Measuring for Success: Rating Your Management Company
By Jed Heller President, The Providence Group | October 28, 2008
In an ideal relationship, you want your managers and management company to take credit for what they have done right and take responsibility and action when something isn't working. You also must be able to measure the results of the management company's service and, when appropriate, your general manager's performance. Just as you hold any employee accountable, you must hold a management company accountable, which will help your organization run more effectively and efficiently.
Plan for Success
Recently, I was hired to review a property in West Virginia where communication was minimal and management results were marginal at best. One huge problem struck me immediately - no one had set goals for the management team. There were no expectations, and in turn, no tangible results to measure.
The first thing I did was help the company set up a 2006 budget and marketing plan. We also scheduled regular reports and meetings, which serve as roadmaps. If you don't have them, how can you be sure that you are headed in the right direction?
Many business owners don't realize how important a business plan can be. It can be used to analyze the performance of your business so you can determine strengths and weaknesses - and assess what must be done to improve. As a roadmap, a business plan helps set your course and guide you to where you want to end up.
It can also guide conversations with management and your management company. With a solid business plan, you have an objective and a target. This also allows everyone to become more knowledgeable about the organization as a whole.