Category Archives: Professional Development

Best Practices, community associations, Management, Management Insider, Professional Development

Management Insider #5 – The Power of the Zero Invoice & Other Tips

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In Management Insider #4, we encouraged management companies to provide their managers with tools and support to help them communicate with their clients. This is especially important for newer managers who may not have had the opportunity to grow their emotional intelligence or general business acumen at this point in their careers.

Getting challenged by a client about your company’s practices or business model can be source of considerable anxiety, even for the most seasoned managers. A knowledge of contract specifications, the company’s business model, and business fundamentals can help a manager address challenging situations successfully. These interchanges can either go a long way in building and maintaining confidence and trust, or they can sow the seeds of distrust and discontent. Preparation is everything. And a little practical strategy doesn’t hurt, either!

Don’t Assume They Know

Clients want stuff done. The details are less important, like whether the work being requested is included in the scope of the management contract. Managers must be aware of their contractual responsibilities. But don’t assume the client is aware of them. Nine times out of ten, there’s no evil intent, just a lack of awareness.

The manager’s job is to communicate reality tactfully, yet clearly. The first answer should not be “no.” It is much better to agree that this task needs to be done, and then communicate the options to accomplish the task, even if that means additional billable hours.

Managers must also be aware of their limitations. They are not licensed to practice law. They are not trained as professional engineers, nor are they CPAs. True, managers may have high levels of expertise in certain areas, but they still cannot assume the liability that comes along with accepting responsibility for every task. Yet, clients may not be aware of this these distinctions. Our favorite line: “I would love to take care of this for you, but I don’t think you could afford me if I had a J.D, a P.E., or a CPA.”

Remember, the manager’s key competency is finding a way to get things done, not necessarily doing everything. Clients may forget that from time to time.

Be Prepared to Explain the Model

Helping managers to explain basic business concepts as applied to the management agreements can be useful to help everyone to get on the same page. Clients may raise an eyebrow about reimbursable and extra charges over and above the base management contract. The reality is, there are a few ways to approach pricing to get the compensation needed to run a company.

Imagine a contract for a repair where every condition cannot be known, such as façade renovation for a high rise building. The contractor has two basic options. He can provide a price based on specific quantities, plus line item pricing for specific repairs in the event the final quantity is greater than the base contract. From the client’s perspective, there is a risk the final cost will be more than the base contract. At the same time, they will only pay for the services that are provided.

On the other hand, if a client demanded a set price contract with no possibility for extra charges, the contractor will have no choice but to bid high to account for worst-case scenarios in order to provide a set price. While the client will know what their exposure is, they may well be paying for services not received.

Management contracts are similar. There can be many variables in the operation of an association. Long meetings, extra meetings, major project administration, and insurance claims can require significant time and effort. And yet, they may not happen. Special assessments, bylaw revisions and the like will require much more copying and postage expense than would more typical operations. Asking a management company to eat these costs is as short-sighted as asking a contractor to do work for free. Neither will be in business very long.

Under pressure, managers may respond defensively to questions about so-called “extra charges.” This is a natural reaction. Unfortunately, it also undermines both their and the client’s confidence and may begin to erode trust. Helping a manager to prepare for the question and to explain the business model can avoid unnecessary conflict and maintain the relationship.

The Zero Invoice

My mentor taught me about the power and utility of the “Zero Invoice.” The strategy is simple. When the manager performs a task outside the scope of the base management contract, an invoice is generated in accordance with the terms of the agreement. Let’s say a board meeting lasted four hours, and the contract allows for a maximum of two. Let’s say the contract calls for an hourly rate of $75 per hour. The invoice would clearly show the billable hours, but also include a notation of a courtesy discount of $150, resulting in a net due of $0. It could be either emailed to the board or included in the next board package as an informational item.

This is brilliant for a few reasons. First, it establishes or reinforces the value of the manager’s time. Second, it informs or reminds the board of the contract terms. As such, it can be issued after the manager provides advance notice, or as a tool to be that notice. Finally, it creates space for a healthy discussion to plan moving forward.

It’s About Trust

When trust is present, relationships thrive. It takes time to build but is all too easy to lose. Fair or unfair, perception is always a major factor. Little interactions make or break trust, and eventually, relationships.

Training portfolio managers on the technical competencies of the job is critical. Preparing them for real-world business questions can be just as important. Get both right and build trust. Fail to do one of them, and trust may be eroded. Build up your people, build trust, and strong client relationships will follow.

business life, Professional Development

Go Where The Ideas Are

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As I reflect on CAI’s National Conference just completed, one word jumps out at me – ideas.  I had the privilege of facilitating two sessions of TED-style talks and co-presenting on promoting professionalism for Chapter Executive Directors. In all three sessions, I found myself saying some version of “This is where great ideas happen!”  In the first two instances, I was referring to the conference itself.  The last time it fell out of my mouth, I was referring to local CAI Chapters.  All three were from the gut and unscripted.  By the time I heard CAI’s next president challenge attendees to share at least one thing during the conference I’d already received and shared many.  I’ve learned to come to conferences ready to learn, notepad in hand, scribbling furiously during presentations, and jotting notes during conversations.  After three days in Orlando, I’m energized and reminded of the power of ideas.

