Organising an Olympic Sport Organisation

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1
Chapter
Organising an Olympic Sport Organisation
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Learning Objectives

• Understand the effect of environmental context on
  organisations.
• Evaluate organisational structure and the roles
  of people within it.
• Evaluate organisational governance.
• Use information technology.
• Manage organisational change effectively.

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Section 1.1 Operating Environment

• Olympic Movement
• IOC founded on 23 June 1894.
• Based on Olympism.
• To participate in the Olympic Movement,
  organisations must meet the ethical principles of
  the Olympic Charter.

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Organisations of the Olympic Movement
Reprinted from www.olympic.org.
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Opportunities and Challenges in the Operating
Environment

• Political factors
• Sociocultural factors
• Economic factors
• Legal factors

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Impact of theOperating Context

• All OSOs have different environmental factors
  that change often.
• Organisations must change along with factors.
• Frequently review the operating context.
• Frequently review the management and direction of
  the organisation.

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KEY RECOMMENDATIONS

• Identify where your OSO fits into the Olympic
  family.
• Be clear about your organisation's role in the
  delivery of sport policy.
• Review your operating context annually.
• Adjust operations in response to the review as
  necessary.

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Illustration 1.1
Trinidad and Tobago Olympic Committee

• In your opinion, what was the most influential
  factor in the operating environment of the TTOC
  and why?

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Section 1.1
Discussion Questions

• In your opinion, what is the most influential
  factor in the operating environment of your OSO
  and why?
• What are you able to do about this factor?

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Section 1.2 Nature of OSOs

• What is an organisation?
• An OSO is a group of people working together to
  achieve goals related to Olympic sport.
• Includes four core elements
• People
• Rules
• Goals and purposes
• Resources

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People

• Individual identity
• Know who people are.
• Provide praise and public recognition.
• Role and formal position
• Includes level of centralisation.
• Includes level of specialisation.
• Type of stakeholder (see chapter 2)

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Rules, Tasks, Roles and Responsibilities

• Rules of the organisation
• Roles and responsibilities of particular posts
• Operating manual and standardisation of tasks
• Rules common to OSOs

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Goals and Purposes

• Promotion of Olympism ranges from recreational
  activities at grassroots level to sending
  athletes to Olympic Games.
• Stakeholders' goals may differ from goals of the
  organisation and influence evaluation of
  organisational effectiveness.

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Resources

• Revenuemembership fees, sponsorship, grants from
  the IOC and government, income from TV rights
• Peoplevolunteers, paid staff, team staff,
  athletes
• Servicesaccess to legal advice, assistance with
  drug testing, staging of events
• Timepaid staff, volunteers

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KEY RECOMMENDATIONS

• Identify the most appropriate structure for the
  organisation.
• Ensure that management decision making is
  devolved to those responsible for implementing
  the strategies. The strategic direction of the
  OSO must remain the responsibility of the board.
• Ensure that statutes are comprehensive and rules
  are clear.

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Illustration 1.2
British Olympic Association

• In your opinion, what was the most significant
  change in the BOA transformation and why?

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Section 1.2
Discussion Question

• Consider the way your OSO is organised in terms
  of structure, roles and people. In your opinion,
  how could this be changed to make the
  organisation more effective?

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Section 1.3Governance of Organisations

• Key issues of corporate governance
• Ensuring that an organisation develops strategic
  goals and direction
• Ensuring that the Board monitors organisation
  performance to make sure that it achieves these
  strategic goals
• Ensuring that the Board acts in the best
  interests of the members

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Organisational Culture

• Refers to assumptions and beliefs about an
  organisation, such as valuing of volunteers and
  belief in Olympism.
• Determines who is powerful and what is important
  by shaping goals and objectives and affecting
  allocation of resources.

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Power and Politics

• Power can come from group size, position,
  personality, control of resources, skills and
  ability to prevent things from happening. It
  determines direction of organisation.
• Politics is how power can be seen. It influences
  decision making and determines who controls
  resources.

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Governance in OSOs

• Creates conditions necessary for success.
• Board plays important role.
• Board members need the skills and abilities to
  make strategic decisions.
• Clear rules for admittance and elections
  encourage democracy.
• Large board size has advantages and
  disadvantages.
• Board must engage stakeholders through regular
  communication.

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Risk Management

• Assess the risks facing the organisation.
• Create a programme to deal with risks.
• Risk register
• Changes in governance
• Reduction or expansion of services and changes in
  operations
• Insurance
• Review the programme periodically.

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Governance Checklist

• Use the governance checklist to evaluate an
  organisation.
• Delineation of governance roles
• Governance processes
• Governance controls
• Governance improvement
• Member responsiveness

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KEY RECOMMENDATIONS

• Understand organisational values and how they
  affect culture.
• Be aware of internal politics and who is
  powerful.
• Use the governance checklist to evaluate your
  organisation.
• Ensure that the Board has the necessary knowledge
  and skills to govern.
• Use a transparent and accountable voting system.
• Regularly ask questions about governance
  structures.
• Carry out risk assessments of all OSO activities.
• Maintain an up-to-date risk register.

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Illustration 1.3
Estonian Olympic Committee

• Which aspects of the governance checklist do you
  think the EOC fulfills the best?
• Which areas are the weakest?

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Section 1.3
Discussion Questions

• Apply the governance checklist to your
  organisation. Which areas does it fulfill the
  best?
• Which areas are the weakest?
• What recommendations for improvement can be made?

