Category Archives: Governance

community associations, condo associations, Cooperatives, Governance, HOAs, leadership, Management

Inequity of Scale – The Challenge of Leading and Managing Small Condominium Associations

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Association Bridge was formed in large part due to my experience teaching CAI’s old “Essentials” program for community association volunteer leaders. Ken Ingram of Whiteford, Taylor & Preston and I were tapped to teach the full day program for a few years at Reston Association. RA member associations are typically very small communities known as “clusters.” By the early 2000s, some of these small associations were facing some serious challenges. The class gave them access to resources that board members in larger associations would probably take for granted.

I will never forget hearing a board president proudly explain his excellent system for keeping the books for his cluster.

“I use different color ink in the checkbook.”

“Oh, you mean to help identify different types of expense and income or something?”

“Well yeah, kinda…”

“OK, can you share the system with the class?”

“Sure. You see, everything in green ink is cluster activity, and everything in blue is mine…”

“Yours?”

“Yeah. That’s how I can easily separate the cluster activity from mine in the account.”

“Wait, are you saying you collect your neighbor’s fees, deposit them in your personal bank account… and pay cluster expenses from the same account?”

“Well…yeah.”

Yikes!

Time & Attention

Teaching the class was an instructive experience. Board members were searching for creative ways to get two things all community associations need if they are to be managed effectively – time and attention. I frequently heard the refrain, “Our management company doesn’t do ANYTHING!” Without fail, some follow up questions revealed the boards weren’t paying for very much of anything. Some gave up and went fully self-managed. They were doing a lot of work themselves to make up the difference between what they wanted from management and what they felt they could afford.

It reminded me that small associations have to make tough choices, all borne from the inequity of scale. Certain costs simply do not scale. Managing a 20-unit building will likely require the same number of site visits as would a 150-unit building. The time required to create board packages, produce monthly financial reports and attend meetings will not scale to the unit count. Neither will the costs of independent audits or reserve studies. This can apply to capital projects as well. A 3-story high rise and a 10-story high rise could have the same building footprint, meaning that the cost to replace their respective roofs may be about the same. Bottom line: Inevitably, unit owners in small condominiums are very likely to pay more per unit in total fees than their counterparts in larger condominium associations.

As a result, boards of smaller associations frequently opt for less service, requiring investment in the time and knowledge base of volunteers to make up the difference. That burden can be very difficult for volunteers.

There may be solutions that require some creative thinking. While I applaud the resourcefulness and sense of duty shown by the board member who co-mingled personal and association finances, I pray he never gets in a beef with a fellow unit owner. That association clearly did not have any crime coverage. I doubt they had proper directors & officers liability coverage, either. Not all creative ideas are great ideas.

What Can We Do?

The goal is to identify the needs and wants of the board and membership, and then design a plan that is in harmony with them. It is a mistake to assume that small associations can’t afford “good” service. Such thinking is a variation on the sin of fee targeting. Many a community has found that a cheap price results in a high cost later on. Whether it comes in the form of making up for deferred maintenance, the bottom dropping out of resale values, disengaged unit owners, or dissatisfied residents, sooner or later everyone bears the cost of short-term thinking.

Analyzing the Operation

A Responsibility Grid is an excellent tool to help see where you are and where you have gaps. First, list the tasks involved in operating the association along the left margin to create rows. Then, along the top of the page, create columns by listing the volunteers and paid personnel or contracted parties who have roles in the operation. A sample grid you can use can be found HERE.

Once the tasks and responsible parties have been listed, fill in the grid boxes, describing each party’s current role in each task. Soon, you will have a snapshot of the operation, seeing the interrelation of the parties involved. This frequently leads to Aha! moments. We’ve noticed that many Boards have a tendency to assume most issues are performance problems. The Grid helps to reveal weaknesses in the system, allowing everyone to differentiate system problems from performance problems. The Grid may point out that someone else in the organization is better suited to take on a certain responsibility. Or you may find that some tasks aren’t being performed at all under the current system. Once clarified, performance issues can be more effectively addressed.

The trick is to use the Grid to address system problems by making adjustments. The context of seeing the operation in totality helps the board to identify areas where more support is needed. You can redline the grid until it makes sense. It takes the guesswork out of the picture, communicates responsibilities with clarity, and increases the likelihood of finding successful solutions. The final grid can then be a tool to adjust contracted specifications and position descriptions as needed.

What Are The Options?