Shout Outs

I was primed before I even got to the event thanks to all the session preparation.  The collaboration with all six Ted speakers was electric.  Each of them gave away a piece of themselves and packed a ton of value into their 18 minutes on stage.  Our minds were stretched and challenged, and we walked away with actionable ideas.  I want to recognize all of them here.  Thank you to Neda Nehouray, PCAM, of HOA Organizers, Brandon Page of Specialized Pipe Technologies, Emily Schmidt of Speaki2i, Connor Doyle, PCAM, of Giant Steps, LLC, Justin Davis of AppFolio, and the mystery man, Steve Economou, of Rainscapes Environmental.  The audience and I are grateful for them all.  I’m glad these talks were recorded. I am looking forward to seeing them once they are posted online by CAI.

I am likewise grateful to my co-presented Jessica Towles, CAI Trustee, and Lieberman Management Services.  Our industry is fortunate to have someone in a leadership position who is so incredibly passionate and determined to advance the industry.  The collaboration for our session on promoting professionalism helped sharpen my focus and provided an outlet for some ideas that have been swimming around in my head for a long time.    

Ideas and Eggs

Ideas remind me of eggs waiting for fertilization – potential waiting for a catalyst to become a new creation. We carry around countless impressions, thoughts, and concepts just waiting to be connected and energized into a fully formed idea.  Our existing ideas get connected to new ones and become something completely new.  That’s why it’s so valuable to go where the ideas are. Once you’re there, you never know where it may take you.

Idealand

Conferences can be a treasure trove for ideas.  Presentations are an obvious source.  There is a tendency to get energized by them, but leave all the ideas at the door on the way out of the hotel.  One way to make those ideas stick is the oft-underutilized source of ideas – fellow attendees.  Some of my best notes from last week came from amazing conversations and meetings I had outside of the sessions.  Talking about session content allows you to burn them into your brain.  Listen carefully to how others share their perceptions of the ideas shared.  It will broaden your understanding and the collaboration might generate ideas.

Where Else Can You Go?

  • Read and Study:  Take in knowledge from books, blogs, research, or whatever pushes your brain.  Studying the material – highlighting and making notes, pausing, and meditating on the content to let it sink in, is even better for idea fertilization.  Lingering in a new thought can be a powerful thing. Re-reading material you’ve read before can be an eye-opener.  If you are growing, you are a different person than you were the first time.  You’ve changed, things have changed, and you might see things in a different light. If nothing else, you’ll remind yourself of gems from the past.
  • Video:  No, not cat videos…. Nothing wrong with that from time to time, but we are looking for ideas here.  There are some great talks captured online.  TED.com is a great place to start. If you are a visual learner, this is a great place to go.  TIP: Take notes!
  • Audio Learning:  Podcasts, talks, books, whatever floats your boat. I’ve found an enormous benefit of using my driving time to take advantage of audio learning.  Brandon threw out a terrific line in his talk at CAI National, “Make your vehicle a temple of self-directed learning.”  As a side benefit, I’ve found that I am a more relaxed driver.  Now when I hit a traffic jam, I think, “Cool! I can get another chapter in!  TIP: I find that if I listen to a book or an article first and then read it, my retention increases and the ideas flow.    
  • Non-Industry Specific Digital Learning:  Follow interesting people on social media. Hint: Schedule a specific, limited time block for this so as not to get sucked in, only to land on those cat videos after 3 or 4 hours.  You can get a ton of ideas from Udemy.  I am currently enjoying a Seth Godin course now and have another one on tap when I’m done with this one.  The ideas that have come out of it are worth far more than the nominal price I paid.
  • Do Industry Learning Face to Face:  Whether you are pursuing industry-specific designations or continuing education credits, avoid the webinars, and go live whenever possible.  It can be like a mini-conference.  Live learning is a fuller experience.  I’ve never taken a class where I didn’t walk away with at least one new idea that was at least in part sparked by participant interaction of some type.
  • Talk to People:   Any of the seven people listed in this blog is a great place to start. They are all idea generators and great collaborators.  Look for ideas in day-to-day interactions.  Put the smartphone away for a while.  Texting has limited idea generation capability, and if you are distracted by the phone, you’ll miss opportunities to talk and be fully engaged.  Be interested in others.  Ask questions.  As an introvert in many social situations, I know this can be tough to do.  I sometimes call to mind the words of my mother when she told a story about my Pop-Pop. If he jumped on a Baltimore trolley and no one was speaking, he made it his mission to start conversations and have the whole car buzzing by the time he got off. I’m not nearly as bold. But I figure if he could do that, I can at least strike up a conversation with one new person at a time.  One thing can lead to another.  Ideas may be the result.  Seek out those who are different than you and can stretch you. Go beyond the usual chit-chat when you can, and avoid negative nonsense.  