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Section 1.4 Information Management and
Information Technology

• Information is vital for good governance.
• Effective management of resources
• Communication with key stakeholders
• Planning and decision making
• Need the most accurate and relevant information
  at the right time in order to make effective
  decisions.

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Use of Information

• Acquire information.
• Mass media
• Electronic sources
• Interpret it.
• Its meaning for decision making and
  organisational operations
• Quality and awareness of source of information
• Use it.

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Managing Information

• Good decision making requires complete, relevant,
  timely, accurate and understandable information.
  
• Follow the four Ds.
• Do
• Delegate
• Drop
• Destroy

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Applying E-Management

• Shared network
• Organisation website, e-newsletters, virtual
  shops, competition entry, intranet, extranet
• Transparency of management
• Educational, societal, commercial and operational
  applications
• Impact of organisational culture, attitude and
  expertise on effectiveness of ICT

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Implementing E-Management

• Focus on stakeholders.
• Integrate into broader policy, management
  processes and the collection of information.
• Ensure that investment in technology yields the
  desired knowledge.
• Evaluate e-management once in place.

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KEY RECOMMENDATIONS

• Identify sources of trustworthy information and
  use them.
• Investigate how your organization can make better
  use of ICT.
• With the commitment and support of the Board,
  encourage and support the use of ICT.
• Seek partnerships to expand your organisations
  e-management.

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Illustration 1.4
Oceania National Olympic Committees Continental
Association

• How has ONOC used ICT to improve information
  management and communication within its region?

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Section 1.4
Discussion Questions

• How does your OSO use ICT to improve information
  management and communication with members?
• What could the OSO do differently?

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Section 1.5Management of Change

• Prepare to introduce change.
• Audit the environment to identify possible
  changes.
• Develop a culture that supports change in order
  to help make change easier.

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Resistance to Change

• Inevitable
• Reasons for resistance
• Differences
• Competence
• Ripples
• Workload
• Resentment
• Real threats

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Strategy for Dealing With Resistance

• Communicate reasons for change.
• Encourage those affected to help design the
  change.
• Remember that not all resistance is bad.
• Identifies problems.
• Dealing with resistance means stronger commitment
  to change.

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Implementing Change Successfully

• Change as a good idea
• Knowledge of factors that will promote and
  prevent change
• Effective change team
• Introducing change at the appropriate level in
  the organisation
• Sufficient resources
• Well-developed implementation strategy

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KEY RECOMMENDATIONS

• Work with the Board to ensure a culture that
  supports change.
• Identify sources of information to help with
  environmental auditing.
• Know why people may resist a change.
• Involve others in planning and implementing the
  change.
• Make sure that the change is planned thoroughly.

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Illustration 1.5
Changing the Governance of South African Sport

• What were the strengths and weaknesses of the
  approach to change followed by the sport
  organisations in South Africa?

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Section 1.5
Discussion Questions

• Consider a recent change that has been introduced
  into your OSO. What were the strengths and
  weaknesses of the approach?
• What could have been done differently?

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Case Study 1
The Nature of the Olympic Council of Malaysia

• Using the following concepts from this chapter,
  evaluate the operations of the OCM. What
  recommendations do you have for the management of
  the OSO?
• Organisational context
• Nature of the organisation
• Governance
• E-management

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Chapter 1
Discussion Questions

• Using the concepts contained in this chapter,
  identify areas of strength and weakness in the
  organisation of your OSO. What recommendations do
  you have for the organisation of your OSO?
• How and why should these be prioritised?

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2
Chapter
Managing Strategically

• Managing Strategically

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Learning Objectives

• Develop a strategic plan.
• Prepare for strategic planning.
• Carry out a strategic diagnosis.
• Develop and implement plans in order to achieve
  strategic objectives.
• Evaluate the effects of the strategy.

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Section 2.1 Preparing for the Strategic Process

• Implementing a strategy depends on addressing
  these questions
• Why do you need a strategic plan?
• How will you develop it?
• How much time do you have for the planning
  process?
• What is the budget for the planning process?

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Reasons for Implementing a Strategic Plan

• Internal factors
• Clarifying objectives
• Defining roles and responsibilities
• Creating cohesion amongst activities
• Defining priorities
• Improving communication and collaboration

The strategic plan should be a unifying tool for
management and internal communication. It should
encourage paid staff and volunteer involvement
and a more effective collaboration between the
two types of workers. It is also important to
note that the strategic planning process is not
just the domain of managers, rather it can be
initiated and promoted by elected members, such
as the Board. It may also be a request that comes
from the membership.
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Reasons for Implementing a Strategic Plan

• External factors
• Demonstrating good governance
• Communicating with partners
• Showing how money is used
• Dealing with the cost of high-performance sport

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Developing a Strategic Plan

• You must Decide on the steps and methods for
  gathering information. If you are not sure .
• You also need to Determine who will be involved
  in the planning effort.
• Executive Board
• General Assembly
• It is also helpful to Know whether you are able
  to use an outside consultant.

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Available Time for Planning

• performing a strategic diagnosis and defining a
  strategic plan are usually long processes.
• Therefore, it is helpful to define how much time
  you have to develop or revise the strategy. This
  could include
• a quick exercise, such as a week, in which case
  it will only be possible to make revisions to an
  existing strategy
• a relatively short process, such as 1 month, in
  which case diagnosis and strategy development
  will be compressed or
• an in-depth analysis over 9 to 12 months.

