In the Boardroom: Let the Plan Be the Boss

Let the Plan Be the Boss

Time – it’s one of life’s most valuable commodities. Yet communities often waste it by not ensuring they have a proper long-term plan. Other than the brief conversation centered around the annual administrative calendar, very little of the board’s time is spent on proactive, long-term planning. CACM strongly encourages managers to guide their boards to invest time in developing a plan that focuses the collective efforts of the board and management team.

BY CLINT McCLURE, CAMEx, CCAM

5 E ASY TIPS FOR LONG-TERM PL ANNING

1

Identify Pain Points Identify the community’s pain points. If addressed, this simple step could be a community game changer. Managers and boards may have seen these items as long standing problems or everlasting agenda items. Work together taking mutual ownership and identify why these problems exist. Identify the root of the issues. Now, place it on the list to address. As boards become better at this process, they find that they can predict potential pain points and plan ahead to ensure the problem never arises.

2

Encourage Open Dialogue Schedule a time to discuss the plan, identify short and long term objectives, and ensure they are understood. Management and the board should have a candid conversation and managers should be free to openly advise on what is recommended. Topics to tackle should include: administrative, finance, planning, repairs and replacements. Be sure to address what roles both the board and management will play in all of these areas. This step ensures that there is never disorganization, misunderstandings and expectations are always met by both parties. When additional board training is needed to properly address one or more areas, speak with management about board resources.

3

Prioritize & Get Real

Now that you have created a list, it’s time to prioritize. Utilizing the knowledge of industry experts, the board and management can accomplish anything – just not all at once. It’s now time to set goals according to the priorities established. For example: The water costs are rising for the common area landscaping and community golf course. The board, management and industry experts come together and identify that the best possible solution for the community is drilling a well. The well will be added to the list as one of the ‘Most Important Things’ (MITs) to focus on in the coming years. Establish annual benchmarks for success. This ensures the community is on track to accomplish the short and long term goals that better the community.

4

Execute, Measure, Plan & Repeat

The board and management have now spent a lot of time, energy and effort developing a plan. Keep it handy and make it a habit to have a meeting exclusively to discuss the plan. Calendar this planning meeting immediately following the annual meeting of the board. At that meeting, discuss accomplishments (and failures!) and set the upcoming year’s expectations. Did the board and management accomplish the MITs set for the previous year? What has been working well to accomplish those MITs? What has the board and management learned that needs to be amended in the plan?

5

Create a Culture of Planning

It is critical to keep the plan updated with annual adjustments to ensure proper board and management involvement. Build on the strengths discovered throughout the process and purge unsuccessful areas of the plan. The plan should be a tool that is referenced often to guide the agendas for the board and the efforts of management year-over-year. If done correctly, this critical plan will ensure short and long term plans continue to be implemented as volunteers, committee members, board members are introduced. Their understanding and role will ensure the community’s success as defined by the plan. Furthermore, it gives opportunities for newcomers to provide input into the plan.

CACM’s “In the Boardroom” feature is intended to provide key trends, tips and practical advice for association board members. For easy sharing, you can also access this and other archived articles online at www.cacm.org

SET A Goal Achieve it! AND

Professional career-focused education: You want it, CACM has it.

GOALS: Does the word conjure excitement, knowing that you can capture dreams and build an action plan to help you realize them? Or do you feel as though your high school counselor has set some burdensome task before you that makes you feel like a failure even before you start? Whatever your feelings are on the subject, goal setting can be a great tool to put you on a more direct path to getting what you want.

CACM was founded on serving the needs of managers in the community management industry. Since 1991, we’ve been the go-to resource for education. In an effort to support you, we hope you’ll consider using these simple steps to make 2019 your year!

STEP ONE Contact CACM’s Education and Credentialing Advisor, Tammy Willits (twillits@cacm.org). Share with her what your career goals are, the specific areas you want to focus (if you know them) and build a plan for achieving your goals in 2019. In addition to building the plan, Tammy will work alongside you to help you understand costing, time commitments and whether in-person or online classes are a better fit. Come away from that discussion with an achievable action plan.

STEP TWO Schedule a meeting with your supervisor to discuss your desire to further your educational goals. Bring to that meeting your detailed plan of how you will achieve those goals. You may be surprised by how open and excited your boss will be about your love of the industry and desire to learn. Executives understand the power of education. It means their managers can move into a position of working alongside more complex associations which can lead to salary increases!

STEP THREE Whatever the outcome of step 2, get started! The first order of business should always be to secure your CCAM credential – it is the only California credential that earns you the title of “Certified Community Association Manager.” It elevates your standing and communicates to both employers and associations that you care about your career and you’ve invested in it.

