Icebergs Sink in Blue Oceans

Our iceberg has melted. But the bright side is that we have found a new home.

"Our Iceberg is Melting" is a book by the renowned Harvard Business professor John Kotter. It is a short parable about a colony of penguins living a great life until one day a concerned penguin realizes that their iceberg (home) is melting and they need to find a new one before wintertime.

A central concept of the book is about the politics of convincing leadership that a change is needed, then the general public about this dire situation and then the process of coming up with a solution to the problem, finding a new home. By the end not only do the penguins find a new home, but they also find a way of life that allows their colony (similar to a business organization) to thrive (succeed) in an ever changing environment. We have been living on a melting iceberg for many years.

You have told me yourselves this is not working or that is not working. But it took the recession for us to come to the conclusion that Fred (he is the penguin that warns of the problem) has been right and that we need a solution fast. Last November, we set about doing just that, we redefined our local management teams to be significantly more cost effective and sustainable.

We found a new iceberg to live on. However that wasn't the end.In times of rapid change (recessions, global warming, oil spills) if the organization doesn't move quicker than outside forces, it will become extinct. Think GM, Lehman Brothers, every newspaper company in the US, and many in the real estate industry.

We are not going to let that happen to our company.As I said, we made many job cuts and restructures at the local levels but it was just recently that we made very significant changes at the corporate level. These are the changes that are going to be used to catapult us into a nimble enough organization that we can operate in any economic environment.

If this iceberg doesn't work, we go to the next one, we all work together to find the right niche for our assets.What does all this penguin talk mean? Starting today managers, acquisitions specialists, regional managers and senior managers are no longer going to be babysat. Supported, guided, provided a safety net yes! Babysitting no!

We now have 110 people in our organization from a high of 150. I am very confident that all of us remaining can operate without a babysitter. You are all more than capable of doing your jobs and more. And now that we are no longer being babysat you will be able to do more. We need you to think outside the box, WOW your customers, find new opportunities, explore other icebergs. Later this week there will be a global conference call to discuss the details of Signature Community - Project New Home.

We are in for some great changes over the next year and I am looking forward to exploring with this awesome team.

Thanks for making it happen.
Nick

A SECOND LIFE

A SECOND LIFE
By Charles Butler

http://www.runnersworld.com/article/0,7120,s6-243-297--13053-0,00.html

Try this at home - The 90 Second Rule

In times of pressure like this recession you need to make sure you pay attention to your personal and family life.

Here is one technique I personally use to help at home...

The 90 Second Rule
By Jim Fannin

If you have been away from people that you care about, such as family and close friends for at least two hours, the first 90 seconds that you see them has more impact than spending hours with them later. How many times have we come home from a hard, long day at work and we dismiss the ones we care for upon arrival? I'm too tired. Not now, I want to rest first. How about when we say nothing at all? How many times have you been greeted at the door and you were not aware of the mood or disposition of the greeter? How many times have you walked in talking on your cell phone? How many times have you come home and paid all of your attention to the kids and not your significant other? How many times have you come home and immediately started talking about your day? Too many times!

The next time you go home after an absence of two or more hours, prepare to give your family and /or friends your undivided attention. 90 seconds. That's all it takes to say with your attentive words and actions, "I love you...I need you...I missed you...I value you...I need you in my life."

You may have to make that last cell phone call in the drive way or you may need to clear your brain for a few minutes before you walk through the door. Be prepared as you enter a new life arena.

Inside The 90 Second Rule® is a technique you can use called "mirroring." Mirror or mimic the mood, behavior or feelings of the person in front of you. If your significant other is sad, then say in a low, sad tone..."Are you okay. What the matter?" If your child is excited about seeing you or is excited about telling you what happened at school, mirror their excitement. By mirroring the feelings and body language of the people you care about you, you connect with them on their terms. It's now about them. Once you mirror their low mood then you can help them reverse it to a positive. Practice "mirroring" and you will start to connect with family and friends.

I found out about this a few months ago and have been using it at home and the results are astounding. But don't take my word for it try it yourself and see.

Remember attitudes are contagious. If you are happy others will be too.
Work on this and you will make it happen.

