Can (and should) a strata scheme be strategic ?
It's a question that many people have considered and it is becoming part of the new dialogue about strata scheme governance and management. Michael Teys of Teys Lawyers recently issued a strata training note called 'The mission, vision and values of a strata community' which caused me to think about bit more about the issue. You can get a copy of the Teys Lawyers training note here.
In my view, when it comes strategy in strata schemes there's probably none.
Why ? Well here's my reasoning.
The dictionary definition of strategy is as follows.
strat·e·gy (strt-j) n. pl. strat·e·gies
1.
a. The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war.
b. The science and art of military command as applied to the overall planning and conduct of large-scale combat operations.
2. A plan of action resulting from strategy or intended to accomplish a specific goal. See Synonyms at plan.
3. The art or skill of using stratagems in endeavors such as politics and business.
[French stratégie, from Greek stratgi, office of a general, from stratgos, general; see also stratagem.]
But a strata scheme is neither at war, or the military, in politics or running a business (although many commentators have tried to liken strata schemes to each and/or all of these). Rather, a strata scheme is legal construct to share the ownership of a high density building for residential and/or commercial use and intermediate the various stakeholder and public interests.
So, strategy for strata schemes is a plan of action intended to accomplish specific goals.
But since strata stakeholders are extremely varied and they rarely have the same imperatives and interests there is not likely to be many (or any) common goals. Additionally since each stakeholder is legitimately entitled to pursue their best interest and there is no need for any compromise by any of them, they do not generally converge on strata matters.
For instance, some owners are short term and some are long term owners, some are owner occupiers and other never visit the strata scheme, some owners have not debt and other are heavily geared, some owners paid to much and other bought bargains ... the potential differences are endless. And this is simply the owners ... it gets worse when you consider the non-owner stakeholders too. So, it's not surprising that finding any common goals is unlikely and when it happens it is more a co-incidence and/or shortlived.
As a result, most strata scheme operation is driven by 3 things -
- Compliance - things happen because they have to either according to law or necessity.
- Crises - things get done when they break, there is legal notification or action or simply in response to concerted demands.
- Self Interest - one or more owners actively pursue thier own interests in and through the strata scheme.
But to become strategic will involve strata schemes, their committees, managers and owners doing the following 7 things (which are all a bit new and different).
1. Identify commonly supported gaols. These need to be things that all stakeholders benefit from (even if in different ways and different proportions).
2. Research and prepare options for achieving those goals (and the different possible outcomes) and the cost/benefits of each option.
3. Canvass strata scheme stakeholder views on the options (not just owners) to discover unacceptable options.
4. Understand that there may never be consensus and that any decision will to have opponents and detractors (and prepare for them).
5. Make the best decision possible (rather than avoid or delay decisions)
6. Implement the chosen strategy/ies according to the milestones and benchmarks (built into each option)
7. Report progress to everyone (including successes, failures, delays, problems, results, costs, etc)
What do you think ... could it ever happen in strataland ?
If so, I'll be seeing you at the next strata strategic planning workshop.
Francesco ...
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