Should Strata Executives go Pro ?

Question:    What's the hardest job in strata to fill (or fill well) ?


Answer:    The role of active, knowledgeable, independent, fair and reliable executive committee member.


Despite almost 50 years of strata in many cases the volunteers who dutifully carry out these roles struggle to perform them well, make many unrecognised personal sacrifices, receive inadequate appreciation and suffer unjust criticism when things go wrong.


It's not fair ... but it's a fact.


In theory a strata executive is an owner who -

• understands their building (physically and legally)
• devotes their time to get ahead or and on top of all strata scheme issues
• understand the financial issues facing the building (budgets, cashflows and provisioning)
• can assess risks and provision for them
• strategises for the medium to long term but implements in the short term
• can handle meetings and conflicts, is free of self interest
• has no improper connections to the developer, manager and contractors,
• and is popular enough to get re-elected each year

In practice, these kind of people rarely exist and, even when they do, they don't last long and/or their good work is poorly utilised.


And, the other people who help strata schemes (like strata managers, on site managers, lawyers, accountants, etc) cannot do the same things as they don't have the independence, have other strata scheme customers competing for their time and cost too much when the required time is properly included.


But, when executives make mistakes they can cause many problems like -

• delays on important matters that let problems continue too long or cost more to fix
• mistakes that cause lost time and money
• exposure to litigation and damages claims
• owner and occupier conflicts
• worsening the experience of living and owning in the building

So, new solutions are required to ensure that more ideal executives sit on strata committees that address the following 5 challenges facing strata scheme executives.

1. Better knowledge and understanding of strata regulations, building matters, financial management, strategic planning, project management and people skills.
2. Time to become familiar with the building, check on people and things, prepare for meetings and other deadlines, communicate with stakeholders and report matters.
3. Managing frequent small and repetitive (but important) administration.
4. Maintaining independence from self-interested parties and practice good ethics.
5. People and conflict management skills.

Jimmy Thomson has recently written a comment in Flat Chat called Pros (and Cons) on EC that predicts the emergence of professional executives on committees (and he might be right).


Maybe it is better to have a key executive committee member that's paid to do all the things the others executives don't or can't, who has the skills to handle all strata issues, is independent and skilled and can handle everyone smoothly and professionally.  


What do you think ?  And, what's it worth ($10,000 per year) ?


I'm interested to hear your thoughts.


My only worry is that these pro-executives might wear padded uniforms. drive flash cars and have agents representing them.  You never know !

Francesco ...