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Establishing a Budget

• Include financial and administrative costs.
• Data collection
• Human resources
• Cost of outside consultant (if feasible)
• Obtain the support of the Executive Board and the
  General Assembly.

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Preparing for the Strategic Process
By the end of this planning stage, you should
have obtained political support, with the
approval of your Executive Committee or General
Assembly, for the following Rationale for the
strategic planning process. Methodology for
achieving the plan. Budget, time frame and
human resources dedicated to achieving the
plan. This will allow you to begin the process
of developing your OSOs strategic plan.
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KEY RECOMMENDATIONS

• Clarify why you need a strategic plan and how
  much work needs to be done to develop it.
• Identify Board members who will lead the process.
• Look for outside help if necessary.
• Ensure that all stakeholders are willing to help.
• Develop procedures for involving the necessary
  people and collecting the necessary information.
• Do not try to rush the process.

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Illustration 2.1
New Zealand Olympic Committee Inc.

• Describe how the NZOC's Peak Performance
  Framework applied the steps for strategic
  planning outlined in this section.

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Section 2.1
Discussion Questions

• What can your organisation learn from the NZOC's
  strategic planning process?
• How could you go about this process in your OSO?

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Section 2.2 Diagnosis of the OSO Environment

• Diagnosis helps determine where the OSO is in
  relation to its internal and external environment
  so that you can take advantage of opportunities
  and avoid threats.

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Identifying Stakeholders

• Microenvironment
• Members, clubs, leagues
• Institutional and financial partners
• Suppliers of goods and services
• Current and potential public
• Competitors
• Macroenvironment
• Situational factors
• Structural factors

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Stakeholder InterestControl Matrix for an NF
Factor Little interest A lot of interest
Little control General public Some suppliers Priority 4 Keep an eye on them Sponsors OSO competitors Priority 3 Keep them informed
A lot of control NOC IF Priority 2 Keep them satisfied Community Priority 1 Manage them carefully
Adapted from www.mindtools.com/pages/article/newPP
M_07.htm
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Conducting an Internal and External Analysis

• Follow the structure for auditing internal and
  external environments outlined in chapter 1.
• Conduct a SWOT analysis.
• Use the SWOT matrix to determine the strategic
  diagnosis.

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SWOT Matrix for an NF
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KEY RECOMMENDATIONS

• Identify all stakeholders who affect your
  organisation.
• Determine the priority of each stakeholder.
• Carry out an internal and external diagnosis.
• Use the SWOT framework to organise the
  information you obtain from discussions with
  stakeholders.

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Illustration 2.2
Cyprus National Olympic Committee

• In what ways did the Cyprus NOC involve all
  stakeholders in the strategic development process?

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Section 2.2
Discussion Questions

• How do you involve all stakeholders in your OSO's
  strategic development process?
• How could this involvement be improved?

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Section 2.3 Vision, Values, Mission and
Strategic Objectives

• Use internal and external analysis to determine
  potential strategic actions.
• Focus on actions that address several SWOT
  factors.
• Structure strategic actions by defining the
  vision, values, mission and strategic objectives
  of the organisation.

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Vision and Values

• Vision corresponds to what the organisation wants
  in the long term.
• Values are the underpinning beliefs that the
  organisation promotes.
• Both provide a framework for strategic planning.

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Mission

• Align the mission with organisation values.
• Regularly check that it is still appropriate.
• Include a humanistic, social and environmental
  orientation in the mission in order to reflect
  the values of the Olympic Movement.

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Strategic Objectives

• Strategic objectives outline the mission and
  values in more detail.
• First, identify the objectives.
• Impact on your organisation
• Feasibility
• Risks
• Second, define the objectives by using a matrix
  to organise the information.

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Matrix for Determining Strategic Objectives of
an NOC
Strategic orientations Strategic objectives Impact Feasibility Risks Decision
Promote Olympic NFs Increase printed media promotion of Olympic sports. High High Conflict with non-Olympic federations Yes
Promote Olympic NFs Promote sport by creating sport TV programmes. High Low Cost, feasibility No
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KEY RECOMMENDATIONS

• State your OSO's underlying principles as a clear
  vision.
• Underpin this vision with value statements and
  use these to create a mission.
• Use the mission to develop objectives.
• Evaluate vision, values and mission on a regular
  basis.

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Illustration 2.3
Papua New Guinea Olympic Committee

• In what ways did the vision statement and mission
  statement guide the strategic objectives of the
  PNGOC?

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Section 2.3
Discussion Questions

• In what ways do the vision statement and mission
  statement guide the strategic objectives of your
  OSO?
• What recommendations can you make?

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Section 2.4Action Plans

• Develop action plans to achieve objectives.
• How the OSO will use resources
• General goals and specific actions
• Plans may be simple or complex depending on
  objectives and resources.

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Content of Action Plans

• What actions or changes will occur
• Who will carry them out
• By when and for how long they will take place
• What resources are needed to carry them out
• Who should know what

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Development ofAction Plans

• 1. Develop an overall action plan for each
  strategic goal.
• 2. Develop an action plan for each major
  function, programme and service.
• 3. Each manager develops an action plan that
  contributes to the strategic plan.

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Available Resources

• Ensure action plans can be resourced.
• Involve local stakeholders in developing the
  action plan.
• Local organisations can define their level of
  involvement and time schedule.
• The plan will then account for local constraints.

