Mission, Vision, Values, Goals and KPIs … MBO for an HOA

ByWayne Willis

"There are two ways to get to Alaska.  One is the Al-Can Highway.  The other way is to head north and west."

- anonymous

In order to create a plan, it's best if you  know where you are going and how best to get there.  The best way to get there is to start with "the Big Picture" ... the MISSION of the organization.

See Forming A Plan – MBO for an HOA to see the journey we took in getting to an operating plan for Las Mañanitas HOA, A.C., for 2022.

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Draft Mission, Values, Goals and Key Performance Indicators (KPIs):

  1. Mission: to secure[1] a safe, [fiscally] sound, beautiful, comfortable community.
  2. Values: 1) integrity[2], 2) transparency[3], 3) consideration[4]
  3. Goals and KPIs:
    1. Safe - zero crimes against property or persons within Las Mañanitas.
    2. Sound - Capital reserves ≥ those required by audit or law; HOA fees ≤ peer properties.
    3. Beautiful - NPS as evaluated by Owners' survey.
    4. Comfortable - NPS as evaluated by Owners' survey.
    5. Community - NPS as evaluated by Owners' survey. 
  4. Bottom line KPI: Resale prices higher than those of peer properties.  (This reflects the attractiveness of Las Mañanitas as a desirable place to buy.)
Footnotes:

[1] As of 2021, Las Mañanitas already exists as a safe, comfortable, beautiful and fiscally sound property.  Any action we take or approve must secure these attributes along four primary dimensions, in this priority:

  • Safe: within Las Mañanitas, neither anyone nor any property is victimized by anyone or by fire, storm or earthquake. KPIs = zero crime, zero property loss.
  • Sound: Reasonable HOA fees, carefully spent.  And capital reserves that exceed audit recommendations and legal requirements.  KPIs = FMV of units being sold, HOA fees compared to similar properties and capital reserves > audit.
  • Comfortable: Las Mañanitas is a refuge, a place to relax, unwind, recharge.  It’s not party central.  It’s not Spring Break or a place to see and be seen.  It’s also not a place with unresolved, interpersonal tensions/conflicts between neighbors.  Let’s make things easy while we are here.  KPIs – Resident Exit surveys.
  • Beautiful: Lush landscaping; attractive architecture; high-quality common area furnishings; and clean common areas.  KPIs – Resident Exit surveys

[2]                Integrity – “if you ain’t got honesty, you ain’t got nuttin’.”  WYSIWYG.  No side deals, no corruption.  The highest standards of honesty in all intra-community transactions.

[3]                Transparency – should this be “democracy?” -- discuss

[4]                Consideration – all communications among members (Owners) of this HOA are requested to be “considerate” – in both senses of that term, between neighbors and to/from the Board or Community Manager.