I ran my fourth Board Boot Camp last Saturday, and one of the intriguing questions posed by a participant was how a board can build a better bond with their management company. As I said when I kicked off the discussion, this is a topic near and dear to my heart.
I think the best way to do this is by honest and open communication. I often have no idea that a misunderstanding or mistake on the part of someone in the company (definitely including me) has caused a ripple in our relationship with a board that can fester into one of two things: battle lines being drawn or the termination of our management agreement. Neither outcome is a good one as far as I'm concerned.
Perhaps it's the nature of working with a group rather than one-on-one, but there seems to be a reluctance to confront those misunderstandings or mistakes head-on. For us that's similar to an employment situation, being suddenly fired and having no idea why. It's far better to suffer a bit of discomfort while clearing the air over an issue than to allow it to smolder in the background.
We see our relationship with our boards as a partnership, and we are every bit as engaged in their success as they are. So give us a chance to prove it by allowing us to fix our mistakes (because no one is perfect), and by letting us clear up those misunderstandings.
So, I finish where I started: Can we talk?
Tuesday, November 22, 2011
Thursday, April 21, 2011
Partners in Prosperity
We hosted our first Partners in Prosperity open house yesterday, and it was a great success! We are already receiving great feedback from both the suppliers and our customers. One of our customers followed up today with an email that included: "Please convey my appreciation to everyone at Longley for the beautifully managed and presented event yesterday."
We hope that our next open house is even more successful as word spreads among our customers and our suppliers of goods and services. This was a great opportunity to get information on everything from recycling and green initiatives for condominiums to painting, plumbing and landscaping. The atmosphere was quite casual, and our staff helped to connect our customers with suppliers that have the expertise they were looking for.
As the rest of the world seems to be moving away from personal contact and toward using technology to communicate, we are happily moving in the opposite direction and working to connect our small corner of the world. Based on yesterday's event, it seems to be a very good idea!
We hope that our next open house is even more successful as word spreads among our customers and our suppliers of goods and services. This was a great opportunity to get information on everything from recycling and green initiatives for condominiums to painting, plumbing and landscaping. The atmosphere was quite casual, and our staff helped to connect our customers with suppliers that have the expertise they were looking for.
As the rest of the world seems to be moving away from personal contact and toward using technology to communicate, we are happily moving in the opposite direction and working to connect our small corner of the world. Based on yesterday's event, it seems to be a very good idea!
Monday, April 18, 2011
Inaugural Board Boot Camp
Our first ever Board Boot Camp was held on Saturday, April 16, 2011. Although we had a small group for our first presentation, it was considered by everyone to be a great success. Among the topics discussed were:
Our next Board Boot Camp is being held on Saturday, June 25, 2011. Boot Camps are held in our offices between 12:00 noon and 4:00 pm. Lunch and course materials are provided. The registration fee is $100.00 per participant.
Register early, as space is limited!
- Board governance
- The role of the condominium manager
- Insurance
- Financial reports
- Budgets
- Reserve Funds and Reserve Fund Studies
Our next Board Boot Camp is being held on Saturday, June 25, 2011. Boot Camps are held in our offices between 12:00 noon and 4:00 pm. Lunch and course materials are provided. The registration fee is $100.00 per participant.
Register early, as space is limited!
Thursday, February 17, 2011
Reinventing the Wheel
The caption above is a fairly care-worn expression. I'm all for efficiency, but sometimes the 'don't reinvent the wheel' philosophy squelches improvement and innovation. Until now I've considered this blog 'out there,' available to all who want to look at it, and this is true. However, I have decided to speak directly to my very own audience - LCS customers. This blog will become more of a client newsletter than what I would term a conventional sort of blog.
New Initiatives at LCS
Last year was a year of transition for the company. For me personally, there was a transfer of the daily management of a number of our customers' properties into the capable hands of two new managers - Cheryl-lyn Carlson and Linda Redwood. Both of them are much more skilled at execution than I am. This has led to the idea that we can work collectively at LCS in a way that plays to our individual strengths.
