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June 18, 2006
A failure to educate, convince or communicate
Its a simple issue -- most managers who have had any education in community associations, know what the board and owners need to do in order for them to have a successful, stable and content community. But there seems to be a huge failure in taking that knowledge and getting it across to those parties in a way that actually has the desired happy ending. How many of you have consistently encountered the following:
You've developed the annual budget that call for X increase, and the board decides that X won't fly with the owners and so you get caught short or skimp on something to make it fit with the board's expectations rather than reality
You convince the board to spend the money to have a real reserve study done, only to see them ignore or undercut the funding recommendations.
A problem comes up and you recommend bringing in an outside expert to help solve it. The board just sits there looking at you and you know they're thinking "What are we paying you for?"
You see friction occuring between owners and the board and you recommend that they build a web site and get more news out to the owners to help explain what's going on. The board sends out a one-page note that causes more problems than it solves, but it was cheaper and easier.
The bids for a project come in and you recommend contractor A. The board picks B simply because they're cheaper and its your job to make sure they do the project right.
The list could go on and on. And the reasons they ignore you are just as plentiful as the problems. You spend an entire year working to get the board to do what's right, not just expedient or cheap, and then, for all your efforts, you get a new board, and have to start all over again.
Some companies hold classes for their new board members, but they can't force them to attend and so, someone always misses the message. Management contracts rarely hold the board to any standard, so when they screw up, you have to live with the consequences.
I think what is missing is a universal set of standards for boards of directors. Not in vague, general language ("The board shall do what is best for the association"), but setting specific standards that they can be measured against (The board shall select the contractor that meets the following criteria-----"). That means processes, checklists and an agreement defining the quality level expected and the willingness to pay for it.
This industry has spent a lot of time and expense developing standards for managers. Its time to take it to the next level and create similar ones for the decision-makers.
Posted by joewest at June 18, 2006 10:47 PM