March 30, 2006

The Board's About To Do Something Stupid, and...

......you're the manager. What are you going to do about it? Well, you could:

- Keep quiet while grinding your teeth down to the gums
- Pass a note to the President "What the *&^%$# are you thinking of?"
- Say out loud "What the *&^%$# are you thinking of?"
- Distract them with an X-rated story about one of their neighbors and hope they forget to vote on it
- Delete it from the minutes before sending out the next board package (if its not in the minutes, it never happened)
- Go back to your office, bang your head against the wall a few times, and update your resume
- Smile, because you know that you've got a good chance of winning the office pool for "Worst Board Motions"
- Realize you're now going to be over budget because of the legal costs straightening this out, and the board won't remember why six months from now
- "Accidentally" spill something on whoever raised the issue, preferrably hot coffee, so that maybe they'll go home to change
- Clear your throat, mumble "You might want to re-think that" and insert it in the minutes before the next board package goes out (if its in the minutes, it must have happened and you've CYA)
- Pass the buck by recomending the board get an opinion from ______ (insert attorney, engineer, architect, CPA, Magic 8-ball you carry in your briefcase*, etc)

or, do you go head-to-head with them trying to straighten it out before the problems occur?

Now and then, every board will do something that's "just around the bend" and you know it is. The first question to ask yourself is why? They may be tired of looking at the same issue time and again, or the problem is so off-the-wall that they really don't know what to do, or there's a personal agenda working underneath, or, maybe you just can't figure it out. The key is to not let it come to a vote. Keep the discussion going by raising any issue you can, while you try and identify the cause and the votes. Work the "NO's" and undecideds by planting potential problems in their mind. Change the direction from an "Action Item" to a "Study and Report". If all fails, simply tell the Board that you feel there may be some potential liability or risk isues and ask that it be tabled. That will buy you a month to convince the individual board members to re-think the issue. If you can't convince them by then, you may have to bring in some outside help (outside experts always carry more weight, even if they say the exact same things you did).

Even if its not in the contract or job description, a major part of your job is to keep the board from doing something that will have a negative on the community. I used to tell board President's that if they saw me give a negative shake of my head, then the issue needed to be dropped or tabled, and they would usually say something like "I'm not comfortable that we have all the facts" and ask that it be carried over. It helps to have that kind of working relationship and understanding with your President. You're the advisor on management - get in there and save them!

*By the way, if you can't carry around a manager's best friend, the Magic 8 Ball, here's an on-line version----but really, if you don't have one on your desk, how do you get through the day?

Posted by joewest at 11:46 AM

July 14, 2005

Professionalism and Condominiums – Owners – Boards - Property Management Firms

The condominium industry, all concepts, whether it is the multi-storied arrangement or the home owners association with their single dwelling, is expanding exponentially.

Owners and the residents have recognized the benefits inherent in this type of environment. Most notable is that the complex will be serviced, managed, operated and maintained by agreement with either individuals, or property management firms. This has allowed the occupants to pursue their daily endeavors while Property management firms have recognized that providing these services can be profitable.

The industry has self-adopted, sans definition or standards, baselines that constitute the meaning of:

- Full service management by Professional personnel;

- Professional management services provided by Management firms

A program should be established that would provide the condominium management industry, both firms and personnel, the status to be accepted on a nationwide basis as a commercially acceptable and recognized” Professional Occupation”.

The Community Associations Institute is to be commended for its efforts in recognizing the need to establish the professionalism status in both the individual condominium manager and the property management firm.

The Institute has a national certification program designed exclusively for condominium, cooperative, and homeowner association managers. The program is promoted as being qualified to provide standards for association management and gives homeowners and boards confidence in their manager's knowledge and ability to provide professional service.

It is not clear as to the standards provided for association management, nor how this gives homeowners and boards confidence in their manager's knowledge and ability to provide professional service.

AAMC accreditation is awarded to companies that “Specialize in community association management and that are committed to providing unique and diverse services to their clients. A company that holds this designation ensures their staff has the skills, experience, and integrity to help your community.”

Global statements in these programs, and discussed below need to be improved upon to more finitely identify and explain their intent i.e.:

“The Community Associations Institute has a national certification program designed exclusively for condominiums that gives homeowners and boards confidence in their manager's knowledge and ability to provide professional service”

“CAI accreditation to companies that specialize in community association management that are committed to providing unique and diverse services to their clients”

What is the meaning of “Unique and diverse services"?

This statement is meaningless with out much more detail as these matters go right to the heart of condominium management.

Baselines and standards need be established to identify the professional services to be provided in the full management services firms are to provide to the associations.

This lack of definition has encouraged management firms to adopt a “Facilitators” culture in the condo management business rather than being “Providers” of services.

The future will belong to the pro-active type management firms staffed or organized with the capability to provide full service management type disciplines. The higher share of managing condominium associations will go to firms organized and staffed with the full service management type disciplines.

Then and only then would creditability be honored in the statement: “A company that holds this designation ensures their staff has the skills, experience, and integrity to help your community succeed” as stated in the Institute's paper.

Colleges and universities need to be encouraged to establish curricula that would provide the basis to elevate the status of the industry as a professional occupation in the eyes of academia and in turn the business community.

Programs should be established that would accommodate the executives and mid-management individuals and interest the younger people to embark on this career by awarding degrees identified to the industry.

An Associate in Arts Degree Programs could be the initiator that would be the first step toward a bachelor's degree after graduation from the community college. Firms may initiate an internee program that would be the source of talent for the business ahead. The Associate in Arts degree is available in the following majors: Business Administration, Business Administration/Management Information Systems and it the propitious time to add Business Administration /Condominium Management.

These actions may result in the following expectations of both parties:

The expectations of the association members – be provided full service management by the property management firms with the professional personnel and disciplines as may be required in the agreement between the parties

The expectations of the Property Management Firm –render professional services as provided for in the agreement between the parties and be equitably compensated for services rendered

©Raymond A. Dubriske 2005

Posted by at 11:43 AM