STEP FOUR Register for CACM’s 2019 Law Seminar & Expo and don’t miss a single session, ceremony or gathering! This is where the leaders of the industry come together to collaborate and connect. This lively group is very inclusive and you’ll fit right in. Ask for business cards and stay connected after the event.

STEP FIVE Seek out a mentor. Ask colleagues who they respect. Read Vision magazine cover to cover and discover who leads this industry. Pay attention to those individuals’ credentials and specialty credentials. Once you’ve discovered the appropriate person for you, reach out and ask if they can spend some time with you. Relationships are key in this industry.

On a final note, an easy way to keep on track is to buddy-up with someone who wants to achieve the same goal. Goal oriented individuals seem to be great colleagues as you both grow and navigate through the community management industry together.

Finding Talent By Scott Swinton

IN THE INDUSTRY

What is the Holy Grail of finding and retaining great managers?

Iwas recently in a deposition regarding a San Jose homeowner’s association. It took me several minutes to realize that both sides of the case were in the room, “When will the other attorney arrive,” I asked, thinking these two friendly gentlemen were with the same firm. To my surprise, I was immediately introduced to the opposing counsel. “We all have a job to do – no need to make it personal,” they said.

A few weeks prior, my deposition had been hosted by a bombastic blood sucker with an agenda and 80-year grudge against humanity. So, it was refreshing to see such sanity in a reality-television saturated society.

In three interviews with community management CEOs, with over 70 years’ combined experience in the CID industry, a similar overarching message emerged: This is a professional industry, not a battlefield; we are talking about humans and homes, not tanks and territory. All three executives were clear

that they desired to grow and create thriving businesses, but all also clearly condemned the well known cut-throat sweatshop methods of management in the industry.

Why is this unique field of work, HOA management, so often intensely competitive and personal? And most importantly, what is the Holy Grail of finding and retaining great managers?

For many in the CID industry, the job is very personal. It actually makes sense if you look to the very core of the industry. One executive astutely stated, “It’s very personal in the industry, because it’s people’s homes – and when it is personal, then it becomes emotional – and when it is emotional, then it quickly becomes irrational.” If all is well with your customer, you’ll rarely hear from them, while conversely their bad day can easily become yours. It takes a special person to professionally carve out solutions to the human side of managing communities without becoming part

Continued on page 34

landscape contractors

of the problem. Where do such saints come from?

Alas, there is no clear path to the CID industry’s front door. There isn't a college in the state that offers a degree in community management. None of the executives I interviewed said they cared if a person had even visited a college campus. “It’s just not a primary consideration,” stated one. Multitasking, oral and written communication skills, empathy, and critical thinking were all mentioned, but of course, a college degree is hardly required to bring these skills to the surface.

How then to find, and sort applicants? Where are the great managers coming from? Are they simply stumbling into the job? Are they being shanghaied from the sidewalks and bars outside the front gates of college campuses? Frankly, it seemed a mystery to the men and women I interviewed. Said one, “It’s a skill set which cannot be taught.” Another commented that outsiders critique, “What you do isn’t rocket science” but explained, “While no one I know ever claimed it is, [it] requires so much multitasking that most people couldn’t (or wouldn’t) do it.” According to those I interviewed, the ranks are being filled from all walks of life with a common theme: those who thrive have discovered the joy of meeting the challenges presented to them – buoyed by a compensation package adequate to provide incentive.

CHANGE THE MINDSET. CHANGE THE NARRATIVE.

Managed living should be the first choice, not the last resort, and it should be led by highly qualified professionals with passion and pride.

So, how much money is enough, and is money enough? The bottom line? All three agreed that managers need to be compensated appropriately, so that competent talent can be brought into the industry. Yes, you heard correctly, your boss wants you to be paid more. They know that higher manager salaries will improve the state of the industry in a greater way than any other. No, money is not enough. Quality of life accommodations are recognized as equally crucial for maintaining quality managers. Flexible hours, work from home, and generous benefits are all part of retaining managers in this unforgiving environment. All three executives were emphatic that reducing employee turnover was a high priority, and that management companies need to stop trying to “squeeze blood out of the turnips.” All managers have their limits and discovering that limit too late just means another turnover.

