Tag Archives: Community Association Management

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. 

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

Let the Data Drive the Discussion

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Change is hard.  New is hard.  Fear makes bad news hard to take.  Is it any wonder that from time to time community association managers, advisors and volunteer leaders find themselves at odds with community members or each other?  Sooner or later, they all will find themselves duty bound to share a message someone won’t want to hear.

Money Hurts

This happens a lot when money is involved.  People hate to spend money especially when they cannot see the value of the expense.  Here’s where community associations remind members of the government, either consciously or subconsciously.  I recall hearing a quote from the Wall Street Journal along the lines of, “People have the same warm emotional connection to their homeowners association as they do the Internal Revenue Service.”  Ouch!

Drill down a little and it makes sense.  Citizens expect infrastructure and services, but they may chafe at paying the taxes that make them possible.  Why?  In a word, trust.  Governments, with their inevitable bureaucracies, have complicated, enormous budgets that the average citizen cannot comprehend.  This makes it difficult, if not impossible, to tell how well utilized those taxes are.  The end result?  Distrust and an assumption of waste…or worse.  Association Fees are a community association’s tax.  If members are not clear that their money is being spent wisely, it’s tough to take.  Members may well default to their assumptions of waste…or worse.

See The Enemy

If you are going to ask for higher fees, spend a wad of cash, or change anything people are familiar with, you need to be ready to explain why.  You may need to combat distrust.  Fortunately, this is much easier to accomplish on the micro level of a community association than is it for the Federal Government!  The information might be somewhat complicated, but it can be available and explainable.

If the direction is sound, it’s based on sound data.  But members may not be aware of the data they need to trust the messenger.  And until the messenger is trusted, the message is lost.

There are two insidious enemies that can erode the trust of your members:

  1. The Law of Omitted Data: The concept is that if a person has some knowledge about a subject but does not have all the facts, it is likely that person’s degree of misunderstanding will grow exponentially over time.  The impact of the law can be devastating in the group dynamic, especially when the Telephone Game factor gets added to the mix.  I’ve seen this blow communities apart.
  1. Theoryworld: The absence of experience or real life information doesn’t stop people from trying to be experts. We imagine scenarios and responses and all kinds of possible permutations and combinations of things that might happen.  Discussion and arguments in Theoryworld last for-EV-er!  They have an annoying tendency to bear little resemblance to reality and waste valuable time and energy.  Theoryworld is exhausting and leads to regrettable decisions.

When data is bad or missing, misinformed opinions and fear can set in and emotions can run high.  It gets personal.  People mistakenly see each other as the enemy.  The real enemies, the Law of Omitted Data and Theoryworld, are hiding just under the surface.

How can you vanquish these enemies?  How can you fill in the blanks and bridge the gap between theory and reality?  How can your group make good decisions and actually get things done?

Fight the Real Enemies

Your first reaction to manifestations of the Law of Omitted Data or Theoryworld may be to correct or defend.  Don’t.  That adds fuel to the ego-driven fire, even if you are 100% right.  Rather than counteracting bad data, seek to fill in the gaps of understanding with good data.  Your goal isn’t to win an argument.  Ego is a major part of the problem.  Elevate the dialogue from ego-based to principle-based– from emotional opinion-based to fact-based.  In so doing, you create a space in which the data can drive the discussion.

The presentation of the data requires more than logic.  It means acknowledging ego and emotion, both yours and others’.  This is another real life scenario where gobs of emotional intelligence will make a massive difference.   Here are a few strategies to get there:

  • Find trustable outside experts. A message from a disinterested third-party can have an impact.  Share their information or let them do the talking.
  • Show and tell. A picture really does paint a thousand words.  And seeing it up close and personal makes things real.  Cruddy pipes, scary boiler rooms, a mudslide behind the pool.  You don’t have to sell it.  Just allow people to see reality.
  • Show your work like doing arithmetic in the third grade. Even if the level of detail seems excessive, the fact that the research was done and you are willing to show your process can build bridges and confidence.
  • Conversely, make it clear the presentation of detailed data isn’t a snow job. Bullet point summaries, charts and graphs– anything that aids visualization is good.  The supporting materials can be in the back.
  • Accept all options and ideas at first, even if every bone in your body tells you they never work. Instead of saying “no” up front, let the group decision making process say “no.”
  • Try to use more questions than declarative statements

Hail Victory!

