By Julie Adamen

Click Here for the PDF version of this article in the HOA Manager NewsLine.

In May 2003, I wrote and published an article based on a management theory I thought would work well within our industry. I called that theory the Pod of Managers. I thought at the time it was a pretty damned good - and innovative - idea. Although nor perfect, it met many of our internal challenges: It offered managers a support group and gave them ownership and pride in their working unit, as well as providing a career track that usually is not available to them. Oddly, this was one of the very few articles on which I received -zero-, yes, that's right, -zero-, feedback.

In June 2005,  I was invited to speak to the CEO-MC crowd in Nashville, TN. After my presentation,  an attendee walked up to me and  said that she worked for a management firm in Atlanta, GA and their firm had adopted and implemented the Pod of Managers theory after its original publication, and it worked great!. I was blown away. Then, as happens at conferences, other attendees came up to talk with me and the manager working the Pod of Managers theory and I drifted apart. I never was able to find that manager again during that conference or could remember, which management firm she worked for, much to my frustration.

Fast forward to September, 2006. I am asked to speak to the Georgia chapter of CAI. Graciously, a group of members take me to dinner upon my arrival in the Atlanta area. One of these kind folks is Dan Henning, CEO of Community Management Associates, Inc., a large management firm with 413 community associations under contract. At dinner, Dan informs me that his firm  implemented the Pod of Managers theory within months of the publication of the original article. They are still using that basic management model. They call the Pods "Divisions" and the most interesting news is Pod Theory works and works well.

Below is a somewhat updated version of the original Pod of Managers article. At the end of this article, I have included Dan Henning's comments and answers in an interview I conducted with him via email and telephone after my trip to Atlanta. I put this theory forth again to my readers as  a real world management solution for HOA management firms.

A Pod of Managers

 Just think about this: Suppose you had a group of managers that knew everything about their accounts, and a heck of a lot - if not everything - about the accounts of 4 other managers, and if those managers worked out their vacation schedules in order to cover each other's accounts.  Suppose one of the managers in the group had to move, or was out for a long period of time. What it would this concept mean to executives and owners if the pod could handle the account problems itself? Just think if you had managers that could exchange accounts without causing the standard uproar in the Board - because the Board already had contact with and confidence in - the alternate pod manager member. Just think.

No More Lone Ranger

Managing communities is often a very entrepreneurial position. Managers make their own decisions, often make their own hours, and many times work with little or no supervision. Managers in our industry are self-starters, self-motivated and in reality Lone Rangers with direct care and supervision of only their accounts.  The better the employee, the better this scenario works for the management company, with regard to account retention as well as from the profitability aspect.  But for any mid- to large- management firm, where manager turnover is troublesome this is an often wished for fantasy. As any VP who manages a full account load, supervises managers, then has the misfortune to take on another 5 accounts, will tell you employee turnover is the number one roadblock to their company going on the greater heights of professionalism and profit. So, if the manager is the Lone Ranger and only he or she knows anything about what is going on in their communities, and that is the most (on the surface) cost efficient way of doing business, how do we combat the inevitable turnover? Not to mention other personal issues such as vacations, sick leave, and pregnancy leaves.  Think of this concept: A Pod of Managers.

The Basic Pod Structure and Start Up

The Mission. The Mission of the pod is to provide comprehensive community management to all of the pod's accounts on an equal basis, to be able to provide interim management in the event of turnover that is seamless, or nearly so, to the clients. The pod shall provide accountability to the management firm, and a positive learning atmosphere in which to train new managers.

Formation. The pod should consist of 3 to 5 managers. The pod formation also includes the appropriate number of assistants who are dedicated to accounts within this pod only.

