Multifamily Evoluation

It has rained all day here in Central Florida, which provided me with an opportunity to jot down some of the things I have been thinking about recently.  This is also the first chance I have had to write since my trip to the United Kingdom.   Nothing like the fresh air of Ireland and beautiful scenery to trigger your senses and reflect on life in general.  Something about a rainy day just makes me want to write, so here goes.

The term "apartments" was derived from an American standard of living in the late 19th century. While apartment living has been traced back to Roman times, the concept of multifamily or apartment home living transitioned from the term "flats" which is still used today in the northeast. Census estimates show that at the beginning of 1900 almost 75% of Americans lived in apartments. Most early apartment buildings were upper floors of homes or converted hotels and more closely related to studio's or efficiency units. Then sometime around and after 1920, multistory buildings were being constructed the the phrase, "studio apartment" was coined in the New York metro area also called "cooperative apartments." After about 1930 apartment buildings were common and amenities such as private bathrooms and kitchen appliances were common.  A large apartment building might be 20-30 apartment homes or flats, and in some cases were nothing more than a converted warehouse with walls added.  Then something happened, and none other than the US Military assisted in developing what we know today as an apartment community.  During World War II, military bases built entire communities of multi-unit buildings to house families of those serving in our armed forces.  Prior to that period there was not as much consideration for the familial unit in the armed forces, and changes had to be made.  They added parks, swimming pools, and playgrounds in an attempt to provide housing for those serving and in training of our military. 

From what started as mom and pop renting out rooms in the upper story of their home to the complex and diverse industry of today, many changes have taken place.  From rent by the week with nothing more than a handshake to leases several pages long, we have witnessed the evolution.  From ledger cards keeping track of receipts and charges and NCR (no carbon required for those under thirty years old) work orders the business of apartments has transitioned into one of the largest industries in the world.  From signs on a telephone pole advertising "apartment or room to let" to Internet web sites where you can take a virtual tour and rent your apartment in a matter of seconds without even seeing it, we have come a long way. 

Today it is estimated that only about 33% of Americans live in apartments.  The dream and reality of home ownership has changed, coupled with the construction of "cookie cutter" homes and communities.  That being said, there are indications apartment home living may be on the rise again...at least in the short term.  Jobs have started to come back, however, annual medium income has been declining over the past 6-7 years.  We had what was termed as "the housing crisis," tied to economic downturns starting in 2008 and increasing foreclosures and bank defaults.  Occupancy has been steadily rising in most apartment communities and in most major markets, and new construction of multifamily sites is again on the rise.  The most recent report for 2014 shows apartment occupancy is the highest it has been since 2000, and both rents and occupancy have been on the rise.  

Everything in our business runs in cycles and we don't need a Quija Board to discover what goes up, will some day come down.  These cycles used to be more determined on the banking industry, federal reserve, national economy, government regulations, technology, and interest rates.  Today we live in a global economy and external factors as well as internal factors play a huge part on these cycles.  Technology is changing quickly and in addition to rent optimizers which automatically set rents for a site staff, the way we communicate with both our teams and our residents is changing.  To throw out some numbers only 10% of homes in 1950 had telephones, compared to an average of multiple phones per household today including cellular devices.  Today's apartment community has wireless Internet, multiple pools, a full fitness center, dog parks, a business center, walking trails, and trash picked up at your door.  I some years back predicated in one of my articles we would see convenience stores in apartment offices and on some communities and voice activated lighting, and it is already being offered.

While our industry has evolved, in some regards it has also remained the same.  What has not changed is we are still dealing with humans and their homes.  We touch their emotions dealing with their home, cars, pets, finances, credit rating, familial status, and their lifestyle.  We forget that service is more than an email and expectations will never go down, only up.  As we raise rents, so do we raise the expectations of our residents.  We may have new ways to market through electronic mediums, but the emotions and feelings of our residents is what guides their wallets and their mind just as how it always has.  So the next time you hear the phone and think, "another prospect," you are wrong it is a guest because they seldom stay forever.  The next time you ask when a resident calls in a service request, "What is your Unit Number?", you would be wrong because they live in their home not a unit.  Don't ever forget they have the ability to fire everyone in your organization from the CEO/Owner on down, simply by choosing to live somewhere else.  While our history has been interesting and ever changing, some things never change. 