Many contracts are designed to be “competitive” without regard to the actual workload required for the job. Standard “full service” management may not provide the required attention needed to support volunteers in your specific case. Some approaches to bridge the gaps include:

  • Customizing the management agreement to provide more attention in specific areas. Quantify time and attention where possible. If a minimum weekly site visit and monthly or quarterly property inspection with written report will address many of the issues a community is experiencing, include those as specifications in the management contract. Set the expectation and create a system that takes some of the burden off the shoulders of volunteer leaders. It may be that some specifications can be decreased to help compensate for additional cost, such as decreasing the number of board meetings attended.
  • Decrease the management contract to “financial-only” or “financial-plus” service levels to free up assets and redirect them to on-site management. This is where it gets creative. I cut my management teeth as a part-time on-site manager for five different associations over the span of ten years. Two of them had fewer than 50 units. All of them had something in common. They were all too small to justify full-time, on-site management, but too busy to be well-served by off-site management.
  • Adjust the scope of the management contract to dedicate a specific allowance of time. If the management company is willing to consider an out-of-the-box option, they could provide more attention by defining a number of hours per week for dedicated attention, including on-site time. Some management companies in the northwest use this model.
  • It takes a village. Depending on the configuration and condition of the property, a combination of services might make sense. Perhaps the volunteer base is strong, and you can engage management on an a la carte basis to provide only the services needed when you need them. Perhaps you just need a management company or consultant to set up the annual calendar and preventive maintenance programs and come back to audit the system periodically. Perhaps a maintenance position can be beefed up with a system to provide valuable eyes, ears, arms and legs for Management and the Board. Perhaps strategically scheduling a contracted annual architectural and engineering inspection to coincide with the annual budget process combined with “financial-only” professional management gives the association the best bang for the buck. The possibilities are endless.

In the End

The quality of volunteer leadership will always be vital to the success of any condominium association. The smaller the association, the more important this is. Smaller associations have special challenges. Even volunteer leaders who have the time and talent to assume certain management roles are wise to seek resources to set up systems and find best practices. National organizations like the Community Associations Institute  and the National Association of Housing Cooperatives can be very valuable resources. Associations in the Washington Metro area can tap into additional resources such as the DC Cooperative Housing Coalition, the Montgomery County Office of Common Ownership Communities, and the Office of the Virginia Common Interest Commission Ombudsman 
Small associations may have special challenges. But they don’t have to give up, and they don’t have to settle. There are resources and options for volunteer leaders to provide quality service to their members. It may take some creativity and a realistic view of the expenses related to inequity of scale, but it can be done.

Best Practices, community associations, Governance, leadership, Meeting Tips

Meeting Tips #5 – Little Things Set a Tone & Help You Get Stuff Done (Part Deux)

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“Excellence is doing ordinary things extraordinarily well.” – John W. Gardner

Nip It in the Bud

One negative person can dominate the tone of a whole room. A proactive approach can be an effective strategy to keep things positive and productive. Arrive early. Before the meeting starts, read body language and other non-verbal cues. Look for members who may have expressed negativity in the past, or those you know have a complaint they want to bring up. It might feel natural to duck and cover, waiting for the meeting to start. To defeat fear of conflict, try approaching the person with a friendly greeting. You might be amazed. Short, personal, respectful and positive interchanges can be a game changer. The person might just tell you what’s on their mind and you will be able to have a productive interchange even before the meeting starts. Taking the initiative in showing respect and civility makes it easier for people, even the unhappy ones, to be at their best and respond in kind. It won’t always work. But if you don’t try it, it definitely won’t work.

Bob’s Got a Point

Some people chafe at the thought of using Robert’s Rules. It might seem overly formal. Some chairpersons seem to use it as a sledgehammer to control people, further giving Ol’ Bob a bad name.

While it makes no sense to employ every detail and nuance included in Robert’s to a small group, there is one process that can make a world of difference. When a board sticks with the basic discipline of making motions, it can save a ton of time and make sure the discussion stays civil and on point. It also emphasizes two key principles that are essential for group decision-making. The will of the majority is done and the minority is heard and has the opportunity to impact the final decision. Too many boards talk their way into a motion and try to get everybody on the same page. I remember one board president, who was a professional grant writer and part-time poet, who wordsmithed every motion on the spot. Approving minutes with an edit could take 20 minutes! Here’s the process that negates talking your way into a motion and the endless and inefficient chatter that goes with it:

  1. Make a specific motion. A board member would like to approve an action.
  2. Second the motion. Another board member agrees the thing is worth considering. If there is no second, there is nothing to talk about. The motion dies. That’s it. Stop talking.
  3. Chair calls for discussion. Only now is discussion initiated, and it is focused on the merits of the motion. Questions are asked and answered. MAYBE a better idea comes up – and if so, the original motion can be amended. If it’s clear the motion seems fatally flawed, it can be withdrawn and replaced by a completely new motion – or not.
  4. Call the question. Once it becomes clear to the chair or other board members that the points have been made, it’s time to vote. If someone objects to calling the question, they should have a brand new point to make.
  5. Vote. A 5-0 vote has the same effect of a 3-2 vote. If board members are respectful and gracious…i.e. good fiduciaries and leaders… the minority will support the decision and set a tone for the community.
  6. Next!

If your meetings are chaotic and directions unclear, give it a try. You might be surprised.

And Finally…

I’ve had a mentor for over 30 years. One of the reasons I’ve stuck with him all these years is “Best Idea Wins” has always been his motto. He stays faithful to the principle, no matter how challenging the people and circumstances have been.