Don’t worry about making a case.  Create a space where the case makes itself.  Trust the process.  Be patient – time will tell the truth.  Let the data drive the discussion.

What strategies have you used to defeat the Law of Omitted Data and Theoryworld?

Best Practices, community associations, Human Resources, leadership

EVILuation

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No, that’s not a typo.

The Wrong Way To Do The Right Thing

I read yet another formulaic, extremely detailed performance evaluation the other day. It was everything I detest about human resource management these days. Oh sure, it had lots of buzzwords and high sounding aspirational phrases – pages and pages of them. And it was devoid of any substantive clarity…or hope. It did such a great job covering the supervisor’s butt that I suggested he write a book called Toasty Buns: How to Completely CYA by Managing Without Leading. It set up the organization to have the flexibility to take whatever action it wanted to without getting itself in legal hot water, while simultaneously leaving the employee confused and demotivated. In my opinion, it was a complete waste of a perfectly good tree.

Welcome to your annual review, Mr. Simpson…I’ve been asked to co-present with lawyers for the Community Association Institute on employment practices three times now. Before that, I thought insurance and risk management were the most challenging areas in community association management. Not anymore. Employment law is one of the most complicated and landmine-ridden areas in business. It can be intimidating and it is very easy to run afoul of the law with no malice whatsoever in our heart. Documentation of performance evaluations is a big deal. I get it.

Here’s the problem. Evaluations like the one I just puked through can easily become a vicious cycle and part of a self-fulfilling prophecy. The process breeds defensiveness, which kills motivation. It demoralizes team members. It reinforces bureaucracy and cripples leadership. It protects the organization against lawsuits while simultaneously protecting it against a workforce ever reaching its potential. It discourages staff from helping the organization to become wildly successful, which then requires more negative comments on evaluations, thus completing the cycle. Essentially, the process of evaluating and documenting performance can actually work against what the exercise was supposed to achieve in the first place – optimal performance! The lawyers are the ONLY ones who are happy.

Welcome to your annual review, Mr. Simpson…

Is it any wonder that, according to Gallup, upwards of 70% of American workers are classified as either “not engaged” or “actively disengaged”?

Is it any wonder that companies like Adobe, Dell, IBM, Deloitte, Gap and even GE (yes – the GE of the famed Jack Welch era “stack ranking” evaluation system ) have walked away from traditional performance evaluation models?

Evaluations, as we’ve known them, are EVIL. Hence, the title of this blog.

Can We Get This Right?

I think so. I think you can protect an organization and benefit it by setting the stage for team members to be at their best, thereby contributing to the success of that organization.

Here’s the Cliff’s Notes version of one way to accomplish the task:

  1. Have an intentional culture.
  2. Memorialize the values and the culture in writing. Make it the FIRST part of your butt-covering, legalese-saturated personnel manual. Explain The Why, and how it’s an awesome thing.
  3. In the FIRST paragraph of every position description, memorialize how each team member contributes to those values and the culture, and ultimately to the success of the organization in a win-win paradigm.
  4. Make sure every new hire has a goal list of time-sensitive and key ongoing deliverables that relate to values and culture in order to create a metric and mutual expectation. Help everyone to see what success looks like.
  5. Engage in regular discussion about how things are going. Find people doing things right and reward it. Set dates in your calendar to make it happen. MBWA (look it up).
  6. Plan to have a conversation about how team members are doing, based primarily on the stated values and culture, and highlighting goal list items or other specific, clearly communicated deliverables. Everybody writes down some talking points so they can remember them.
  7. Have a conversation, NOT an EVILuation. Reach areas of agreement on areas of success and celebrate them. Note opportunities for improvement and set a new metric. The goal of the collaboration is agreement, a plan, and ownership. If there are disagreements in some part of the assessment, allow the team member’s dissent to be recorded. Just make sure the expectation moving forward is clear and included in the plan.
  8. Type it up.  Review it together for accuracy. Everyone signs off.
  9. Execute the plan.
  10. Rinse, repeat.