Nick

One Scary Thing a Day

Do at least one scary thing a day. You have heard me say it before, but are you doing it in your lives? Are you getting out of your comfort zones?

Skiing off a cliff is not the only way to do something scary. Missing a meeting and trusting another manager to handle it. Hiring someone without the proper credentials/experience because they have the attitude we want. Doing a program that could allow a significant amount of our residents terminate their leases in mid term with little warning. Buying apartment buildings in the worst economy of our generation. Asking a person you are interested in for their phone number. Spending billions creating a musical device to fit in peoples pockets. Call a property owner that keeps hanging up on you.

All sound really scaring don't they? But they can lead to awesome rewards. Like tremendous profits, freeing up hours of time because a subordinate stepped up his responsibilities, a date on Friday night, the feeling of flying through the air, 97% occupancy. These are some nice rewards.

So let's go out and do scary things. As Steve Jobs says "Stay Hungry. Stay Foolish".

Attached is a photo of Jonathan Colton on skiis flying off a cliff, 25 feet into the air and then landing on a giant airbag. I went before him and and encouraged him to do the same. When Colton hit the airbag, all I heard was laughter. I try to do something scary everyday and encourage others to do the same. Sometimes its just telling someone that I screwed up or that I can't keep them employed. Or even giving back a property to a bank before it brings down the entire company. Hard, scary decisions. Some right, some wrong, but they need to be made and executed on.

Life and work are full of adventures, do something that scares you and you will be surprised of the results.

Let's make it happen.

Nick

2009 The Year of Opportunity

After Further Review ... perhaps you have read this before, but it bears repeating ... Kurtis the stock boy, was busily working at the supermarket, when a new voice came over the loud speaker asking for a carry-out at register 4. Kurtis answered the call. As he approached the check-out stand, he noticed the beauty of the new check-out girl.

After his shift was over, he waited by the time clock to find out her name, and when she punched out, he looked at her card - Brenda. The next day, he waited again and offered her a ride home, which she accepted. When he dropped her off, he asked if maybe he could see her again, outside of work. She said it wasn't possible, and explained she had two children and couldn't afford a sitter. He offered to pay for the sitter. Reluctantly, she accepted his offer for a date for the following Saturday, but when he arrived at her door she said she was unable to go. The sitter had cancelled, to which Kurtis said, "Well, let's take the kids with us."

She tried to explain that taking the children was not an option, but again he wouldn't take no for an answer. Finally Brenda brought him inside to meet her children. She had an older daughter who was just cute as a bug. Then Brenda brought out her son - in a wheelchair. He was born a paraplegic with Down Syndrome.

Kurtis asked Brenda, "I still don't understand why the kids can't come with us?" Brenda was amazed. Most men would run away from a woman with two kids, especially if one had disabilities - just like her husband and father of her children had done. Kurtis had a different mindset. So that evening Kurtis and Brenda loaded up the kids, went to dinner and the movies.

When her son needed anything, Kurtis would take care of him. When he needed to use the restroom, Kurtis picked him up out of his wheelchair, took him and brought him back. The kids loved Kurtis. At the end of the evening, Brenda knew this was the man she was going to marry. A year later, they were married and Kurtis adopted both of her children. Since then, they have added two more kids.

When you watched Super Bowl XLIII yesterday Kurtis was wearing a Cardinals' jersey with #13 and the name "Warner" on the back. Yes, Kurtis is Kurt Warner, starting QB of the Arizona Cardinals!

Will you "pick yourself up and dust yourself off" to help someone in need?

Many see 2009 as the year of survival I see it as the year of opportunity.

The opportunity to grow our brand, perfect our brand offerings, put our past problems behind us and recreate the organization. In order to get there we are going to have to make some difficult decisions and take some steps that are not the most pleasant options but in the end they will move us towards our goal of being the largest lifestyle living brand.

Your actions and cooperation during these difficult times are going to propel us to our goals.

100 days:
97% occupancy
$50M in acquisitions
$45M in financing
2007-2008
Stabilization completed
Wilshire closed

We can do it. You can make it happen!

Nick