The relationship between boards and management is by its nature complex. The two sides rely upon one another to ensure the smooth oversight of their co-op and condo communities. Both are dedicated to doing everything possible to create a stable and welcoming environment for residents while at the same time, handling the day-to-day and big picture aspects of management, from dealing with vendors to ensuring a solid financial bottom line.

With so much at stake, it is vital for everyone involved to be functioning at an optimal level. For boards and for the managers who work with them, building that well-oiled management machine is key to that success. So what can be done to ensure that everyone involved is performing at their optimal level and what role does a healthy dose of good communication play in that success? That’s where evaluations come into play.

Assessing Performances

There are two types of performance evaluations relevant to management success: the evaluation that individual managers undergo with their respective firms and the evaluations that take place between co-op and condo boards and their management firms. For most companies, the evaluation process for their managers is multifaceted and representative of the diverse nature of property management itself.

For RCP Management President Mary Faith Nugiel, CPM. AMS, the process of evaluation begins in understanding the needs of each property. “The account supervisor should be aware of the major issues and projects facing the board from reviewing and attending the regular board meetings,” she says.

When it comes to assessing performance, it is important to establish metrics that require regular reporting back to the corporate office on issues such as contracts and budget deadlines. Open lines of communication between the manager and the management company are key to preventing problems.

Ramon A. Cuevas, vice president of operations for Association Advisors in Freehold agrees, “The principal or senior executive receives a written weekly update from the manager and, each month, receives a copy of the board packet one week before the monthly meeting. The weekly updates and board packet shows us first-hand what the manager has accomplished in the previous month.”

Another key to determining satisfaction is for the management company to be in regular contact with the board to monitor the manager’s performance. To accomplish this, management companies have adopted a variety of approaches. One of the most popular, and most accurate is to ask the board for feedback. To accomplish this many management companies send regular surveys to their clients.

Some management companies have turned to services like Survey Monkey. Surveys can include such things as accounting services and customer service as well as the manager’s performance. Regularly sent surveys asking boards to evaluate their management team keep the client and upper management in touch.

That constant contact is a must. “[We] regularly request feedback on the company performance and our managers via email census and our websites so that we may improve our services,” says Robin L. Habacht, MBA, CMCA, AMS, and founder of Leonia-based Monticello Management.

Cuevas agrees, “We feel it is critical to be hands-on and present with regards to supervising our manager's performance.”

The best managers can successfully serve both the board and their firm. When an evaluation takes place criteria should include results from the client and from the management company. Most managers agree that job performance includes serving the client and the company. Such things like meeting deadlines, contributions to company roundtables and involvement in company initiatives are very important in the evaluation process.

Outstanding performance results from a combination of factors. Perhaps the most important of those factors is simply knowing what is expected. “Giving an agent guidelines and expectations is important,” says John Colella, president of YES Property Management Group, LLC, based in Nutley. “We make sure they’re being proactive and doing daily reports. It helps if they know they have to get ‘x’ amount done each quarter.” He also suggests documenting and gauging an on-site manager’s performance to show gains or descents, which can help an agent see his or her strengths and also determine where improvement might be possible.

And how often should an individual manager take part in a performance evaluation? Colella says it depends on how seasoned that individual is but suggests that quarterly or biannually usually works for most people.

Meeting Board Expectations

As important as expectations are to individual managers, they are equally important for the firm as a whole. “Expectations of both the board and the management company should be determined during the contract negotiation phase, prior to the start of the new contract,” says Nugiel. “This is the time to reach an understanding of services provided and services expected. Of course, things always come up once a contract begins, but it is important to keep unexpected issues to a minimum.”

It is important, too, to make sure those expectations are shared and disseminated whenever a new face enters the picture. In the case of an existing contract, the management company often deals with new board members after every election. Most industry professionals believe that it is extremely important to greet these new board members with as much information as possible. This positive, informative communication early on will help the new board members, and the entire board, which in the end will help them to make better decisions.

