Chris Brooke, Chairman of Hong Kong China Rugby, discusses how proactive stakeholder engagement underpins effective governance and long-term sustainability in sports organisations.

Introduction

When sports organisations consider how best to approach governance, there is often a tendency to focus upon internal processes and protocols, as opposed to wider stakeholder considerations.

However, given that stakeholder engagement represents a key element of governance for any sports-related governing body, it is vital to not only identify the relevant stakeholders but to also establish an engagement strategy for each category of stakeholder in order to support both successful performance and long-term sustainability.

Who are the relevant stakeholders?

Every organisation will have different resources, priorities and capabilities in relation to stakeholder engagement. However, the key stakeholders are likely to be similar for any sports organisation. These stakeholders, as well as some of the primary considerations associated with each category, are outlined below.

Athletes – principal areas of engagement

The first group of stakeholders are the athletes who are involved in the sport over which the governing body has jurisdiction. Given that the objective of most sports governing bodies is to promote the specific sport that they govern, as well as to increase levels of participation, it is critical to create an environment that encourages both elite and community involvement in the sport.

For elite athletes, there must be clear support in terms of access to facilities and the training infrastructure, and fit-for-purpose safeguarding and player welfare guidelines. In addition, there is an increasing need to provide mental health and lifestyle support, as well as advice regarding post-career education and employment opportunities.

It is also essential that the governing body provides appropriate competition structures for both elite athletes and for those involved in community participation. This will include access to regional and international events, as well the oversight of domestic competitions. Furthermore, the promotion of the sport across all forms of media and other platforms will enhance engagement and encourage wider participation.

Family members – major considerations

One stakeholder group that cannot be overlooked is the family members of the athletes participating in a sport. Whilst this might appear to be more relevant to elite athletes, it is also an important consideration in the community environment.

The family members of elite athletes will need to understand items such as the existence and operation of selection and safeguarding policies, competition structures and access to the training infrastructure. They will want to be sure that the governing body is acting in a fair and equitable manner, and that it is supporting the sporting career of their family member. They will also be concerned about transparency, consistency and clarity of communication.

In terms of wider participation, the parents of any child athlete will want to be sure that the governing body is being operated efficiently, and that it has fit-for-purpose policies and guidelines in place. Additionally, there needs to be clarity with regard to rules, regulations and codes of conduct. In return, the governing body should also set out clear expectations for the standards of behaviour that it expects from parents and family members, particularly when they are spectating at events.

Coaches and officials – what is necessary

In connection with coaches and officials, transparency of policies is also central. This may relate to athlete selection, safeguarding and athlete welfare, ethical behaviour or the appointment of officials to adjudicate at specific events. The parameters within which the coaches and officials operate must be very clear, while the criteria involved must be transparent and objective.

In return, it is necessary for the governing body to offer clear terms of appointment or employment to coaches and officials, and these must be aligned with the strategy and objectives of the organisation. Any key performance indicators must be transparent and clearly understood by all parties. There must also be a clear opportunity for coaches and officials to progress within an organisation with the aim of supporting career development. This would include opportunities for continuous professional development, training and exposure to different environments, as a means of enhancing expertise and broadening perspectives.

Board members and elected representatives – how to optimise value

The board of any sports governing body is a valuable resource for the organisation. This is the entity that is responsible for the formulation of strategy, the oversight of governance and the management of risk, and as a result it is imperative that the composition and performance of the board is optimised.

In order to encourage individuals to participate as voluntary board members or elected officials, there must be a transparent and fair selection and appointment process. Clear governance protocols must be in place in respect of board responsibilities, the delegation of authority to professional staff, and the committee structures and terms of reference. There must also be clarity about the non-executive role of the board and the executive role of the professional staff.

To support board performance, it is also crucial for an organisation to ensure that the board is adopting best practice with regard to onboarding, training of board members, board evaluations and codes of conduct. Moreover, it is advisable to adopt a collaborative approach between the board and the professional staff, with the board acting as a resource to support the strategic development and long-term resilience of the organisation.

Senior management/professional staff – clarity of roles is critical

The effective delivery of a strategy will be reliant upon the professional staff within an organisation. It is therefore critical that all members of the professional staff are clear about their roles and responsibilities, have fit-for-purpose job descriptions, and enjoy fair and reasonable employment conditions.

In addition, the senior leadership team within the organisation must ensure that there is a positive culture and that staff see opportunities for training, knowledge acquisition and career development. There must also be strong alignment between the board and the senior leadership team in terms of the strategic objectives and priorities of the organisation, as well as the responsibility and accountability within areas such as stakeholder engagement, funding and commercial sponsorship.

Members and member organisations – key to success

Strong and proactive engagement with the members and member organisations within any governing body is pivotal to success, given that the members are directly affected by the decisions reached by the governing body. From a member perspective, there needs to be alignment of objectives and governance processes in order to allow the members to understand the strategy and to operate within the governance framework of the organisation.