Think about it… a good idea is a good idea. It doesn’t matter who comes up with it. It doesn’t matter how well or poorly the idea might be communicated. Ideas have no ego. Ideas lead to solutions. Committing to Best Idea Wins demonstrates principled leadership, especially when things get complicated and contentious. It creates a space where people can resolve conflicts and be at their best. Try it. You will inspire the same respect that I have for my mentor.

To all the board members and professionals who serve them, I offer this encouragement. Please never forget that when you choose to carry out your responsibilities in an excellent way, you absolutely make a difference in the quality of life of everyone in the communities you serve, sometimes in large ways, sometimes in small ways, whether or not members realize it or not, and whether or not they ever say “thank you.” The only person who can take that truth away from you is you. Please don’t let that happen

So there you have it. Thirty years of meetings boiled down to twenty-six tips over five blogs. Have you found any that work for you that we missed? Let us know!

Best Practices, Communications, community associations, Emotional Intelligence, Governance, leadership, Meeting Tips

Meeting Tips #3 – O Say Can You Hear?

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Community association boards do the bulk of their business at board meetings (or at least, they SHOULD). It can be tough for community members to observe the proceedings and resist the urge to chime in from the audience, especially on hot topics. This happens often with residents who do not understand that community associations are based on the representative democracy model. Yes, the board is ultimately responsible for picking the community center wallpaper…it’s not a community vote…

Wise boards do everything they can to avoid operating in a vacuum. They know they are responsible for making decisions that benefit the membership as a whole. They also learn that group leadership is a messy business. The odds are less than great that everyone will be happy with every decision. Convincing a vocal minority that they have been heard can be tough.

Meetings are an opportunity to build community through listening. Sometimes the format of board meetings can create unintentional landmines in this regard. Here are a few ways to flip the script and make opportunity.

Owner Comment Period

Many state statutes require a period of time be set aside for owners to ask questions and make comments. Even if it might not be required in your location, it’s a terrific provision. There are a few nuances to how a board administrates the comment period that will take full advantage of listening opportunities.

  • Timing: Some communities choose to have a comment period on the agenda before action items to allow for input. Others find that most of the comments and questions are on topics unrelated to the action items and find it more beneficial to put comment periods later in the agenda. I had one client that found it most effective to have two short open forums: the first for input before the board discussed action items, and the second one after, to allow members to bring up items unrelated to action items.

The key is to thoughtfully consider how members can best contribute to the discussion and be heard. Remember – you never know where the next great idea might come from! Be ready to hear it.

  • Following up: A typical refrain from some community association members is that things are discussed at meetings but nothing ever happens. Sometimes the culprit is how the owner comment period is conducted. Some matters are simple management issues that can be addressed on the spot. However, boards are wise not to make decisions on new issues brought up in open forum when they are unprepared. Some boards use the stock phrase, “We will take that under advisement,” but they don’t actually have a system to close the loop. Here are a few tips to help boards listen, which will also give their community members the confidence they actually are:

  1. Take notes while the member is talking to capture the main points.
  2. Ask questions for clarification as needed,
  3. Restate. A great phrase I’ve used is, “So I think I heard…”
  4. Embrace passion. If an owner is upset, they care. There’s energy there. Perhaps there’s an ad hoc committee lurking, just waiting to be formed, that will help the board turn a problem into a solution.
  5. If a matter is worth discussion, add it to new business in the meeting agenda.
  6. Make it clear if a matter is delegated to management, a committee, or a board member.  Who has the ball?
  7. If a matter would require an unbudgeted expense, you can indicate that it might be included in next year’s budget discussion and direct that it be added to the budget file. Just make sure it’s included in the first draft, (a.k.a. “the kitchen sink version” – for more on that concept, CLICK HERE) of the budget, no matter how wacky the idea might seem.
  8. Make sure the manager or another party is responsible for producing a meeting task list. The list should include not only the follow-up items from motions, but also all the little details noted above that would get lost otherwise.

Hint: If owners are using valuable meeting time to bring up day-to-day management issues, it may be a sign your processes are not clear. Asking a member if they have reported the matter to management is an appropriate response. If they have, but believe the response was inadequate, you can let them know you appreciate the report and will help to connect the dots between the owner and management. If they have not, it’s a golden opportunity. Listen to the report, then let them know management will take care of it. Then remind them that in the future, they need not wait for board meetings to make requests. That message reinforces the association’s service procedures and helps all participants understand the best way to be heard in such matters.

Recognition

Don’t forget to thank volunteers and managers for their efforts. Thank members for their comments. Recognize good questions. If a member discussed a problem, show empathy for the member even if they were a part of the problem. Practicing recognition promotes active listening and demonstrates the emotional intelligence that helps members know they have been heard.

Hot Topics

Some disagree with me, but I’ve always recommended that those chairing meetings open the floor for specific comments on particularly contentious issues to allow members to express themselves. This uncommon action of adding impromptu comment periods proves the board is serious about member input. You can still set a time limit to keep things going. You can also request that if someone else had already made a point a member wishes to make, that they make a simple statement of agreement and do not make repetitive points.

Is This the Right Meeting?

