Strata (condominium) management could be hindered, not helped, by your business skills
Australian Financial Review
Jimmy Thomson
15 September 2017
You might think that all those skills you acquired climbing the
corporate ladder and studying for your MBA make you the perfect
candidate for your strata committee.
But while some attributes help in both fields, others have a downside that can lead to strata disaster.
The first four, listed below, fit into the downside category, while the last two are strengths in both arenas.
1. Business brain
A good strata scheme is run in a businesslike manner—but not like a
business. Yes, you need to have all the processes in place to avoid
waste and keep things ticking over smoothly.
But if your prime focus is the bottom line—or your monthly fees, to put
it another way—you are missing a major point. These are people's homes
and you can't ignore emotions.
2. Secrecy v transparency
While the business world has to make sure that customers, investors and
employees are aware of what's going on, the phrase "commercial in
confidence" protects vital secrets.
But there is no place for secrecy in strata. When it comes to "need to know", that means everyone, everything and all the time.
3. The power trip
Whether you're CEO of a corporation or chair of a small strata scheme,
there may come a time when you believe that only you know how to do the
job. So you'll also believe that it's to everyone's advantage if you
stay in power, regardless of what it takes.
Suddenly it's all about politics and you do whatever it takes—including
stacking committees and manipulating minutes—to make sure
you are re-elected next AGM despite it not necessarily being in the
building's best interests.
4. It's the secretary, stupid
Don't underestimate here. Unlike many businesses, the real power in any
strata committee lies with the secretary (should they choose to use
it). They control the flow of information, call the meetings and have
most contact with other owners as well as the strata and building
managers.
In a prestige block not a million miles from where I sit, all nine
members of the current committee have at some point been hand-picked by
the secretary to fill a mid-term vacancy, then approved by the
previously chosen few, and then re-elected at the next AGM.
5. Duty of care
Just as in business where you dare not take your eye off the ball,
committee members need to keep themselves informed about defects,
maintenance, contracts and commitments.
You would lose your job if you signed a contract without checking all
the ins and outs. Why would you drop your guard as a member of a strata
committee?
6. A delegate balance
Delegation is an essential art in business and a smart strata committee
recognises there may be residents with useful skills, so they invite
them to join advisory sub-committees for specific projects or issues.
Then, when a vacancy arises, they have already seen them in action, and
vice versa.
But if your office-bearers tend towards paranoia, any "outsider" is a
threat, and the more they have to offer, the greater threat they are.
Jimmy Thomson edits the strata advice website flat-chat.com.au. Different strata laws apply in different states.
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