The Cost of an Average Manager, Part II

Professional managers are part of the solution, not the problem

By R.K. Kliebenstein

This is the second part of a series on dealing with staffing changes. Previously, wediscussed the self-storage supervisor/owner's role in the process. Now, let's examine thesituation from the employee's side of the table. This is an opportunity to ask yourself:"As a self-storage manager, how can I prepare to deal with unmet expectations of anowner or supervisor? What is my role in the process? How can I 'train' mysupervisor?" These are issues that, if avoided, may lead to some very negativeconsequences, such as demotion, disciplinary action and termination.

Do I Understand What Is Expected of Me?

Employees are frequently blindsided by an unhappy owner's expression ofdissatisfaction. After receiving annual raises and hearing praises from a supervisor, theemployee may have no idea a staffing change is even being contemplated. Have you, as anemployee, asked what your owner's specific goals are? Do you know what he expects? Even ifthings are going "great" at your self-storage facility, have you asked what isexpected of you?

It is often hard to get the full attention of an owner or supervisor if he is absent orhas many other duties and projects on his plate. I suggest asking your supervisor tolunch. (And expect to pick up the tab; after all, you are inviting him.) Gosomewhere off site on your day off. Make sure the location is relatively private. Thismeeting should never include spouses (unless you are working as a team), and there shouldnever be children or friends with you. This is a business meeting.

Make certain you are prepared before the meeting. Have month-by-month occupancystatistics for the last year ready to review. If you know how to produce charts to presentthe information, you should do so. Make certain you look at occupancy on four levels: 1)unit occupancy, 2) occupancy by square footage, 3) dollars per square foot and 4)percentage of economic occupancy. If you have recently added new space to the facility,then these reports will need to be adjusted to reflect those changes.

I am amazed at how many professional managers do not know how many units or square feetthey manage, or the economic occupancy of the store. If you do not know these basic factson a daily basis, you are likely a caretaker, not a manager. How can you be the captain ofyour ship if you do not know how big your boat is? It is your responsibility to beinformed so you can communicate with your supervisor on his level. If your occupancy isabove 92 percent, have the rates been increased? Are you helping your owner watch fortrends? Have the monthly deposits increased each month this year over last year?

During lunch with your supervisor or owner, you need to get answers to the followingquestions:

What Do I, as a Professional Manager, Need To Know?

You should always be armed with facts and figures. So often, we throw aroundpercentages and numbers (or vague, unsubstantiated statements), because we do not taketime to gather the facts. Here are the basic facts about your market and facility you, asa professional manager, should have documented:

Don't Whine and Complain--Suggest a Solution

One of the most compelling reasons for a manager to fall in disfavor with an owner isloss of respect. This often happens because the employee is seen as a chronic complaineror whiner. If you have a legitimate concern, discuss it with your supervisor, but alwaysoffer a solution, not just a complaint. For example, if you have researched your YellowPages ad and believe it needs to change because there is no map, redesign the ad on paper beforeyou bring it up to your manager. Call and find out what a larger ad or an ad with colorwill cost.

If you and all your competitors are full in the 10-by-10 size category, and you have anabundance of vacant 5-by-10s, suggest combining some of those 5-by-10s into larger units.Know which tenants this would affect, and make certain you do not suggest combining wherethe door configuration does not work, or where tenants to be moved are difficult tocontact. Understand what this change does to your rents per square foot. What is thebreak-even point for loss of revenue per square foot vs. gained occupancy? If you aregoing to suggest new landscaping or individual door alarms, do you have cost estimates forthese improvements? Be a part of the solution, not a part of the problem.

Now That You Have the Facts...

Now, do something with all this information when you review with yoursupervisor. Armed with facts and figures, you are a professional manager informed abouthis facility's activity. Perhaps your closing ratios are weak (less than 75 percent).Perhaps you could benefit from additional training--ask your supervisor for it. Do notthink needing additional training is a sign of weakness. This is not an "ego"thing. This is a request of your owner or supervisor to help you be a better manager.

Examine the competitors. Perhaps you've gained several new competitors over the pastfew years who have features such as individual door alarms or climate control. Maybe theyare located on a main street and you are on a back street. Where are your rates incomparison to the competition? Are you a market leader or follower? How are youroccupancies compared to the competition? Did you guess at their occupancies, or did youhave their managers provide you with facts?

Discuss with your supervisor your Yellow Pages ad, its size and placement. Perhaps youneed to remodel the office or paint the buildings. Maybe the landscaping looks tired. Isthe parking lot clean and well-maintained? How does your signage look?

You may have a good case for discussing a merit increase if your store is operating at94 percent occupancy (if it is higher, there should have been a rate increase to existingand new customers in the last 90 days); your deposits are 10 percent more than they werelast year (based on the same number of units); and the economic occupancy is better thisyear than last, with an increase of at least 10 percent in rates per square foot. Why notsuggest you receive a pay increase equal to the percent increase in rents per square foot?This would be a true measure of how well managed your store is.

By the way, did you suggest the rent increase, or make the increase kicking, screamingor doubting? What are the goals for the facility? How is the store operating today, andwhat are the expectations? Is an outside consultant needed because you and/or the ownerjust cannot figure out what is happening? Set specific goals for occupancy and rates persquare foot. Suggest an incentive if you exceed the goals. Ask how you can be a part ofthe solution, not the problem. Prove you are a professional manager, not just a"caretaker."

Perhaps you have increased the rents per square foot, kept honest and accurate trafficreports, have up-to-date and accurate competition reports, and made realistic suggestionsfor improving the facility's performance, such as additional merchandise for sale,increasing the administrative fee or revising the unit mix to eliminate "flatspots." If your suggestions and accomplishments have gone unnoticed, it may be timefor you to shop for a new owner. Then he may find out what the cost of an"average" manager really is.

R.K. Kliebenstein is a regular contributor to Inside Self-Storage and the founderof Coast-To-Coast Storage, which offers management consulting as a part of its full rangeof services. From feasibility studies to exit strategies, Coast-To-Coast Storage is theowner/operator's one-stop shop. Mr. Kliebenstein can be reached at 877.622.5508(toll-free).

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