Board meetings are designed to conduct business. If the member comment period is taking over the meeting, the community is telling you something. You have bigger issues to address. When board meetings become free-for-alls, it has become a de facto “town hall” meeting. It also may be telling you the community is deep in the weeds and needs to take a step back and do some serious planning. Board meetings are great for doing the basic business of the community. But they are lousy for town hall meetings and for strategic planning.

Town hall meetings are great for either collecting or disseminating information. No business is done, just communication. It amazes me that most community associations never have a yearly planning session soon after annual meetings to discuss the goals for the upcoming board year. If the community needs to hire an outside facilitator to help plan and conduct town hall or strategic planning meetings, it can be well worth the investment.

Carpe Momentum

Meetings are opportunities to lead, to connect, and to build community. Listening is at the heart of all three. Why not seize the moment?

Best Practices, community associations, Governance, Meeting Tips

Meeting Tips #2 – Prepare TO Die? Or is it Prepare OR Die? Same thing!

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Classic line from “The Princess Bride”

The Five Ps

Proper preparation prevents poor performance. Think about meetings of any type you’ve attended where the participants were well prepared. Quality discussion, good decisions, the right balance of thorough and efficient, right?

Board members are fiduciaries. They have been entrusted with taking care of association members’ assets. Their decisions can make a difference in the quality of life for everyone who lives in the community. Meetings are where decisions are made. Good performance is important. Preparation is crucial.

Are You Prepared?

Signs your board may need to focus on meeting preparation:
• “That’s covered in your Board package”
• “I’m not ready to make a decision”
• The sound of a board member ripping open his board package upon sitting down at the table.
• “Did we get that (report, proposal, memo, etc.)?”
• Endless discussion on details, possibly involving eye rolls, facepalms, and other frustrated non-verbal communication
• Pattern of last-minute additions to the meeting agenda
• Asking the same questions that were answered last month

End result: Death by meeting.

Two Sides of Preparation

Like so many other situations in community associations this can be a system issue, a performance issue, or a combination of the two. Be clear on the real problem.

System: Are those responsible for providing information in advance of the board meeting (managers, board members, committees) providing adequate data for the board to make informed decisions? Does the packaging of the information work for the participants (electronic or hard copy, visuals, analysis, the organization of data, etc.)? Does the established schedule for board package delivery give participants sufficient time to thoroughly review it?

Performance: Do participants read the board package? Are the packages delivered on time? Do the packages answer questions or raise them?

Preparation Tips

Board Members: One of the primary duties of board members is to read. If you need more time, make sure the expectation is clear. If the data does not speak to you, share how you’d like it to be presented. If you have questions about a subject, ask about it before the meeting. Make sure committee members and others who contribute to the board package are aware of the schedule for meetings and package delivery.

Managers: Board packages are your opportunity to help the board do its job and to gain respect as a professional. A bunch of proposals and memos attached to an agenda is not how a professional prepares a board package. Never throw data at your client. Review, analyze, frame, and explain. Review information with a critical eye with your client in mind, anticipate the questions they will ask and provide the answers in the package. Present information in a way that speaks to your specific client. Ask if the board needs their packages sooner.

Don’t Be Inigo’s Victim

You didn’t kill his dad. You don’t have to prepare to die.   But you do need to prepare.  Remember the “Five Ps” and escape death by meeting.  Together, managers, committee members, and boards can create and execute a system that helps everyone to efficiently and sufficiently prepare and do great work in the service of their communities.

Best Practices, community associations, Governance, Meeting Tips

Not Your Father’s Agenda – Meeting Tips #1

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The difference between a productive one-hour meeting and a mind-numbing, four-hour marathon can sometimes be the formatting of the agenda.

Roadmaps help you to get to your destination and get there on time. Your meeting agenda can do the same thing. A few years ago, some co-conspirators and I put on a mock board meeting at a CAI local chapter conference to illustrate the wrong way to conduct a meeting. Here was our agenda (click on the image to enlarge):

Clearly, we used a bit of hyperbole to call out plenty of dysfunction on the Gates of Hell board. There are plenty of nuances (and some not too subtle points) to pick apart. There are two features of this agenda to consider that are commonly used in community associations: (1) the order of business and (2) a missing element. Both can make a big difference.

Prioritize the Important Stuff

The Gates of Hell agenda follows a typical order of business. It does a good job of keeping topics organized, but it can have an unintended consequence. The decision items are the most important things the board will do. Those decisions will have the biggest impact on the quality of life in the community and frequently its financial health. Most board meetings are held in the evenings, with decision items often listed at the end. How fresh and mentally sharp are you at 7PM? And if that’s the start of the meeting, by the time you get to new business, you might be toast. If it’s a marathon meeting, you might be making a six-figure contract approval decision at 10 o’clock at night. How clear-headed will your thinking be while making a decision that will impact the whole community?

The solution? Re-order the agenda. Put action items in as early as possible, before all the reports. Make decisions when you are at your sharpest, not when you might be tempted to get a vote over with as fast as possible because you are tired and cranky.