It's about the experience!

How do you make your residents and prospects/customers feel?  Let's talk about the prospect part of the equation first.  Pretty much the same spiels are given at every community, and everyone seems to follow the same points for what we call the basic points of a good shop.  From an industry standpoint, we look at conversion ratios, traffic counts, prospect calls, and of course visitors.  I ask a very important question and that is, "Did I create an experience that was memorable or did I just deal with another prospect?"

Being a cast member for Walt Disney World and asking the question about how their experience was usually brings some interesting answers.  What do you remember about Disney and what impressed you?  I often hear how clean it was, or now nice the cast members are, or how uniform the appearance is, and of course how organized Disney handles tens of thousands of people every day.  If you have been at Disney, you probably remember your experience with one of these answers.  For some reason, they base their experience on all these things but seldom do I hear it was a specific ride or attraction.  Take Tower of Terror for example.  It cost Disney 100 million dollars to make this one ride...yes this one ride!  So what is Disney really known for and what do guests remember.  More times than not, it is about the experience.

Property managers need to take a lesson from Disney and instead of pointing out their pool or their fitness center (or the rides in the distance), focus on the living experience they provide.  Any Disney park you enter you are engulfed in an experience before you get near any rides.  You are greeted by cast members waving and welcoming you.  You are met with music, sights, sounds, smells, and even the sparkling clean environment long before you get to the first ride.  And even after waiting in line for an hour to see It's a Small World and complaining about the wait, at the end of the day we are still in awe because of the experience that was provided and the cast members that were there to assist us.  The service Disney is known for and the “experience” they provide is considered to be the best in the world. 

In the multifamily industry we provide homes and a lifestyle, not just amenities and things.  For some reason we focus on the tangibles, forgetting about the experience we have the opportunity to create.  I have said it a thousand times; any leasing person that sits from behind a desk and greets their prospects there is missing an opportunity.  Imagine this, you walk into a community center and a person meets you coming in the door and says, "Welcome home.  My name is Larry, how can I be of assistance."  This is an example of the difference between customer service and a customer experience.  The difference is in the journey as we take them from a customer to a guest and making the entire event an experience.    Imagine at the end of the visit instead of the leasing specialist just shaking their hand and thanking them, walking out the door with them and to their car.  At Disney resorts we have something called the arrival experience, but it is much more.  Those covering the curb greeting new guests also have another task.  As guests are leaving we say things like, “Have a magical day,” or “We’ll see you when you return.”  In what ways can you change the event into an experience, and leave a lasting impression that make guests want to return and call your community home?  Think about it.

I also mentioned the experience when we are dealing with our existing residents.  If there are opportunities when you have an unhappy resident or guest, how do they feel when they leave?  This is not how you feel, but does your resident feel.  Does your company have a “customer service” hotline or call number?  My feeling is if a resident or guest has to call customer service, then something has gone wrong with their experience.  Now I know there are going to be corporate exec’s out there that are proud of their customer service centers and believe they serve a purpose.  I on the other hand have a different take and believe it often leaves the site personnel trembling in their leasing shoes when someone asks for the number no matter how they dealt with the issue.  People call customer service when they have a problem. So equating customer service with customer experience is like saying that a safety net is a trapeze act. Yes, the net is important to the act. But if the performer needs to use the net then something has gone wrong with the show.  Disney strongly believes in “empowerment,” which means if a cast member believes they need to perform a recovery they are empowered to do whatever they feel necessary to diffuse the situation.  There may be a discussion later on the level of recovery that was given as a teachable moment, but a cast member will not be reprimanded or terminated because they acted in a recovery situation.  This is where I believe the multifamily industry could do better in providing teachable moments for recovery and empowering our site teams in the process. 

