and why it's important NOW more than ever

By Julie Adamen  

"Dammit, Jim, I'm a property manager, not a social engineer!"
(apologies to Leonard "Bones" McCoy, MD) ⁽¹⁾

For This article in the February 2009 HOA NewsLine in PDF format click here.

No, it's not right to call us property managers any more, we're community managers and should be known as such. Today's managers - those who started in the past 10 years or so, only know themselves as community managers, but I often wonder if they know why we stopped calling ourselves property managers? Originally, it was because we were often confused with real property managers (residential apartment managers) or maintenance managers. So, as a way to differentiate ourselves, we came to call ourselves "community managers." For awhile we floated along doing what we always did, our core competencies. But somewhere along the way, some of us in the industry who tended towards grandiosity, job security or sheer boredom began to over-think the role of the (now) community manager, and place the role of community builder, social engineer and general psychiatric counsel on top of the role of community (property) manager.

I am all for building community (and psychiatric counseling) but I am not sure that burden should be placed on the shoulders of managers working 52 hours a week.  Why? First, because according to my many manager contacts, what still makes the client happy is what has always made the client happy: A well-mowed lawn, no unauthorized vehicles in their parking space, a clean and warm swimming pool and a call or email returned in a timely manner. Second, the average manager certainly does not need to be exposed to any more political pitfalls than those to which they are obligated to be exposed, and we all know, within community associations, that anything involving social issues as opposed to maintenance issues  is rife with those pitfalls.

Our Core Competencies

Recently I heard from two management company executives on opposite ends of the country. They told me that during this economic downturn, even associations that are financially sound are starting to ask for reductions in the price of their monthly management contracts. It's sounds like our greatest nightmare, but in reality its only a nightmare if we fail to change what we offer contractually  to our clients, and our method of doing business for those clients: Along with that reduction in price there must be a reduction in services so the company stays alive while keeping the client happy enough to stay with us.
When clients ask for a reduction in price,  not only must we rid ourselves of contractual "fluff" and gray areas, we must turn our focus to the basics of what makes clients happy - great property management. Great property management comes from well-run firms with great core competencies. Now more than ever, great core competencies are extremely important, because they will be what gets us through this economy.

The Right Executive Attitude: Responsive and Responsible.

All core competencies stem from the macro-attitude of responsiveness and responsibility which permeates any well-managed management company from the top down.  It is from this beginning that the managers have the all the resources - from paperclips to PC's - to get the lawns mowed, have the plumbing fixed, and to get that junker towed out of the parking lot. 

Vision. The executive looks up and out and sees with clear eyes, unclouded by the "way things used to be." The executive is cognizant of what's happening within the company, with employees, and with the clients. The responsive/responsible executive keeps an eye on what is coming down the road, and prepares for those events and eventualities.  This executive sees opportunity to adjust things for the better in his/her firm, and sees itself positioned well when the economy makes its inevitable swing back up.
 
Business-awareness. The responsive/responsible executive sees the market changing  and adjusts the way the company performs its duties to meet the current needs of the clients and maintain a profitable venture.  If an association asks for a reduction in management fees, the executive may offer them lesser services in a full service contract, or take this as an opportunity to place the client on a menu contract (fees for services rendered as opposed to  do it all for one price), which can and will deliver great community and property management service to the association without bogging down the manager in lesser problems having to do with the social fabric of the community. Each phone call costs money, so the Board (and eventually the owners) become hyper-aware of that ticking clock.

Business awareness also means the executive continually evaluates not only the client's needs, but the needs of the staff, and indeed staffing needs. Too many? Too few? How to organize and/or develop the staff on hand for better execution of the core competencies  to which we strive? This is management efficiency.

There is no rest for the weary, or wicked in business awareness. It  is 24/7/365, and those executives who will use their vision to make or remake their company as times change are those who will survive and thrive. These executives exude core competence at their level, which move on down to the staff at hand, so they, too, can thrive and excel and their core competencies.

Communication

Company communication: The Open Door.  When a manager feels s/he can walk in to their boss's office and say, "Look, this account is sucking the life out of me. It's taking up 10 hours a week and only pays for 3. I've tried everything to get them to be less needy, and I'm out of ideas.  Can you help me?" and that boss is receptive to the information and responsive to the manager, a more harmonious company is formed.  The manager feels s/he can trust the executive, and the executive is happy to be notified that in essence the firm is losing money on that account. Only managers have that type of information, and executives should always want to hear it. This type of open door policy makes people want to work at a particular firm,  decreasing the cost of doing business by reducing turnover (which also keeps more clients happy). It also the responsive and responsible thing to do on the part of the executive.

Communication to the clients and vendors.  Managers who speak and write well will usually have an overall better relationship with their vendors and their clients because they are able to articulate the agenda of the Board (and the manager's execution of that agenda) in a more concise and understandable manner. Well-written emails, letters, minutes and dog poop letters communicate volumes not only about the manager's ability, but about the community's ability to choose great staff. Great personal communicators can take what started as a nasty phone call and turn it in to an owner with a better understanding of the problem at hand, making them feel as if they have been heard. Speaking well in front of a group - small and large - can command the respect of those within that group. Managers that are unable or unwilling to speak to the Board as a whole, or the attendees at a meeting are at a distinct disadvantage. For the tin-foil hat wearing crowd, a reluctant manager appears furtive and secretive - a manager who speaks well and without rancor to them may not engender endearment, but it will engender a modicum of respect for the information presented as well as to the person delivering that information. 

