Leaders in Asset Management Branding your Property Management Program Driving the Value of Property...

Leaders in Asset Management

Branding your Property Management Program

Driving the Value of Property Management throughout your Organization

June, 2010 Robert King 1


Topics

• Why I wanted to

have this dialogue• My approach for

gathering data• General Observations

• My Findings• The Framework

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My MuseQuotes made at a recent NPMA conference:

• “If Property Managers are successful, then they are invisible”

• “Property Managers rarely get a seat at the [management] table and are considered an afterthought by management”

verses:

• “I know what my management wants and when…I’ve doubled the size of my team in the last three years”

• “I saved my organization multi-millions through increasing asset utilization”

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My Goal• Develop a scientific approach for gauging and

understanding how property management has evolved• Identify common, cross-sector themes that have been

instrumental to the maturation of property management • Share my results

• Understanding the success of our counterparts and learn how to package property management’s value

• Establish a framework for branding property management

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My Thesis• It is difficult to universally and concisely describe our value

proposition • Despite certain frustrations, property management (PM) is an

exciting, opportunity-filled profession • As evidenced by increased participation in NPMA and ASTM E53,

organizations are recognizing the importance of training and networking

• We know our value, but some of us have been more successful than most packaging and branding Property Management’s Value

5


My Approach• Needed to elicit feedback from senior Property Managers

from a variety sectors

• Distributed a survey to gauge their satisfaction levels on myriad topics

Focused on satisfaction level trending

• Scheduled and conducted interviews

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The Questionnaire • Goal was to get barometer of PM’s satisfaction level with

the various stakeholders within their organization.

• Executive Management, • Program Management, • General Program Personnel, • Custodians (indirect reports), • Direct Reports, and • Related Business Functions:

• Contracts • Operations• Finance• Procurement

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• Remaining questions dove into the specific activities that drove the positioning of PM within the organization

The Questionnaire (cont’d)

• Strategies for expanding program’s scope and oversight

• Aligning program within mission and business bases

• Hiring and training personnel

• Strategies for increasing awareness

• Approach used when requesting additional funding and where the funding was targeted

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The Interviews• Targeted interviewing organization’s senior property

management official• Context was requested regarding trending of their

satisfaction levels

• Not as important as where you are today, but how far you have come and the direction you are heading

• Needed specifics about strategies that were used to establish networks with key stakeholders

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General Observations & Findings

The Data:• Generally, satisfaction levels with stakeholders

ranked:• Senior/Executive Management was ranked

highest

• Program Management and their Property Custodians ranked second

• Relationship with other business functions ranked consistently near the bottom

• No standard or common organizational alignment of PM• Finance, Compliance, Operations, Contracts,

etc…

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General Observations & Findings

• Recently (last 3 – 5 years) PMs have observed significant changes in their ability to affect change and drive value

• Almost all can point to one or two specific events that were leveraged to bolster support and facilitate change

• Majority noted that their programs were in a better place today than they had ever been previously, but all noted they still have numerous opportunities

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General Observations & Findings“Compliance oversight is the

cornerstone in the foundation upon which a PM program is built, but it is not (and cannot be) the entire structure”

“Compliance is a Kiss of Death”• Most PM programs, were previously

scoped solely towards policy/contractual oversight adherence

• Across the board recognition that if compliance oversight is sole function, there is a ceiling to your influence and maturation

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Other General Observations

Industry Tools - NPMA and ASTM• Highly recognized the value of

industry participation

Access to: • Training, Certification and other industry

curriculum• Network with individuals who are engrossed in

the business• Best Practices and standards

ASTM and NPMA artifacts were repeatedly recognized as a source for gathering industry input and standard practices

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General Cross-Sector Best Practices

• Training – utilizing a variety of platforms – is paramount • Most regularly cited and sought funding initiative• Needs to be accessible to all levels and sites

• Centralized Council or governing body• Utilized to share, discuss and standardize processes and

controls• Platform for senior management to get involved

• Formalize property management duties into the performance plans of the “other duties as assigned” personnel

• Setting and recognizing minimum qualifications for property management personnel

• “Maximize the administrative window of opportunity”

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Common Framework

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Common Framework• Recognizing and executing the following methodology will

provide a path for branding your property management program:• Leveraging the “Catalyst”

• Maximize initial opportunities to influence perceptions and demonstrate value

• Driving the Cultural Change• Change how property is perceived and ultimately valued