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Working in Partnership

• Internal alliances (e.g., organisations in the
  OSO network)
• External alliances
• Other OSOs
• Nonprofit organisations
• Public partners and private partners

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KEY RECOMMENDATIONS

• Develop action plans, beginning with the overall
  OSO plan and finishing with individual plans for
  those who have to deliver services.
• Involve all parties who will have responsibility
  for actions.
• Define work plans, procedures, responsibilities
  and resources for plans.
• Establish alliances wherever possible.

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Illustration 2.4
Swaziland Olympic and Commonwealth Games
Association

• List the strategic priorities of the SOCGA and
  match them with the actions to be achieved.
• What recommendations would you make?

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Section 2.4
Discussion Questions

• Have the strategic priorities of your OSO been
  expressed as actions to be achieved?
• What recommendations can you make to improve
  this?

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Section 2.5 Control and Evaluation

• Strategic evaluation requires comparing
  objectives with results.
• Involves a continuous process over regular
  control periods.
• The role of the Executive Board is paramount.

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Strategic Control
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How to Evaluate

• Use SPORTS evaluation indicators
• Specific
• Pertinent
• Objective
• Representative
• Transparent
• Simple
• Establish and analyse milestones regularly.

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Using Performance Indicators

• Use trustworthy data to create performance
  indicators (PIs).
• Ensure PIs measure what they are considered to
  measure.
• Evaluate performance against objectives.
• Use PIs only as a guide because they do not
  explain performance.

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Barriers to Evaluation

• Some OSOs neglect evaluation and strategic
  control.
• However, evaluation and strategic control are
  vital.
• Assess objectives and actions.
• Quantify the organisation's contribution to
  society.

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KEY RECOMMENDATIONS

• Use the Board to develop indicators that directly
  measure the achievement of objectives.
• Make sure these indicators cover key areas of
  activity.
• Ensure that you do not have too many indicators
  and that the indicators are relevant.
• Use the indicators to explain performance, and
  communicate this explanation to key stakeholders.

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Illustration 2.5
Fédération Française de Canoë-Kayak

• Explain how the FFCK has linked performance
  indicators to actions that lead to its strategic
  objectives.
• What recommendations can you make?

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Section 2.5
Discussion Question

• Evaluate how your organisation links performance
  indicators to actions.
• How could you improve the PIs that measure your
  OSO's strategic objectives?

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Case Study 2
Developing the Strategic Plan of the Zimbabwe
Olympic Committee

• How successful was the strategic plan of the ZOC
  in addressing each of the steps outlined in this
  chapter?
• Discuss preparation, diagnosis, objectives,
  action plan, and control and evaluation, and make
  any appropriate recommendations.

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Chapter 2
Discussion Questions

• Evaluate the strategic planning process of your
  OSO in comparison with each of the steps outlined
  in this chapter.
• Discuss preparation, diagnosis, objectives,
  action plan, and control and evaluation, and make
  any appropriate recommendations.

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3
Chapter
Managing Human Resources
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Learning Objectives

• Understand the role of human resources
  management.
• Develop and implement rules and regulations for
  management of human resources.
• Develop and implement a human resources strategy.
  
• Identify key principles and actions for
  attracting, recruiting and motivating human
  resources.
• Implement a development policy through training.
• Develop the skills to effectively manage people.

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Section 3.1 Organising Human Resources Management

• Human resources management (HRM) refers to
  optimising members' activities so the OSO can
  achieve its mission and goals
• Helping members to develop and engaging them in
  activities consistent with the values of sport
• Matching available human resources for necessary
  activities with the required amount of time

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Five Key Areas for Regulation and Formalisation

• Formalise the relationship between the
  organisation and its members.
• Formalise positions and responsibilities in job
  descriptions.
• Formalise hierarchical and operational
  relationships in an organisation chart and
  internal operating handbook.
• (continued)

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Five Key Areas for Regulation and Formalisation
(continued)

• Formalise hours of work for staff members and
  provide an activity schedule for all
  stakeholders.
• Formalise remuneration conditions for all
  members, including volunteers.

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Role of Rules in HRM

• Rules serve as a common reference point.
• They prevent decisions based on interpersonal
  relationships.
• To avoid excessive rigidity, apathy and
  arbitrariness, respect the spirit of the
  regulations over strict adherence to their
  content.

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KEY RECOMMENDATIONS

• Establish contracts for all paid personnel and
  volunteers.
• Develop job descriptions for all positions.
• Create a staff handbook to help staff and
  volunteers understand their roles.
• Revise administrative rules regularly to ensure
  their continued relevance.
• Involve staff members in drafting or revising the
  rules.

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Illustration 3.1
Barbados Olympic Association Inc.

• According to the BOA's Office Rules and
  Regulations manual, if you were a new staff
  member of BOA, what could you expect from the
  organisation and what would the organisation
  expect from you?

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Section 3.1
Discussion Questions

• Does your OSO have a manual similar to BOA's
  Office Rules and Regulations?
• If so, how could it be improved?
• If not, what areas would such a manual include?

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Section 3.2 Developing a Human Resources
Strategy

• An OSO needs an HRM strategy to manage human
  resources effectively.
• For OSOs, a human resources policy must ensure
  efficient use of resources in accordance with
  Olympics values.

