Tag Archives: Professionalism

Best Practices, community associations, Culture, Customer Service, HOAs, Management, Professionalism

Sucking Up is Not Customer Service

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I had a conversation once with a young manager. She was learning to navigate the sometimes challenging terrain of management-board relationships. At the time she was working for a management firm that had, in my opinion, lost their way. At one of their company functions, a more experienced manager had shared an anecdote about golfing, drinking, and intense schmoozing with his board president. She concluded, “I guess it’s true – the best strategy for job security is being buddies with the board president.”

NO, NO, NO!

Our young manager had a misguided understanding of what customer service is all about on a deeper level in the specific field of community association management. How can managers and other professionals truly serve their community association clients?

What Are We Really Doing Here?

Miriam-Webster says a contract is “a binding agreement between two or more persons or parties.” I think there is a fundamental element missing from that definition. In order for the performance of a contract to meet the expectation of the parties, the definition should finish with the words, “…that provides mutual benefit to both parties.” A zero-sum gain approach to a contractual relationship is short-sighted. If the party performing the service is forced into a low-price box, or is otherwise constricted in the performance of their duties, the relationship often proves unsatisfactory and tends to be short in duration.

When the agreement is some form of service contract, one of the benefits to the client is they receive services that they do not have time and/or expertise to perform themselves. Digging deeper, that means a client is forming a partnership of sorts with a party who brings value to the table. The more mutual the benefit and the deeper the partnership, the more successful the relationship can prove to be.

Supervisory + Advisory = Partnership

Management contracts and position descriptions describe the work that will be performed on behalf of the client. This is proper and important, because it establishes expectations for service. It is describing supervisory functions. Yet, a contract or position description does not always describe the expertise with which those tasks may be performed. Furthermore, the greatest potential value of the relationship may be largely unstated, except perhaps in the fluffy marketing material provided in a proposal. Excellent management companies and professional managers are able to provide recommendations and guidance that can change the status quo and set the table for progress and improvements in the community. It is these services of an advisory nature that make the relationship most beneficial to the client. Yet, while most boards are happy to take management to task for deficiencies in their supervisory duties (and reasonably so), they may never get to the level of receiving or accepting advisory services. In the end, no one wins.

The Challenge? Fear & Schmooze

Some managers are afraid of getting fired. Some may be inexperienced. Some may lack confidence in their abilities. Boards may micromanage for any number of reasons. An “on-the-cheap” mentality may have led to a vicious cycle of mediocre service. Mediocre service invites micromanagement. A manager who never passes the test of capability in supervisory duties will never earn the trust necessary to be an advisor.

Some management companies are afraid of being fired. They fear telling clients anything that they think will put the contract at risk. This sometimes plays out in a blame game. Companies throw their own managers under the bus to appease an angry client and never deal with core issues. Saving the client by skewering your own people creates a cancerous organizational culture and impedes true partnership. It’s based on personality or politics, not leadership, values and vision.

All of these factors are unhealthy. They easily lead down the slippery slope of schmooze. Trading professionalism and respect for a shallow relationship based on low standards may keep the relationship going for a while. But no one is well-served, especially not the community members.
That is why I see this as so insidious. Community Association 101: Board members and the managers who serve them have a duty to care for the best interests of community members as a whole. Anything that works against that violates this fundamental principle of leadership and stewardship.

It’s Not Always Evil

Sometimes people just don’t know. A dedicated volunteer leader may not realize what is available. To illustrate: While performing an operational audit for a client, it became clear to me that volunteers had been performing management duties for a long time because they did not have a clear picture of what a professional could do. During that engagement, there was a need to find an interim on site manager. I was able to connect them with two PCAM-credentialed managers for short periods of time. Both of them blew the board away. A new world opened up to them over the course of a few short weeks.

When the Customer is Right

“The customer is always right.” 

