Planning & Strategies for Community Associations

The Symptom
“…sick and tired of the same excuses; …tired of hearing the same complaints; …tired of dealing with the same problems…”

How many times have you heard or spoken those words in connection with the operations of the Association?

If “sick and tired” is becoming a common ailment among the members of the board or within your community, it can and should be treated before it rises to epidemic proportion. The following is a painless measure which may be taken to promote the short term and long range organizational health of the Association.

Diagnosing the Ailment

Both the on-site staff and the management company are easy targets for blame. Unfortunately, it is not uncommon for boards to immediately assign blame and change management believing its decision to do so is a sure-cure for the ailments of the Association. When leadership focuses on who, rather than what and why, it should be no surprise then when there is little or no tangible improvement in its operations and management after the change has been made.

Unless and until boards move beyond initially assigning blame [the “who”] and initiate a thorough evaluation of the association and its underlying causes of operational dysfunction [the “what and why”], the road to recovery will be a protracted process. Ultimately, it may be necessary to make a change in management. However, the community is better served if the decision to make that change is an integral component of a broader and more comprehensive plan to improve the operations and management of the Association.

The Road to Recovery

There are several internal and external factors that can have a toxic influence over the delivery of services to an association. Identifying these factors and their causal influences can be accomplished by conducting an Organizational Assessment. Organizational Assessments are often referred to as health checks for an organization. An Organizational Assessment is designed to evaluate functional strengths and weaknesses in the association, define areas needing change or improvement, assess the effectiveness of its management and address key organizational issues.

While Organizational Assessments serve as a valuable tool for Boards faced with chronic inefficiencies in the operations and management of the Association, they are also used as a proactive approach to head off problems before they occur – saving time, money and resources of the Association.

Input from key personnel and the professional management firm are integral to the development of an Organizational Assessment for the association; however, their objectivity is skewed by their respective interests in the outcomes. Since objectivity is essential to the formulation of an Organizational Assessment, boards should seek professional assistance external to the Association for its development. Although each association is unique, generally Organizational Assessments can be performed within a thirty day time frame.

The value of an Organizational Assessment is its ability to drive tangible organizational results - to improve performance. The Organizational Assessment also enables the Board to:

- Immediately initiate positive realignment in certain area of its operations and management;
- Establish a short term plan for phased changes based on the “what and why” rather than the “who”;
- Make informed decisions regarding key organizational issues;
- Develop priorities and monitor progress over time;
- Build upon core competencies of the association;
- Set the stage for longer term planning by the Board;
- Save the Association valuable time, money and resources;
- Demonstrate its commitment to develop and manage a comprehensive plan to improve operations and management in betterment of the community; and
- Promote confidence that the board is fulfilling its duties and acting in the best interest of the Association

Community Associations have certain obligations and responsibilities for the maintenance, repair and replacement of common physical assets. Typically, the obligations of the Association and responsibilities of its Board are contained within its governing documents and state statutes. Boards of Directors are well advised to seek counsel from its attorney regarding these obligations and responsibilities and for interpretation of any vague or confusing provisions in the documents.

The “must know” information for board and community members as it relates to the maintenance, repair and replacement of common physical assets include:

- a basic understanding of common physical assets
- the purpose for maintenance
- the cost of maintenance
- necessary maintenance programs, and
- managing facility operations

Common Physical Assets - Described

The physical assets of the Association include both common real property and common personal property. Broadly categorized, common real property typically includes buildings, equipment, site improvements, recreational facilities and grounds. Common personal property is generally described as tangible and moveable items which are not otherwise classified as common real property. Examples of common personal property include community owned furnishings, office equipment and any vehicles. Within each category are multiple subcategories, which detail individual physical assets and their major components.

In order to meet its obligations, the Association must identify the common physical assets required to be maintained. Developing a comprehensive list of physical assets is a significant undertaking and the project requires a commitment by association leaders, staff and management. The benefits however, far outweigh the time and resources required in the data collection process.

The Purpose for Maintenance

Typically, the maintenance, repair and replacement of common physical assets serve three fundamental goals:

- Preserve, protect and enhance property values
- Reduce/minimize potential for injury or harm
- Delivery of necessary and required property services to owners

Developing specific goals, strategies (of approach) to achieve those goals, initiatives (programs, projects or activities) to advance each strategy and goal, work plans to identify the tasks involved in implementing an initiative, and measurable objectives are required planning processes for facilities management and are unique to each association.

The Cost of Maintenance

The data necessary to determine the cost of maintenance, repair and replacement of common physical assets, includes:

- A comprehensive list of the physical assets required to be maintained
- A condition assessment of the physical asset components
- An analysis of the maintenance requirements of the components
- An evaluation of physical asset replacement requirements (reserve specialist recommended)
- An analysis to determine the best resources for maintenance, repair and replacement of the components (in-house staff vs. contracting – each function may require a different resource).
- An analysis of interrelated operating and replacement costs (including the costs to manage and administer maintenance, repair & replacement activities).

In addition to serving as a foundational building block from which operating, reserve and long-range planning documents will be constructed, this data is vital to the development of maintenance, repair and replacement programs.

Types of Maintenance Programs Required

There are a number of programs that may be established which support the fundamental goals of maintenance.

The most common maintenance program is the Preventive Maintenance Program (PMP). The PMP is a planned and controlled program detailing the preventive maintenance requirements for building equipment and property components. Preventive Maintenance is performed on a periodic and scheduled basis for the purpose of optimizing design efficiency and extending the useful life of the physical asset or component. When organized, planned, controlled and performed properly, preventive maintenance has far-reaching benefits to the Association, among which include:

1) preserving the initial investment in the component
2) risk reduction / minimize potential for injury/harm
3) lower maintenance and inter-related operating costs
4) increased dependability of components
5) greater reliability for continual delivery of essential services
6) lower overall equipment downtime
7) peak performance of equipment/optimal design efficiency
8) reduced operating interruptions and failures/minimize emergencies
9) preserving warranties, and
10) services satisfaction by community members

Preventive maintenance is essential to the long term protection of common physical assets and the importance of performing and recording preventive maintenance activities cannot be over emphasized.

Other customary maintenance programs include Routine & General Maintenance, Emergency Services, Replacement Reserve and Requested Services. Collectively, these programs address many of the maintenance requirements for a community association. Boards are encouraged however, to discuss with their management any additional programs that may be necessary to fully develop a comprehensive facilities management program for their Association.

Managing Facility Operations

Efficiency and effectiveness is the hallmark of a successful maintenance operation. These elements are borne from:

- clear goals and measurable objectives;
- thoughtfully developed policy;
- results-oriented procedures to organize, plan, schedule, assign, document and measure
- maintenance efforts; and,
- a unifying plan

The key to successfully managing all of the association’s physical assets is the linkage between overall strategic planning and facilities management. The goals and objectives for facility management [Purpose of Maintenance above] must be aligned with the mission and goals of the association.

Integral to achieving maintenance goals is the development of a facilities management policy. The programs, procedures and guidelines to properly manage the facilities will develop from that policy, all of which should be documented in an Operations and Management Policies and Procedures Manual.

The unifying plan ensures linkage and integration of facilities management with other programs, functions and services of the Association. These unifying plans are commonly referred to as Maintenance and Operations Plans or may be referred to as Comprehensive Maintenance Plans. The primary purpose of the CMP is to ensure consistency, continuity, coordination and accountability of facility operations and all interconnected areas of operations and management.