Start up. Executives or owners must be the ones to put together pods based on what they believe will work with regard to the various regional issues. Consideration should be given to account loads, degree of difficulty, experience levels of the pod managers (we can't have 5 brand new managers in the same pod). As equally, if not more important than the above - the personal dynamics of the potential pod members should be seriously reviewed.   Once these decisions have been tentatively made, the execs should involve those being considered for certain pod units for fine-tuning the group. They may have insights that the execs do not, and may provide valuable information that can facilitate the development of a pod with just the right mix.

Pod Leaders. A pod leader should be appointed by execs or elected by the pod - whichever works best for the personnel involved. This leader is responsible for making sure the pod holds its meetings, work cohesively and meets the charter set out by the management firm. The pod leader will also be responsible for any and all reports, including budget reports, which go to upper management. A Pod leader should ideally be experienced - but more than that should engender a sense of trust within the pod to work for the good of the group. Yes, there should be a financial incentive for the pod leader - this cost will more than be offset in unit productivity.

Pod Responsibility. Let's be clear here - this concept of management should not be lumped with other team management concepts that seem to follow the adage "responsibility shared is responsibility shirked."  Ultimate responsibility for each account still lies directly with the manager assigned that account. The purpose of the pod is to provide that individual manager with a support system. Pod members familiar with their group of accounts can help individual members if they are in crisis, cover vacations or sick leaves, and prevent the management company from scrambling to cover accounts should the manager have to leave. Yes, the missing pod member must be replaced - whether it is an existing assistant or a new employee.  But, if it works well, the pod system will foster enough team mentality to, for the most part, keep managers from simply up and quitting the firm with no notice because they have a vested interest in their team - the pod. That team spirit is what works for the company as a whole.

First Things First

Pods Need to Meet and Communicate. All pods must meet on a regular basis - preferably weekly. The pod itself must work out this timing, but upper management needs to make sure it is happening. The pod leader is responsible for making the meetings happen.

In the beginning, pod meetings should really be about one thing: Exchanging information about accounts, including basic information such as Board members, phone numbers, contractors, etc. (1) But really they need to exchange information on the "feel" of the community: Who's really in charge, what are the real problems. Who are the squeaky wheels, which are the reasonable folks? What's the current big deal? What's the next? If managers have been around each other for a while, they probably know quite a bit about each other's accounts. The pod members will fill in all the gaps with facts and not gossip. This won't happen in the first meeting, but it will happen.

And, yes, the pods need to make site inspections of each other's accounts. It might take a whole day, but it is vital to the pod to have a working idea of what the property looks like.

Secondary Goals

Support. As our last months article discussed, managing the inconsistency, that is community management, can take a serious emotional toll on our managers. One goal of the pod system is to provide managers with an internal support structure that doesn't place an immediate burden on upper management. Whereas in most management firms under their current structure, a single "VP" or "District Manager" takes on myriad of problems from several managers all the while managing their own accounts. Not only is it very wearing on that individual, it also makes managers have a tendency to either not want to additionally burden the District Manager because they feel bad about it - or they know nothing will happen because there are only so many hours in the day for an overworked DM or VP. 

A pod of managers can act not only as a sounding board and a life saver, but when the need arises, pod members can most likely suggest solutions to thorny problems a pod member may be having - because all it really needs is a fresh set of eyes. As the pod becomes more established, they would be able to shift accounts (with approval) within the group to prevent manager burnout, or make reasoned, quantified and qualified recommendations to upper management on what accounts need an increase in their management fee, or maybe just need to be terminated.   This gives the managers a sense of control over their working lives - something sorely missing with the vast majority of today's manager in the trenches.

Scheduling. Pods schedule out their vacations and time off with each other through a master pod calendar.

Training New Management Staff. A pod is a great place to train assistants to become managers. Team spirit and cohesiveness provide the necessary fertile ground for personal growth and training.  New pod assistants will receive a lot of exposure, will be involved in the decision-making and attend the pod meetings making them intimately familiar with how the managers think and work. The trainee learns what the real issues are and how experienced managers deal with them. Once the trainee is ready, they can take on accounts. The satisfaction of helping and supporting new members can provide strong pod and company loyalty.