– Chicago Retailer Marshall Field, 1905

There are times when our clients are always right. Like when expressing how they feel about something. Or when they communicate an expectation. Whether or not a feeling is justified or an expectation is reasonable is a different matter. In the moment, it’s irrelevant. That IS how they feel, that IS their expectation. We spend too much time judging the feelings and opinions of others. It’s a damaging, waste of time. Just listen. Acknowledge. Identify.

When the Customer is Wrong…or Perhaps Uninformed…

Sometimes a manager’s conundrum raises its ugly head when a client has difficulty accepting reality. There could be different reasons for this. Fear, ego, or simply a lack of understanding can be powerful obstacles. In this critical moment, a manager may feel she has a choice – tell the client the truth, or tell them what they want to hear. The truth is, a professional manager has a duty to provide their best advice, whether it will be accepted or not. The art is in the telling. Managers with high will discern whether their challenge is in the timing of the message, its presentation, or both.

Rolf Crocker, CEO/Principle of OMNI Community Management, LLC, in Fair Oaks, California, is one of my favorite thought leaders in the community association business. He has a unique perspective and a knack for helping others reach clarity. He taught me a rhetorical device to guide clients to what should be an obvious answer. A version he usually uses is as follows:

“This is the point in the conversation where I ask you if you want to hear what you want to hear, or do you want to hear what you need to hear? If it’s what you want to hear, we can talk about the weather, the market or your favorite sports team.”

This approach is genius. He’s making his point while allowing his listener the room to make light of it – for a moment.

Getting to Mutual Benefit

Boards and managers need to be deeply rooted in the fundamentals of business, ethics, and leadership. Management has to suck it up and prove value, sometimes without being paid for it at first. It’s a tough row to hoe, but “trust me and pay me” won’t always work. Once the opportunity for value is proven, boards need to see that value, respect it and pay for it. We must be responsible for ourselves, remember who we serve, and stay true to that, no matter the short term cost. Tell truth to power, tactfully but unfailingly. Forging and maintaining successful partnerships is one of the most fulfilling human experiences we can have. Please don’t blow it by throwing away principles and relying on a relationship based on influence. Those come and go. Partnerships based on respect, trust, and shared values are those that last. Done right, everyone wins.

Is this a pipe dream in the commoditized and occasionally political world of community association management? Nope. I’m proud of the relationships I forged with the communities I served. I am also comfortable with the few relationships ended by one party or the other. Those partnerships were fatally flawed and needed to end. My principles remained intact and there are no regrets. I’m not alone. There are some great managers, companies, and boards out there who get it. They are profitable in every way. Just ask Rolf.

Best Practices, Communications, community associations, Customer Service, Professionalism

Nobody Trusts Herb Tarlek – Advice for Professionals Serving Community Associations

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How We Got Here

If you were to read governing documents for community associations written in the days of old (OK…the 70s), you might well get the idea there was a vision that volunteer homeowners would gladly offer themselves up to lead and manage their communities. The assumption seemed to be that communities would be full of willing, qualified and able owners ready to handle all the business of running the not-for-profit organization. Little did anyone envision the legal and technical challenges that would become part of the effort, much less the time that would be required.

Nearly half a century later, reality has set in. Volunteer leaders need professionals to some extent if they are to serve and protect the interests of their members. Regulation, emerging and ever-changing law, technical expertise, and available time are all factors. Yet, it is well known in the business community that serving community associations can be tough. It is a specialty niche, and professionals working in the space understand that. They know that, as compared to working in other forms of real estate such as residential, rental and commercial, it takes more time to get things done, usually at a lower profit margin.

But community members don’t always recognize this. It’s money out of their pockets, so of course, they want to watch their costs. A DIY, price-only, bottom line mentality can significantly influence financial decisions. The true cost isn’t always recognized….until after the lawsuit…or the third time something has to be fixed….or community spirit goes south….or the special assessment hits…Suddenly the cost of quality professional service and advice doesn’t seem so high after all.

