Does that mean I have colleagues?
In continuing with the theme a strata company is similar to a private company I decided to unpack strata so I could understand better how it worked. Coming from a Project Management background my first question was:
Who are the stakeholders?
Surprisingly there are a lot, the production of a stakeholder circle identified those people and organisations that impact the day to day operation of a strata company no matter how big or small the strata company is.
The notion of lock up the apartment and forget about everything to some extent is true, however, doing this continually could mean your investment is not performing optimally.
The stakeholder circle explained
- The inner circle represents the decision-making body, they are the 'strata committee' elected by the owners at the AGM and their role is to make decisions on the owners behalf for the duration of their term. They could be compared to a board of directors.
- The owners are the next layer and could be compared to the shareholders of a private company
- The third layer is administrators and advisors to your strata company, a vital source of knowledge for strata committees.
- The fourth layer provides all the services required to keep your strata assets well maintained and further your investment
- The final layer represents the resources required to keep the buildings and machinery powered.
Is there a cost to ignoring your stakeholders? I’d challenge any company that answered ‘NO’ to this question.
What are the costs when stakeholders are ignored?