Pods and their Budgets. Once pods are established and working, they should be responsible for their own budget. Yes, that's right. It should be clear to the pod what they as a group bring in, monthly, including extras, and what their outgo is in terms of costs and overhead and any other expenses.

The pod needs to be given income figures they must meet or exceed monthly based on a total pod expense figure. Pods exceeding their figures can be rewarded accordingly. Pods not reaching goals may need some re-structuring. The pod system is dynamic, and not meant to be written in stone. If something isn't working, adjust it till it does.

Pod Supervision

Executives aren't getting off easy here. There will have to be upper management guidance, development and supervision of the pods. If the pods are well thought out and the supervisor is capable, they should be able to supervise 5 or 6 pods and not, as a rule, manage any accounts.  This is a leadership position, which will be crucial to the success of the pods and must not suffer the distraction (and fate) of normal middle management roles, which require them to have high-end supervisory responsibilities and while managing Mrs. Smith's petunias. NO.  Not only must the supervisor attend the pod meetings, have an understanding of all the pods and supervise the budgets, they must have the trust and faith of the managers. This position should go to a top notch, star quality person, not necessarily the person who has been with the firm the longest. This supervisor concept cannot be overlooked or taken lightly, as this position will utilize all of their managerial talents to create and sustain working pods.

Pod Reviews. Pods and their staff should be reviewed no less than every six months by the executive staff. Are they performing well? Are they willing or able to accept new accounts? Is their leadership strong, or does it need adjusting? Is their client pool satisfied? Once established the pods cannot be left to fly on their own on a wing and a prayer. Executives must maintain their ultimate supervision of the pod where it is most important: Are they profitable and an asset to the firm?

Employee Development = Employee Empowerment

Employee development is something we would all like to see. Unfortunately, in our crisis management oriented business, employee development is usually somewhere at the bottom of the list. The pod system can be a natural place for employees to develop - or not - while still being financially productive. One way to help employees develop is to give them a real sense of what it takes to make the company work and grow on a day-to-day basis and make them partly responsible for making that happen. This is empowerment.

Despite challenges, there are some big upsides to the pod system: Pods work and care for their own team, forming cohesive, empowered management units. They are employees that have a say in their everyday work life and a vested interest in their pod, or team, which translates in to a vested interest in the company. Pods develop a sense of responsibility for making the pod work, and thus, the company work, for them, for the clients, and for the owners. These units provide an environment for employees to develop a level of competence and involvement that could set the company apart in profit and professionalism.

Just think what a group of managers would be able to accomplish is they felt empowered in their workday. Just think if they had a vested interest and responsibility to their team and to their company. Just think what could be achieved.

Just think! Well, that is what Dan Henning did when he read Julies article so many months ago and he organized his large management company so that A Pod of Managers Theory would work for him and his people. So move down and see what Dan had to say to some pointed questions from Julie on making A Pod work.

Part II: A Pod of Managers
Questions (and answers) on the successful practical application of this management theory. An interview with Dan Henning, CEO  of Community Management Associates, Inc.

Julie Adamen: When did you implement the Pod of Manager system?

Dan Henning: Soon after we read the article you published. We established the pods of managers  and administrative assistant(s).

JA: How was it received by the employees? 

DH: It was positive, since they now can go to more than one individual for answers. It also took the pressure off of me for having to be available all the time.  I can now spend more quality time running CMA. 

JA: How did you determine who headed each pod? 

DH: We posted the job and description on our company bulletin board.  This was done by our HR Department.  The requirements for Lead Pod Manager, or Division Manager, were you had to have at least three years experience as a property manager and completed the M-100.  The HR Department reviewed all applicants.  We then set up interviews.  For the initial six pods, we had eight applicants.

JA: How many accounts (generally) does each pod handle? 

DH: Approximately 50; however, the number of units drives the equation.   