The Missing Element – A Timed Agenda

A timed agenda can also make a world of difference. If each agenda item is timed, it gives the group a target. It gives the chair a tool to help move the meeting along. Other board members can support that chair by referencing where you are as compared to the agenda. Don’t be a dictator and cut off discussion or reports citing the timing on the agenda. It’s most effective as a gentle nudge and reminder. Simple but effective.

There may be a benefit in taking a hard look at your starting time. I’ve had some clients that intentionally scheduled meetings to start before members have the opportunity to get dinner. Another client Intentionally scheduled their meetings early on Seinfeld night because it motivated them to be efficient. Both of these strategies worked but required board members to be disciplined in another area – preparation. 

community associations, condo associations, Cooperatives, Governance, HOAs, leadership, Management, Strategic Planning

O Say Can You See?

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“Tom, aren’t there any good management companies out there?”

That was the question posed to me by a condominium association board member circa 1988. I was in my formative years in the management business. That client knew me in my first incarnation of self-employment. I had completed a very successful plastering and painting project. I had only begun to venture into part-time, on-site management services the year before. That one question helped me to crystallize an Aha! Concept. Let me explain.

The Devil’s In The Details

I really enjoyed working with this group, even though they were rather “high maintenance.” They were enthusiastic, dedicated, and genuinely nice folks. They had an older building, the logistics of which amplified the inequity of scale faced by most small associations. They had a central HVAC plant to serve less than 30 units. The units were large and spread through only four stories, so even the cost per unit for roof maintenance and eventual replacement was much higher than most buildings.

There were other factors that added to this condominium’s challenges. Most units were owner-occupied. There was a seven person board, and there were several active committees. In a way, this was the perfect condominium – it seemed like every unit owner was involved! But this led to an unintentional consequence. At only 20+ units, they didn’t seem to justify much of an on-site maintenance or management presence. All that active participation meant that volunteers were in the details of every facet of the operation, which led to innumerable questions and a desire for fast and detailed response. Off-site “cost-effective” management and engineering services were always going to be reactive. This group was never going to be satisfied with the status quo. I knew a little about the history of that condominium, and knew they had already fired most of the companies I would have recommended at the time.

The Aha! Concept – System or Performance?

I’ll always remember this client because it helped me to formulate a frame of reference that became a core issue for much of my consulting work ever since. I noticed that most boards defaulted to a common position when something was wrong. They tended to conclude that they were getting lousy results because somebody wasn’t doing their job. This was one of the first clients to help me realize that you have to figure out if you’ve got a system problem, a performance problem, or a combination of the two. Until you figure that out, you are always answering the wrong question. It is unlikely you will get the results you seek. My 1988 client needed to find a way to get more proactive attention (and pay more), or lower their expectations. Status quo approaches were never going to give them what they wanted.

It’s Not Easy

It can be tough for volunteers serving on a board to see things clearly to determine the root of their dissatisfaction. There are a myriad of potential reasons why.

  • It’s not their full-time job. They may lack the time or expertise needed to accurately diagnose the situation.
  • They may be too close to the situation to see it clearly.
  • They may have been fortunate to have had an excellent manager or other service providers who regularly exceeded the specifications of their agreements. Great performance can mask a deficient system. God help the next good, but not great, manager…
  • They may be resistant to the idea that it might cost a little more to get what they need, exacerbated by a market flooded by management companies inclined to over promise and roll the dice.
  • They may not recognize that all associations have life cycles. The systems that met yesterday’s expectations may not be able to handle today’s realities, much less tomorrow’s. Of if only I had a dime for every time I heard “Well we’ve done just fine with x for the last ten years, we shouldn’t need it now.”
  • There may not be many free thinkers out there prepared to offer creative solutions, or companies geared up to offer those customized services, especially to a smaller association.

Fresh Eyeballs

It may be time to take a fresh look. Seek out and listen to innovative ideas. Take advantage of opportunities to network with other volunteer leaders. See if your city, county or state facilitates programs for board members. The Community Associations Institute is an excellent resource for any community association. CAI Press includes a hugely diverse library of material. Professionals in the field and volunteers contribute articles and educational seminars through CAI National and local chapters. An underutilized feature of CAI membership for volunteers is the networking aspect that is available through participation in local and national programs

If nothing seems to be working, don’t give up or settle. Maybe most importantly…don’t assume. Dig a little deeper. Look a little harder. You might just find what you really need.

Best Practices, change management, community associations, condo associations, Governance, HOAs, leadership, Uncategorized

Dear Boards: Suck It Up and Be Transparent

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James Dyson developed over 5,000 prototype designs for his revolutionary vacuum cleaner between 1979 and 1984. Nobody cared until 1983. An Italian appliance maker agreed to sell them by mail order. It was not exactly a success; only about 500 units were sold that year.

But Dyson was undeterred. He never forgot his unhappy experience with a typical vacuum in 1974, when he noticed it seemed to lose suction easily and required a lot of maintenance to maintain optimal performance. He knew there had to be a better way. He was sure his “cyclonic separation” technology was the answer.

Who Wants to See Dirt?

