Tips for Management Company Executives
by Jim Manning, President
Walters Consulting Group
September 2008 Topic: Is Your Management Company "Leader" or "Supportive" Oriented
by Jim Manning
It is said for every association there’s a management company. Maybe so, but when the board changes, sometimes the management relationship changes too.
Here’s an example. HOA "A" voted in a rather loose group to the board. The community has some serious problems coming up and none of the members of the board can see the train wreck approaching. However, your company sees it and your lead manager wants to wave the red lantern. Finally, the board acknowledges the situation and says, as they always say, "Hey, you’re the professional. Take care of it. That’s what we pay you for."
Here is where many in our industry miss the opportunity. Either the standard contract or company policy infers that is exactly what you do. Or, your client contract clearly spells out that yes, we do it but not without additional fees.
It is the additional fees that create the "leadership model". It is the way your company sells all that pent up experience. It is where extra value is created and available, for a price.
If the board has committees, owner experts (real actual experts) or other resources available, and they choose to handle this work themselves, then your firm continues to provide routine HOA service and support. This is within the guidelines of your contract and your company policy.
One way to build value with this approach is to do more "basic" HOA work and leave special work to others. In other words, maintain a streamline, almost an "assembly line" system of office work to fulfill the contract ’s scope of work.
Either way is fine in building value. Just don’t let one cross the other without extra income
- Jim Manning - President - Walters Consulting Group -
Jim can be reached at | 