Mine are communication and administration, as well as working with numbers. Toward the end of 2010 we implemented some new ideas into our budget process. The first is including the five-year reserve fund plan in every budget we produce with our clients. This will allow us to track, throughout the five-year period (rather than a more conventional year-to-year 'snapshot'), the health of the reserve funds our customers are responsible for.
The second initiative is to try to engage the treasurers and presidents of our board customers in the budget process. This involves having me draft the operating budget and meet with our treasurers and presidents to review the draft, complete our annual performance review face-to-face, and discuss the renewal of our management relationship for the coming year. By engaging board members in the process, the resulting presentation of the draft budget by the treasurer places authority in the proper hands and will enhance the budget approval process.
Some of my time has been freed to take on the challenge that I've been waiting for since I started the company ten years ago - inventing a better wheel. I had a vision in my mind a few years ago of a conveyor belt with identical boxes passing by, and realized that this was a good representation of condominium management. It was also a great 'think outside the box' moment for me. I'm tinkering right now with this idea: "we don't think outside the box, we think - what box?"
My darling husband, with his trademark dry sense of humour, told me that we run the risk of people thinking that we're so stupid we don't even know there's a box. While that may be so, my thought process was that we're only limited by the boundaries of our imaginations in creating anything, and the containment of a box just doesn't fit with that.
I am an avid reader, and keep track of an annual quota of 60 or more books that I read. My passion for books is coming to the fore as I study all manner of business books on customer service and running a small business. I see some elegant symmetry in this, as our board customers are essentially running the business affairs of their condominiums, so the benefits should flow directly to our customers in a very real way. I'm about to tackle one with very direct relevance: Small Giants: Companies that Choose to be Great Instead of Big. That's what we aspire to - being a small giant, as much of an oxymoron as that appears to be.
Next week I leave for Montreal to attend the Canadian Society of Association Executives' two-day Symposium for Chief Staff and Chief Elected Officer. I am attending under the auspices of the Real Estate Institute of Canada, for whom I assume the role of President of the National Board of Directors in May. I have often harped on the similarities between non-profit governance and the governance of condominiums, and hope to bring back information that will enhance the services and support we provide to our board customers.
The Symposium addresses the following topics which all have relevance to condominium governance: the special nature of voluntary organizations; the partnership of the chief staff and chief elected officer; the partnership with the board; and, leading an innovative organization. Under these general topics there will be discussions on board governance, sustaining knowledge and defining value. One of the things that I love about the condominium management business is the idea that what benefits LCS could also be adapted to have a direct benefit to its customers. Looking at condominium governance from this vantage point - that of running a business - opens up a vast wealth of resources and ideas.
Earlier this month I compiled a comprehensive sample of all of the policies that we've developed over the years for our various customers. This will be of huge value to our managers and will enable them to provide you with policies that can be customized to your individual needs.
I am also busy working on a number of ideas that will, I hope, transcend the way we're operating and interacting with our customers. Stay tuned to this blog for updates!
New Initiatives at LCS
Last year was a year of transition for the company. For me personally, there was a transfer of the daily management of a number of our customers' properties into the capable hands of two new managers - Cheryl-lyn Carlson and Linda Redwood. Both of them are much more skilled at execution than I am. This has led to the idea that we can work collectively at LCS in a way that plays to our individual strengths.
Mine are communication and administration, as well as working with numbers. Toward the end of 2010 we implemented some new ideas into our budget process. The first is including the five-year reserve fund plan in every budget we produce with our clients. This will allow us to track, throughout the five-year period (rather than a more conventional year-to-year 'snapshot'), the health of the reserve funds our customers are responsible for.
The second initiative is to try to engage the treasurers and presidents of our board customers in the budget process. This involves having me draft the operating budget and meet with our treasurers and presidents to review the draft, complete our annual performance review face-to-face, and discuss the renewal of our management relationship for the coming year. By engaging board members in the process, the resulting presentation of the draft budget by the treasurer places authority in the proper hands and will enhance the budget approval process.