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Analysing Human Resources

• To develop an HRM strategy, first analyse
  existing human resources.
• Identify strengths and weaknesses using internal
  administrative documents, questionnaires and
  interviews.
• Carry out in-depth analysis every 4 years and
  update analysis every year through individual
  interviews.

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Defining Human Resources Objectives

• Identify the actions needed in HRM.
• Prioritise the actions.
• Describe what the actions cover.
• Address the major weaknesses found in the
  analysis.
• (continued)

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Defining Human Resources Objectives (continued)

• The person in charge of HRM is responsible for
  defining the objectives.
• Objectives must have the approval of the Board.
• The secretary general and general manager should
  be involved because achieving the objectives
  requires financial and human resources.

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Developing the Action Plan

• Objectives must be translated into specific
  actions.
• The plan should include an implementation
  schedule and appropriate resources.
• The Board must approve of the plan since it will
  affect the global policy and strategy of the
  organisation.

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Executing and Evaluating the Strategy

• Implement the action plan once it has been
  developed, agreed on and resourced.
• Record execution of the plan to show what has
  been carried out.
• Evaluate the plan once it is in place following
  the principles outlined in chapter 2.

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KEY RECOMMENDATIONS

• Analyse your OSO in terms of its head count,
  skill level and labour turnover.
• In consultation with your Board, develop
  objectives for your HRM strategy that link into
  the overall organisational strategy.
• Put actions in place to meet these objectives.
• Evaluate the impact of your HRM strategy on
  achieving the OSO's objectives.

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Illustration 3.2
Comité National Olympique et Sportif Français

• Describe the human resources strategy of the
  CNOSF, including objectives, actions,
  implementation and evaluation. What
  recommendations can you make?

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Section 3.2
Discussion Questions

• Evaluate your OSO's human resources strategy and
  make appropriate recommendations.

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Section 3.3 Recruiting and Motivating Human
Resources

• An organisation must have the resources to
  implement its strategy.
• OSOs generally require a regular increase in
  human resources to continue developing.
• For some activities, such as staging events, OSOs
  also need a short-term increase in human
  resources.

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Recruiting Human Resources

• Evaluating human resources needs
• List available human resources.
• Decide what needs exist.
• Recruitment strategies
• Recruit someone from outside the organisation.
• Fill the position with someone from within the
  organisation.
• Reorganise instead.
• (continued)

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Recruiting Human Resources (continued)

• Recruitment procedures
• Identify needs.
• Determine how gaps will be filled.
• Invite candidates and ask for applications.
• Receive and evaluate candidates.
• Choose the best candidate.
• Formalise the contract.
• Hire the candidate.

112
Motivating Human Resources

• Rewards are the main way OSOs enhance motivation.
• The two types of rewards are extrinsic (external)
  and intrinsic (internal).
• Extrinsic rewards are material.
• Intrinsic rewards are nonmaterial.

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Intrinsic Rewards

• Intrinsic rewards are administered and
  experienced by the staff
• Direct feedback
• New learning
• Control over scheduling
• Control over resources
• Direct communication authority
• Personal accountability
• The more a reward motivates intrinsically, the
  more a person values it thus OSOs must provide
  opportunities for intrinsic rewards.

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KEY RECOMMENDATIONS

• Evaluate human resources needs on a regular basis
  (both paid personnel and volunteers).
• Have a fair system of recruitment that allows you
  to choose the most appropriate people.
• Know what motivates your staff and ensure that
  these factors are present in the OSO.
• Provide intrinsic motivators.

115
Illustration 3.3
Qatar National Olympic Committee

• How might a better understanding of volunteers'
  motivations help the management of volunteers in
  the QNOC?

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Section 3.3
Discussion Questions

• What steps does your OSO take to understand the
  motivations of its volunteers?
• How might this be improved?

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Section 3.4 Developing Human Resources Through
Training

• OSOs must invest in staff training because of
  increased demands of professionalism.
• Training provides skills people need in order to
  ensure that the organisation fulfils its mission.
  
• Training process requires three stages
• Assessing training needs
• Preparing and implementing a training plan
• Evaluating training

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Assessing Training Needs

• Identify shortfalls in skills that impede the
  organisation
• Lack of skills of a person holding a key position
• Lack of skills within a group
• Lack of skills within a group associated with the
  organisation
• Promote the benefits of training by obtaining the
  support of those affected.

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Preparing and Implementing a Training Plan

• Select the training procedures.
• Formal training
• Informal training (use as much as possible)
• Choose and implement a training programme.
• Develop ways of assessing whether new skills have
  been learnt.
• Ensure that all relevant personnel are trained.

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Evaluating Training

• Evaluations may be made via objective or
  subjective factors.
• There are three levels of evaluation
• Acquired skills and knowledge
• Skills building
• Impact on the organisations operations
• (continued)

121
Evaluating Training (continued)

• Use questionnaires to evaluate both formal and
  informal training.
• Perform an annual assessment of training through
  review interviews in order to assess the impact
  of training.

122
OSOs as Learning Organisations

• Learning organisations promote development,
  mobilisation, training, assessment and
  dissemination of the knowledge needed for their
  operations.
• Two steps towards becoming a learning
  organisation
• Identify people with skills who are prepared to
  share those skills with others.
• Formalise the skills to ensure retention and
  transfer.

123
KEY RECOMMENDATIONS

• Identify areas of skill development by analysis
  of problems in the OSO.
• Ensure that training needs are identified by
  regular skills audits.
• Develop a range of training methods and
  activities.
• Evaluate each training session to see if it is
  meeting its objectives.
• Develop the OSO as a learning organisation by
  passing on skills and knowledge to all involved.