With higher salaries will the cost of management go up? Definitely. But the return on investment (ROI) to the customers will be staggering. Yes, monthly dues in communities across the industry will need to go up to cover the cost of management, and you are likely concerned that cost-conscious customers will flee. Yes, there are a contingent of communities which will consistently

accept only the low bid for management. They will spin on the Ferris wheel of mediocre management – lifted on promises and dropped on delivery. A small set of management companies will insist on strangling each other for an ever-shrinking collection of unenlightened HOA’s looking for a low bidder. Meanwhile success stories will start rolling in of healthy HOA’s with burgeoning budgets giving back to their cities and making positive differences in the lives of the members.

Higher dues would devalue home prices, you opine. Maybe not. I propose that the net value of the homes would if anything rise, and the housing market would recognize it rapidly. What would go up sharply would be the standard of living within these communities.

Who would move in? Those who understand that they are paying for the privilege of living in a managed community. Change the mindset. Change the narrative. Managed living should be the first choice, not the last resort, and it should be led by highly qualified professionals with passion and pride.

Special thanks to the following industry leaders for their contributions to this article: Paul Collins, CAMEx, CCAM of Collins Management; Chris Willis, CCAM of Willis Management Group, Inc.; and Leslie Mobraaten, CAMEx, CCAM of Hudson Management Company.

Scott Swinton, General Contractor and Consultant, is CEO of Unlimited Property Services Inc. in Richmond.

OURCLIENTS:

Homeowner Associations

High/Mid Rise Condominiums Condominium Conversions

Commercial Property Owners Business Litigation Civil General Litigation

IFYOU NOTICEANYOFTHEFOLLOWING, DO NOTHESITATETO CONTACT US:

Stained drywall at window sills and ceilings Fractures or cracks along private streets, common area slabs or pavers Frequent and excessive cracks at drywall (interior) or stucco (exterior) Leaks or staining at or around common area planters Staining or discoloration below decks and at entry landings Excessive cracking at tile ooring, garage slabs or patio areas Staining or dampness at underground parking garage Cracking or step cracking at perimeter block wall

844.492.7474 | naumannlegal.com

Interviewing for a position as a community association manager isn’t your normal interview. Sure, you may have to list your three biggest strengths and weaknesses, but you will also be asked specifically about your community management qualifications.

As a Certified Community Association Manager (CCAM), you have a distinct advantage. You’re already knowledgeable about California laws that govern HOAs and how to implement ethical management practices. Because of your education, you’re also experienced in helping board members make wise business decisions for the community.

Before you walk into your next job interview, take a moment to think about how valuable your CCAM certification is to your skill set and career success. Make sure you’re prepared to talk about how your CCAM makes you more qualified for the community management position you’re after.

Here are a few talking points you should consider mentioning in your interview: • As a CCAM, I’ve completed 36 hours of California-specific industry education, covering California law, ethics and core management principles. • The CCAM certification meets California Business & Professions Code standards, which requires California community managers to achieve a high level of education before referring to themselves as a “certified” manager. • My CCAM certification has prepared me to guide boards of directors to make informed decisions that are in the best interest of the association and the community. • I’m committed to following ethical business practices while managing community associations. In fact, I’ve signed CACM’s Code of Professional Ethics and Standards of Practice, which sets forth ethical guidelines for managers to follow to ensure they’re acting with integrity at all times. • The CCAM recertification process keeps me very focused on continuing education.

Continued on page 38

How to Sell

Sell Your CCAM in an Interview…

Continued from page 36 • I complete at least 30 hours every three years, which includes a Law Seminar featuring an update on new case law and legislation impacting our industry. • As a CCAM, I also have the opportunity to pursue continuing education in a variety of community management subjects through CACM, including strategic financial planning, conflict resolution, risk management, leadership and more. Note: You could also list the courses you have already completed through CACM, or mention specific courses you plan to take in the future and why (i.e., perhaps the Conflict Resolution for Community Managers course because you know it will help you deal with the difficult personalities that will undoubtedly cross your path as a community manager). • Because I’ve already earned my CCAM, I can now focus on achieving a higher level of education in the future. I have plans to pursue a Specialty Certificate through CACM in [insert specialty here]. I want to focus on this specialty because [insert reasoning here]. Available Specialty Certificates include High Rise Community Management, Large Scale Community Management, Portfolio Management, and New Development Community Management. • I’ve gained a great deal of knowledge and confidence through earning the CCAM, which is why I would also like to someday pursue the MCAM certification – which is the Master of Community Association Management. By pursuing this higher level of certification, I know I would not only increase my own professional value, but also be able to bring an even higher standard of service to my clients and company.

By practicing how you will communicate your professional accomplishments and value beforehand, you are setting yourself up for a successful interview. No matter what questions come your way, be confident in the knowledge and education you have gained so far, and remember that earning your CCAM has already set you up for a successful career in community management no matter where you work.