Some of my time has been freed to take on the challenge that I've been waiting for since I started the company ten years ago - inventing a better wheel. I had a vision in my mind a few years ago of a conveyor belt with identical boxes passing by, and realized that this was a good representation of condominium management. It was also a great 'think outside the box' moment for me. I'm tinkering right now with this idea: "we don't think outside the box, we think - what box?"
My darling husband, with his trademark dry sense of humour, told me that we run the risk of people thinking that we're so stupid we don't even know there's a box. While that may be so, my thought process was that we're only limited by the boundaries of our imaginations in creating anything, and the containment of a box just doesn't fit with that.
I am an avid reader, and keep track of an annual quota of 60 or more books that I read. My passion for books is coming to the fore as I study all manner of business books on customer service and running a small business. I see some elegant symmetry in this, as our board customers are essentially running the business affairs of their condominiums, so the benefits should flow directly to our customers in a very real way. I'm about to tackle one with very direct relevance: Small Giants: Companies that Choose to be Great Instead of Big. That's what we aspire to - being a small giant, as much of an oxymoron as that appears to be.
Next week I leave for Montreal to attend the Canadian Society of Association Executives' two-day Symposium for Chief Staff and Chief Elected Officer. I am attending under the auspices of the Real Estate Institute of Canada, for whom I assume the role of President of the National Board of Directors in May. I have often harped on the similarities between non-profit governance and the governance of condominiums, and hope to bring back information that will enhance the services and support we provide to our board customers.
The Symposium addresses the following topics which all have relevance to condominium governance: the special nature of voluntary organizations; the partnership of the chief staff and chief elected officer; the partnership with the board; and, leading an innovative organization. Under these general topics there will be discussions on board governance, sustaining knowledge and defining value. One of the things that I love about the condominium management business is the idea that what benefits LCS could also be adapted to have a direct benefit to its customers. Looking at condominium governance from this vantage point - that of running a business - opens up a vast wealth of resources and ideas.
Earlier this month I compiled a comprehensive sample of all of the policies that we've developed over the years for our various customers. This will be of huge value to our managers and will enable them to provide you with policies that can be customized to your individual needs.
I am also busy working on a number of ideas that will, I hope, transcend the way we're operating and interacting with our customers. Stay tuned to this blog for updates!
Monday, January 31, 2011
Annual General Meetings
Many Annual General Meetings are held early each new year. This is an opportunity for the Board to report to the owners on the activities of the preceding year, for the auditor to report to the owners on the financial health of the Condominium Corporation, and for the owners to exercise their voting rights.
Many Boards find this a very nerve-wracking process, particularly if there were decisions made during the year that some owners were unhappy with. If the financial picture is gloomy, that is an added source of stress for Board members. One of the keys to avoiding an annual nail-biting session is communication throughout the year.
If the budget was well presented and properly explained, even if owners aren't happy with the result, they can accept the inevitability of a special assessment or fee increase. If major decisions were clearly communicated as they were implemented, they should face the same acceptance by the owners.
A great way to start off the new year following the Annual General Meeting is to have a strategy session early, setting out the goals for the coming year. Some of those goals may come from owner feedback at an Annual General meeting. The new energy of incoming Board members will also stimulate discussion and help to focus on the coming year's priorities. Trying to think beyond what is planned in the operating budget, toward what will add value to the owners in the coming year, is a sound strategy. So is listening carefully at the Annual General Meeting if there is a hot topic raised at the meeting.
Think of it as a list of new year's resolutions for your condominium!
Many Boards find this a very nerve-wracking process, particularly if there were decisions made during the year that some owners were unhappy with. If the financial picture is gloomy, that is an added source of stress for Board members. One of the keys to avoiding an annual nail-biting session is communication throughout the year.
If the budget was well presented and properly explained, even if owners aren't happy with the result, they can accept the inevitability of a special assessment or fee increase. If major decisions were clearly communicated as they were implemented, they should face the same acceptance by the owners.