124
Illustration 3.4
National Olympic Committee of Albania

• Evaluate the strengths and weaknesses of the
  training programme developed by the NOC of
  Albania, including assessment of training needs,
  preparation and implementation of the programme,
  and evaluation of the programme.

125
Section 3.4
Discussion Question

• Evaluate the way training is organised and
  carried out in your OSO.
• What recommendations can be made?

126
Section 3.5 Developing Skills for Managing Human
Resources

• Decision making as a key HRM skill
• Risky decisions
• Have an idea of the choices available but no
  definite idea of the outcomes
• Have no clear idea of the alternatives and
  therefore the outcomes
• Rational decision-making process

127
Decision-Making Process
Adapted, by permission, from R. Paton, 1995, Book
one On being a manager, Foundations of Senior
Management course material (Open University
Milton Keynes), 31.
128
Problem Solving

• Once you become aware of a problem, take a
  structured approach to solving it.
• Gather information on who is involved and
  possible causes.
• Determine solutions to the problem.
• Make and then communicate a decision.
• Check to see that the problem has been solved.

129
Communication

• Information can be communicated in written or
  verbal form.
• Three factors affect the form you choose
• Purpose
• Target audience
• Length
• Listening is also a vital communication tool.

130
Time Management

• Be aware of activities that cause time to be
  lost.
• Be clear about what has to be achieved.
• Learn to structure your time.
• Learn to say no.

131
Managing Conflict

• Constructive conflict can increase understanding
  of a problem.
• Certain personal characteristics and
  communication skills are necessary for dealing
  with conflict.
• Timing of an intervention is also important.

132
Conflict Management Strategy

• A strategy is required to intervene in conflict
• Identify the problem.
• Examine the relationships of the protagonists.
• Identify the problems and the consequences.
• Approach those involved in the conflict.
• Implement the solution and then evaluate the
  situation.

133
Illustration 3.5
Managing Conflict in National Federations

• Describe the conflict resolution strategy and
  style employed by the NF described in the
  illustration.
• How effective were they?

134
Section 3.5
Discussion Questions

• How is conflict dealt with in your OSO?
• How could this be improved?

135
Case Study 3
Human Resources Assessment and Design for the
Gambia National Olympic Committee

• How did the GNOC apply the principles of HRM in
  designing a human resources development plan?
  Consider their analysis of human resources as
  well as the way they addressed their staffing
  needs, training and action plan.

136
Chapter 3
Discussion Questions

• How well does your OSO apply the principles of
  HRM in human resources planning and management?
• What improvements can you suggest?

137
4
Chapter
Managing Finance
138
Learning Objectives

• Communicate the need for good financial
  management and integrate it into the governance
  system.
• Inform the Board of its responsibilities in terms
  of finances.
• Develop a financial plan in line with the
  strategy of the OSO.
• Prepare necessary budgets to achieve the
  financial plan.
• Put in place procedures for accounting for
  finances.
• Monitor and evaluate the financial plan.
• Report financial performance accurately and
  transparently.

139
Section 4.1 Good Financial Management

• Financial management refers to monitoring and
  communicating cash flow prudently and in
  accordance with the law.
• Requires a broad planning strategy and articulate
  implementation and recording.
• Includes conceiving, budgeting for, implementing
  and reporting activities on a regular basis.

140
Roles and Responsibilities

• All Board members and staff are responsible for
  financial management.
• The treasurer plays a crucial role.
• Principal contributor to financial planning.
• Sets the financial tone of the organisation.
• Should ensure that an OSO stays solvent, grows
  assets and strikes a healthy balance in the
  annual cash flow.

141
Financial Management Cycle

• Financial problems may be symptoms of more
  difficult governance or philosophical issues.
• The financial management cycle has four stages
  (figure 4.1)
• Planning
• Budgeting
• Implementation and accounting
• Evaluation and reporting

142
Key Definitions

• Everyone with financial responsibility should
  understand the following terms
• Assets
• Liability
• Overheads
• Surplus
• Deficit
• Liquidity
• Reserves
• Balance sheet
• Profit and loss account
• Capital expenditure
• Revenue expenditure

143
KEY RECOMMENDATIONS

• One person should have overall responsibility for
  financial management.
• Make sure that all Board members are committed to
  good financial management and are aware of their
  role in this.
• Follow the financial management cycle in the
  financial management of your OSO.
• Be familiar with the terminology associated with
  finances.

144
Illustration 4.1
Papua New Guinea Olympic Committee

• In what ways does the strategic plan of the PNGOC
  include accountability for its financial
  management?
• Can you think of other ways that the PNGOC could
  be held accountable?

145
Section 4.1
Discussion Question

• Evaluate the financial management process of your
  OSO.
• How could this be improved?

146
Section 4.2 Financial Planning

• Financial planning helps take stock of an
  organisation's financial situation, determine
  goals and objectives, and develop financial
  strategies.
• Includes cash management, budgeting, project
  management, insurance, capital expenditure and
  tax planning.
• (continued)

147
Financial Planning (continued)

• Financial mismanagement can occur due to
  deliberate misconduct, but a systemic attitude
  problem regarding money is often more difficult
  to overcome.
• Good financial management is also linked to
  nonfinancial factors such as being aware of the
  impact of the operating context on the OSO.