“Great minds discuss ideas; average minds discuss events; small minds discuss people.” Eleanor Roosevelt

  • Collaborating With Yourself:  If you don’t schedule to invest in quiet, reflective time, it might never happen.  Find things that stir awe inside of you.  Ponder the blessings in your life.  Allow yourself to be filled with gratitude and love, which connects you to something larger outside of yourself.  My grand-daughter and I heard a talk about awe, and we came up with our three-word description of the process: “Whoa! Wow! Thanks!”  The process creates chemical changes in your brain and allow your mind to connect dots that had been obscured in the day-to-day.   
  • Write:  There is something about composing that changes your brain.  Getting your thoughts out of your head and onto the paper or screen can also help you to clarify your ideas and trigger new ones.  An idea left unwritten can all to easily become promise unfulfilled.

I Don’t Care Where You Go – Just Go!

Everyone has different learning styles, attention spans, experiences, and inspirations.  Everyone is in a different place in their lives and careers.  Yet, one thing is sure for all of us – ideas create solutions and energy.  Who doesn’t benefit from those?

You may find your ideas in completely different places than I.  Some of the fertilization techniques might be effective for you; others might not.  Find what works for you and keep at it.  The ideas are there for you.  I don’t care where you go, just go and get them.

business life, Goals, Professional Development

The Role of Goals

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I read a Linkedin post from Ursula Burgess the other day.  I am quite sure I’ll never listen to the tune that inspired her thoughts. But her ponderings on opportunities, complacency and resilience got me thinking.

It is way too easy to stay busy yet get nowhere. Activity is fabulous at masquerading as productivity and progress. Opportunities get lost in the flood of information and other attention-grabbing stimuli, both internal and external.

Complacency

Knowing that there will likely be another opportunity tomorrow can cause complacency today. Once the pattern sets in, days become weeks, then months, then years, even decades. Goals, hopes, and dreams go unfulfilled.

It seems to me the key word in the last paragraph is “pattern.” Complacency is a passive pattern. It has the same effect as having a victim mentality in time management – the important stuff doesn’t get done. “Being intentional” is starting to feel a little like an overused cliché to me. But it is at the heart of establishing a pattern that breaks a cycle of complacency. While it should help in the effort to attain goals, intentionality starts with little things.

Little Things to Build Patterns

Here are just a few ideas for little daily actions that can help to build patterns that forge an intentional mindset and make a significant difference over time. They work because they feed both mind and heart. They work because they not only create opportunity, they make it easier to act on opportunities.

• Do a little more than you think you can do
• Do a little more than you have to do
• Do something for someone with zero expectation of return
• Commit to 1% improvement (thank you James Clear)
• Help someone who can do nothing for you
• Learn something or remind yourself of something you already know
• Stop and think for a minute to remember your Why
• Find awe
• Say thanks
• Start a list of the things and people you are grateful for and add to it daily

Goals

Goals are useful for setting direction, but should never define us. They are a means to an end, not the other way around. As Jim Rohn said, “Choose a goal for what it makes of you.” Defining yourself by your goals limits you and may set you up for failure. You may not achieve your goal for reasons beyond your control. Or you may decide to change your goals along the way. Do either make you a failure? You are more than what you achieve. You are the product of the effort it took to get there, what you learned, and the relationships you built along the way.

“Success doesn’t lie in the achievement of a goal, although that’s what the world considers success; it lies on the journey toward the goal. We’re successful as long as we’re working towards something we want to bring about in our lives. That’s when the human being is at his or her best.” 

         – Earl Nightingale

Being myopically goal-oriented may be damaging. In sports, winning is a goal. In business, profit is a goal. Coaches and CEOs that focus only on those goals without regard to the work required to reach them may succeed for a while, but it is rarely sustainable. Sooner or later, they crash and burn. Coaches that help their teams focus on playing the game well build legacies of winning. Business leaders who build cultures that stress fundamentals and taking care of people are more likely to be profitable over time. The lesson? A goal, whether it is winning, profit, or any other worthy objective, is a natural byproduct of doing the things necessary to attain them.

Context

Values, processes, systems & habits are the key. They help to set and attain meaningful goals. They set the table for progress with daily, intentional actions and it all adds up. It becomes who you are, and you continue to grow. Some days you’ll fall down. It happens. That’s where resiliency comes in. My definition of resiliency: The ability to bounce instead of splatting when you fall. The deeper the pattern of intentional action, the quicker you’ll bounce back up.