A great way to start off the new year following the Annual General Meeting is to have a strategy session early, setting out the goals for the coming year. Some of those goals may come from owner feedback at an Annual General meeting. The new energy of incoming Board members will also stimulate discussion and help to focus on the coming year's priorities. Trying to think beyond what is planned in the operating budget, toward what will add value to the owners in the coming year, is a sound strategy. So is listening carefully at the Annual General Meeting if there is a hot topic raised at the meeting.
Think of it as a list of new year's resolutions for your condominium!
Thursday, December 2, 2010
Tis the Season - For Budgets
Before we know it, Christmas will be here, with the attendant hustle and bustle that's supposed to make it a wonderful experience, and often leaves us frazzled and in need of another holiday.
This is also the time of year when many condominium boards are struggling with their annual operating budgets. Having just finished drafting ten budgets in about the same number of days, this is a topic near and dear to my heart. Fortunately it isn't rocket science, but it does require a certain amount of experience and skill to juggle the demands of aging properties against market pressure and the very real economics of household budgets.
When Alberta legislated the requirement for reserve funds and regular (every five years) reserve fund studies, the days of allowing a condominium to fall into disrepair and decline were presumably over. To a large extent that is true, but that doesn't make the task of finding the financial resources to complete major projects or properly maintain the common property of a condominium any easier. Those with the misfortune of a December 31st financial year-end also face the challenges of sending out a Christmas newsletter and the announcement of an increase in condominium fees in the same month.
The underlying premise I use when drafting an operating budget is that the cost of operating the property is one bullet that can't be dodged. A corridor renovation might be postponed for a year until the finances are in better shape, but the gas and electrical bills have to be paid, and landscapers and janitorial services don't work for free, even at Christmas time. If finances are tight, the basic services have to be covered first and foremost.
There are also times when a special assessment is unavoidable. Those words strike fear in the hearts of most condominium owners, but the prudent board and manager will look at the purpose of the special assessment and create payment terms by owners around that purpose. Quite often a special assessment will be utilized in order to adjust the reserve fund balance and bring it in line with the projections of a new reserve fund study.
That may mean that the owners can make quarterly or semi-annual payments over time, rather than having to come up with the entire special assessment at the time that the budget is released to the owners. As a general rule of thumb, I look at the affect that a special assessment will have on the resale value of units in a condominium. Potential purchasers will look at the operating budget, and if the budget is clear, see that the selling owner will be helping to bring the reserve fund on track before the sale and purchase takes place.
For this reason it's often best to contain the special assessment within one budget year. This avoids having selling owners faced with pre-paying a special assessment that might be straddled over two or more budget years. It's also important to communicate very clearly the purpose of a special assessment, so that owners are reassured that special assessments won't become an annual source of revenue to their condominium corporation.
And while we're on the subject of Christmas newsletters, don't forget to tell your residents when the Christmas lights have to come down in January!
This is also the time of year when many condominium boards are struggling with their annual operating budgets. Having just finished drafting ten budgets in about the same number of days, this is a topic near and dear to my heart. Fortunately it isn't rocket science, but it does require a certain amount of experience and skill to juggle the demands of aging properties against market pressure and the very real economics of household budgets.
When Alberta legislated the requirement for reserve funds and regular (every five years) reserve fund studies, the days of allowing a condominium to fall into disrepair and decline were presumably over. To a large extent that is true, but that doesn't make the task of finding the financial resources to complete major projects or properly maintain the common property of a condominium any easier. Those with the misfortune of a December 31st financial year-end also face the challenges of sending out a Christmas newsletter and the announcement of an increase in condominium fees in the same month.
The underlying premise I use when drafting an operating budget is that the cost of operating the property is one bullet that can't be dodged. A corridor renovation might be postponed for a year until the finances are in better shape, but the gas and electrical bills have to be paid, and landscapers and janitorial services don't work for free, even at Christmas time. If finances are tight, the basic services have to be covered first and foremost.