148
Understanding Your Assets

• Cash assets
• Cash
• Cheque
• Bank transfer
• In-kind contributions
• Paid-for services
• Activities
• Equipment
• (continued)

149
Understanding Your Assets (continued)

• Infrastructure
• Possible monetary value
• May sell fixed assets to pay debt
• Sources of income
• Which activity is most suitable for each source
• How much money each source has put into the
  system and how much benefit stakeholders have
  received

150
Key Concepts in Financial Planning

• Finance as an extension of planning
• Connect finances to the OSO's objectives.
• Use the strategic plan to guide financial
  management.
• Time frame
• Monitor finances frequently and report at least
  annually.
• Implement programmes in 1- or 2-year time blocks.
  
• Cost estimating
• Provide budget lines for every possible scenario.
  
• Outsource this work if necessary.

(continued)
151
Key Concepts in Financial Planning (continued)

• Distribution of resources
• Use the strategic plan to determine distribution.
  
• Focus on meeting organisational objectives.
• Types of expenditure
• Infrastructure is not necessarily the priority.
• Smaller investments in development programmes
  usually produce a higher return on investment.
• (continued)

152
Key Concepts in Financial Planning (continued)

• Area of focus
• Consider factors that affect allocation of
  resources at the national and international
  level.
• Be aware of these factors regardless of the level
  at which your organisation works.
• Organisational efficiency
• Evaluate the efficiency of the OSO.
• Use the principles for evaluation outlined in
  chapters 1 and 2.

153
KEY RECOMMENDATIONS

• Ensure that the Board takes responsibility for
  financial planning.
• Ensure that financial planning is directly linked
  to the organisation's strategic plans.
• Be clear about how much income you have and where
  it comes from before planning.
• Be realistic about the costs of programmes.
• Finance activities that are appropriate for your
  OSO.

154
Illustration 4.2
British Swimming

• In what ways does British Swimming's 4-year
  financial planning cycle reflect the principles
  outlined in this section?

155
Section 4.2
Discussion Questions

• In what ways is your OSO's financial planning
  cycle linked with its strategic plan?
• How could this be improved?

156
Section 4.3 Budgeting

• Budgeting refers to determining the cost
  distribution of programmes and services.
• The Board must agree to the budget and
  communicate it to staff.
• Adherence to the budget is crucial otherwise,
  programmes and services will be negatively
  affected.

157
Compiling a Budget

• Determine how much money is coming in.
• Determine how much is being spent.
• Determine how much should be spent.
• Control expenditure with regular reporting on
  favourable and unfavourable variances.

158
Things to Avoid When Compiling a Budget

• Spending resources without a budget
• Starting initiatives for which there is no budget
  allotted
• Reallocating budget resources
• Asking funders for more resources
• Multiplying charges to seek additional revenue
• Large price tags on "miscellaneous/other" items
• Large overhead budgets

159
Types of Budgets

• Annual budgetTotal estimated cost of running an
  organisation in any given financial year.
• Project budgetsAllot financial resources towards
  achievement of an organisational objective.
• Capital budgetsUsed when the OSO needs to spend
  substantial funds for a certain amount of time.

160
Budget Income

• Avoid depending on one or two sources for all
  income.
• Target each budget line at the appropriate
  source.
• Decide what funding the OSO has, how much it
  needs and the difficulty in obtaining funding
  from investors.
• Explore the options available through
  nontraditional sources such as foundation
  funding.

161
Budget Expenditure and Control

• Avoid spending more than is received in income,
  reallocating budget lines to offset overspending,
  not declaring liabilities and misrepresenting
  financial solvency.
• Regular and clear balancing of the books and
  reporting to the Board demonstrate transparency
  and spending according to the financial plan.

162
KEY RECOMMENDATIONS

• Identify all sources of income and expenditure.
• Allocate funds to appropriate areas of
  expenditure.
• Ensure that the Board regularly assesses actual
  performance against budgeted performance.
• Make changes to financial plans if necessary.
• As a last resort, adjust the strategic intentions
  of the OSO.

163
Illustration 4.3
Comité Olímpico Ecuatoriano

• Which practices outlined in this section does the
  COE follow in raising revenue and allocating it?
• What recommendations might be made to improve the
  process?

164
Section 4.3
Discussion Questions

• Which practices outlined in this section does
  your OSO follow in raising revenue and allocating
  it?
• How might this be improved?

165
Section 4.4 Accounting for Finances

• Accounting is the process of tracking and
  cataloguing income and expenditures.
• Contributes to functionality, risk management and
  transparency.
• Includes managing financial risk whilst
  implementing programmes and events.

166
Managing Risk With Legal Documentation

• InsurancesOffered to the Board, members,
  athletes, coaches and officials.
• Conflicts of interestWhere a stakeholder profits
  as a result of a decision, policy or transaction
  made by the OSO.
• Interests registerHelps avoid conflicts of
  interest.
• (continued)

167
Managing Risk With Legal Documentation (continued)

• Indemnification clausesRelease a party from the
  legal responsibility for behaviour of other
  parties.
• Waivers of liabilityReduce the possibility of
  lawsuits.

168
Financial Record Keeping

• Generally accepted accounting principles (GAAP)
  are principles for filing and reporting financial
  transactions that are in conformance with laws.
• All countries should meet international standards
  defined by the International Accounting Standards
  Board (IASB).
• (continued)

169
Financial Record Keeping (continued)

• Be sure to keep legally acceptable receipts of
  transactions.
• When delegations are in the field, they can use
  Internet-based currency conversion software or a
  local bank to help track spending.