It is very easy to chalk this thought pattern up to the prototypical penny-pinching board. But the issue may be deeper. Boards of directors may fail to discern the difference between up-front price and long-term cost, between investment and expense. It may be a lack of vision and the inability to perceive value.

The Issue is TRUST

Typically, there are many missed opportunities to build trust and provide value to association members. Vision, communication, and leadership are the keys to the perception of value. And a key component of recognizing value is trust.

A challenge for professionals serving community associations is your clients might not fully trust you. Consciously or subconsciously, you might be Herb Tarlek to them.

Yes, Herb Tarlek, the occasionally abrasive, egotistical & self-absorbed salesman from the old sitcom WKRP in Cincinnati. He isn’t trusted, not only for his godawful sports jackets but because it is crystal clear he’s in it for himself. His approach is selfish and transactional. Sadly, attorneys and consultants are sometimes perceived in a similar way. Some clients feel your primary goal is creating opportunities for billable hours. The research you do in providing opinions can look like billable busywork to them. When management companies highlight the value of their services it might seem like manipulative self-promotion.

Some community association lawyers and management companies have a knack for building trust and proving value. As a consultant, I am viewed similarly, so I’ve been happy to apply the following concepts I’ve learned from these exceptional community association professionals.

  • Ask More Questions: Lawyers who listen build partnerships. Those who ask questions get buy-in. Socratic training has benefits that transcend depositions and courtrooms.
  • Simplify the Message: Ego will not permit many clients from admitting they do not understand what their lawyers are communicating. Many lawyers don’t help themselves by communicating strictly from their training and perspective, forgetting that communication is supposed to benefit the client. The old W.C. Fields quote works against you: “If you can’t dazzle them with brilliance, baffle them with [BS].” The more words you use, the more likely you’ll be perceived as the self-absorbed, egotistical Herb, trying to sell them a justification for the fees you are charging. Using plain English summaries, FAQ format and other tools can help to make the communication palatable and trustworthy.
  • Use Humor: A little levity at the right time can build rapport and show clients there is a human behind the suit. So long as it’s genuine and you actually HAVE a sense of humor.
  • Give a Little Away: There is great power in the zero invoice. Choosing a moment where you can give a client a break can make a significant impression. An $800 invoice detailing all the time and activity followed by an $800 courtesy discount shows value. It shows the client it’s not all about fees, and that the relationship is appreciated. I’ve also heard clients recount with appreciation conversations with attorneys noting, “He was nice enough to tell me he was turning the clock off during our conversation.”
  • Give a Little Away (Part 2): Some law firms and management companies offer board training as part of their agreement. As soon as one is perceived as a consultant providing value, they are less likely to be perceived as a self-promoting salesman.
THE TAKEAWAYS …

  • Value begets trust, trust creates value.
  • Think relational, not transactional.
  • If you focus on billable hours or self-promotion, you may have an average client for a while. If you focus on giving value, you are more likely to have a great client for a long time.
  • Think and communicate from the client’s perspective. Always.
Attitude, Management, Professionalism

Tie Guy

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When I taught my first M-100 class for the Community Associations Institute, I had a little bio to share with the class. I wanted to let them know where I came from, and that at one point in my career, I was them. In many ways, I still am. I’m still a student too, nervous amongst people I don’t know and worried about saying something stupid in the classroom. And once upon a time, I too was anxious about passing a test so I could get reimbursed for my educational expense. I wanted to let them know I respected them and would do my best to give them the best value I could during our time together. I also wanted them to realize how impactful their jobs were, and how important it was to be a professional.

And then a funny thing happened. I said, “I’m a tie guy.” It just fell out of my mouth.

Respect

Community association management is an interesting field. It is typically less profitable than its older cousins, commercial and “residential” (i.e. apartment) management.  This is true for a few reasons, which I will no doubt rant about in a future blog. To do it well requires a skillset and level of emotional intelligence uncommon in the workplace. For these reasons, many commercial and residential managers want nothing to do with community association management.

Community association management has a different paradigm than other real estate management niches – community managers are managing their bosses.