If you have any items you would add to the list of little things that help build your intentional mindset, please share!

Education, Professional Development, Test Tips

How to Crush the M100 Exam (or Any Other PMDP Class Test)

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This blog may offer insight to some managers or business professionals who struggle with passing exams, learning content for a class or absorbing any material in general. If you’re intimidated about taking a Community Associations Institute test because the other students in your class look like they are fresh out of college, fear not! You can boost your confidence by developing your study skills!

Make the Knowledge Your Own

I learned these tips through tutoring kids, college students, and older adults and by applying them to my own studies. They don’t suggest cheating or hacking the exam. Instead, you can hone your skills by deliberately practicing these methods. Over time, they may influence the way you absorb information, becoming second nature. The goal is to make the knowledge your own. Once that happens, taking the test is easy!

  • Define: First off, rote memorization of definitions isn’t as effective as you might think. Many people will mindlessly recite words from their textbook without ever understanding what they mean. This doesn’t have much benefit without understanding their significance. Think of the definition as a jumping off point from which you can understand the basic idea. Then you have a foundation that allows you to dive deeper and fully grasp the concept.
  • Rephrase: When you come across a new concept, rephrase it in your own words as if teaching it to a child. This will clarify the fundamental elements of the concept. It might help you communicate concisely with clients in the future. No one at work will ask you to define “special assessment,” but you’d better be able to explain the concept and its impact to a homeowner!
  • Use a Lifeline: If rephrasing the concept doesn’t come easily, it may help to seek a trusted friend or mentor. This could be a boss with more experience, a business partner with expertise in the field, or a colleague who can help you identify resources. Your answers won’t always be black and white. Sometimes the response you get requires you to think critically, ask additional questions, or do further research. It might spur three new questions! Though it may sound like a lot of work, it’s worth it when a tough concept finally clicks.
  • Make It Real: Once you have a decent grasp of the concept, start making connections. Apply the concept to something you experience at work, hear at a CAI conference or read in an engineering report. Strive to integrate this practice into your daily work life instead of restricting it to your study time. When a situation arises at work, connect it back to the coursework you recently studied. This practice will help ingrain the concept so that it’s readily accessible when you need it in real life.

Now that CAI’s test schedule allows you to take tests electronically up to 30 days after the class, you can take advantage of applying new concepts to your daily work routine. Instead of waiting until the last minute to study the course content, think about it while it’s still fresh in your head. There’s no reason to compartmentalize your learning time to the two hours of studying you do every week. When you apply the concepts and make connections to the forty hours of work you do every week, not only do you benefit but so does your employer, who may have paid for the class. When applied correctly, it helps you do your job better.

Conquering Test Anxiety

You might understand and apply concepts effortlessly but still suffer from test anxiety. Here are a few strategies to help get the answers from your head onto the computer screen when it’s time to take the test.

  • Create Your Own Questions: When reviewing material for tests, immediately check your understanding by asking yourself what a good test question would be. Then make sure you can answer it, looking back at your notes if necessary. As you practice this exercise, you should become more accustomed to recalling information, better preparing you for test time.
  • Mnemonic Devices: A memorization technique such as a song or an acrostic can help your brain encode information and help with information retrieval. Here’s the acrostic that I mentally use to recall all the Great Lakes:

Huron
Ontario
Michigan
Erie
Superior

  • Summarize: There’s nothing wrong with the summaries at the end of each chapter, but it isn’t your own! A summary that you develop will force you to rephrase everything so that it makes sense to you. You can say it out loud or write it down.

Making Education Work for You

Preparing for and passing all the courses in the CAI catalog won’t help you become a better manager if you forget everything the day after the test. Reinforce what you’ve learned in the classroom with everything you do on a daily basis at work. Chat with other managers about concepts that you want to explore. If they go off on a tangent, soak it in and consider expanding on what you’ve learned. Curiosity about a specific topic may blossom into a new passion or become your niche within the field.

CAI’s PMDP courses will help you grow as a professional. Focusing on this broader perspective can help motivate you to master the material.

P.S. If standardized test taking still makes you anxious, remember— you only need a 70% to pass! Don’t worry. You got this!

I’m happy to welcome Chantu Chea, CMCA, AMS, as my first T-Rex guest blogger. Chantu has been editing and collaborating with me on the blog for quite a while now.  She deserves a lot of credit for the quality of the writing and Association Bridge work product in general. About a year ago, I realized her title of “Associate” really wasn’t cutting it. She is now our “Creative Collaborator & Resident Contrarian.” After tutoring a nervous M-100 student to help her pass the course exam and then acing her own M-205 test (a perfect 100!), it was clear she could help managers prepare for exams and face down test anxiety. It was time for Chantu and me to switch places.  I hope you enjoyed reading her blog as much as I did.