The 5 P’s of Team Design and Development For Managers

Teams are a useful business tool for process and quality improvement, which may lead to higher customer satisfaction or cost reduction. Many managers recognize the benefits teams may bring but do not properly consider what it takes to get a team functioning in the direction management desires. When forming teams, manager should consider the purpose, member participation and placement, as well as team processes and plans. With the 5 P’s of purpose, participation, placement, process, and plan, management can better design teams and determine development needs.

Purpose – Will the team clearly understand why it exists, what it is to do and how it will know they are successful? The team and management must agree to written purpose or mission statement so that they are working together in a common direction towards solutions that meet their overall purpose. Team goals and management deadlines should align with their overall purpose and will serve to guide performance and help them meet challenges.

Participation – Who would be the best people to include on the team and how large should the group be in order to accomplish its purpose? Management needs to consider necessary skill sets, professional attitudes, and process knowledge when selecting team members. In addition, for membership at the formation of team or as personnel needs grow, look for a balance between personality types for both task and people focus to be included so the solutions team may design will be more diverse and innovative to achieve team purpose and required work.

Placement – Where will the team members be physically located and how often should the team plan to have meetings? If the team is to be an intact work group, this may make some things simpler but the group will need a meeting room for complex problem solving. If the team is spread over multiple sites, managers will need to consider costs and possible problems team may have due to culture or time differences, and then determine whether travel for some meetings is required or if any special equipment is needed for members to meet regularly via phone or on-line.

Process – How will the team get to where it needs to go in order to accomplish its purpose? The members should develop and agree to their ground rules, any constraints that management may set related to decision-making authority or functional boundaries. Initial team training should include meeting management with a suggested meeting agenda and record-keeping formats, interpersonal communication, problem solving, and if relevant to team’s work include process mapping.

Plan – Will the team acknowledge when its project or assignment will be complete and know what it needs to accomplish its tasks? If the goals are specific to their purpose and the team agrees these are relevant and achievable goals, then the team needs to agree to a timeline for goals and a way to measure how they are doing towards goals. Not only should the team and their management define work deadlines and expected milestones in its goals and schedules, but it should also include necessary training to acquire cooperation and task related skills.

Considering the 5 P’s of purpose, participation, placement, process, and plan, management can design better teams and plan their development needs accordingly. Recognizing the benefits teams can bring to a business or organization is good, but teams are only effective when management understands what it may take to get their teams moving in the desired direction. Well designed and developed teams only become a useful for process and quality improvement when managers consider member selection for best participation and preferred placement along with the team’s purpose, process and plan.

HOA Property Managers Take Advantage of Outsourcing

I just returned from a great trip visiting some wonderful HOA management companies in the South Eastern US. These companies have experienced explosive growth and have smart people leading their firms.

Unfortunately, all the growth and constant focus on superior customer service has left the executives of these firms exhausted as they continue to try and keep juggling the demands of running a ‘successful’ company.

The sad news is that I hear this story repeated again and again as I talk with management companies throughout our industry. You see in other industries a concept of specialization is the norm and companies quickly determine their ‘core competency’ and outsource the rest. This model is now a tried and true approach to efficient operations in nearly every Fortune 500 company.

These big successful Fortune 500 firms outsource things like human resources (e.g., Hewitt & Associates), payroll processing (e.g., ADP), entire IT operations (e.g., Accenture), even manufacturing. Not surprisingly, these firms analyze what they do that is really valuable and difficult for competitors to replicate, then they start outsourcing the rest!

Take Nike, a global brand with amazing brand awareness. Did you know that they don’t manufacture ANY of their shoes! How about American Express, they spotted having an IT department over a decade ago!

You see, when you are great at winning HOA management contracts and providing superior customer service, you need to dump the other work you do that isn’t helping you differentiate yourself.

Take HOA accounting. I have yet to see an HOA management firm that is great because of it has superior HOA accounting. In truth, it’s just accounting. Either you do it right or you don’t. No one can differentiate on this piece of the business.

If you can’t differentiate yourself from your competitors with accounting, then you need to ensure you 1) do it correctly and 2) do it at the lowest possible cost. You can trim costs by outsourcing.

If you’re successful in HOA management but haven’t started analyzing what really makes you great, I suggest you start doing so now (tip: ask your clients why the do business with you to get the answer!). Then, start outsourcing the rest.

The lower cost and less work will make you more profitable and give you more time to enjoy all your well deserved success!

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