Volunteer leaders are ultimately responsible for the success of their communities. And as successful as they may be, or may have been, in their respective fields of endeavor, only a tiny percentage have ever been in the shoes of their community manager. They frequently do not realize what it takes to be one.

Put it all together and it’s not surprising to find that many community association managers struggle to feel appreciated and respected.

Chickens and Eggs

In all these years of training and mentoring managers, I noticed a pattern. Many managers were missing the boat and accidentally creating self-fulfilling prophecies. They yearned for respect on their terms, but they weren’t always doing the things that would earn respect in their client’s eyes. Feeling underpaid and under-appreciated, they assumed a victim’s mentality. They often say, “I’ll do more when I get paid for it,” which is somewhat akin to staring at a gas stove and saying, “If you give me flame, I’ll give you some fuel.”

On the whole, the profession hasn’t always been synonymous with respect, even within the industry. I gave a presentation at CAI’s Law Conference a couple of years ago. I bumped into one of the lawyers from the Midwest who had been in the audience. He let me know he really enjoyed the presentation, but he was confused that I was from the management side of the business. His exact words? “…But you are articulate.” Ouch. We’ve got work to do.

Professionalism

Several years ago, when my concerns about professionalism in the industry began to rise, I served as Education Council Chair for the Washington Metro Chapter of CAI  I was thrilled that Joe Douglass of Whiteford, Taylor & Preston agreed to present on the topic for CAI. During that time, I was working for a management company that had a reputation for being “old school.” Unfortunately I was slammed and could not attend the session. The next day Joe took the time to call me.

“Thanks for calling, Joe. How did the session go?”

“It went really well. But I wanted to reach out to tell you about something I said before you heard it from anyone else.”

“Umm…OK….”

“Well, I got up there and looked around, but I didn’t see you or anybody else from Zalco there…”

“Joe…what did you say??”

“My intro was ‘What does it mean to be a professional? Do you have to wear a suit and tie every day like a Zalco guy?’ The room broke out in laughter. Then I said, ‘No, but it doesn’t hurt!’”

He was worried it would seem like he was making fun, but I loved it. I thought it was great that our reputation was so well established with the local business community. Talk about branding!

So Why the Tie?

Does a tie make me smarter? Nope. Does it make my work better? Not directly. But it sends a message. It reminds me about my mission and it lets the world know I’m serious about it. Don’t get me wrong, I know several professional community association managers who represent themselves, their organizations, and their industry in an exemplary way who rarely if ever, wear ties. Plus, CAMS in Texas and Florida might even faint from heat exhaustion if they had to wear one every day!

Still, here in the Mideast, a tie says something. I want to equip as many managers as possible to be worthy of the respect they seek. I want managers to get paid what they are worth. I want the profession to be respected and appreciated. Like it or not, appearances can either add or detract. A tie dresses up a man physically. It can likewise accentuate his professionalism. If it’s backed up by actions, it says:

  • I am serious about what I do
  • I respect you
  • When I represent you, I want to do so favorably
  • I respect the value of the work I do for you
  • I am a professional

Necessary? No. But it doesn’t hurt.

The M-100

So there I was, beginning of the class. I gave my spiel about our profession and the tie, and why I would be wearing one throughout the class. I explained that I am more comfortable wearing ties pretty much every time I do educational presentations out of respect for the participants and their time. Most of the class was dressed in business casual, which was entirely appropriate. I thought nothing further of it.

Then Friday morning, Marvin shows up with a nice red tie. I was so tickled that I couldn’t even give him a hard time about the unbuttoned collar.

Marvin was on the staff of a high rise condominium. He was an excellent student, bright-eyed and clearly serious about his career. I could tell he understood the impact a professional manager could make on a community, and he was into it.

A few months later, I was not at all surprised to learn that Marvin had been hired as the general manager at another condominium association. I am certain he will do well.

Did he need the tie? No. But it didn’t hurt.