The publishers of the industry magazine Perspective are to launch a new timeshare publication for consumers. It will be available on-line from July and as a print edition from January 2009.

Owners’ Perspective has already received the official endorsement of organisations such as TATOC – Timeshare Association (Timeshare Operating Committees) – and ICE Europe. More are in the pipeline, according to Paul Mattimoe, president and CEO of Perspective International.

“The magazine’s main aim is to provide a credible independent monthly publication for existing and prospective owners and a new marketing platform for the industry,” he said.

Companies as well as promoting themselves “can also help educate the consumer on the benefits of timeshare and the industry”. OTE Issue 10

Industry research has underscored the business case for the Ivory Grand, a new affiliate of Group RCI in Dubai.

A study, conducted by NorthCourse Leisure Real Estate Solutions, says that Gulf Arabs will be spending $1.2billion a year on shared ownership products by 2020. Top markets include Saudi Arabia, Kuwait, Iran, Egypt and the United Arab Emirates (UAE).

Also, the vast majority of them, especially Saudis, are attracted by easy access to major shopping and leisure facilities.

The Ivory Grand is situated in Dubai’s growing Al Barsha district. Due for completion in 2009, it will have 70 timeshare units and a further 150 apartments for short-term rentals.

New regulations in the UAE were “an essential step” in establishing the timeshare industry in the Middle East. 

According to Steve Holmes, chairman and CEO of Wyndham Worldwide (parent company of Group RCI): “These protections will serve the interests of both developers and consumers alike while fostering a healthy growth environment. With this law in place, the vacation ownership industry should make a significant economic contribution to the market.” OTE Issue 10

The Executive Committee of the Organisation for Timeshare in Europe has appointed a working group to help reinforce its Enforcement Project in Spain.

The group comprises: Carlos Vogeler, Group RCI; Mark Cushway, Resort Properties; Declan Kenny, First National Trustee Company; Eugene Miskelly, Club La Costa; and, from the OTE Secretariat, Paul Gardner Bougaard, Peter van der Mark and Domenica Barca along with Maria Jesus Rodriguez, OTE Spain.

Its remit is to advise and support Alberto Garcia, a former Spanish police officer, who heads up the Project.

To date the enforcement strategy has logged a number of successes. Arrests have been made because of the close cooperation of OTE with the Spanish police. OTE has stepped up measures in the Canary Islands – particularly in Tenerife – where fraud has been more prevalent.

Mr Garcia said nine sales decks for Discount Travel Membership Clubs (DTMCs) had been detected to date. More were likely to be found. In each of the main tourist areas, the activities of Off-site Personal Canvassers (OPCs) in Tenerife have been intense. The vast majority were pedalling DTMCs. 

“The arrests of fraudsters whose practices tarnish the good name of legitimate timeshare companies are tangible developments of the Project,” said Mr Garcia. “Our strategy targets those companies and individuals behind spurious Discount Travel Membership Clubs (DMTCs) and re-sale programmes.”

In meetings with senior police officers and tourism officials, Mr Garcia has stressed the damage caused by DMTCs and fraudulent re-sale companies to the tourism industry in general and legitimate timeshare operations in particular. OTE Issue 11.

Have you ever had (or heard of) the situation where one or more Board members were either consistently late, or were not turning up on a regular basis (with or without pre-warning). This is one of the most consistent comments we receive from CEOs and Board members when we conduct governance audits and reviews.

I would first of all like to make the distinction here between Board member involvement versus Board member attendance. Board member involvement is where the Board member, even if they are unable to attend a particular meeting, has read the papers, discussed issues with the CEO and Board Chairman, and has made a strategic contribution to the meetings agenda. Board member attendance should include all the previous contributions, plus they attend the meeting as well.

If your Board member is not reading the papers, not discussing issues with the CEO and Board Chairman, and not making a strategic contribution, then it really is an issue of whether they should be a Board member at all, not one of attendance. The true question to ask yourself is: “Are they not attending because they are not functioning as a Director should, or are they not attending because the meetings are not making a true difference strategically.”

If they are not functioning as a Director should, then they need performance management or invited to leave the Board. If the meetings are not making a true strategic difference, then the following strategies might make a difference.