• Managing property through Managing Relationships• Utilize internal and external networks to extend influence

• Providing solutions to others problems • Position services that proactive address others’ business

challenges

• Align and Realign with the Mission• Continually identify strategies to best serve the mission

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Leveraging the “Catalyst”• Majority of PMs can point back to one or two activities that

was the catalyst for initiating their program’s transformation

• Successful completing a highly complex, logistical task that receives senior management’s attention

• Recognizing revenue that had been historically unrecognized

• Responding to a failed audit• Standardizing and providing a needed

cross-unit service

• There are always opportunities to show your value! • These catalysts need to be maximized to extend your service

offerings – will in turn enhance PM’s profile and gain executive endorsement

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• Need to incrementally and repeatedly educate and shift perceptions with both a top-down and bottom-up approach

• Utilize as many communication mediums as possible to broadcast value (spread the word): • Meetings, newsletters, websites, conferences

Driving the Cultural Change

First, Top-down approach:• Key is Senior Management stakeholder

visibly endorsing changes • Utilize management’s support to educate

and drive PM’s value within the business• Cross unit networks can be leveraged to

generate synergies – facilitates standard processes

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• Second, Bottom-up approach:Very much a organized change management strategy…

Driving the Cultural Change (cont’d)

• A site-level campaign (“road show”) to reposition and educate the program’s value and requirements • Generates buy-in • Establishes grass-root networks

that are the foundation of dialogue and future success

• Identifies “old dogs not willing to learn new tricks” so mitigation strategies can be developed

• Leverage management’s attention to increase morale and spur change

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Managing Property through Managing Relationships

• No matter how strategically oriented PM strives to be, success is built and maintained with operational networks and visibility

• Ironically, while Property Managers are responsible for the stewardship of property, they are primarily interacting with and managing people. • All PMs interviewed attributed primary

success to ability to influence people• Periodic interaction is necessary to

establish trust and understanding of business• Average 35% of time dedicated to

operationally supporting programs/sites

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Managing Property through Managing Relationships (cont’d)

• Access and a strong rapport with internal audit groups and/or DCMA is essential

• Audit groups want PMs to be successful and are available for leveraging their expertise

• However, understanding “Official” verses “Unofficial” nature of relationship

• Cannot wait until auditors arrive in an official capacity to open dialogue

• “Success cannot be had reacting to findings”

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Providing Solutions to Others’ Problems

• Property Managers have advanced their programs from primarily compliance oriented to problem solving and business solution oriented

• The successful PMs view themselves as:• Problem solvers, • Enterprise service providers,• Business solution providers, and • Organization transformation agents

• Centralized and standardized processes and service offerings• Quantifying value through lowering cost of doing business,

streamlining the mission support activities, providing standardized cross-unit services

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Align and Realign

• Need to be able to advance above constraints of organizational alignment

• Flexible, adaptable team that can respond to the business challenges

• Successful realignment to current business challenges will provide platform to identify existing gaps and additional opportunities

• Aligning and Realigning will allow the framework to be repeatedly and consistently applied

• Continual assessment of the organization’s needs to the competencies of your team

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Framework – Inputs and OutputsInput

• Stage 1: Leveraging the Catalyst Garners Executive Visibility and Support

• Stage 2: Driving the Cultural Change Provides an understanding of your program’s requirements to all stakeholders

• Stage 3: Managing Property through Relationships Mitigate risks and promote business through stakeholders • Stage 4: Providing Solutions to Others’ Problems Be known foremost as a proactive business solutions provider

• Stage 5: Align and realign with the Mission Continually assess your service offerings to support the mission / business base

Output Results

Continually demonstrates and reinforces value to the mission

Gains endorsement from executive management that breeds a culture change

Allows PMs program’s scope to be continually strategically aligned with the mission

Extends influence of internal and external stakeholders

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In Conclusion• Property Managers are proving they are strategic business

solutions providers that are continuing to expand the scope of their programs

• Your presence here at NES and involvement within industry is proof of PM’s continued maturation and its value

• There is a framework – already applied by many of your peers – that will allow you to continually drive property management’s value throughout your organization

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Questions and Feedback

Robert KingSunflower Systems

[email protected]

(m) 571-331-0676

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Leaders in Asset Management Branding your Property Management Program Driving the Value of Property...

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