Performance evaluation by discussion and collaborative action plans make sense when it’s in the context of culture. It makes sense when that culture is founded in shared values with personal and group accountability. Culture and the other best practices that set the framework for this model will be the topic of other blogs. But you don’t have to wait to get those things lined up perfectly to change the way you think about and execute your evaluation process. Do that now. The process can help to kickstart an intentional culture.

This is NOT fluffy feel-good stuff. This is hard. And it works. As Tom Peters comments in The Excellence Dividend, “Effective evaluations emerge from a series of loosely structured, continuing conversations, not from filling out a form once every six months or year.” PREACH, Mr. Peters, PREACH!

It’s not a Pollyanna. It’s about getting things done and being grown-ups. You’ll still be able to figure out if people are working out or not. And the written part will keep the lawyers happy. Most importantly, the evaluation process will actually do what it is intended to do – make sure everyone is clear about the organization’s goals and their role in achieving them.

Let’s get this done!

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.

Attitude, business life, Emotional Intelligence, Management

The Party’s Over- Now What? Maintaining Perspective & Balance in the Wake of a Terminated Business Relationship

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Whether you are an employee of a management company, an onsite manager of a community association, or a professional service provider, odds are at some time in your career you will be involved in a business relationship that for one reason or another reaches the end of its useful life. You shake hands, wish each other well, and move on. But in reality, doing business is a human endeavor and damage can be done if you don’t recognize and address the mental and emotional toll that can sometimes linger from a business “break-up.” You can be technically proficient in handling transitions without always giving full consideration of the human factors that might be involved.

Over the years it has pained me to watch managers, in particular, come away scarred from difficult client or employment relationships. Those who throw themselves into their work are hit hardest. Despite what they may view as Herculean efforts in less-than-favorable circumstances, they come away feeling unappreciated and often abused. Professional detachment to the point of uncaring, over-defensiveness, diminished standards of performance or conduct, and profound cynicism are only a few of the telltale signs of unhealthy scarring.

I’ve been so fortunate to have had the opportunity to reflect on these things with people of uncommon wisdom. They have shared with me pearls that have proven valuable in professional and personal life. I care about all you dedicated professionals working in the community association field. I want you to be healthy and happy. So then, since sharing is caring…

Lesson #1: Learn

“When the Devil says fire is hot, he knows what he is talking about.” Credit for this one goes to my primary professional mentor, Arthur Dubin. He shared this with me some years ago while we were working with a particularly unreasonable board president. Though I have to state for the record that the statement assumes certain theological concepts that I personally believe to be rather spurious, the words create a picture that makes an important point: While being deluged by unfair and possibly irrational attacks, it is very easy to miss a salient and accurate critique. You may feel compelled to defend yourself as if you were perfect or minimize shortcomings in the face of intense scrutiny. It might seem like your client or employer expected you to be perfect. Well, you weren’t. And that’s OK, but even minor issues, if not identified and corrected quickly, can become major issues. As painful as it might be to admit mistakes, it’s way more painful to repeat them. If a criticism is true, it is true regardless of the identifying source. The challenge is hearing it. So, be brutally honest…could you have done anything better?

