The company improves by celebrating those managers who do well and spreading their best practices across the portfolio. Struggling performers get some “TLC” and, if things still don’t improve, they’re replaced. While this system has spawned dramatic improvement, Blair wants his property managers to reach even higher. “We’re good, but not great,” he says. “We’re on our way to becoming great.”
Avalonbay Communities at a Glance
- What: A REIT that develops, redevelops, owns, manages, acquires and sells multifamily real estate
- Founded: 1993
- Headquarters: Alexandria, Va.
- Revenue: $609.6 million (2003)
- Starts Projected in 2004: 2,135
- Units in the Pipeline: 15,167
- Development Pipeline: $3.1 billion
- Geographic Coverage: Both coasts, including New York, Washington, Southern California, and Chicago
- Revenue Sources: Rental income, development fees, management fees, and gains on sales of assets/land
- Employees: 1,600
Operational Revamp Ask Bryce Blair what he’s concentrated on since taking over AvalonBay and the first two things you’ll hear are focusing on a limited number of markets and building a variety of products in those markets. But soon afterward, he’ll list a third, but equally important, goal: great customer service. The concern for the customer was readily apparent in his biggest personnel shakeup since accepting his new CEO role. Early in his tenure, Blair reviewed the AvalonBay organizational structure and realized there were some extra layers of management personnel. He cut those layers, using the savings to hire more experienced property managers. “As opposed to having less experienced community managers and having layers of the organization telling him or her what to do, we have more experienced managers and less layers telling them what to do,” Blair says.
While he admits the decision was painful, customer surveys (another initiative Blair began at AvalonBay) have shown it was the right decision. “This is our fourth year of customer service surveys,” he says. “Each and every year we’ve improved.”
The company improves by celebrating those managers who do well and spreading their best practices across the portfolio. Struggling performers get some “TLC” and, if things still don’t improve, they’re replaced. While this system has spawned dramatic improvement, Blair wants his property managers to reach even higher. “We’re good, but not great,” he says. “We’re on our way to becoming great.”