170
Auditing Accounts

• Audit accounts once a year using an external,
  independent individual or organisation.
• Try to find a licensed CPA to contribute the
  audit for free if financial resources are
  limited.
• At a minimum, have internal audits produced by
  the treasurer and approved in writing by Board
  members.

171
KEY RECOMMENDATIONS

• Ensure that your OSO has adequate and appropriate
  insurance for its activities.
• Avoid conflicts of interest by annually asking
  all Board members, staff and volunteers to
  complete an interests register.
• Make liability waivers part of competition entry
  requirements.
• Account for all finances in a consistent and
  transparent manner, following GAAP.
• Put in place procedures to help field staff
  account for expenses.

172
Illustration 4.4
United States Olympic Training Center

• What risks of legal action do the United States
  Olympic Committee's waiver, medical and travel
  release, and code of conduct cover?

173
Section 4.4
Discussion Questions

• How does your OSO go about minimising risk of
  legal action?
• What recommendations can be made?

174
Section 4.5 Evaluation and Reporting

• Evaluate activities and spending to determine the
  costbenefit ratio.
• Publish the results in a report that is available
  to the public.
• Audit certain financial components of the report
  so that it is credible to readers.
• Ensure that the final product is easy to read and
  enjoyable to readers, especially investors.

175
Evaluation

• Summarise the objectives, activities to be
  evaluated and budget lines supporting the
  activities.
• Match qualitative factors with quantitative
  evaluations.
• Evaluate athletes' performance and maintain a
  database of the results.

176
Reporting

• Project managers report to department heads about
  financial status of projects and write a final
  report when the projects conclude.
• Financial staff classify and file this
  information.
• OSOs should produce financial quarterly reports
  to share with the Board.
• Organisations or individuals should respect the
  confidentiality of matters as defined by the
  Board.

177
Three-Tier Controlling and Reporting Structure
178
Final Accounts

• Operating statementAnalysis of how the capital
  or net worth of an organisation has changed over
  a given period.
• Balance sheetList of assets and liabilities an
  organisation has at a given time.

179
KEY RECOMMENDATIONS

• Evaluate the OSO's performance in qualitative and
  quantitative terms.
• Report on finances annually.
• Ensure that financial information is kept
  confidential as appropriate.
• Produce annual, audited accounts to demonstrate
  financial probity.

180
Illustration 4.5
Palestinian Rowing Federation

• What kinds of qualitative and quantitative
  information did the PRF include in the report on
  its coaching development programme?

181
Section 4.5
Discussion Questions

• How does your OSO report on projects?
• What kinds of qualitative and quantitative
  information do you use?
• What recommendations can be made?

182
Case Study 4
GAAP Swiss Olympic Association

• What principles did Swiss Olympic include in its
  GAAP financial reporting system?
• How did the organisation determine which
  accounting principles to include?

183
Chapter 4
Discussion Questions

• How appropriate would such a project be for your
  country?
• What principles would be of key importance for
  such a project?

184
5
Chapter
Managing Marketing
185
Learning Objectives

• Analyse the relevance of your services in
  relation to stakeholders' requirements.
• Enhance the quality of services by being aware of
  what stakeholders expect.
• Manage effective communication.
• Analyse what is required for a sponsorship
  programme.
• Consider marketing from a strategic perspective.

186
Section 5.1 What Can We Market?

• MarketingPlanning and developing products and
  services to satisfy individual and organisational
  goals.
• Service offeringTangible and intangible elements
  of a service conceived and managed by the
  organisation in order to satisfy stakeholders'
  expectations.

187
Identifying the Current Offerings

• List current offerings.
• List stakeholders.
• List core and peripheral offerings.
• Relate existing offerings to stakeholders.
• Assess market portfolio performance.

188
Managing OSO Marketing Rights and Legal Issues

• Marketing activities
• Name and symbols
• Advertising, sponsoring or licensing
• Legal position
• Laws of the OSO's country, the OSO's constitution
  and the Olympic Charter
• Rights of third-party individuals and groups
• (continued)

189
Managing OSO Marketing Rights and Legal Issues
(continued)

• Limitations due to rights of third parties
• Athletes, coaches, clubs and NFs
• Limitations on commercial use of their name,
  image or likeness
• Olympic Charter limitations
• Limitations on rights to use features associated
  with the Olympic Movement
• Distribution of rights and operating regulations
  outlined in the Olympic Charter

190
Negotiating Contracts

• Advertising agreements
• Agreements for advertising placement
• Sponsorship agreements
• Licensing agreements

191
KEY RECOMMENDATIONS

• Develop a clear idea of your brand by listing the
  services, goods, values and images that
  constitute your offerings.
• Identify what you have the right to market and
  limitations that may affect your marketing.
• Market core offerings to meet stakeholders' main
  motives and expectations.
• Assess the performance of your portfolio in
  relation to stakeholders' expectations.
• Carefully negotiate advertising and licensing
  agreements.

192
Illustration 5.1
Comité Olímpico Argentino

• How did the COA match its portfolio of offerings
  to the interests of the three stakeholders
  described in the illustration?

193
Section 5.1
Discussion Questions

• What portfolio of offerings does your OSO have?
• What do you have the right to market?
• How protected are these rights?
• What recomme