Strategy for HOA Management Companies
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The strategy of an organization is the most fundamental decision that the leadership must make in order to ensure long-term success of the company. Strategy can be broken out into many pieces. We will discuss a few here. The overall purpose of an organization is part of its strategy. Without a purpose, employees don’t know why they go to work. They don’t know why they do the work they do. Without the strategy in place, the organization is like a ship at sea with no directions and aimlessly wanders until it runs into ground or reaches somewhere good. There are several components of the strategy that need to be developed by management. We will discuss a few here. The highest level of the strategy is the organization’s purpose. Purpose gives the employees a reason for showing up to work everyday. It tells them why they’re doing what they’re doing, and it even tells your customers why they are your customers and what it is that you actually stand for. An organization without a purpose is like a lost person with no direction. Often times, we call the purpose of an organization its vision, or something that it is striving to achieve over a very long period of time. Typically visions are a ten or twenty year time horizon that are spelled out in a one paragraph to one page document for everyone to understand and associate with in the organization. A second area that’s developed in strategy is the organization’s mission. The mission is what the organization is trying to in a shorter period of time, maybe three years to five years. And the mission is a very clear way of delivering on steps that will help the organization achieve its long-term mission or purpose. The mission is often several sentences and is well articulated by all staff when it is well understood in an organization. The mission helps people deliver on their daily tasks and makes sure that everyone in the organization is moving in the right direction. The other area of strategy that’s critical is the exit strategy of the organization. The owners in an organization will operate differently, set up different legal structures and hire different staff if they have differing exit strategies. For example, if one owner is setting up an organization so that it can one day sell it for the most profit possible so that he/she may retire, they are going to set up an organization and run it significantly different than someone who is setting up an organization to be given to their son/daughter to run decades in the future. These different strategies are neither right nor wrong but will fundamentally change how the organization operates and what the corporate culture is in an organization. Corporate culture is another critical facet of the strategy of the organization. And unless it’s focused on being created specifically by the leadership for a specific reason, organizational culture will develop as a default, often being something very, very different than the ownership or leaders in the organization had intended or wanted to have.
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