Other key success factors include transparent and regular communication, and the creation of a sense of common purpose, as well as the involvement of members in salient aspects of strategy and other matters impacting upon the future of the organisation. It is extremely useful to develop a member engagement strategy involving communications, social media, town hall meetings and events. It is also vital to ensure that members feel that the governing body is providing support and benefit to members, and that it is focused on the best interests of the organisation and the sport as a driving principle.

International and regional governing bodies – important to maintain a positive relationship

Most local sports governing bodies in Hong Kong will also have a responsibility or opportunity to engage with international and regional organisations that oversee specific sports. This is likely to cover the areas of governance, competitions, rules and regulations, and other broader initiatives relating to training, development or knowledge sharing.

It is important to establish clear lines of communication with these bodies and to ensure there are mechanisms in place to verify compliance with any directives issued by these organisations. There can also be funding benefits from proactive engagement with these governing bodies. It is therefore prudent to demonstrate that the benefit and positive contribution being achieved in Hong Kong also contributes to the wider benefit of the sport on a regional or global basis.

Government – ongoing interaction

There are clearly a number of pertinent bureaus and departments within the HKSAR Government with which it is meaningful to engage. These include the Culture, Sports and Tourism Bureau, the Home Affairs and Youth Bureau and the Leisure and Cultural Services Department. It is also invaluable to engage with the district offices and the sports associations at a more local level.

From a policy perspective, it is beneficial to be able to demonstrate support of the five main policy objectives associated with sport in Hong Kong – namely, supporting elite sports, maintaining Hong Kong as a centre for major international events, enhancing professionalism, developing sports as an industry and promoting sports in the community. The government is also a key stakeholder in terms of funding, subventions and facilities, and it is therefore essential to engage on a positive and consistent basis.

Sponsors and commercial partners – indispensable to support future growth

As the sports industry continues to become more sophisticated in Hong Kong, sponsors and commercial partners are becoming increasingly indispensable in supporting the future growth and development of sporting organisations. In parallel, sponsors and commercial partners are looking for more than a traditional donor or funding relationship – rather, they are seeking more tangible and measurable returns upon investment.

As a result, there are higher expectations from sponsors concerning the governance and financial management standards of sports governing bodies. Sponsors and commercial partners wish to understand the strategy of the organisation and to secure a clear demonstration of how sponsorship will be used, as well as how the sponsorship will add value to both the sponsor and the governing body. There is also an increasing focus upon reporting, social impact measurement and community engagement, in addition to major events, while sponsors wish to see creativity and proactivity in relation to the deployment of funds.

Media – can be more challenging to manage

A positive relationship with the media can be very beneficial to a sports governing body. This can be achieved via proactive engagement with media platforms, the use of role models to promote specific events and initiatives, and the ongoing provision of quality content to generate opportunities for positive media coverage.

It is, of course, not possible to control the media narrative at all times. However, a positive relationship with the media can both help promote participation and help if difficult situations arise that generate significant media attention. In terms of engagement strategy, it is now fundamental to focus upon both traditional and social media platforms, as well as to identify the predominant markets and audiences that are the target of any media coverage.

Broader public/community – not to be forgotten

The views of the wider community towards a sports governing body are also very important. The public needs to have confidence that the governing body is well governed and properly managed, that it has a clear strategy and that it is focused upon the longterm development of the sport for the benefit of the wider community. The positive perception of a governing body can assist with growth in participation, government support and sponsorship commitments.

A governing body can also demonstrate community support via philanthropic activities, collaboration with charities and other non-profit organisations, and by using sport to assist less-advantaged members of society. All these activities can help add credibility to the activities and profile of the governing body for those not directly involved in the sport.

How can diverse stakeholder interests be balanced?

It is recognised that there will always be competing priorities and agendas when dealing with stakeholder engagement. The board and senior management of an organisation will need to set key objectives relating to stakeholder engagement, and these will be dependent upon both the strategic priorities of the governing body and the level of resources available.

Certain stakeholders, such as athletes and the government, will be relevant to all governing bodies, but others may need to be prioritised in line with strategy and resources. Nevertheless, all of the stakeholders identified above are relevant and some form of approach to each group will need to be formulated, given that a proactive understanding of the concerns of the stakeholders can assist with the anticipation of both challenges and opportunities.

Why is stakeholder engagement key to good governance? 

All stakeholders need to be managed to some extent by a sports governing body. The ability to understand key stakeholder priorities and concerns informs both strategy and execution, and can allow an organisation to better anticipate challenges and opportunities. On the other hand, a lack of communication with stakeholders can lead to misunderstandings and confusion, as well as create potentially difficult situations for a governing body. Over time, stakeholder engagement can be incorporated into ways of working to optimise resources and enhance efficiencies, which can in turn then support the long-term sustainability and resilience of a sports governing body.

Chris Brooke, Chairman 

Hong Kong China Rugby

In addition to his role at Hong Kong China Rugby, Chris is also an Independent Non-Executive Director of Link Asset Management Ltd and IBI Group Holdings Ltd, as well as a member of the advisory boards of Kerb Holdings Co Pty Ltd, VationX and Peace Inc.