JA: Do the managers cover each other's accounts for� Vacation? Maternity leave? Illness? 

DH: Yes, that is why it is such a great concept.  It is like having a mini-company within a large one.  We even give each (Lead) Pod Manager a budget of $250.00 per quarter to have their own pod meetings over lunch, or breakfast.  We have had some wonderful ideas generated from these events that we have incorporated. Each pod meeting agenda can vary from vacation coverage, vendors, association questions, implementation of CMA policy, etc.  Each pod has its own agenda.  I just ask for a summary of the meeting.  

JA: Have the managers been to all the properties of their pods? 

DH: The Lead Pod Manager has been to all physical locations. 

JA: How often does the executive meet with the pod leaders?  

DH: We meet on a monthly basis.  My only modification to the system would be to develop another layer above the existing Lead Pod Managers, sort of like Divisional Pod Managers. (This concept is within the first publication of this theory and in my opinion crucial. JA)

JA: I understand that you bonus the Lead Pod Manager - is that for account and employee retention?

DH: The Lead Pod Manager, when selected, received a 5% pay increase and a 1% override from each manager's portfolio.  This was remuneration for the extra work and account retention.  Bonus plan is paid quarterly (keeps their attention).  An interesting thing is that once you initiate a bonus system, Pod Managers are more willing to take on new properties for their pods.  In addition, we bonus the individual pod managers 2% of their pods management fees, quarterly. As Lead Pod Managers have a portfolio, the bonus payout to them is 3%.  Again, promoting that team effort where everybody participates and is rewarded.  Also this provides great incentive when you are raising your management fees: built in salary increases. 

JA: Do you find this system useful in bringing up managers in to supervisory positions?

DH: Yes, it develops middle management.  We post the openings and usually have three candidates interview.  We have never had a lead Pod Manager quit.  It also develops competitiveness between pods to succeed.     

JA: Do you believe you are retaining more employees because of the system? 

DH: I believe it helps.  Burnout is still the major problem and money does not resolve that, but support from the pod and upper management can help reduce it. 

JA: Do you believe you retaining more accounts because of the pod system? 

DH: Yes, because it is part of our sales presentation.  We sell the pod, and the manager is the added value.  It also stops the raiding of accounts by a disgruntled manager, or property management company.  When you hire CMA, you hire a team.   

JA: Have they (the pods) met all the Boards involved? 

DH: On the large accounts, yes, with the smaller accounts by phone or e-mail.  One way or another contact has been made. 

JA: What is the Board feedback? 

DH: It has been positive, because we have followed up on our initial sales promise.  The only drawback is that accounts now think they have more than one manager.  If they need an immediate response and the manager is not available, they go for the Pod Manager. 

JA: What works best about the system? 

DH: The team work it develops. This is a hard business and having fellow managers and upper management working together makes for a less stressful environment and a better manager. End result:  A better company. 

JA: What works the least? What are you doing to alleviate this issue? 

DH: If a company is to employ this concept, upper management has to respect it.  Never work outside the line organization.  If there is a problem with an account the Pod Manager has to be included, and never usurp the Pod Managers' authority.  We have put another layer of management above the Pod Managers in order to review their performance and to keep the system energized. Under your original system, there was no provision for review of the Lead Pod Managers themselves.  That we have had to incorporate those reviews so as not to have an under-performing pod.  We have replaced one Lead Pod Manager because s/he could not provide the leadership required for the position and instead would cover for a poor performer within the pod.

Conclusion

This interview with Mr. Henning proves beyond a shadow of a doubt that as an industry we really can do things differently: We can provide our management staff with a better working environment through the support system which the Pod of Manager provides.  We can achieve our goals of a more profitable firm which is better able to retain its employees, provide them a career track and provide the client with a better service. I applaud CMA and their ability to take this simple concept, imprint their own Vision for their firm and move forward.

Who's next?