The reasons most Board members chose not to attend meetings are that they view the meetings as inefficient, too operational, same/same, or sometimes just too boring. One director said to us recently as part of a Board review we were conducting, "I am not sure why I should attend all Board meetings, they are just discussing the same old things, and I have to travel two hours to get there, so I am not going to make a huge effort for meetings that are essentially all the same". Are your meetings like this?

If you find people giving excuses or justifications for not attending meetings, realise these are just that: excuses and justifications. They are actually choosing not to attend. If they say.."I am too busy today".. it’s just a choice they have made. If they say.."I got caught up, something came up"… just a choice. If they say "It’s really busy at work at the moment"…I think you are seeing the pattern here.

What would it look like if you could guarantee your board members that they would go away from every Board meeting with new skills, greater strategic insights, and business acumen that they could translate into their own business and life? What if they were making strategic decisions that affected the future of the organization and the sector it represents? Would that make a difference in their attendance? If not, then they may wish to reconsider their membership of the board.

Some strategies that make a difference in Board attendance:

1. Restructure the Board agenda so it reflects the key elements of the strategic plan. This keeps the Board focused on those key areas that the Board has responsibility for, and assists in strategic decision making.

2. Develop a staff report section at every second or third Board meeting, where a staff member verbally reports to the Board on the strategic issues facing their area of responsibility, and is questioned by Board members regarding these strategic issues. Ensure these reports are directly linked to the strategic plan and vision/mission, and focus on issues not activity.

3. Recast all reports from CEO, staff and committees so they directly relate back to the strategic plan, identify the key strategic issues and discussion points, and make recommendations or provide ranges of options.

4. Include "Changes to Strategic Environment" as a standard section in Board agenda as the last discussion segment of the Board meeting. This is an opportunity to discuss any major changes, shifts or trends we need to be aware of that might impact on our strategic assumptions.

5. Develop guest speaker sessions to support the Board. This might include presentations from other CEO’s of like organizations, funding bodies, academics etc.

6. Consider developing part of the Board meeting as an in-camera session (without staff) to discuss matters of Board performance, individual Director issues and any other issue where it would not be desirable to have a staff member present (even if they are also a Board member).

7. Ensure your Chair has the required Chairing skills. Consider implementing a regular review by the Board (every 6 months) of the Chairs skills and their effect as Chairman. Realise that, if the Board put the Chairman in that position, they can (and should) also remove them from that position if the Chairing is not producing optimum results. (This is not a popularity contest!)
Click here for some articles on Chairing

8. Conduct an annual review of the Board, where you evaluate Board functions and what can be improved.
Click here for some articles on Board reviews

9. Provide external accountability through the annual report, AGM and stakeholder engagement strategies, including meeting attendance and how the skills of the Board members are matched to the strategic needs of the organization.
Click here for an annual report checklist and other governance tools

10. Develop a formal mentor system for new Board members to facilitate understanding of amongst other things, what constitutes Board and management matters, and why, and the decision making processes utilised to make those determinations. Match mentors with new Board members based on skill in mentoring.

11. Conduct an annual forecasting/strategic review session with Board and staff that employs technologies such as strategic foresight, scenario building, backcasting, causal layered analysis etc to test out assumptions. Consider including a skilled futurist.

12. Don’t let non-attendance go on!
What strategies or techniques have you found useful to increase Board member attendance and involvement? Let me know, and I will pass these on in the next issue. (steven@conscious-governance.com)

If none of these work, and a Director’s attendance and involvement is still unacceptably low, then it is time for the Succession Planning Committee (sometimes called the Governance, Evaluation or Remuneration Committee) and the Chairman to fulfill one of their roles- performance management of the Directors. This will be the topic of the next e-zine- “How do I get rid of a Director?” This is one of the most contentious issues that face Boards today, and one that we are often asked to advise on. I welcome your views and insights.

Steven Bowman
The Conscious Chief Executives e-zine provides chief executives and senior leaders of nonprofit organizations with regular updates on issues and insights related to leadership, governance, strategy and risk. This e-zine is based on questions posed by CEOs in the course of our work globally. Please feel free to forward this e-zine to your colleagues, or send them this link for back issues.