1990). Responsibility for critical events in non-profit organizations. Non-profit and Voluntary Sector Quarterly, 19, 5972.Google Scholar
Henry, I., & Lee, P. C. (2004). Governance and ethics in sport. In Beech, J. & Chadwick, S. (Eds.), The business of sport management (pp. 2541). Essex, UK: Pearson Education.Google Scholar
Herman, R. D., & Heimovics, R. D. (1993, 10). The social construction of non-profit organization effectiveness: An interim research report. Paper presented at the annual meeting of the Association for Research on Non-profit Organizations and Voluntary Action, Toronto, Canada.Google Scholar
Herman, R. D., & Heimovics, R. D. (1994). A cross-national study of a method for researching non-profit organizational effectiveness. Voluntas, 7, 86100.Google Scholar
Herman, R. D., & Renz, D. O. (1998). Non-profit organizational effectiveness: Contrasts between especially effective and less effective organizations. Non-profit Management and Leadership, 9, 2338.Google Scholar
Herman, R. D., & Renz, D. O. (2000). Board practices of especially effective and less effective local non-profit organizations. American Review of Public Administration, 30, 146160.Google Scholar
Herman, R. D., Renz, D. O., & Heimovics, R. D. (1997). Board practices and board effectiveness in local non-profit organizations. Non-profit Management and Leadership, 7, 373385.Google Scholar
Heron, J. (1996). Co-operative inquiry: Research into the human condition. Thousand Oaks, CA: Sage.Google Scholar
Heron, J., & Reason, P. (2001). The practice of co-operative inquiry: Research ‘with’ rather than ‘on’ people. In Reason, P. & Bradbury, H. (Eds.), Handbook of action research: Participative inquiry and practice (pp. 171178). Thousand Oaks, CA: Sage.Google Scholar
Hough, A., McGregor-Lowndes, M., & Ryan, C. (2004). Policy governance: ‘Yes, but does it work?’ Keeping Good Companies, 56(4), 213216.Google Scholar
Houle, C. O. (1989). Governing boards: Their nature and nurture. San Francisco: Jossey-Bass.Google Scholar
Hoye, R. (2002). Board performance of Australian voluntary sport organisations. Unpublished doctoral dissertation, Griffith University, Gold Coast, Australia.Google Scholar
Hoye, R., & Auld, C. (2001). Measuring board performance in non-profit sport organisations. Australian Journal of Volunteering, 6(2), 109116.Google Scholar
Hoye, R., & Cuskelly, G. (2007). Sport governance. Sydney, Australia: Elsevier.Google Scholar
Huxham, C., & Vangen, S. (2003). Researching organizational practice through action research: Case studies and design choices. Organizational Research Methods, 6, 383403.Google Scholar
Ineson, C. (2005). Squash NZ: District service delivery capability review. Wellington, NZ: Driving Forces.Google Scholar
Inglis, S. (1997a) Roles of the board in amateur sport organizations. Journal of Sport Management, 11, 160176.Google Scholar
Inglis, S. (1997b) Shared leadership in the governance of amateur sport. AVANTE Journal, 3(1), 1433.Google Scholar
Inglis, S., Alexander, T., & Weaver, L. (1999). Roles and responsibilities of community nonprofit boards. Non-profit Management and Leadership, 10, 153167.Google Scholar
Johnson, J. L., Daily, C. M., & Ellstrand, A.E. (1996). Board of directors: A review and research agenda. Journal of Management, 22, 409438.Google Scholar
Katsioloudes, M. I., & Tymon, W. G. (2003). Strategic planning practices: Are they what they should be? Human Systems Management, 22, 177183.Google Scholar
Kerr, J. L., & Werther, W. B. (2008). The next frontier in corporate governance: Engaging the board in strategy. Organizational Dynamics, 37(2), 112124.Google Scholar
Kikulis, L. (2000). Continuity and change in governance and decision making in national sport organizations: Institutional explanations. Journal of Sport Management, 14, 293320.Google Scholar
Kikulis, L. M., Slack, T., & Hinings, C. R. (1995a) Does decision-making make a difference? Patterns of change within Canadian national sport organizations. Journal of Sport Management, 9, 279299.Google Scholar
Kikulis, L. M., Slack, T., & Hinings, C. R. (1995b) Towards an understanding of the role of agency and choice in the changing structure of Canada's National Sport Organizations. Journal of Sport Management, 9, 135152.Google Scholar
Kilmister, T. (2006). Governance. In Trenberth, L. & Collins, C. (Eds.), Sport business management in New Zealand (pp. 184201). Palmerston North, NZ: Dunmore Press.Google Scholar
