The role of the board in the strategic development of the organization

The Board’s strategic role in the organization refers to their responsibility to lead and oversee the overall strategic direction and performance of the organization. This includes setting the mission, vision and values of the organization, as well as developing and implementing strategies (Ferkins, Shilbury, McDonald, 2009, p. 249). Strategic activities include strategic thinking, decision making, planning and execution (Ferkins, Shilbury 2015, p. 494). Research indicates that the board’s primary role is to shape the future of the organization, not just to oversee day-to-day operations and finances. This approach differs from the traditional approach, which focuses primarily on the day-to-day functioning of the organization (Cunningham et.al. in Ferkins, Shilbury 2016, p. 179).

Since 2016, an international non-governmental organization, National Sports Governance Observer (NSGO), has been operating in Denmark, offering good governance audits on a voluntary basis, with the aim of improving governance in sports organisations. For example, audits of Cypriot sports federations had an average index of 27 per cent, indicating poor indicators of good governance. It was found that Cypriot sports federations do not have a long-term strategic development plan in the dimension of ‘internal accountability and control’, which is an essential basis for organisational development and is one of the most important responsibilities of elected board members (Ferkins & Shilbury, 2012).

The literature on the governance of sport organisations identifies six key factors that influence the strategic capacity of the board of a sport organisation: 1) the input and expertise of board members, 2) the board’s knowledge of the field of activity, 3) the board’s role in the management and development of regional structures, 4) the monitoring and control functions maintained by the board, 5) the board’s involvement in strategy development, and 6) the board’s involvement in the integration of strategy into organisational processes. The authors use the strategic balance theory of the board to illustrate the interplay between these components and the need to integrate all six components in a balanced way in governance practice (Ferkins, Shilbury 2015, p. 499).

The organization’s structure is based on three main dimensions: specialisation, standardization and centralization. Specialization involves the definition of different tasks and roles, standardization involves the establishment of rules, policies and procedures, and centralization involves the final decision-making authority. These structural dimensions are complemented by the values and beliefs of the organization to form its overall model or archetype (Hoye et.al., 2020, p. 9). An organization’s beliefs and values can serve as the basis for its archetypal model, which defines what the organization should do, how it should do it and by what criteria it should be judged (Hoye et. al., 2020, p. 2).

Defining core values helps to identify the highest purpose by defining the principles of behaviour in the organisation that are necessary to achieve that purpose (Mackey, 2006). However, it is difficult to identify and define a clear higher purpose in sport organizations and most sport organizations do not have one or do not publicly define it (Evan, Kirsty 2020, p. 753). Mackey and Sisodia (2013) emphasise that the purpose of organizations cannot be solely profit maximisation. While profit is important, organizations must consider the needs of the community first and foremost. Therefore, organizations must set a higher purpose that engages and creates value for all stakeholders (Evan, Kirsty, 2020, p. 754). Value creation is a two-way process, encompassing commercial and social values, fostering innovation and competitiveness. Congruent values and priorities form the basis of people’s social identity (Kerwin, 2013, p. 49). Mackey and Sisodia (2013) identified four distinct higher purposes that characterise the aspirations of organizations: the Good, the Beautiful, the True and the Heroic. These goals correspond to Plato’s transcendental ideals. “The Good reflects the collective dedication to serve others and improve their well-being. “The Beautiful inspires the pursuit of perfection and excellence, which in sport is expressed in high achievement and exciting competition. The “real” is the collective effort to advance knowledge through cognition and innovation, for example to improve the practical environment through the use and application of sport science. Finally, the ‘Heroic’ reflects the desire of stakeholders to change the world and solve complex problems. All of the higher aims of sport – the good, the true, the beautiful and the heroic – are interconnected, reflecting unity in diversity (Evan, Kirsty 2020, p. 761).

For example, the key principles of strategic development of sport in Canada according to the Kikulis study are: 1. A focus on high performance sport, with priority given to the development of elite athletes, 2. The role of government as a partner in providing resources. 3. organisational rationalisation. 4. professional recruitment. 5. Long-term planning for the development of the organisation’s objectives and activities. 6. Involvement of corporate sponsors in high performance sport. 7. Development of quadrennial plans aligned with the Olympic cycle (Hoye, et.al., 2020, pp. 13-14).

As the Scandinavian experience shows, creating a sense of community is an important component in the development of any sport. Seven key features are required to foster such a sense of community: administrative apparatus, common interests, fair competition, equality in administrative decisions, equal leadership opportunities, social space and voluntary action (Albanesi et.al., 2007, Cunningham et.al., Warner 2016, pp. 272-273.). Fair administrative decisions are a particularly important factor in fostering a sense of community among athletes. Sport governance, depending on its policies, can both facilitate and hinder sport community building (Cunningham et.al., Warner, 2016, p. 277).

Research shows that groups with a shared identity achieve much better results (Cunningham, 2007; Kerwin, 2013, p. 50). When individuals identify with an organisation, they feel united and part of it (Kerwin, 2013, pp. 56-57). The surveys conducted show that members feel ‘belonging’ because they see their goals aligned with the organisation’s goals, feel connected to management and staff, and can freely express their opinions, which are listened to. Leaders who can fairly balance competing interests play a key role in building a cohesive organisational identity (Kreutzer, Jager, 2011; Kerwin, 2013, p. 60).

When people actively participate in the development of a strategy, it goes from being ‘their’ strategy to becoming ‘our’ strategy. This involvement creates a commitment to help it succeed and to defend it against criticism. Investing time in strategy development is worthwhile because it gives us clear guidance, gives the organisation a clear purpose, helps employees understand their role, and provides a common direction for all stakeholders, including regions (Ferkins et.al., 2009, p. 274). Scholars recommend that leaders of sport organisations, including board members, should be adequately rewarded for their contribution of knowledge, labour and time (Ferkins et. al., 2009, p. 273). Otherwise, alternative ways of obtaining these rewards will be sought, which can lead to great losses for the organisation.

In summary, it is important for organisations to define clear higher objectives in order to create value for all stakeholders. Effective sport governance promotes an equitable, community-building and organisation-identifying approach where leaders are able to balance different interests. Involving people in strategy development creates a sense of community and sets a common direction. The Board’s primary function is to define the vision, mission and values, and to develop and implement a strategic plan for the long-term development of the organisation.