Not all people are great communicators, but can still be great managers. Management companies that have great core competencies know who those managers are and assist them in every way possible so they may execute their contractual obligations well. These firms do all in their power to manage  - i.e., they use well composed form letters, coaching and mentoring on communication from its good communicators, continuing education, et al. 

From the executive MBWA (Managing by Walking Around) to regular staff meetings to in house newsletters to an open door policy, companies that foster and nurture communication between executives and staff will find a more harmonious and ultimately profitable venture for the management firm as ideas flow freely. For the client, having a management firm with the core competency of great communication means there will be less turnover, owners may be happier and the agenda of the Board will be carried out as well as possible.

People Management

One of the core competencies of great property management  is great people management.  No, this doesn't fly in the face of my previous statements regarding the 'extra' of 'building community' which entails something far different than great basic people management.

Macro people management. This refers to the policies, in general, that are set forth by a management  firm regarding not only how to manage the people within the communities, but how to manage them to the best advantage of the firm, the staff, and the communities themselves.   An example of great macro-policy would be establishing and maintaining high standards (and accountability)  within the accounting department for accuracy in data entry. That accuracy = fewer upset homeowners = fewer calls to the accounting dept.  Of course this means fewer calls to the management staff = more staff time for pressing duties = less stress for all.  Another great macro-policy would be to ensure that all management staff is aware of the company's contractual obligations to the client. ⁽²⁾  Many managers (yes, really) are either unaware of what's in the contract, or find it easier not to know what's in the contract - then they won't have to tell anyone "no" when asked to perform a non-contractual task by a member of a Board.  Poor knowledge of contract = less time for the manager to complete contractual items = association not receiving what it is actually paying for = more stress for the manager. Overall, it means less revenue for the management firm as it is providing services for which it is not compensated.

Micro people management.  Day-to-day, each member of the communities managed who has contact with the management firm is presented a professional, courteous and helpful attitude, even if there is no helping the person at the other end of the phone or email. This "How can I help?" attitude goes a long way when dealing with even the most difficult people. It should be noted that most folks coming in to our industry don't walk in with the necessary people skills to handle the sheer volume of "noise" well, and will likely need mentoring from an executive or senior manager on how to deal with minor and major people problems. For example, how to handle the following: A homeowner wants the Board to take up their request to (insert absurdity here). The manager KNOWS this will not be approved. Does the manager a) Tell the owner, right then, in no uncertain terms, that s/he will not take it to the Board because it will not be approved, or b) Indicate though it is unlikely to be approved, the manager will discuss it briefly with a Board member? Either is effective, but depending on the manager and the owner making the call, one is likely more effective than the other. This is the essence of micro people management skills: Understanding what will work with whom, and why.

Execution: Getting it Done

"All facets of management are important, but if you don't do
the physical plant maintenance, you're screwed."
-Rolf Crocker

And here we get back to our real competency: Getting it done. Forget the barbecue, forget the social engineering, forget the bake sales, forget the ad-hoc committee mind-meld, forget everything that doesn't directly do one of two things: 1. Get it done for the community, and, 2. Make a profit for the management firm.

Get'er done: List it, do it, and move on.  "If you want something done, give it to a busy person," is the saying. Well, managers are very busy people and they accomplish a whole lot is a very short amount of time. How do they do it? They quickly ascertain what is important to be accomplished and what is superfluous, they list those tasks my order of importance (i.e., due date) and they do it without prodding, fanfare or complaint (well, maybe they complain sometimes).   They dig in. They don't ruminate or worry or become paralyzed by the sheer volume of work because those acts suck up time and time is the most precious resource a manager has. Get 'er done.

Management companies with the core competency of "getting it done" continually instill and develop that concept in their managers. They look for and ferret out those managers paralyzed by how to accomplish so much is such a short amount of time and help them to unravel that anxiety borne of fear of making the wrong move or decision.  Those companies continually teach their managers to list it, do it, and move on. 

Wrap Up

Nothing makes a homeowner, a resident, a Board member, happier than them calling in a problem and management fixing that problem. Nothing.  Getting that tree trimmed. Having the leaves raked. Getting a walk shoveled. Having an accounting problem fixed. All of you in the trenches know that what I am saying is true. Despite how "magical" that block party was for a small portion of residents, it would have been disastrous for all (especially you) if the sprinklers came on.

What really constitutes great community management? Great core competencies. It's important to know in this economic climate because it's what will separate great managers from mediocre ones and great companies from mediocre companies.   And it will do so never more glaringly than now, as associations begin to scramble for ways to cut costs more than usual - even when they are financially sound -  and find the best basic, core services at the lowest prices. And frankly, what constitutes "great community management" is  what we should be doing all the time, in good times and bad. It's what great managers have been doing for years: Providing excellent core community - and property - management service, keeping the very best of us employed and in business. Focus on the basics, and leave the social issues to the social committees (just make the sure those sprinklers are OFF).

(1) Chief Medical Officer, Starship Enterprise (the original series)
(2) Yes, all managers should read and understand their management contract.