Lesson #2: Eyes Forward

It turns out being a lousy driver was one of the best things that ever happened to me…. “Glance in rear-view mirror anytime you apply the brakes.” I got that one in a driver improvement class many moons ago. The lesson literally saved the instructor’s life one day on the beltway. He glanced in the mirror as traffic slowed and noticed that the truck driver behind him wasn’t paying attention. He took corrective action, changed lanes, and avoided the deadly rear end collision that befell the driver that had just moments before been in front of him. When things stop in front of you, like the end of a business relationship, it pays to look behind just long enough to learn the lessons necessary to avoid getting rear ended (Lesson #1)— and then it‘s got to be eyes forward. You are smarter now. Focus on what’s in front of you. Take action to get where you need to go. It doesn’t pay to beat yourself up over the past. If you keep staring into the rear view mirror, you’ll wreck. Once Lesson #1 is done, move on.

Lesson #3: It’s Your House

This one is courtesy of the late “Uncle Mike” Gilmore. He had a well-earned reputation as one who had seen it all in this business. He was a great sounding board. One afternoon he let me whine on for several minutes about a situation. And then…

“Tommy, what’s the most valuable real estate you own?”

“I guess it’s my house.”

“Wrong. It’s here (points to his head). Let’s say you owned a house and decided to rent it out. Would you let just anybody move in?”

“Of course not. I’d qualify them to make sure they’d pay the rent and wouldn’t trash the place.”

“Right. So if you’d go through all that for a house, why would you do the same with the most valuable real estate you own? Never let negative people rent space in your mind.”

Whoa. Of course he was right. Even if you successfully apply lessons one and two and have done everything you should do, sometimes those negative comments might play back in your memory. A new comment might trigger an old memory. There is no benefit to dwelling on them. You can’t control others, you can only control yourself. Why give up any of that control by allowing others’ negativity to reside in your head? Lock the door.

“Never let negative people rent space in your mind” – Mike Gilmore

It’s not easy to maintain a dedication to excellence in a balanced, healthy way. But you have to. It is the best way to be good to our clients and good to ourselves at the same time. Imagine that—a win-win.

If things don’t work out sometimes, it’s OK to hurt. Just not too long. It sounds trite, but it’s true – every experience can make you better and stronger. Please don’t burn out. And please don’t sell out. We need you.

Budgeting, community associations, condo associations, Cooperatives, HOAs, long range planning, Reserve Studies

14 Things Your Reserve Analysts Might Not Tell You – And It’s Not Their Fault (Part 1)

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Reserve studies are invaluable tools for condominiums, cooperatives, and homeowners associations. Used properly, they assist boards and managers to make good decisions for reserve funding with long range planning in view. They also help to plan for near term capital projects. The reserve study provides a basis for a systematic and disciplined approach to reserve funding and capital project planning.

At the same time, I’ve heard too many complaints from clients through the years about accuracy of the data included in their reserve studies. This tends to occur when unpleasant and unplanned realities throw a monkey wrench into the best laid plans. I’ve found that either an unrealistic expectation or a poor understanding of the study process are typically at the root of the issue. This series of 3 blogs helps to address the first issue. I’ll provide tips on how to work with your reserve analyst in another blog soon.

What a Reserve Study Is…And Isn’t

Professional reserve studies have two components – a physical analysis and a financial analysis of major property components. The physical analysis helps to estimate the remaining useful life. The financial analysis turns it all into an actionable plan to recommend a funding level that ensures the Association will have enough money in the bank to replace components when needed. For more details, you can review CAI’s National Reserve Study Standards, and the Association of Professional Reserve Analysts Standards of Practice.

Reserve studies are relatively inexpensive as compared to other engineering analyses. There are reasons for that.

  • Reserve analysts are by definition generalists engaged for the specific purpose of creating an overall financial plan. They do not undertake the detailed condition reports, basis for design, or specifications that a specialty engineer may create in preparation for a particular capital project.
  • Reserve studies do not include destructive testing. No walls will be opened, ground dug up, or other means to get into the details of conditions unseen.
  • Reserve analysts are neither omniscient nor clairvoyant, nor do they possess X-ray vision. You’d have to pay a lot more for that!

