Structural Audits of Associations and MLSs

Associations and MLSs are unique organizations because of their high level of volunteer involvement. Volunteers turn over from year to year, so continuity and commitment to purpose can be ever changing, even with a good strategic plan in place.

Every once in a while, the executive officer (EO), president, or board of directors would like the organization to have a thorough checkup, much like physical examinations, even when nothing is apparently wrong. Checkups for organizations are referred to as structural audits, management audits, and operational audits, to mention a few. Replace the word "audit" with "review," and the nomenclature is less threatening, since "audit" tends to have somewhat of a negative connotation.

A structural audit (or review) should be constructive and not at all perceived as a "witch hunt." Its purpose should be to find the strengths that an organization should capitalize on, and opportunities for improvement (a euphemism for "weaknesses"). To be effective, the audit must be performed by an impartial party such as an outside consultant, an industrial psychologist, or an EO from another similar organization.

Structural audits should focus on:

• The division of duties and responsibilities between the board of directors and paid staff.
• The organization of staff around the work performed and smoothness of work flow.
• Financial management, budgeting, and financial reporting mechanisms.
• Adequacy of facilities and equipment.
• Personnel and organizational policies.
• Compliance with labor laws and other government regulations.
• Staff morale and any dysfunctionalities among staff, among directors, or between directors and staff.
• How members are handled and how member services are delivered.
• Quality and pertinence of member services.

These are just a few examples of where attention should be focused during a structural audit. Findings and recommendations should be presented in a constructive way – both orally and in writing.

Most organizations that have experienced a structural audit found it to be very positive, resulting in a renewed sense of purpose, greater organizational focus and synergy, improved morale, and enhanced operating efficiencies.