Robert King

1. Branding your Property Management ProgramDriving the Value of Property Management throughout your Organization Robert King

2. Topics • Why I wanted to have this dialogue • My approach for gathering data • General Observations • My Findings • The Framework

3. My Muse • “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” Quotes made at a recent NPMA conference:

4. 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

5. 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

6. 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

7. 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

8. The Questionnaire (cont’d) • Remaining questions dove into the specific activities that drove the positioning of PM within the organization • 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

9. 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

10. 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…

11. 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

12. 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

13. 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

14. 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”

15. Common Framework

16. 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

17. 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

18. Driving the Cultural Change • 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 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

19. Driving the Cultural Change (cont’d) • Second, Bottom-up approach: Very much a organized change management strategy… • 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

20. Managing Property through Managing Relationships • 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 • No matter how strategically oriented PM strives to be, success is built and maintained with operational networks and visibility

21. 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”

22. 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

23. 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

24. Framework – Inputs and Outputs • Input • 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

25. 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

26. Questions and Feedback Robert King Sunflower Systems rking@sunflowersystems.com (m) 571-331-0676