The value of proximity in multifamily decision-making is hard to overstate. Always strive to reduce complexity.
A multifamily property management firm that can function only when everything is working is fragile and at risk.
Complexity science describes resilient systems as those that maintain essential function under disruption by distributing decision-making capability across multiple nodes rather than concentrating it at a single point. A system that can function only when all components operate as designed is not robust enough to handle emotionally loaded or catastrophic incidents.
Organizational resilience is the portfolio’s capacity to maintain resident service quality, leasing performance, and operational standards during conditions of disruption. Consider staffing vacancies, technology failures, market shocks (COVID), and leadership transitions (this one is big). That capacity depends on how widely decision-making capability is distributed throughout the organization. This isn’t a judgment of centralization, but a consideration when selecting the workflows you implement in the system.
The portfolio whose property managers can’t make decisions without regional manager or shared services approval, whose maintenance teams can’t authorize repairs above a certain threshold without management company sign-off, and whose leasing teams can’t deviate from scripts to address unusual prospect situations has optimized for command and control (the definition of centralization). Disruption that tests centralized control will show up as poor team engagement, less-than-good Google reviews, and frustrated supplier partners.
The portfolio with distributed decision-making will maintain performance. The one with centralized approval structures experiences a cascade like this: the regional director was unavailable, decisions piled up, service fell behind, residents noticed, and reviews reflected it. I encourage you to distribute decision-making to build resilience into the distribution.
The organization that survives disruption is the one that does not need perfect conditions to make good decisions. Build for the disruption. — Mike Brewer
Discussion Prompt: Identify one decision in your operation that currently requires your approval but could be made effectively by someone one level below you with the right context and authority. Transfer that decision this week. Track the quality of the outcomes for thirty days.