It is said for every association there’s a management company. Maybe so, but when the board changes, sometimes the management relationship changes too.

Here’s an example. HOA "A" voted in a rather loose group to the board. The community has some serious problems coming up and none of the members of the board can see the train wreck approaching. However, your company sees it and your lead manager wants to wave the red lantern. Finally, the board acknowledges the situation and says, as they always say, "Hey, you’re the professional. Take care of it. That’s what we pay you for."

Here is where many in our industry miss the opportunity. Either the standard contract or company policy infers that is exactly what you do. Or, your client contract clearly spells out that yes, we do it but not without additional fees.

It is the additional fees that create the "leadership model". It is the way your company sells all that pent up experience. It is where extra value is created and available, for a price.

If the board has committees, owner experts (real actual experts) or other resources available, and they choose to handle this work themselves, then your firm continues to provide routine HOA service and support. This is within the guidelines of your contract and your company policy.

One way to build value with this approach is to do more "basic" HOA work and leave special work to others. In other words, maintain a streamline, almost an "assembly line" system of office work to fulfill the contract ’s scope of work.

Either way is fine in building value. Just don’t let one cross the other without extra income.

 

 

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Posted on 23-08-2008
Filed Under (Exit The Business) by Jim
Service Levels
 
The Basic Level for a Leader Company

      It is said there is a management firm for everyone. Some companies are “leader” oriented and others are not. As a professional management expert, it is expected that your team take the lead in organization, communication and execution of all that is necessary for a smooth running community. In this way, your company is providing responsible leadership for your association clients.  When the professional has command of the direction of the community, the community will go in the right direction. It would seem then that the first level of service to the community is management expertise.

     In management expertise there are three basic services; financial, administration and property maintenance management. Do these three well and you’ll establish your reputation as an expert.

     Reflect for a moment. Is this basic level your point of origin in your relationship with your client? If your company is not proficient in each of these three, then it is difficult to become a leader company. And, leader companies seem to garner more profitable contracts.

     This is the basic level of service. Most of the successful companies seem to do quite well at this level. Is your firm an expert in basic community association management?
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