Great Communication: A Key to Effective Vendor Management
Effective vendor management is crucial for the leadership of a managed community. Communities often rely on external partners for services such as landscaping, sanitation, cable and internet, pool upkeep, valet services, and more. Successful collaboration among the board, management company, and vendors is essential for optimizing the community's budget and enhancing residents' quality of life.
The Importance of Effective Communication in Vendor Management
A lack of consistent and clear communication between these parties can lead to significant issues. Ineffective communication not only incurs financial losses for a community but also erodes the trust between residents, the board, and the management company. This trust includes faith in the management company's ability to handle vendors and recommend suitable ones for the community. A single breakdown in communication can quickly lead to dissatisfaction.
Poor communication can also result in unexpected costs. Misunderstanding contract details or failing to maintain an open channel for questions can mean the community doesn’t receive the expected services. Consequently, the board might have to cover these gaps separately, straining the operating budget.
If there's uncertainty about your property management's communication practices with vendors, it's vital to inquire. Ensuring that vendors act in the community's best interests is crucial.
Understanding the Language
Effective communication starts with understanding the language used by various parties. Most board members may not have expertise in all community management areas, yet it's essential to grasp the basic terminology involved.
Board members have the responsibility of making decisions on contracts for services like landscaping, even if these areas are unfamiliar to them. Understanding these contracts and the scope of work involved is critical. Price should not be the only consideration; knowing more about vendor operations ensures thorough oversight.
While the board should partake in initial vendor discussions, the execution details are best left to the management company. It's important to clearly communicate the community's vision and needs to potential vendors.
Board members should ensure they have a clear understanding of service expectations and what vendors realistically provide. For instance, a landscaping company managing extensive properties may not provide detailed services like hand-pruning every shrub. This expectation may arise from a lack of understanding of large-scale landscaping.
Managing these aspects is easier with a professional management company's involvement, which uses its expertise to relieve board members of these responsibilities.
Becoming Fluent in Vendor Terminology
Staying current with vendor terminology and jargon can be facilitated by management companies that offer educational seminars or round table discussions with vendors. Attending home and garden shows or other trade events can provide board members with the opportunity to engage directly with vendors and learn about the latest techniques and products available.
It's equally important to keep management staff informed and educated. Encouraging participation in professional development and educational programs can be highly beneficial. Vendors often host events where property managers can earn continuing education credits, and many of these events are open to board members too.
By committing to effective communication and understanding vendor language, boards and management companies can work as partners. This collaboration will optimize the community’s budget and enrich the lives of residents.