Throw Me A Bone, Man!

The good news is reserve analysts LOVE data. The more valuable information you can give them, the more they will plug into the study. The better the study, the better your plan.

Here are a few nuggets you should consider feeding to your reserve analyst. Complicated condominiums and cooperatives, especially high rises, are more likely than HOAs to benefit from the additional data points listed in this blog series. Regardless, it’s worth taking the time to consider whether each of the 14 nuggets factor into your association’s reserve plan. I can tell you they’ve either saved my clients a lot of heartburn, or I learned about them because of my clients’ heartburn!

These first 5 nuggets deal largely with building components. The next 2 blogs will address discretional expenses, practical project planning, and approaches to thorny cash flow issues.

  1. Engineering Study for Stuff You Can’t See: This could apply to components like waterproofing systems under patios, parking lots, green space, fountains, etc. Without doing destructive testing and taking a look at what is underneath, you may have no idea how much it will cost to design and replace a system you can’t see. You will likely pay far more for this engineering study than you will for the reserve study, but it will be well worth it. One client’s reserve study had estimated system replacement for four garages to be $500K. When it was all said and done they paid about $1.1M…. per garage! The information gleaned from their engineer’s work helped them to prioritize and pay for the project. If they had that information up front and included in their reserve study they could have avoided sticker shock.
  2. Elements Impacted by Code Compliance: The typical reserve study assumes like-for-like replacement. However, local code may require a building to upgrade an old system to meet current codes, exponentially increasing the cost of some projects. This is particularly true of fire protection systems and elevators. Getting cost projections from sources familiar with local codes can save you from ugly surprises.
  3. Piping Systems: No pipe will live forever. Yet, I have seen common piping systems omitted from reserve studies for whatever reason. Also, determining the remaining useful life of copper piping is easier than ever before thanks to non-invasive technology. Obtaining a pipe condition study for domestic, HVAC and waste piping can provide invaluable data.
  4. New Construction Technology: Sometimes new building products or construction techniques can post a challenge until there is a track record of periodic major maintenance, rehabilitation or replacement. Installing contractors, architects or engineers involved in the new construction can sometimes provide some insights to help plan for future projects.
  5. Underground Piping and Wiring: This can be a big one for garden communities, especially those built in the 1960s as apartments, and particularly those with central HVAC plants. I don’t always see underground electrical feeds, HVAC piping, or domestic water piping in reserve studies for communities that have these components. Tracing a break or a leak, digging up between buildings to replace a section of wiring or piping and restoring the grounds on an emergency basis is an expensive proposition. It is surprising how much electrical wiring has been laid in the ground without being run through conduit. This can even impact the planning for replacement of light poles. Identify the risk and make a plan to include in the reserve study as needed.

Hard Reality

In some cases, the engineering and design costs outlined in the 5 nuggets above might exceed the cost of your reserve study. But that’s irrelevant. Think about the impact of not having the data. Underfunding by any means is a bad strategy.

When & Who?

In the third and final blog in this series, we’ll identify potential resources and factors that will help the Board to decide when to reach out.

Next…

In next week’s blog, we will discuss data points related to practical considerations when planning for projects. I will again reach back into my bag of experience to find the things that made a huge difference for my clients through the years.

Attitude, business life, community associations, Management

3 Kinds of Jobs

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In my late teens I had a ridiculously intelligent friend. Dave was an engineering student at the University of Maryland. I remember him lamenting how he missed a perfect score on the verbal part of the SAT by 40 points. Of course he aced the math part of the test. Dave’s book smarts were most impressive. But what I appreciated more was his analytical approach to life in general.

