Sun Tzu said it best in the Art of War (475BC), ‘In the midst of chaos, there is also opportunity’.
And so it will be in the chaos that will follow the Four Corners show on strata managers on Monday night.
Here’s some ideas –
- Strata schemes will leave firms exposed and those that don’t answer the hard questions well. This is already happening following the ABC 7 30 report on Net Strata. Be ready to pitch for new business but make sure you have worked out your point of difference.
- Experienced staff will be looking for new employers offering a fresh approach. Again, this is already happening. Steer away from employment contracts that offer bonuses calculated as a direct split of Schedule B fees written by them. These will come under fire sooner or later based on the Hayne Banking Royal Commission findings.
- Senior staff will leave and set up new firms. These will be established free of insurance commission and related party transactions giving them a competitive advantage. There are a surprising number of ‘newer’ entrants already doing this. This will become the new norm. Those hooked on these income streams will have to transition to new charging methods.
- There will be opportunities to recut your agreements with strata committees. This need not mean doing more for less. You have a one-off chance to use the Four Corners show to call a meeting with committees or chairpersons to have an open and frank conversation about your services, fees, and charges. Explain what you do for your base fee and what is available at additional charges. A one pager will help.
- There is a vacuum of strata professional leadership. The peak body Strata Community Australia may not survive. Even if it does, board positions will be open to a new generation. This is an opportunity to become a strata management thought leader but don’t underestimate how much work is involved in doing this well.
There will be more to come, but this is a good start to a new and better future for strata management professionals.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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