Monthly Archives: May 2018

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.

 

change management, community associations, condo associations, Cooperatives, Emotional Intelligence, HOAs, leadership, Management

CONTEXT!

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I’ve noticed the word keeps popping into my head more and more. Frequently, my job is to fix stuff. I walk into a lot of situations where people aren’t on the same page or worse. I try to dissect all the factors, and it seems more often than not, lack of context is at the root of the problem in one way or another. As soon as I have all the pieces and can see how they fit together, the rest is easy. Context issues can rear their ugly heads in all kinds of scenarios.

GROUP DYNAMICS

Ever been in Board meetings where certain agenda items go on forever? I remember one client who debated the merits of adding a walkway to a portion of their community for months. It wasn’t budgeted, but it could have improved safety. It could have benefitted many residents, but in theory it might have created a nuisance for those who lived close to the proposed walkway. Discussion and debate started in the weeds and got deeper as time went on. Emotions ran high. In the end, the idea was squashed and the process left a bad taste in everyone’s mouth. The Board is hoping nobody brings it up again. Lack of context ran amok.

If your group is considering a new idea, or a recurring one that never seems to get settled, listen very closely. You may well find that there is a bi-level dialogue going on. The overt conversation is on the merits of the idea in play. But sometimes the reason the subject takes forever to flesh out is because people are struggling to figure out if the thing is really important, timely, or how it fits in to a bigger picture. That subtext can be a sign the group lacks clarity on shared values and vision. If that’s the case, context can be gained by taking the time to achieve consensus on those deeper points. (No, not at a Board meeting – it’s a separate exercise .) With the underpinnings of values and vision in place, things go a lot smoother and quicker.

CHANGING THE MESSAGE

Context also comes up in day to day conflicts. Association members may chafe in matters of covenants enforcement. It’s understandable. After all, who likes to be told they are in the wrong, or feel controlled? All too often, when the nastygram from Big Brother arrives in the mailbox, the missing link is context. Unless the reason for a community standard is understood, that standard, whether enumerated in CC&Rs, rules, policies or procedures, feels irrelevant and maybe even arbitrary. Context can sometimes be achieved by taking the time to explain the reason for the standard, and why those standards benefit everyone in the long run, ESPECIALLY the individual. I’ll never forget my boss telling me that an owner from a former client had called him to complain about a manager who had followed me at my last on-site management job. When he mentioned her name, I had an immediate emotional and physical reaction – I thought she hated my guts. But her comment provided a golden lesson: “I didn’t always agree with Tom, but he always told us what he was going to do in advance, and we always knew why he was doing what he was doing.” Changing the message can help to establish the context.

ASSUME NOTHING

Sometimes confusion and conflict are the result of missing data. It’s really easy to jump to conclusions and muck up the works. I get reminded of that when I get a call or text from one of my favorite managers, who reaches out for assistance on thorny issues from time to time. I listen to a scenario, offer some potential solutions only to hear ,“I don’t think that will work, because (followed by a new factor not previously revealed).” Note to self…slow down, gather all facts, get full context. I think part of the challenge may be that we are encouraged to think quickly and get to the bottom line as fast as possible. But we aren’t necessarily thinking deeply. In the end, conflicts and confusion can get worse, not better, and we accidentally (and ironically) take more time to resolve matters by tying to save time by being fast. One strategy to get full context is to assume nothing and keep asking questions until the root of a matter is clear. Once the context is understood, then move toward potential solutions.

So, the next time you find yourself feeling conflicted and confused, make sure you see the full context of whatever you are dealing with. In the end, it will save you and the people around you time and heartburn. And you might just get something done!

Budgeting, community associations, condo associations, Cooperatives, HOAs, leadership, long range planning, values

The Vision Thing

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The words keep falling out of my mouth. I see it again and again. So many boards think their mission is to keep fees low, period. Ironically, the mindset that this engenders pretty much guarantees that in the end, everyone will pay more.

Never forget that the budget is a tool. It is part of the plan that provides the means by which the community’s needs are met. At a higher level, it can be part of the plan that provides the means by which the aspirations of the community are met. It is the tail, not the dog.

Don’t get me wrong – a fiduciary has a duty to make sure that members’ assets are well utilized. But there’s a huge difference between price and cost. A low price up front can mean tremendous cost later on. A myopic focus on trying to make sure expenses do not exceed the budget plan (key word PLAN) leads to a vicious cycle of failure that goes something like this:

A “we can’t afford it” mindset begets a budget that ignores the reality of the facilities, operations and shared values of community, which begets a budget filled with artificially low line item values, which begets cheap, shortsighted financial decisions during the year, which begets poor quality repairs, supplies, and low reserve funding, which beget Band-Aids and deferred maintenance, which beget emergency response repairs, poor curb appeal, and increasingly unsatisfactory service, which beget negative community spirit and higher accumulated expenses, which beget fear of conflict and board exhaustion, which beget more shortsighted decisions making until….

The bottom drops out. Special assessments, huge fee hikes, and/or debt service (unless the financial condition of the association has been flushed so far down the toilet it’s no longer an option). Ironically, in the end everybody pays more because the board managed down to the budget instead of leading up to a vision.

Vision doesn’t have to be a pie-in-the-sky, magical thing. It can be pragmatic. In working with community association clients, I’ve learned to start with a simple annual planning session. Tell me what you want to do and I’ll tell you what’s important to you. Which means you’ve identified your values. Which leads you to your vision.

So start with planning.  Establish a disciplined, robust budget preparation process. Lead.  And truly serve your members. That is your duty. It’s hard at first, but ask those who have tried to lead associations out of the ashes. It’s much worse.

Going cheap at all costs may be a value, but it does not lead to a sustainable vision. Walk around without your glasses and eventually you will stumble and fall. Don’t be afraid to open your eyes and get the help you need to see clearly.