Customer experience includes a customer’s perception of a company, a customer’s interaction with a company, and a customer’s recollection of that entire process, from start to finish, at all points. Customer service is more than simply assisting customers and meeting their needs. It helps to shape the overall customer experience but doesn’t fully define it.  The truth is you don’t create an exceptional customer experience solely by empowering employees.  You also need customer service standards to support those employees, and, ultimately, your residents and guests.  Have you communicated those standards?  Have you provided how the empowerment system will work?  As usual, I have provided many questions and not necessarily the answers.  This is because every company is different, every community is different, and each resident base has a different set of expectations.  Remember, my job is not to have all the answers…buy to inspire each of you to find them so they become part of you as a professional.  Now go lead and enjoy the experience!

Leadership Skills and Teams

So you want to be a leader?   You can take classes and read hundreds of books and magazine articles but what I have found to be the true secret comes from within.  You see to truly become a leader you have to not only have certain skills, but more importantly know how to apply and use them. 

Over the past eight weeks I have been attending Disney University in a program called Emerging Leaders.  A select few (32 in my class for 2014 from over 65,000 cast members) are recommended to participate in this program developing leadership skills and learning from the Disney perspective what it takes to be a great leader.   Companies all over the world want to be "like Disney," and send their corporate executives to DU as it is called because of the traditions and reputation of the organization.  Unless you are living under a rock in some unknown region without communication, you know what Disney is and what it stands for.  Some of you may not know that the goal of the CEO of the company and its founder was not to be the biggest or most powerful company in the world, but something very different.  That goal is to be the most "admired" company!  That puts, in my opinion, what Disney stands for in a totally different category.

I must say, it is an amazing program and even though I have written books and hundreds of articles on leadership I have learned one thing...there is always more than can be learned.  In looking at all of this, part of the program is shadowing other Guest Service Managers as well as reverse shadows in applying what has been learned in addition to leadership skills we have established prior to being a cast member.  It has also allowed me to think about leadership in property management as well as business in general and taking it to a higher level.  While I have touched on some of the key characteristics in past writings and in my books, I invite you on a journey to enhance your perspective on leadership in four very critical areas.  Think of it as a chain and we all know what the strength of  a chain is. 

First, what is the relationship of leaders as teachers and what can we do to enhance our teams related to this area.  You may know I have a passion for education and training, so this is probably not a surprise when I bring up the relationship of leaders as teachers.  The first part of this deals with relationships, which is the first step to your reports accepting you as a teacher.  Do you have the behaviors your employees will "trust" in you such as knowledge (technical and functional competence)?  If you cannot prove these skills, you will most certainly have difficulty winning your employees over to respect you as a teacher.  Can you accept change just as  you expect your employees to accept them?  Can you provide the "why" moments versus the "do" communication which  allows a basis for understanding what they are learning or why the changes are necessary?  If you cannot embrace these things and if you answer is no to any of them, there is little to no chance they will accept you for important teaching moments and the chain is weakened.

Second, what is the relationships of leaders as role models which lead to the success of your team and your organization?  Your employees or "direct reports" as well identify them, look to you for some extremely basic qualities that have an extremely important impact on their success...as well as yours.  Are you credible, honest, caring, and do you truly understand what you are modeling and why?  Are you willing to get down in the trenches with them to truly understand their role and responsibilities so you can build the relationship necessary as a role model?  Are your behaviors, decisions, and actions taking into consideration both (rational from your head) and emotional (from your heart) aspects which allow team members to "buy in" and model the role you play....ergo "role model?"   Again answer no to any of these and the leadership chain has a chance of being broken.