Leblanc, R. W. (2004). What's wrong with corporate governance: A note. Corporate Governance, 12(4), 436441.Google Scholar
Lewin, K. (1948). Resolving social conflicts. New York: Harper and Row.Google Scholar
Lewin, K. (1997). Resolving social conflicts and field theory in social science. Washington, DC: American Psychological Association.Google Scholar
Lorsch, J. W., & Clark, R. C. (2008). Leading from the boardroom. Harvard Business Review, 86(4), 105111.Google Scholar
McNiff, J., Lomax, P., & Whitehead, J. (2003). You and your action research project. New York: Routledge Falmer.Google Scholar
McNulty, T., & Pettigrew, A. M. (1999). Strategists on the board. Organisation Studies, 20, 4774.Google Scholar
McTaggart, R. (1998). Is validity really an issue for participatory action research? Studies in Cultures. Organizations and Societies, 4, 158278.Google Scholar
Merriam, S. B. (1988). Case study research in education. San Francisco: Jossey-Bass.Google Scholar
Merriam, S. B. (1998). Qualitative research and case study applications in education (Rev. Ed.). San Francisco: Jossey-Bass.Google Scholar
Miller, J. L. (2002). The board as a monitor of organizational activity: The applicability of agency theory to non-profit boards. Non-profit Management and Leadership, 12, 429450.Google Scholar
Miller-Millesen, J. L. (2003). Understanding the behaviour of non-profit boards of directors: A theory-based approach. Non-profit and Voluntary Sector Quarterly, 32, 521547.Google Scholar
Minichilli, A., Gabrielson, J., & Huse, M. (2007). Board evaluations: Making a fit between the purpose and the system. Corporate Governance: An International Review, 15, 609622.Google Scholar
Ministerial Taskforce. (2001). Getting set for an active nation. Report of the sport, fitness and leisure ministerial taskforce, Wellington.Google Scholar
Mintzberg, H. (1978). Patterns in strategy formulation. Management Science, 24, 934948.Google Scholar
Mintzberg, H. (1987). Crafting strategy. Harvard Business Review, 65, 6675.Google Scholar
Mintzberg, H., Ahlstrand, B., & Lampel, J. (1998). Strategy safari: A guided tour through the wilds of strategic management. New York: The Free Press.Google Scholar
Mueller, J., Williams, D., Higgins, A., & Tou, M. (2005). The Measurement of Responsible Governance and Management of NPOs in New Zealand: An evaluation tool for NPOs, donors and government. “If you have no money — you have no mission”. Corporate Governance, 5, 159173.Google Scholar
Nadler, D. (2004). What's the board's role in strategy development? Engaging the board in corporate strategy. Strategy and Leadership, 32(5), 2533.Google Scholar
Papadimitriou, D. (1999). Voluntary boards of directors in Greek sport governing bodies. European Journal for Sport Management, 6, 78103.Google Scholar
Papadimitriou, D., & Taylor, D. (2000). Organisational effectiveness of Hellenic national sport organisations: A multiple constituency approach. Sport Management Review, 3, 2346.Google Scholar
Parker, L. D. (2007). Internal governance in the non-profit boardroom: A participant observer study. Corporate Governance, 15, 923934.Google Scholar
Parker, L. D. (2008). Boardroom operational and financial control: An insider view. British Journal of Management, 19, 6588.Google Scholar
Pettigrew, A. (1990). Longitudinal field research on change: Theory and practice. Organization Science, 1, 276292.Google Scholar
Pettigrew, A. (1992). On studying managerial élites [Special edition]. Strategic Management Journal 13, 163182.Google Scholar
Pettigrew, A., & McNulty, T. (1998). Sources and uses of power in the boardroom. European Journal of Work and Organizational Psychology, 7(2), 197214.Google Scholar
Pettigrew, A. M., & McNulty, T. (1998). Control and creativity in the boardroom. In Hambrick, D. C., Nadler, D. A., & Tushman, M. L. (Eds), Navigating change: How CEOs, top teams and boards steer transformation (pp. 226255). Boston, MA: Harvard Business School Press.Google Scholar
Pitts, B. (2001). Sport management at the millennium: A defining moment. Journal of Sport Management, 15, 19.Google Scholar
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: The Free Press.Google Scholar
Pye, A. (2002). Corporate directing: Governing, strategising and leading in action. Corporate Governance, 10, 153162.Google Scholar
Reason, P. (1998). Three approaches to participative inquiry. In Denzin, N. K. & Lincoln, Y. S. (Eds.) Strategies of qualitative inquiry (pp. 261291). Thousand Oaks, CA: Sage.Google Scholar
