Sport Forum, April 2015, IMD Lausanne

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1 Sport Forum, April 2015, IMD Lausanne

2 Changes in Society Towards a sports governing bodies «corporate» social responsibility: a focus on para-sport FEI Para-Equestrian Forum 21 March 2015 Essen (D) Prof. Thierry Zintz, UCL - BOIC

3 Plan 1. Governing a sport organization. What s in a name? 2. Understanding the main challenges of governance in sport organizations 3. Behind governance: the social responsibility of sport organizations 4. Architecture and drivers of governance in Olympic sport organizations 5. Failures the other side of the coin 6. To conclude: some perspectives

4 1. Governing a sport organization. What s in a name? Governance? What s in a name? An old word(16 th Century) A concept in Social sciences since the 1990 The concept was invented in the private sector in order to protect the shareholders Organizational or Corporate Governance The World Bank imponed this concept to public authorities Political or Democratic Governance

5 1. Governing a sport organization. What s in a name? The Governing Body Cycle (from Co-operatives UK, 2005)

6 1. Governing a sport organization. What s in a name? Corporate world: strategic management World of sport organizations Prior to the 1990 s Since the 1990 s Environnement: stable and no complexity Environnement: unstable and more complex Reactive management: Day to day management Proactive management : Strategic management

7 1. Governing a sport organization. What s in a name? Lessons from the strategic management theory Managing complexity (and uncertainty) resulting from ambigious and unforeseen situations» Strategic diagnostic to determine the strategic position of the company, Strategic choices whereo ne has to analyze possible options and to choose the right one(s) Strategic actions where one has to operate the selected strategy and to manage change

8 Descendance Ascendance 1. Governing a sport organization. What s in a name? Loret, 1999 Zintz, Camy, 2005 Traditional popular Games Academic Arts Gymnastics Outdoor activities Olympic Movement International Sport Federations Professionalized Sports Competition Sports Leisure Sports Economic purpose Public purpose Playing purpose Ligues pro, G14, Closed Championships Olympic Movement Just Do it 3 organisational models for contemporary sport organizations

9 1. Governing a sport organization. What s in a name? Pérez s model of corporate governance (2003) Level 5 Governance: Metagouvernance Overall constitutional / societal frame? Level 4 Governance: Governance of governance Can decisions be appealed? Level 3 Governance: Management of governance Who controls the controllers? Level 2 Governance: Management of Management How is management controlled? Level 1 Governance: Management Chappelet, 2012 How is it managed on a daily basis?

10

11 2. Understanding the main challenges of governance in sport organizations External systme Interests Strategies Actor Cooperation Organization «Internal system» Power Negociation Action Organization Uncertainty Understanding the environnement

12 2. Understanding the main challenges of governance in sport organizations Olympic Sport Organizations CNOs COJOs FNs Clubs CIO FIs All these actors are non profit organisations and mostly associations under the law of the country of their headquarters Chappelet, 2012

13 2. Understanding the main challenges of governance in sport organizations Understanding the environnement

14 2. Understanding the main challenges of governance in sport organizations Environmental Providers Clubs NF IOC Professional leagues IF Spectators Distant audience Unpaid staff Pratice Professionals athlete Events OC Volunteers Paid staff Members Participants Marketing agencies Media Sponsors Facilities managers Sporting activities market Social Understanding micro- and meso-environnement Economic Ferrand, Zintz et all. 2011

15 Environmental Health governing bodies and organisations Business governing bodies and entrepreneurs Financials Tourism governing bodies, institutions, governing bodies shareholders, analysts and entrepreneurs and entrepreneurs Third parties (opinion leaders) and customer referrals Education governing bodies and organisations Social governing bodies and organisations Understanding macro-environnement Customers Environmental governing bodies and organisations Public opinion Social Government Local authorities European community Economic Issue community Environment User groups Ferrand, Zintz et all. 2011

16 2. Understanding the main challenges of governance in sport organizations Henry s model (2004) of sport governance Adapted from Leftwich (1994) and Arcioni (2002) Systemic Governance Rules of competition, cooperation and mutual adjustment between parties involved in the production of sport Corporate Governance Normative approach to Managerial behaviour of sport organisations Political Governance Steering mechanisms by governments and sport governing bodies to achieve goals

17 2. Understanding the main challenges of governance in sport organizations Pérez s model adapted to the Olympic System 5 IOC Metagovernance Swiss TF and international courts 4 Governance of IOC governance National courts, WADA & CAS 3 Management of IOC governance Nominations, Athletes & Ethics Commis. 2 Management of IOC Management Session, Executive Board, Commissions How is the Olympic System governed beyond the Olympic Charter? 1 IOC Management IOC President with IOC Administration Chappelet, 2012

18 2. Understanding the main challenges of governance in sport organizations Olympic Charter 2011, fundamental principle n 5: Recognising that sport occurs within the framework of society, sports organisations within the Olympic Movement shall have the rights and obligations of autonomy, which include freely establishing and controlling the rules of sport, determining the structure and governance of their organisations, enjoying the right of elections free from any outside influence and the responsibility for ensuring that principles of good governance be applied".