Next, do you deliver feedback and coach, or do you issue only reprimands and block out feedback from others.  The feedback part of this is crucial and something we have a difficult time accepting as humans.  More importantly with accepting feedback is what we do with it.  Just as acknowledging from those the feedback was received, was it important enough for you to modify your behavior or decisions.  With coaching you first must recognize that coaching does not have to be negative.  How often do you provide feedback and/or coaching, and it is specific and genuine?  When you must reprimand or correct performance or behavior, how does it come across?  Again is it sincere, specific, and based on facts and not feelings or beliefs?  Do you sandwich the intended message or are you direct?  All of these things can have an impact on feedback, coaching, and reprimands and again impact the chain.

Last but definitely not least is appreciation and recognition.  Both require artistic talents for the intended message to be beneficial and constructive.  We learned over the past few weeks something I had recognized but not realized, and there is a difference.  What I learned and then recognized was you cannot have appreciation without recognition for it to be effective.  I do not often recommend books, however, a part of our required reading was one called "The Fred Factor."  If you have not read it, I highly recommend it.  Recognizing others efforts means taking special notice of observed behaviors, while appreciation is gratitude and showing respect for someones potential.  Do you know what your team members want to be recognized for?  Do you know how they want to be recognized?  Are you a "Fred" and can you identify "Fred's?"

So, you can teach an old dog new tricks!  The last eight weeks have been inspirational and changed me significantly.  Sometimes it takes stepping back, so the steps forward are not only visible but going in the right direction.  Develop your skills not just for yourself, but for those you lead.  For you do not work in a vacuum and you will never...I repeat never, get to the top without those around you.  Now once again as I have said before, "Go lead!" 

From ordinary to extraordinary!

Doing ordinary things is easy and I believe what sets successful people apart is the ability to know and understand the difference.  As my friends and family know, I am currently involved in a career change.  Sometimes this is a little scary, sometimes exciting.  I look back on the many successes I have had from going into the military to entering property management, then performing training and consultation to working for Disney.  Recently I have had the opportunity to reflect on where I am and where I am going because of the opportunity to be selected into the Emerging Leaders Program with the Walt Disney Company.  Out of over 60,000 cast members (we don't call them employees), thirty are selected by their supervisors and an executive board to enter this program.  I was one of the thirty, and have looked back on how and why I was nominated for this prestigious honor.  Why was I asked to become a part of this select group?  What things did I do that made me a candidate?  If you think about it, there are few in this world that cannot to related to Disney and what it stands for and identify with the brand.  Companies all over the world look to Disney and emulate their business practices and principles.  Everyone wants to be like Disney and carry the reputation they stand for including other great companies.  Of all the companies out there, Disney does an amazing job at satisfying the customers needs, however, it really starts with the cast members and some basic principles.

While doing a shadow at the Concierge desk at a four diamond resort, I met an executive for Chevrolet who was here to attend a Disney University training program.  She was selected to participate in a program to understand the Disney basics and how she can apply them to her dealership.  If you think about it, Chevy is not a brand without recognition and brand identity itself.  For decades they have been know for providing superior products and services covering many different labels (Chevrolet, Buick, Saturn, General Motors, and of course Cadillac).  How was it that a company known throughout the world was sending their executives to Disney to learn about my company?  The answer is in the difference between ordinary and extraordinary, and how its cast members are taught to deliver an extraordinary experience. 

There are basics related to service at the Walt Disney World Company and the first one is called the Four Keys Basics. 

• Safety:  I practice safe behavior in every thing I do
• Courtesy:  I practice a positive image and energy.  I go above and beyond to exceed guest expectations.
• Show:  I stay in character and perform my role in the show.
• Efficiency:  I perform my role efficiently so guests get most of their experience.

Now you might think Walt and the organization thought these were enough, however, they did not.  They also came up with the Disney Service Basics.

•  I project a positive image and energy.
•  I am courteous and respectful to all guests, including children.
•  I stay in character and play the part.
•  I go above and beyond.

 Again, you might think this was enough, and again you would be wrong.  They also identified that leadership plays a significant role in the guest experience and therefore leaders should also have identifiers so they came up with the Disney Leader Basics.

• I lead with a positive attitude and demonstrate a commitment to my cast members.
• I know and manage my operation and teach it to my cast members.
• I recognize and hold cast members accountable for delivering the Four Keys Basics.