There are also times when a special assessment is unavoidable. Those words strike fear in the hearts of most condominium owners, but the prudent board and manager will look at the purpose of the special assessment and create payment terms by owners around that purpose. Quite often a special assessment will be utilized in order to adjust the reserve fund balance and bring it in line with the projections of a new reserve fund study.
That may mean that the owners can make quarterly or semi-annual payments over time, rather than having to come up with the entire special assessment at the time that the budget is released to the owners. As a general rule of thumb, I look at the affect that a special assessment will have on the resale value of units in a condominium. Potential purchasers will look at the operating budget, and if the budget is clear, see that the selling owner will be helping to bring the reserve fund on track before the sale and purchase takes place.
For this reason it's often best to contain the special assessment within one budget year. This avoids having selling owners faced with pre-paying a special assessment that might be straddled over two or more budget years. It's also important to communicate very clearly the purpose of a special assessment, so that owners are reassured that special assessments won't become an annual source of revenue to their condominium corporation.
And while we're on the subject of Christmas newsletters, don't forget to tell your residents when the Christmas lights have to come down in January!
Tuesday, November 2, 2010
Welcome to the Neighbourhood
Frustration with delinquent owners is all too common among condominium boards and their managers. It seems like common sense that residents can't park where they please, or hang pictures at midnight, or tie up the only elevator in a condominium building for an entire day when they move into the building.
On the other side of the equation, some owners are completely unaware of a condominium's rules and regulations. If this is their first experience as a condominium owner or resident, what may seem like common sense can just be a lack of understanding. To a first-time condominium owner, it's quite reasonable to assume that they can renovate the interior of their condominium as they please. After all, the interior is their property.
So the question that might be better asked is: How does your condominium prepare new owners and residents for the experience of living in your community? Welcome packages are a great tool that can help new residents get oriented and avoid a negative experience while settling into their new homes.
Welcome packages can be simple or elaborate. They can cover the basics of living in a particular condominium, such as where garbage and recycling facilities are located and what the rules are regarding visitor parking, or go further and include information on the neighbourhood and local services and facilities. In fact, including some tidbits about the neighbourhood may entice more new residents into reading the 'do's and don'ts' that are also contained in the welcome package.
Effective communication is becoming more and more challenging as we all download newsletters and marketing materials from so many sources that we would need several lifetimes to keep up with them all. Add to that the stack of paperwork an owner receives when purchasing a condominium, and it should be no surprise that ill-informed owners are moving into condominium properties.
It's too bad that welcoming new neighbours into a community has fallen by the wayside. But it might not be a bad idea for board members to act as a welcoming committee and personally deliver a welcome package to new residents. You might just head some problems off before they happen, and you never know, a new neighbour might be a candidate for the board so that you can take a well-earned retirement!
On the other side of the equation, some owners are completely unaware of a condominium's rules and regulations. If this is their first experience as a condominium owner or resident, what may seem like common sense can just be a lack of understanding. To a first-time condominium owner, it's quite reasonable to assume that they can renovate the interior of their condominium as they please. After all, the interior is their property.
So the question that might be better asked is: How does your condominium prepare new owners and residents for the experience of living in your community? Welcome packages are a great tool that can help new residents get oriented and avoid a negative experience while settling into their new homes.
Welcome packages can be simple or elaborate. They can cover the basics of living in a particular condominium, such as where garbage and recycling facilities are located and what the rules are regarding visitor parking, or go further and include information on the neighbourhood and local services and facilities. In fact, including some tidbits about the neighbourhood may entice more new residents into reading the 'do's and don'ts' that are also contained in the welcome package.
Effective communication is becoming more and more challenging as we all download newsletters and marketing materials from so many sources that we would need several lifetimes to keep up with them all. Add to that the stack of paperwork an owner receives when purchasing a condominium, and it should be no surprise that ill-informed owners are moving into condominium properties.
It's too bad that welcoming new neighbours into a community has fallen by the wayside. But it might not be a bad idea for board members to act as a welcoming committee and personally deliver a welcome package to new residents. You might just head some problems off before they happen, and you never know, a new neighbour might be a candidate for the board so that you can take a well-earned retirement!
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