19 2. Understanding the main challenges of governance in sport organizations Basic Universal Principles of Good Governance for the Sport Movement 1. Vision, mission and strategy 2. Structures, regulations and democratic process 3. Highest level of competence, integrity and ethical standards 4. Accountability, transparency and control 5. Solidarity and development 6. Athletes involvement, participation and care 7. Harmonious relations with governments while preserving autonomy Adopted by the Olympic Congress Copenhagen 2009, Incorporated in the Ethical code of IOC in 2010 And in the Olympic Charter in 2011

20 2. Understanding the main challenges of governance in sport organizations Autonomy requests good governance Résolution du deuxième Séminaire sur l Autonomie du Mouvement Olympique et Sportif (Lausanne, 02/2008) De rappeler que l Autonomie du Mouvement Olympique et Sportif est essentielle pour le développement du sport et la promotion de ses valeurs, au bénéfice de tous les athlètes. De souligner que la Bonne Gouvernance est le fondement de l Autonomie des organisations Olympiques et sportives et de s assurere que cette Autonomie est respectée par nos parties prenantes. D apporter un soutien de principe au document draft intitulé Principes de base universels de bonne gouvernance du Mouvement Olympique et sportif

21 2. Understanding the main challenges of governance in sport organizations This system is under pressure! The Business World The Olympic System The Public Sector Corporate Governance Olympic Governance? Democratic Governance Chappelet,

22

23 3. Behind governance: the social responsibility of sport organizations "The IOC and the sports movement in general have a social responsibility - to provide access to sports practice, and in so doing to spread the values of sport to all sections of society." Jacques Rogge (IOC website)

24 The social responsibility of sport organizations

25 The social responsibility of sport organizations

26 The social responsibility of sport organizations

27

28 4. Architecture and drivers of governance and societal responsibility in Olympic sport organizations TFEU Article 165 Contribute to the promotion of European sporting issues while taking account of: Develop a European dimension in sport by: Specific nature of sport Structures based on voluntary activity Social and educational function of sport Promoting fairness and openness in sporting competitions Promoting cooperation between bodies responsible for sports Protecting the physical and moral integrity of sportspeople Foster relations with third countries and competent international sport organisations Pedro Velasquez, EC, DG Education, Youth and Sport, 2013 CoE IOC WADA

29 5. Failures the other side of the coin Fight against corruption Fight against gigantism of the Games Fight against doping Fight against (illegal) betting Fight against match fixing Violence, racism, all form of harassment Systemic Governance Rules of competition, cooperation and mutual adjustment between parties involved in the production of sport Henry s model (2004) of sport governance adapted from Leftwich (1994) Arcioni, 2002 Corporate Governance Normative approach to Managerial behaviour of sport organisations Political Governance Steering mechanisms by governments and sport governing bodies to achieve goals

30

31 6. To conclude: some perspectives 1 2 Understanding the process of change Conducting the process of change New governance Volunteer board Governance tools 5 major areas Organization s goals Stakeholders Shareholders Deciders Missions, as conditions Organisation MHR Support Relation whith pertinent environnement Think global, act local

32 1.Missions 2.Organisation 3.HRM Clarification of five major areas for a new governance (1) Governance strategies => Missions / Environnement Core-business? Diversification? Multi-dimensional business? Flat organigramme (instead of vertical) => operationality, adaptability, fonctionnality, impacting missions Adjustment betwwen competencies and functions for paid staff and volunteers within the board Supporting - educating (motivation)

33 4.Support Clarification of five major areas for a new governance (2) Supporting associations requests A variety of services A variety of strategies 1. Mutualized services, 2. Tools 5.Relation to pertinent environment Information systems Internal and external audits Labellisation Strategic contracts The project of sport organizations is more than a sport project

34 5 dimensions of a renewed governance A new paradigm Professionalization «Les organisations sportives, traditionnellement impliquées dans des activités dites de non-profit, sont de plus en plus tenues pour responsables de l utilisation qu elles font des subventions publiques et de l affectation des ressources qu elles obtiennent de leurs membres et de leurs partenaires. Il en résulte une évolution incontournable vers plus de professionnalisation» A new corporate governance and CSR for sport organizations Turner, in Beech& Cahdwick, 2007

35 6. To conclude : some perspectives. And concreet initiatives projects financed by the European Union in the famework of «Preparatory Actions» Governance and Grassroot Sport: ISCA Sport for Good Governance: COE Sport Governance Observer: Play the Game Supporters Direct Sport & Recreation Alliance

36 Recent initiatives linked to governance and CSR of sport organizations granted by the European Union

37

38 «Avant de penser le changement, il faut changer la pensée» D après Henri Bergson «La véritable découverte du voyage ne consiste pas à trouver de nouveaux territoires mais d avoir un nouveau regard» Marcel Proust

39 Thank you for your attention! Thierry Université catholique de Louvain Chaire Olympique Henri de Baillet Latour & Jacques Rogge en Management des organisations sportives

40 Sport Forum, April 2015, IMD Lausanne

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