A willingness to be flexible also can go a long way toward earning the appreciation of a board and the community members it represents. “[We] believe that now is the time to extend ourselves to our communities beyond our contracts, especially to those communities hardest hit by foreclosures,” says Habacht. “These communities need our support and guidance to survive because their survival impacts the economics of the community at large.”

Communication, too, is often an invaluable tool in ensuring the best results both for managers and boards. Colella and his team stick to a “read, react and respond” philosophy for clients. “Basically, we want to make sure our managers understand the community and make sure they take care of things quickly because small issues can become large issues fast.” Being proactive, returning all calls, being aware of needs and concerns can go a long way toward ensuring client and resident satisfaction.

Habacht acknowledges that communication and responsiveness are the gold standard for quality client service. “Does your community manager understand the wants and needs of the board?” she says. “Is your community manager responsive to homeowners’ requests? Is your community manager’s attitude sympathetic toward the homeowners’ wants and needs? Does your community manager respect deadlines set by the board of directors?”

Nipping Problems in the Bud

Sometimes, despite all good intentions, things may go awry between a board and its manager. It could simply be a personality conflict—perhaps a board member wants to do something that may not be in the community’s best interest and the manager may be the one to contradict him or her. Other times, though, red flags can indicate other, larger performance related issues. Whatever the situation, everyone agrees that a speedy response is usually the best response.

A qualified and experienced supervisor can usually see early warning signs that a manager is having difficulty. Things, such as lateness in reports, disorganization and an open item list that drags on for months are good indicators that things are not going well.

Cuevas believes that, “Not being timely with responses to e-mails or voicemails, disorganization and not following standard protocol such as submitting a minimum of three proposals to ensure an accurate bid,” are just some of the red flags that would indicate a poorly performing manager.

If something does go awry and signs of trouble begin to surface, the board should contact the firm immediately and allow them to set things right. “The board should address any issue with all members of the management team,” says Nugiel. “Professional management companies are just that—professional. If a contract is not working and needs to be tweaked, the best ways to address the issue are open and honest meetings and a joint effort between management and the board. We are all adults and should be able to hear the issues, decide on the appropriate solution, move forward to correct the problems and solidify a healthy relationship between the board and management.”

Sometimes the best solution may be an open and honest conversation between the management firm and the individual manager. “You’ve got to ask them heads up, what are you doing?” says Colella. “Maybe they are overwhelmed and don’t understand something. They may just need help. We try to explain to them how to handle different situations, give them a blueprint or plan to follow.”

Always be encouraging, Colella says. “You want to point out their strong points and you want them to develop for the future.” Often, additional education can make the difference. “There are many non-industry classes to improve organizational skills and multi-tasking abilities,” adds Nugiel. “Additional training in the corporate office may be warranted.”

Lending a hand can relieve a manager’s stress as well and allow him or her to get back on the right track. For example, by providing administrative support from the corporate office on a temporary basis to bring the manager current and get the workload organized is a small measure that would have tremendous positive impact.

Sometimes the best solution might be recasting the role, so to speak, and moving a particular property manager to another site. All personalities and styles are different—what might work for one client may not be what works for another. “While there are times that a new manager is not the solution and a new management company is, there are more occasions of a simple mismatch of a manager with a community,” says Habacht. “While a certain manager may not meet the community’s or board’s expectations, management companies have numerous other managers who will fit the client’s exact needs and expectations. Management can bring in another manager rather than the community losing the time they have invested in training and integrating an entire management company.”

Working Together

Perhaps the most important keys to a solid and long-lasting relationship between a co-op or condo board and its management team are realistic expectations, education and a steady flow of communication. It helps, too, if everyone works together toward common goals. “Both the board and management should have well-defined roles,” says Nugiel. “It is important that both parties understand the duties and responsibilities of each other. They should work in unison, each keeping the other abreast of their own progress. Just let the entire team know what’s happening and things will run smoothly.”

And certainly that’s the goal of any community: creating an outstanding place to live.

Liz Lent is a freelance writer and a frequent contributor to The New Jersey Cooperator.