Reason, P., & Bradbury, H. (Eds.) (2001). Handbook of action research: Participative inquiry and practice. Thousand Oaks, CA: Sage.Google Scholar
Rechner, P. L., & Dalton, D. R. (2006). CEO duality and organizational performance: A longitudinal analysis. Strategic Management Journal, 12, 155160.Google Scholar
Ruigrok, W., Peck, S., & Keller, H. (2006). Board characteristics and involvement in strategic decision-making: Evidence from Swiss companies. Journal of Management Studies, 43, 12011226.Google Scholar
Rutherford, M. A., & Buchholtz, A. K. (2007). Investigating the relationship between board characteristics and board information. Corporate Governance: An International Review, 15, 576584.Google Scholar
Sack, A. L., & Nadim, A. (2002). Strategic choices in a turbulent environment: A case study of a starter corporation. Journal of Sport Management, 16, 3653.Google Scholar
Schmidt, S., & Brauer, M. (2006). Strategic governance: How to assess board effectiveness in guiding strategy execution. Corporate Governance: An International Review, 14, 1322.Google Scholar
Sherry, E., Shilbury, D., & Wood, G. (2007). Wrestling with ‘conflict of interest’ in sport management. Corporate Governance, 7, 267277.Google Scholar
Shilbury, D. (2000). Considering future sport delivery systems. Sport Management Review, 3, 199221.Google Scholar
Shilbury, D. (2001). Examining board member roles, functions and influence: A study of Victorian sporting organisations. International Journal of Sport Management, 2, 253281.Google Scholar
Shilbury, D., & Moore, K. (2006). A study of organizational effectiveness for national Olympic sporting organizations. Non-profit and Voluntary Sector Quarterly, 35, 538.Google Scholar
Skinner, J., Stewart, B., & Edwards, A. (1999). Amateurism to professionalism: Modelling organisational change in sporting organisations. Sport Management Review, 2, 173192.Google Scholar
Slack, T. (1985). The bureaucratization of voluntary sport organizations. International Review for the Sociology of Sport, 20(3), 141165.Google Scholar
Slack, T. (1996). From the locker room to the boardroom: Changing the domain of sport management. Journal of Sport Management, 10, 97105.Google Scholar
Slack, T., & Hinings, B. (1992). Understanding change in national sport organizations: An integration of theoretical perspectives. Journal of Sport Management, 6, 114132.Google Scholar
Stake, R. E. (2000). Case studies. In Denzin, N. K. & Lincoln, Y. S. (Eds.), Handbook of qualitative research (2nd ed., pp. 435454). Thousand Oaks, CA: Sage.Google Scholar
Standing Committee on Recreation and Sport. (1997). Management reform in Australian sport. Report of the SCORS working party on management improvement in Australian sport. Canberra, Australia: SCORS.Google Scholar
Stiles, P. (2001). The impact of the board on strategy: An empirical examination. Journal of Management Studies, 38, 627651.Google Scholar
Tinning, R. (1992). Action research as epistemology and practice: Towards transformative educational practice in physical education. In Sparkes, A. C. (Ed.) Research in physical education and sport: Exploring alternative visions (pp. 188209). London: The Falmer Press.Google Scholar
Tolich, M., & Davidson, C. (1999). Starting field-work: An introduction to qualitative research in New Zealand. Auckland: Oxford University Press.Google Scholar
Tricker, R. (1984). Corporate governance. London: Gower.Google Scholar
van der Walt, N., & Ingley, C. (2001). Evaluating board effectiveness: The changing context of strategic governance. Journal of Change Management, 1, 313331.Google Scholar
van der Walt, N., & Ingley, C. (2003). Board dynamics and the influence of professional background, gender and ethnic diversity of directors. Corporate Governance: An International Review, 13, 623653.Google Scholar
Ward, R. D. (1997). 21st Century corporate board. New York: John Wiley and Sons.Google Scholar
Weese, J. (1995). Leadership, organizational culture, and job satisfaction in Canadian YMCA organizations. Journal of Sport Management, 9, 182193.Google Scholar
Whyte, W. F. (Ed.) (1991). Participatory action research. Newbury Park, CA: Sage.Google Scholar
Yeh, C. M., & Taylor, T. (2008). Issues of governance in sport organisations: A question of board size, structure and roles. World Leisure Journal, 50(1), 3346.Google Scholar