Diversifying Through Project Management

Having dedicated project managers on staff is a growing trend at management companies. What are the benefits and is this business model worth a try?

By Dean Jackson, CCAM-HR

As management companies continue to strive to differentiate themselves from the competition, the services that they offer have started to become more diverse and specialized. This diversity and specialization can provide unique services to HOAs and can provide more efficiency and uniformity inside a management company.

A newer trend, one that you probably haven’t seen even a decade ago, is management companies having project managers on staff or even having a project management division.

Throughout our industry, the community association manager usually manages the various projects in their portfolio of associations or in the case of a General Manager, at a single association under their care. For example, at any given time a manager may have two siding projects, a roofing project with several water intrusion issues and a paving project.

This variety of work will make an experienced manager into also a good project manager in their own right, and this model continues to be the norm. This model can also monopolize a manager’s time, take away from the day-to-day management of the community, and in some cases, cost the association more in billable management hours.

Project management can easily be confused with construction management, but while related, they are not the same thing. While the construction manager is a trained professional focused specifically on the construction portion of the project, the advent of in-house project management services allows the project management staff to carve out some of the responsibilities and tasks that are normally on the community manager’s plate.

These responsibilities and tasks are focused on the overall project from inception to planning and budgeting and finally to the final piece, construction. This transfer of responsibilities from the community manager to the project manager can benefit the community association managers, management company, HOA, and homeowners.

So what are the benefits of having a project manager or project management division?

BENEFITS TO THE MANAGER

When the manager’s project load is lightened, they can be less stressed and focus on their service to their client. They may even have the bandwidth to take on additional clients.

BENEFITS TO THE CLIENT

Associations will have a more focused manager with more time to respond to emails and calls and a greater attention to detail. The client also benefits in situations where the project may require the management company to bill for hours.

As the project manager or the project management division repeatedly work on similar projects for many associations, they develop templates, shorthand communication with contractors and construction managers, and processes which save (billable) time, increase efficiency, and result in more uniformity, quality control, and better communication. The managers no longer need to constantly reinvent the wheel.

BENEFITS TO THE INDIVIDUAL HOMEOWNER

The project manager has the capacity to work with the homeowner, as do the manager and the contractor as well to come up with solutions to issues, often with more consistent and compassionate communication. This can bring confidence and assure homeowners that things are being addressed and that they have a line of communication when things might not have been addressed properly.

BENEFITS TO THE MANAGEMENT COMPANY

The managers may have the time to manage larger portfolios and bring in more revenue. Projects throughout the company are of uniform quality, and additional revenue can be generated through the billable hours on those projects that the community managers may not have had time to address. The company also has a service that they can market to prospective clients.

ADDITIONAL BENEFITS

The project management professionals within a management company are typically more available than the managers for special projects. The team can be collaborative, teaching and learning from each other, with each person knowing all the systems.

This is an “iron sharpens iron” situation where each person makes the team greater than the sum of its parts. There is also accountability, both to the client and the company. If projects are suffering or successful, it is easy to shine a light on the reasons as to why.

Companies can consider whether this approach will be a benefit to their individual team of managers.

• Would the managers prefer to continue under the normal model or would they see value in a new approach?

• Would the company be better served by hiring a project manager who comes from the construction industry or one who started as a manager and has an understanding of the HOA’s perspective?

• Is a single person (and maybe an assistant) appropriate or does the size of the company justify growing the project management services into a division?

While project management has a growing role in management companies, it is far from common and may not be right for every company. It’s one of the many ways that companies can diversify their services for their own benefit along with the benefits of their employees and clients.

Special thanks to Stephanie Silver of Collins Management, ACMC, for contributing to this article.

Dean Jackson, CCAM-HR

Dean Jackson, CCAM-HR, is the Director of Project Management at Collins Management, ACMC.