Why is organisational design and structure important to the success of a Property Management business?

Why is organisational design and structure important to the success of a Property Management business?

Good organisational structure and design helps improve communication and increase productivity. It creates an environment where people can work effectively.

Most productivity and performance issues can be attributed to poor organisational design. This often results in, among other things, confusion within roles, a lack of coordination among tasks and procedures, and failure to share ideas. A company can have a clear mission, talented people, and great leaders and still not perform well because of poor organisational design.

To be effective, an organisational structure should be designed to clarify who is to do what tasks and who is responsible for what results, to remove obstacles impacting performance and to equip decision-making and communication reflecting and supporting company objectives so you can achieve:

  • Excellent customer service
  • Increased profitability
  • Reduced operating costs
  • Improved efficiency and cycle time
  • A culture of committed and engaged employees
  • A clear strategy for managing and growing your business

The size of the organisation also affects the organisational structure. i.e A larger portfolio may increase the number of managerial levels and number of employees with diversified responsibilities to complete the required tasks.

As your property management business grows the challenges in the external environment become more complex, processes, structures and systems that once worked become barriers to efficiency, customer service, employee morale and financial profitability.

Property Management Businesses that don’t continually renew themselves suffer from such symptoms as:

  • Inefficient workflows
  • Redundancies in effort (“we don’t have time to do things right”)
  • Lack of knowledge and focus on the customer
  • Lack of ownership (“It’s not my job”)
  • Cover up and blame rather than identifying and solving problems
  • Delays in decision-making
  • People don’t have information or authority to solve problems when and where they occur
  • Management, rather than the front line, is responsible for solving problems when things go wrong
  • It takes a long time to get something done
  • Systems are ill-defined or reinforce wrong behaviours
  • Mistrust between workers and management

The following points are important when it comes to designing and implementing your organisational structure:

  • Examine the complex relationship between tasks, workflow, responsibility and authority, and ensure these all support the objectives of the business.
  • Defining tasks, functions, and skills. What are the performance metrics for each function/team? How are they evaluated and held accountable?
  • Ensure good organisational design facilitates communication, productivity and innovation.
  • Streamlining core business processes—those that result in revenue and/or high standards of service to customers.
  • Create an environment where people can work effectively.
  • Create a talent strategy that will help deliver business objectives successfully.
  • Coordinate each task to facilitate the goals of the department.
  • Consider the impact of clients, customers, suppliers, competitors, legislation changes and economic conditions.
  • Streamline the use of Technology. Ensure all staff know how to use each function of your software platforms.

Assess the current state of the department

You don’t want to begin making changes to your current organisational structure until you have a good understanding of its position. PM Training Academy facilitates a comprehensive assessment of your department to understand how it functions, its strengths and weaknesses, and alignment to your core belief and business strategy. The assessment process is astounding in the clarity it brings to both Principal and Property Management staff, not only regarding its overall state of health but, most importantly, what needs to be done to make improvements.