Hassle

Dave worked a part-time job assembling printed circuit boards. He fussed about his boss, he fussed about the job, and he fussed about the foibles and folly of business in general. Finally, he came to an epiphany. With impish grin and eyebrows raised, he proclaimed. “I now understand business. The company and the job titles are irrelevant. There are actually only three jobs in business; Hassle Creators, Hassle Transferers, and Hassle Receivers. If you are a Hassle Receiver, do anything you can do to get promoted to Hassle Transferer or quit. Of course, the best job is Hassle Creator, but that’s usually the owner.”

Dave’s Three Job Theorem still crosses my mind every so often. It still makes me laugh. In a narrow, simplistic sort of way, it’s true. It’s also a bit naïve. Owners deal with plenty of hassle. There are no pure Hassle Creators.

Job/Career/Calling

Years later I found an even more studious approach to the workplace. Kouzes and Posner’s The Leadership Challenge  recognizes that people tend to see what they do for a living in three different ways; as a job, as a career, and as calling. Not nearly as funny as Dave’s Three Job Theorem, but a tad more refined. And while Dave’s categories were hierarchical, Kouzes & Posner’s are applicable to any position. It’s an attitude.

The three approaches speak to a level of commitment and personal satisfaction. A job? 9-5. Punch the clock A means to an end. A career? You do it because you have a plan. A calling? That one always repelled me a little before studying Kouzes & Posner. To me, “calling” used to imply some sort of divine will, and that seemed a bit over the top. After I stumbled upon community association management (like so many of us did), I realized that I felt drawn to the work. But I still didn’t buy in to any kind of personal manifest destiny. The clouds didn’t part, there was no voice from heaven. I just enjoyed the bigger picture of what I did. There were parts of the job I was not thrilled with. Yet, there were elements of the work I enjoyed very much. Taking care of people, fixing things, helping people enjoy where they lived, making a difference in the lives of others, and helping leaders find fulfillment in their service all drew…or called…me.

I also found myself repelled by the idea that everyone should find some mystical perfect situation. Sure, seemed to find their “calling’ early in life. But it seemed to me that many more found it later after developing their skills and interests over time. There was work involved, and it was rarely perfect. The gold was in the process to get there.

A Choice – Work

Kouzes & Posner helped me to realize that while a calling could theoretically be divine in nature, it is primarily finding things to do that were in harmony with your personal values and goals. That is what draws, or “calls” you. I remember the beauty of one of the examples cited in the The Leadership Challenge. A hospital janitor, a position my friend would certainly rate as a Hassle Receiver, viewed has job as a calling. Why? He explained, “I help people get better.” Not only did he recognize that the quality of his work made the environment healthier, but was called by the ability to make a bigger impact. He found that the way he did the work – the way he interacted with patients and their family and visitors, with a smile, a kind word, a simple kindness – made all the difference. I seriously doubt the gentleman grew up thinking this was his dream job. But his life experience and attitude put him in a position to see what he did for a living as a calling.

Grit by Angela Duckworth and Known by Mark Schaeffer do a great job debunking the cosmic calling concept. There’s no reason to feel pressured if you can’t magically find your calling. Try stuff. Learn stuff. Notice when you are at your best and figure out why it worked. And you calling doesn’t have to have anything to do with earning money. If a job allows you to pursue a calling, it’s worth it.

Great/Neutral/Bad

Which leads me to one of my old definitions of the 3 types of jobs. I used to say a great job helps you to be the person you want to be. It energizes you, inspires you, and fortifies you. A neutral job doesn’t necessarily help you to be the person you want to be, but it doesn’t make it too hard, either. You have space to grow and at least some opportunities to live your values through your work. I defined a bad job as one that makes it very hard for you to live by your values. This kind of job sucks the life out of you, leaves you exhausted and requires a herculean effort just to show up every day.

It’s Up To You

No matter how you analyze your work, what you do with it is a choice. One person’s horrible job is a dream job for someone else. Knowing yourself, what motivates you, and the values and goals you choose are at the beginning of navigating your path.