In addition to the above there are also 7 Key Values at Disney, as well as  12 Leadership Competencies.  You see the ordinary would be the Four Keys or just having the Disney Service Basics.  Being extraordinary identified just being ordinary would not meet the goal Bob Eiger (CEO of The Walt Disney Company) has which is, "Ultimately, our goal is to be the most admired company in the world."  Now he did not say he wanted us to be the best, or the greatest or the biggest, but the most "admired" company in the world.  Kind of puts things in a different perspective and because of taking the basics to additional levels he set the stage for its success.

So the next time you look at your employees or cast members ask yourself, "What takes us from ordinary to extraordinary?"  Is it that you have basic principles and values or is it more?  I believe we all know the answer!  So the as you search for extraordinary first look at yourself, then your team, then your leadership, then your organization.  Do you have in place values that are extraordinary which can lead to your company being anything but ordinary?  Make it a great day!

What the future brings....Part Two

So much of my writing is meant to be inspirational, and several times in the past year I have written about embracing change.  A perfect example are the changes I am experiencing in my career at this time.  After leaving the US Navy, I entered the property management industry.  First I managed office buildings, then went to shopping centers (enclosed malls).  Then after a life changing event and the loss of my job when the shopping center was sold, I found apartment management which is what I did for twenty-three years.  I always thought this would be my final career, and honestly could not see myself doing anything else say.  Well after apartment management I performed consulting and training in the property management industry (and also for some Fortune 500 companies), then had the opportunity to use my professional dive skills as a Dive Master for Disney while I was speaking and training.  Then I made the decision to seek full time employment with Disney which happened this past December.

Now I have been accepted into Walt Disney's Emerging Leader Program, an honor and privilege only given to a small group of cast members each year.  I will be attending Disney University classes for eight weeks, while also working at one of our fantastic resorts in a front office management position learning the ropes of lodging.  Who would have thought at this point in life I would be changing careers and working for one of the best known companies in the world.  But, that is exactly what is happening and I am extremely excited for the opportunity.  Property management and training/consulting has been great for me, and many of the business and leadership applications I learned and developed will no doubt be of use.  I do however, look forward to continuing to learn as I complete the EL Program with Disney and find a leadership position.  

As I start my new journey into a magical world where tickets may be sold but memories are for a lifetime, I do so inspired by what we do and as always work to helping others achieve excellence.  Whether managing apartments, people, or facilities one thing is constant in any great organization.  Our customers or guests have the ability to fire everyone from the CEO of a company on down, simply by choosing to spend their dollars somewhere else.  Seek greatness, teach excellence, inspire others, and develop others to make your organization as strong as it can be.

And to think it all started with a rabbit, and not a mouse!  Check up on Disney history or wait for my next blog.      

Happy Holidays from The Mouse House

Ok, so not really at the Mouse House when I am writing this but close enough to watch the fireworks at Epcot from my office window.  As many of you know I have had a very successful career in both property management and as a trainer and consultant in the property management industry.  I am so thankful for the fantastic people I have worked with and especially the ones that have touched my heart and soul.  I have had wonderful mentors as well as some fantastic teams who entrusted me as their leader.  When educating and training I assisted in the development of thousands of team members over the years to find inspiration in reaching personal and professional goals, and still have a file containing some of the exceptional comments I have received which I call my “Not having my best day file.”  I have used this to get the creative juices flowing if a mental writing block comes into play, as well as giving the occasional boost of confidence when trying to detail a training outline for a new presentation. 