One of the key features of the vacuum was its clear plastic dirt collector. Market research at the time said people would hate it. But Dyson sensed that people would want to see the results of the vacuum’s performance, no matter how ugly it might be. So in 1991 he launched Dyson Appliances Unlimited. Was he right? Today Dyson is a multi-billion pound (British) company employing over 8,500 people. But you don’t need to know statistics to see his impact. Take a look at the appliance shelf at your local department store or Amazon page. How many competitors copied him?

Historically, vacuum cleaners trapped dirt in a hidden bag that was removed and thrown away. The clear dirt collector went against the grain of conventional wisdom at the time. In his ebook Who Do You Want Your Customers to Become?, Michael Schrage quoted Dyson: “The interesting thing is that when I did this, all of our competitors just fell about the floor laughing; they were actually delighted that I’d been so stupid. And the retailers wouldn’t have it . . . We went into the stores, and our vacuum has all this (expletive deleted) in it. The retailers are absolutely hostile. They say, ‘No, no, no, it’s a complete mistake—make it smoked or tinted or something.’ But I persisted, because I found it really fascinating that you could see exactly what was happening; you could actually see the nature and texture and type of dirt you’ve picked up.”

Schrage concluded, “While Dyson’s transparency defied the industry’s conventional wisdom, customers knew they could see with their own eyes how well their innovative technology worked. Dyson offered a simple, easy, and inexpensive user experience that invited customer confidence….Transparency creates trust. Dyson’s contrarian innovation was an investment in trust. Dyson empowered his customers to come to their own real-time conclusions about his product’s performance. “

What’s This Got to Do with Community Association Governance?

Too many boards of directors of community association are nervous. Nervous about contention. Nervous about bad PR. Nervous about looking unprepared. Nervous about being wrong. Reflexively, they retreat into secrecy, even when state or local statutes require open meetings.

I get it. People can be tough. Most communities have hard cases living in them. I remember Elvira, a unit owner in a particularly contentious condominium I once managed. She was the Board’s harshest critic, never missing an opportunity to call out any and every imperfection. When I asked her why she didn’t step up and serve on the Board, it became clear she didn’t want to be accountable. She just enjoyed holding others accountable.

I also remember my first condo management job. I was a contracted, interim building manager for a small and elite condominium in Washington DC. I went to work every day with a knot in my stomach, certain I would blow the building up. At the end of my tenure, the whole community threw me a going away party. It was amazing. I cornered one of the board members and said, “I don’t understand. This was my first management job. I made plenty of mistakes. Why were you so happy with me?” I’ll never forget the answer.

“Tom, you told us about every little thing that went wrong. We knew if anything really bad happened you would be honest about it. You have no idea how valuable that was to us to have a manager we could trust.”

“Transparency creates trust”
– Michael Schrage

Humility and openness are invaluable. They set a tone and can change the game. My mentor Arthur Dubin, President of Zalco Realty, and I still recall a president of a condominium we helped turn around back in the day. The condominium had been the victim of paralysis by analysis. This was due in no small part to egos that got in the way of seeing reality and being responsible for decisions that might not work. A brilliant oncologist, this president was always willing to admit when he didn’t understand something. He asked the questions others were afraid to. His standard line was, “talk to me like I’m 5 years old.” The board became more comfortable discussing matters openly and sharing information on topics in progress with owners. All their dirt was in the open. Nobody got sued, the community came together, and stuff got done. More than 20 years later, Arthur and I still reminisce about “Dr. Bob” moments every so often.

Consumers pay good money for a vacuum and want to see the results. They trust their money was well spent, even if what they see might be a bit distasteful. They know the technology works. Seeing the results allows them to draw their own conclusions. Community members pay their fees. They want to have confidence that the organization they are funding is working well. They want to have confidence in the process, even when the news is a less than pleasant. Seeing the process unfold allows members to buy in for themselves.

So your gut reaction may be to stay “safe” in the shadows. This is a fear-based decision. You already know those don’t work out too well (FEAR = False Evidence Appearing Real). You may make assumptions about how members will react to seeing the dirt. And it’s true that in our litigious society there are reasons to be discrete. But knowledge gaps will be filled by the rumor mill. The Law of Omitted Data (i.e. if a percentage of information is omitted or missing, bad data will spread at an exponential rate over time) runs amok. This creates a vicious cycle of distrust, secrecy and dysfunction.

So yes, it can be tough ESPECIALLY in challenging times and with bad news. Take a deep breath and be as open as circumstances permit. Change the game and begin to turn vicious cycles into success cycles. This is not theory. It works. Give it a shot – suck it up and be transparent. When the results start to flow you’ll be glad you did.

Communications, Emotional Intelligence, Magic Beans, Management

Magic Beans #2 – No Buts About It

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This installment of the Magic Beans series focuses on one little word choice in one-on-one communication that can make a big difference.

THINK ABOUT IT

How many times do you use the word “but”? Take a count for a week. You might be surprised.