I’ve never been a fan of the term “work-life balance” because it gives work equal value to life. That’s nuts. Work is a part of life. The key is the extent to which your work is in harmony with your purpose. And it does not matter how. I know people who hold seemingly mundane part-time jobs who are happy as clams. Why? Because that job allows them to do the volunteer work they love. And this allows them to find joy when working a job others might find meaningless

Getting this right usually takes time. Recognize that not only what you do but how you do it can make a big difference in enjoying what you do. Things change and you’ll grow. Who knows, a neutral job might become a good one, even a great one. I will always treasure an email I received from a manager who invited me to attend her PCAM induction ceremony.  She wrote, “The first time you interviewed me, you asked if community association management was a job, a career or a calling for me. At that point, I answered that it was a career, but now I can truly say it is a calling.”

As the late, great Jim Rohn said, “Accept all experience. See what it can teach you.” Whatever role work has in your life, you will probably have to spend a good chunk of your life doing it. You might as well find a way to enjoy it!

Attitude, business life, Human Resources, Management

Get Stuff Done and Have Some Fun – A 20 Question Checkup From the Neck Up

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It’s Labor Day here in the U.S. We celebrate it by taking a day off. Something about that always made me laugh a little. The truth is, “celebration” and “labor” are rarely found in the same sentence. Apparently, somewhere between 70% and 90%  of employees do not feel engaged in their work. My experience working closely with community association professionals leaves me unsurprised (and saddened) by those statistics.

I got some interesting comments about an online job bank announcement I posted a few years ago for a client. I must have been a little frustrated when I wrote something along the lines of “butt covering, blame shifting, can’t do managers need not apply.” I may have used the term “retread…” I was serious. A burned out, disengaged manager just wouldn’t cut it. The client had a keen BS-o-Meter and needed somebody who would walk the walk.

It occurs to me I’ve developed a list of contrasts in my head – behaviors, character traits, and perspectives that seem to reveal the difference between managers who excel and enjoy what they do, and those who seem mired in mediocrity and misery. I use these to evaluate manager candidates. I also use them as a self-test to see if I am falling into non-productive habits. Here goes…

  1. Am I more bored or more curious?
  2. Am I intellectually lazy or looking to learn?
  3. Am I prepared or am I winging it?
  4. Am I focused on personal credit or team success?
  5. Am I covering by butt or am I taking ownership?
  6. Am I setting a positive tone and creating a space for others to mirror me, or am I mirroring others and leaving mood up to chance?
  7. Am I looking for ways to make a difference (no matter how small) or am I doing just enough to get by?
  8. Am I frowning more or smiling more?
  9. Am I stuck in the weeds or am I seeing the bigger picture?
  10. Has my thinking become task-based (my job is done when I check the box), or results-based (my job is done when the goal is met)?
  11. Am I spending more time explaining procedures or the principles behind the procedures?
  12. Am I spending more time explaining why things can’t be done or getting things done?
  13. Do I have a bias for action or stasis?
  14. Am I holding myself accountable or making excuses?
  15. Am I complaining about unfairness (that which I cannot control) or am I being my best self (that which I can control)?
  16. Am I focusing on the disappointments of the day or what I can learn from them?
  17. What words am I using more often – us and we, or I and me?
  18. Is it getting to be a J-O-B or is it a career (or better yet, a calling)?
  19. Am I thinking or just doing?
  20. I am blindly following my client’s instructions, or am I helping them make educated decisions?

The old adage is correct – you reap what you sow. When you focus on doing better and being better, you are far more likely to feel better and get more out of every experience. It’s so tempting to take the easy path, to be negative, and to blame others. I guarantee you see people around you who do that every day of their unhappy lives. That stuff rubs off. That’s why I like to do a checkup from the neck up from time to time. And if you pass the test and your situation is still crummy, perhaps it’s time to apply #13 and find a new situation.

Do you have a contrasting question to add to the list? Please share!

change management, Communications, condo associations, Cooperatives, HOAs, leadership, Management

We Are All Geniuses…or Insane. Your Call!

