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 10:47 PM
December 15, 2005
Have something to say?
This blog was set up to talk about management issues. I had hoped that it might elicit some comments or even some writers, in management, who had something to say. Well, the offer is still open. There are no specific requirements. If you would like to comment about an issue or raise a question, this is one way to do it.
22,000 people visited the Community Associations Network last month. That's a pretty good audience.
If you're interested, drop a note to: webmaster@communityassociations.net
Posted by joewest at 12:16 AM
November 27, 2005
Transparency is usually a good thing
It pops up in the news every now and then - an owner asks to see some association records and gets stonewalled by the board or management. Yes its a pain, it takes time and costs money, but in the end, the owner always wins. Either a court orders it, or the legislature passes laws to require it, or it ends up in the news and the association looks like it has something to hide and caves as a result.
This is the information age, and people have grown to expect that they can access information about an organization that they belong to and pay money into. Telling them they can't see financials or minutes won't work anymore. You're going to have to come up with some type of reasonable policy and mechanism to provide basic information to the members of the association.
Secure web sites are the easiest and cheapest. Letting a logged-in owner browse through documents at their leisure reduces the potential for conflict. Newsletters that publish a well-edited version of the minutes and financials, as well as updates on projects and other activities is also good. In reality, the more information yu provide, the more bored they're likely to get. Its when they get told they can't see something, that suspicions arise and confrontations occur. They have a right to know what's going on and how their association is operating. Find a way to make it work.
Posted by joewest at 11:07 PM
October 29, 2005
The Most Important Communication
The single most important communication an owner receives from the management company is the first one. When a new owner moves into an association, management usually will send them a package of information containing a welcome, information about the association, assessments, and contacts. Some packages will contain other items like a directory, newsletter, forms, or more paper. A few managers will include a video welcome in hopes that people will watch what they won't read. When was the last time you reviewed what new owners received? Have you done any sampling/surveys to see if its being read and understood? Why is this important? Because you and the association are going to establish some early perceptions in the mind of the new owner(s) with this package.
Does it capture their attention, or is it easily put aside for some future time? Sending someone nothing but text on plain sheets of paper is probably the quickest way to get ignore. The first page they see should be designed to grab them and let them know there is some good stuff inside. Use of graphics, colors, bold print and interesting language will attract the reader to actually read the document and might encourage them to read more. Also, they will be more willing to read future communications if they feel that it will be interesting.
The welcome package should be warm, not formal. You're welcoming a new neighbor, not sending a violation notice. Smiling faces, words in quotes, upcoming social events are just some of the things you can include. Consider sending it on a softer, warmer color paper.
Also consider sending more than one welcome communication, with the first one being all warm and fuzzy, with subsequent communications designed to pass along more detailed information. If the first one does its job, the follow-ups should get read. Look at what you're sending. What message is it conveying? Is it the one you want?
Posted by joewest at 2:02 PM