Manager Motivation

In the current market as a self storage owner, investor, or operations manager you are facing a number of obstacles: a battered economy, a weak real estate market, an increase in delinquencies, decreased occupancy, decreased NOI, and more competition than ever before. As in years past most of this is cyclical and the strength of our regional areas will recovery, in some areas this recovery has already begun. While the economy is in recovery, there is still need to set a positive and inviting tone with our customers as well as with our facility managers. One of the obstacles in dealing with lackluster economic conditions is keeping facility managers motivated without letting complacency take over. Motivation starts with hiring the right manager, setting the right goals, along with having positive leadership and rewarding your employees when they go above and beyond the scope of their position.

The easiest type of manager to motivate is a manager who is motivated intrinsically. The standard definition of intrinsic motivation is simply motivation that comes from inside a person rather than any outside reward such as a bonus. Typically, this type of facility manager is motivated by the satisfaction of completing a job well rather than a bonus on the amount of units rented or inventory sales. An intrinsically motivated storage manager will take "ownership" of their facility. For example you may have a facility manager that consistently creates and implements new marketing ideas without direct solicitation, keeps the grounds around the facility in impeccable condition, makes the rental office a calm and inviting place for customers, decorates the office for the holidays, always has a bright and positive attitude, and gives the facility their personal touch. The drive to succeed is not typically something that is trainable, a manager usually has this motivation or not. During interviews, look for managers that are motivated internally. Often potential managers will provide letters of recommendation along references. These should be used to gauge not only the qualifications of a potential candidate, but to find out what kind of facility manager they will be overall. Look for potential managers that have been in a position where intrinsic motivation is expected such as a former business owner, former military, or an apartment manager. Remember, an intrinsically motive manager is one of the best types of managers you can hire.

One of the easiest ways to motivate a facility manager is to provide goals that are clear, concise, and realistic. In my previous life in the corporate world, I would regularly get financial and customer oriented goals. Often times I would know right away whether a goal was attainable or a complete work of fiction. Nothing will demotivate a manager faster than looking at a set of goals, whether they are financial or customer oriented, and knowing they have no possible way to attain them. This does not mean to lower operating standards or allow a facility manager to talk you out of a goal that is attainable but difficult; it means to keep your perspective in the present economy. Each facility manager should be given a list of goals and an operating budget, which should be reviewed regularly. As an operations manager, work with your facility managers and discuss the goals of the facility. Allow your facility managers to work with you as 2010 operating budgets are completed. How much of an occupancy or NOI increase do you expect for 2010? How much do you expect in inventory sales? What kind of closing percentage for customer leads are you expecting? What percentage do you expect to decrease expenses? Is your payroll going to increase or decrease? How much will your marketing budget increase or decrease? Allowing facility managers to work with you in creating their goals will give them a sense of responsibility towards attaining those goals. This works especially well if a facility manager's bonus structure is tied to the goals you have both agreed.

The current economic situation we face as operation managers is tough. Not only does it affect our facilities in terms of income, delinquencies, NOI, and other facility metrics, it affects the performance of our facility managers. We all know as the economy struggles, so do our customers and facility managers. Our facility managers are very much like "bartenders" without the alcohol. They hear every customer's problems from the domestic disputes, to customers moving because of foreclosure, the family member that did something wrong, and the story of another customer being laid off. Mix these issues along with the fact that most facilities are not performing as many people had hoped; it can psychologically overwhelm a person quickly. As an operations manager your job is to keep moral and motivation high. Even with tight budgets you should be taking care of the managers that do a great job for you and treat them well. During one of your visits, take your manager to lunch, point out the items that your manager has excelled on, maybe cover the facility one day and give your manager a paid day off, or give them a gift card to a local restaurant or store. Different types of motivation work for different people. Small acknowledgements, whether monetary or not, will go a long way in keeping your managers spirits high during a difficult economic time.

As we move into 2010, none of us will soon forget the challenges of 2009. Motivating our facility managers will continue to be a challenge. If you are hiring a new facility manager this year, look for one that is intrinsically motivated to get things done around your facility. Work with your managers on realistic goals for the coming year; allow them to be a part of the budgeting process. Lastly, provide the moral support and leadership skills needed to keep your manager's upbeat, their spirits high, and on track for a strong finish this year. Motivate your facility managers correctly and you might be surprised with the long term success of your facility.

Matthew Van Horn is Vice President of Cutting Edge Self Storage Management. Cutting Edge Self Storage Management is a full service management company specializing in Management, Feasibility Studies, Consulting, and Joint Ventures within the self storage industry. For more information, contact our main office at 866.970.EDGE or visit our website at Follow us on Twitter at Cuttingedgemgt.

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