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I’ve heard this quote, widely attributed to Albert Einstein, for a long time. As it turns out, he may or may not have ever said it. Thing is, it resonates so well that it’s easy to attach genius to the observation. So why not Einstein?

We silly humans tend to choose familiarity over change, even if it makes us miserable. I’ve noticed it in my world of community association boards and managers. Instead of taking an honest look at our results and trying to figure out how we got there, we’ll practice what Canadian brand transformation specialist Alan Quarry calls “glue diligence.” We do it because we’ve always done it that way, and dang it, we’ll never change!

…And then we blame everybody and everything else for our frustrations and failures…

One of the most important changes we can make is to see ourselves differently. For the longest time, the thought of being a salesperson made me cringe, just a little bit. But a few years ago, I realized sales and marketing were weak areas in my business skillset. It was time to hit the books. Funny thing is, a few of the writers I learned from in my study of leadership through the years started off as sales guys.

THE ART OF LEADERSHIP AND SALES

I didn’t fully connect the dots until I read Daniel Pink’s brilliant book To Sell is Human. It finally hit me. I gave myself permission to see myself and my role a little differently. The art of leadership is the process of helping people move from one place to another. Outstanding leaders share a vision so compellingly, people buy in because they see the benefit. Yes…BUY IN. Therefore, leaders sell and it’s a good thing.

Sales done right has never been ugly. Great salespeople believe they have something of value to sell, provide service and value first, and create a space where people can see themselves taking advantage of the value proposition. They are not selfishly manipulative. They are connecting dots. In essence, they don’t sell anything but an idea, creating a space for others to buy. They understand the wisdom of Jeffery Gitomer’s words, “Nobody likes to be sold, but everybody likes to buy.”

THE SUPERPOWER

The process of sales is the process of leadership. If we are to lead, we must sell. And to be truly effective, we need the superpower all great leaders and salespeople have – the ability to be an agent of change. This is leadership at its highest level – the ability to lead change, sensing when and how to initiate, support or facilitate it so that the stakeholders in an organization make it their own.

And yet, how many board members and community managers see themselves as leaders, salespeople and change agents?

WHAT WE HAVE HERE IS….A FAILURE TO COMMUNICATE

So many times it comes down to communications skills. We all have a tendency to communicate from our standpoint. Managers are trained to be technically proficient. Board members may be trained in governance. Unfortunately, as a result both are frequently ineffective. They are “doing their jobs” while missing the point. It has led to community association members disconnecting from their communities. Quoting from memory a comment from the Wall Street Journal, “People tend to have the same emotional connection to their HOAs as they do the Internal Revenue Service.” Ouch. It doesn’t have to be that way.

Think about how the message is received and you might realize you are coming off like Moses descending the mountain with stone tablets from God. Our message may be important, but it’s not THAT important. Worse, we may be accidently sending the message that people exist for the governing documents, when the truth is that those documents exist for the people. Or you may be coming off like a mean nun with a ruler, ready to whack all those disobedient children.

It doesn’t matter what you say. It only matters what is heard. And while you can never control what’s heard, you really need to think about the message and work your brains out to communicate from the receiver’s perspective, not your own. That’s what great leaders, salespeople, and change agents do. Make it real. Show the value. Explain the Why. And be patient. Because until you do these things, you’re just part of the increasing noise in your members’ lives.

INSANITY OR GENIUS?

If you are not connecting with your community or your client, if you are frustrated, it may be time to stop the insanity. Make a change. Start with how you see your role. Be leaders. Be sales people. Be change agents. Communicate like the best leaders and salespeople with the change agent superpowers.

Change the message and the delivery so it actually reaches your audience. It’s about them, not you. Make it real. Show value. Be a genius!

Thanks to Ed Loonam, PCAM, of Property Management Associates in Virginia Beach, Virginia, who gave me the inspiration to turn my SEVA-CAI CA Day sparks talk into a blog post!