“But” marks a transition of thought. You might use it when you think something is dreadfully wrong… “But you are missing the point!!” Perhaps more often, you may tend to strategize your way into a “but” to offer an alternative position. You might even start with a palatable point of agreement with all good intentions. You know your counterpart disagrees with your position at the moment. You are trying to find common ground in the hopes they will be able to hear what you plan to say next. Then you transition with something like: “But I think…”, “But what about…”, or the ever so artful “But I wonder if…”

So here’s another exercise for you. For the next week, listen for every time someone else uses the word “but.” Pay attention to your immediate reaction. Unless there is a high level of trust in the relationship and in the moment, you will probably notice some level of negative emotion. This is where word choice counts.

THE GREAT ERASER – DEFLECTOR SHIELDS ON!

The problem with “but” is that it has the power to be the Great Eraser. It can effectively wipe out everything that was stated before it. Think about you how felt when you heard it while in a vulnerable place. Maybe it was during one of those dreadful annual performance reviews (which, by the way, I suggest we abandon). The reviewer just said 3 or 4 nice things about you, dutifully following the “3 Cs of Counselling” (comment – correct – commend). And then….wait for it…. “But there is some room for improvement…” Your defenses go up. You might start to think you just got played. You begin to formulate your counter argument.

The bottom line for any conversation – you might not be able to truly hear anything that’s said after you hear the Great Eraser.

What if you are wrong, or the truth is somewhere in the middle? What if you could have benefitted from the point made?

So what can you do when you are on the other side of things?

CHANGE THE GAME

Last exercise – anytime you feel the urge you use the word “but,” substitute “and”. Perhaps something like:
“…and I also noticed…”
“…and it makes me wonder if…”
“…and as I thought about …”

PLAN B

There are some circumstances where “and” might feel disingenuous or out of place. In those cases, see if you need a transition at all. If that sounds too abrupt, perhaps a softer phrase such as “on the other hand” could be employed. Be aware of your audience and the circumstance, and use your best judgment. Just remember that it doesn’t matter what you say, only what was heard.

WHY?

  • Your listener’s deflector shields might just stay down long enough to hear the message
  • You avoid the (hopefully) unintended message that you devalue the listener or their opinion/position
  • It changes the way you think and communicate, opening up dialogue that might just lead you to adjust your thinking – it could lead to asking more questions that will benefit both parties
  • It helps to avoid a perception of judgment and creates space for collaboration
  • It takes away a fence and builds a bridge

If you are like me, you’ll find the “but” habit hard to break, and easy to slide back into. It will take some self-awareness and thoughtful planning. If you’d prefer to play the ego game and prove yourself right all the time, it’s OK. Go ahead and stick with “but.” If you’d rather get things done and work effectively with others, take the “buts” out of it.*

*See what I did there? Plan B. I suppose I could have started with “On the other hand,…”

Communications, community associations, Magic Beans, Management, Uncategorized

Magic Beans#1 – Frame of Reference

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Sometimes the right words at the right time are like magic beans. Seemingly intractable positions soften, conflicts are resolved, and things get done. I’ve stumbled across a few during my career. This blog is the first in a series of sharing communication approaches that have worked for me. I hope they help you.

Many years ago I was called upon to take over a developer-controlled association. Diane, the community manager, was at her wit’s end. She found the developer to be dismissive and dishonest. It became clear that a change in assignment was required to get things on track and I became the manager. One of the hot issues involved considerable damage to an overhead garage door. Repairs were completed to the tune of a few thousand dollars. But it was a sticky situation. Several unit owners knew that developer personnel hit the door with their vehicle. Elliot, the developer representative, had been trying to get Diane to file a claim under the condominium’s master policy. But Diane was a particularly principled manager. She refused to file the claim, insisting that the repairs were the developer’s responsibility. The more she protested filing the claim, the more he insisted she file it.

Sure enough, by the end of our first meeting, Elliot tells me, “Tommy, we’ve got to get that insurance claim filed. I don’t know what that woman’s problem was.” I let him know I had a lot on my plate, but would get back to him. (I’ll admit it…while the statement was 100% true, I was buying time). In the ensuing weeks, I observed Elliot closely as we worked together. It was clear he enjoyed doing business in a “guy’s club” manner. I also noticed that he was very religious. He observed all the holy days. But the application of ethical principles behind religious practice? Not so much. The reasons why he and Diane were oil and water became crystal clear. In addition to the gender issue, her frame of reference was principle-based. She saw law as a function of ethics. Elliot seemed to be legalistically-based. He saw ethics as a function of law (i.e. if you don’t get into trouble, it’s not unethical). There was no way Elliot would ever hear Diane’s message. So I took a different tack.

Elliot: “Tommy, have you filed that claim yet?”

Me: “I’ve been looking at that and wanted to talk to you when you had a moment. If we file that claim, I wanted to make sure you knew how it might play out.”

Elliot: “Whaddaya mean?”

Me: “Well, you know you are a couple of months before turning over control of the board to the unit owners.”

Elliot: “Yeah, so what?”

Me: “You know the folks who will most likely to run will be the ones that trust you the least. I mean no disrespect, but you know not everybody’s a big fan…”

Elliot (shrugs, nods): “Yeah, there are always troublemakers.”