When not visiting Michigan in February because I have a workshop to give (Who would go to Michigan in February unless they were being paid well for it?), or spending part of my vacation working on a new Power Point presentation, I do insure my downtime is quality which may include my passion for our aquatic world.   Most of my down time is working as a scuba diver for Walt Disney World and their Dive Quest program, and I might add doing some extremely interesting and I might say important things and getting paid for it.  My responsibilities have included safety diver coordinator for character diving, a.k.a. Mickey Mouse scuba diving in the 5.7 million gallon aquarium (see photo).  Pretty cool when you are the person responsible for making sure Mickey Mouse is alive for his next movie or parade event.  Other tasks have included helping capture a large spotted Eagle Ray for his regular vet checkup, or helping transport a 1,400 pound West Indian Manatee from Disney to the University of Florida for an MRI and getting him back home.  Or how about being responsible for training divers how to use chain mail suits safely so in the event the vet staff needs to capture a shark for a checkup, it is done safely.  Throw in having seen some unbelievable animals in the wild which most people may be lucky to see on National Geographic is down right awesome. 

I guess where I am going with all this is none of us knows what the future may bring.  We could be working extremely hard and performing extremely well, and the company we are with runs into financial problems.  You go into work to find your position has been eliminated!  Yes, happened to me.  Had my position not been eliminated I might not have been a speaker and trainer for the National Apartment Association and touched so many lives.  I might not be a scuba diver at the “happiest place on earth,” as it is called and work personally with the “big eared guy” himself.  After completing course work I am now a Disney Trainer, and been selected for a leadership position with the organization.  None of this would have happened had fate not touched me and something at the time that was perceived as “really bad,”  found a lighted path to what may be a new career.  So the next time life gives you lemons, find an adult beverage that requires lemon juice as you focus on moving forward.  Or if you don’t drink, make sure the ice cube trey is full and have a cold glass of lemonade. 

Happy Holidays

Larry

Training is not an event...it should be a process!

A recent accomplishment was being certified as a Trainer with Walt Disney Companies.  Pretty cool saying I am a trainer for Mickey Mouse.  While I have been providing training and education for over 15 years and previously taken TTT classes (that's Training the Trainer for those in Rio Limbo), being a Disney trainer is something few get the opportunity to say they are.  One thing is sure, Disney does things right and they look at training as a constant moving target and an evolutionary process.  We have Disney University and the Disney Office of Learning and Development, in addition to trainers within the organization by the hundreds.  As with my position on the Dive Quest dive team, we are always involved in training and re-training.  As an example, each year we have several courses we have to take even though we have taken them before.  This includes BBP, HAZCOM, Safety in Motion, and other important areas.  In addition, we are subject to training exercises at any time and without notice involving emergency response, CPR, and First Aid. 

Where am I going with this?  No matter what you are doing or what position you hold, training should be thought of as a process.  As in property management, we occasionally hold Fair Housing training with our team.  Some companies when they hire new employees do Fair Housing training, and believe they have done their job.  Problem is every year law suits say some members of our teams do not understand Fair Housing.  I have said in previous writings it is very evident from a survey I once did.   Out of twenty managers I had at a training session, only two could tell me the seven protected classes.  This is sad people, and proof we need to insure what and when we are training is as clear as why we are training.  

Another important factor is how we train related to both presentation and content.  Not everyone learns the same way, and understanding learning styles is critical from a training perspective.  A learning style is an individual's natural or habitual pattern of acquiring and processing information in learning situations.  The three basic styles are auditory, visual, and tactile (also known as kinesthetic), with one critical aspect being we as trainers need to be able to identify the needs and comprehension of our learners.  When we hear a trainer speak, what is the first verifier that makes us want to listen?  Many studies say credibility is first, and proving the trainer is knowledgable about the subject will either enhance comprehension of the material or place up barriers.  Next is how the material is presented and how the trainer creates both a verbal and visual relationship with the learners.  Are they exciting in their presentation and create an environment the makes the material user friendly?  

Training is not something that happens the day we are hired, or waiting to see someone is not performing at their best to suggest additional training.  It needs to be pro-active and not re-active.  I have often heard, "we don't have time to add additional training."  So you have time to counsel team members when they are not performing, to deal with other team members who are unhappy because you don't have a motivational environment, or finding and hiring new people that leave or are terminated because we did not believe training was a process.  Make training a process and you might find things in your life and organizational, less eventful.