Me: “In my experience, folks like that get on the board and one of the first things they do is rake through the financials. They are looking for anything suspicious. And if we file the claim and that happens, guess what they’ll see?”

Elliot: “What’s that, Tommy? “

Me: “An insurance deductible expense. And they’ll ask questions and figure out pretty quickly that their fees paid for damage done by your guys. So I really only have one question for you – is your lawyer on retainer or do you pay him by the hour.”

Elliot (pregnant pause…): “Hmm…so you think I might get in a little trouble, Tommy?”

Me: “You might.”

Elliot: “OK, no problem, I’ll write a check to reimburse the condo.”

Me: “Good idea. I’ll show it as a credit on the financials so everyone will know you took care of it.”

Elliot: “Thanks a lot Tommy. I really appreciate that.”

Granted, it was difficult to do business with the gentlemen. I felt like washing my hands after every handshake. If my tactic didn’t work, I had a Plan B in my pocket. I would have advised Elliot that if I filed the claim, I would have had to recommend the insurer pursue subrogation against him. If that meant we got fired, so be it. But none of that proved necessary. We found a mutual frame of reference, he did the right thing and the unit owners were well-served.

THE TAKEAWAYS

• If you don’t know the client’s frame of reference, it is much more difficult to be effective.

• Observe closely, find cues to identify the client’s frame of reference.

• When possible, communicate issues with the client’s frame of reference in mind.

 

Communications, community associations, condo associations, Cooperatives, Governance, leadership, Management

It’s Time to Change the Message (Part 2)

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Let’s say you did everything recommended in last week’s blog. You have great rules and have done a masterful job communicating them to your members. Bravo! Yet, despite best intentions and practice, someone’s gonna blow it. Reflecting back to last week’s Catholic imagery, whether it be an innocent sin of omission or a more brazen sin of commission, sooner or later a covenant will be violated or a rule broken.

Now what?

The knee jerk reaction might be to write the dreaded violation letter. Please stop and think first. In many locations, the law requires a full disclosure of all the bad things that can happen in the event of non-compliance, meaning there’s a slew of impersonal, aggressive-sounding legalese. Here comes the mean nun again….How can you achieve the goal of building community in this difficult circumstance?

Here are a few tips employed by successful volunteers and managers:

1. Walk softly before carrying a big stick: Perhaps an informal communication is best, even (perhaps especially) a verbal one. You can still make a note to file to have a business record of the conversation. A friendly email follow up to a conversation can be invaluable. When people know they are getting a little slack, many tend to appreciate it and the problem is gone. Even if they turn out to be bad players, you have a record of being very reasonable.

2. Never assume the person is even aware of the rule (even if you are sure): Starting off with “You might not realize this, but….” softens the blow. People have a lot going on in their lives. Their reality is that it doesn’t matter that they have an obligation to comply with provisions buried in the 4,536 papers they signed at settlement. It’s irrelevant until it impacts them personally.

3. EXPLAIN THE WHY:   Super important.  Try to weave it in to every communication if possible. People are thinking of themselves first (and so are you if you are not following these tips…). Helping them to see the broader wisdom of a rule, or the impact it could have on them if a neighbor were to violate the rule, could help. If nothing else, it establishes you as a reasonable player and provides context.

4. Give them the graceful exit: Assume a good result, thank them in advance for their consideration, be their partner in helping them to do the right thing. EVEN IN THE FORMAL VIOLATION LETTER WITH THE SCARY LEGALESE (which, by the way can be set off with a friendly disclaimer about hoping none of this will occur). The more you assume you’ll have to fight, the more it will seep out in your wording and the more likely it will become a self-fulfilling prophecy.

5. Consider your words carefully: Just some crazy talk here… Why not a “Due Process” Policy instead of an “Enforcement” Policy…. or maybe better… a “Community Values Administration” Policy? Or “Quality of Life Maintenance” Policy? Clearly, I’m struggling here. But anything is better than the Mean Nun “Enforcement” Policy.

6. Let someone else proofread your work: Make sure negative emotions aren’t creeping out… If you don’t have a good proofreader, set difficult correspondence and email aside long enough to pick it back up with fresh eyes.

7. Tom Tip Bonus – what to do when a member is angry about a neighbor’s actions and wants you to write a violation letter:  First, ask the member if he or she has spoken to the neighbor. Usually, the answer in “no.” I then say “I can certainly write the letter based of your written complaint. But may I ask you a question? If you were bothering your neighbor and didn’t realize it, which would you rather get; a visit from that neighbor with a plate of cookies and a smile with the message ‘you probably don’t realize it, but…’ or a nastygram from Big Brother?” If they agree, ask the member to let you know how it goes and let them know you’ll write the letter if necessary. Give it a try. It works!

We know that tone is as important, if not more important that content. Yes, you should check with association counsel to make sure your formal communications are fully compliant with legal requirements. Don’t give away the high ground, even when you are left with no choice but to brandish the big stick. The mean nun does not hold the high ground. If she did, the ruler would not be her first option.