1. WHAT IT TAKES TO BECOME A RESPECTED PROPERTY MANAGER & SUBJECT MATTER EXPERT Robert J McFarland CPPM/CF 1

2. Discussion Items Basic Property Management Skills Business Management Skills Understanding The Regulatory Process Understanding Regulations Follow The Contract Even If……. Understanding Company Policy Understanding Other Business Disciplines Understanding Business Objectives & Plans Establish & Communicate The Property System Value Effectively Communicate The Property Organizations Value Solving Conflicts Managing Customer Expectations Summary & Experiences

3. Basic Property Management Skills Ability to Manage Customer Expectations Ability To Manage People Technical Requirements HR Responsibilities Ability To Communicate Management Staff Customer Other Organizations Ability To Conduct Effective Training Programs Must Have Managerial Courage Must Be Able To Represent The Company

4. Business Management Skills 4 Accomplished MS Office Skills Excel, Word, Power Point, Project, Outlook Accomplished Budgeting Skills Accomplished People Management Skills Solid Knowledge Of Support Operations: Contracts Accounting HR Operations Engineering Facilities

5. Understanding The Regulatory Process 5 Regulatory Process What Regulations Apply & Why How & Why Regulations Are Changed How The Change Process Works Change Documentation Legal Responsibilities Federal, State & Local Laws Environmental, Health & Safety Security Requirements Import/Export Laws ITAR Legal Precedents Christian Doctrine

6. Understanding Regulations 6 When The FAR Property Requirements Were Re-Written How Many Parts Of The FAR Were Changed? 26 Parts What Parts Are They And How Do They Affect Property Management What Regulations Govern? Parts of The FAR? All Of The FAR? What About Supplements? What About The Business Systems Rule What About Conflicts?

7. Follow The Contract Even If…. 7 This Is No Different Than Getting Christmas Gifts Ready…… When In Doubt Read The Contract Know Where To Look Standard Regulatory Requirements Special Provisions Know And Understand The Statement Of Work

8. Understanding Company Policy 8 What Are The Corporate Policies That Govern Property Management Accounting Accountability Contracts Law Operations HR Benefits How Do These All Fit Into Property Management

9. Understanding Other Business Disciplines Accounting & Finance Contracts Operations Calibration & Maintenance Facilities Engineering Human Resources Program Offices OS&H 9

10. Understanding Business Objectives & Plans Participate In Company 5 Year Plan Participate In “New Acquisitions” & Do Diligence Evaluations Participate In Contingency Planning Participate in Succession Planning Participate in All RFP’s & RFQ’s Participate In All Cost Disclosure Statement Changes Participate in Skills Planning & Interruption Planning Develop A Budget To Support All Requirements Develop Meaningful Management Reports Develop & Report Meaningful Performance Metrics Reports & Metrics MUST Demonstrate Value 10

11. Establish & Communicate The Property System Value Develop A Streamlined Property System That: – Is Compliant To All Contract Requirements – Is Compliant With All Corporate Policies – Minimizes Cost – Contributes To Company Profitability Document Processes In Procedures That Provide Clear Direction And Institutionalizes The System – Ensure You Are Involved With All Procedural Changes!!! Communicate System Requirements & Values – Training – Employee Communication 11

12. Effectively Communicate The Property Organizations Value Develop & Report Organizational Performance To Management Periodically – Establish Meaningful Metrics – Speak In Management’s Language – Communicate New Concepts & Organizational Benefits – Always Demonstrate Value In $$$$$ Highlight Staff Accomplishments By Name(s) Develop Management Expectations Of Staff Requirements Develop Management Expectations Of Personal Growth By Name To Ensure Upward Mobility Use Rewards & Recognition Process Often 12

13. Solving Conflicts Face Conflict & Controversy Head ON!! Never Let It Linger It Will NOT Solve Itself Fairly Negotiate Resolution Face To Face Maintain Company Policy Never Take Sides Never, Never, Never Deal With Rumors Never Let “Third Person” Innuendo Be Used – “They Said”, “He Said”, “She Said”………. – Demand Names & Facts!!!!! 13

14. Managing Customer Expectations Always Make Your Customer Requirements A Priority Never Accept Requirements That Are Not In The Contract Monitor Your System Diligently Correct Deficiencies Efficiently & Effectively – Do NOT Apply Band Aides Always Disclose Issues to Management & Your Customer Keep Your Customer & Management Informed At All Times – NO SURPRISES….. Good Or Bad Use The Reagan Philosophy For ALL Information “Trust But Verify” 14

15. Summary & Experience There is No School, Class, NPMA Workshop That Will Cover Everything You Will Face My Old Boss’s Philosophy Is Clearly Demonstrated In Property Management “You Go To School To Get A Degree & You Come To Work To Get An Education” Experience Is Extremely Important In Our Business We Have Covered Many, Many, Key Areas Today There Are So Many Variables You Need To Be Aware Of Everything That Is Going On & Represent The Property Management Position 15

16. Summary & Experience When You Are The Property Manager You Must Be The Final Say On All Issues That Affect The Property Management Process: – Contract Compliance – Finance & Accounting – Procurement – Retirement & Disposition – Legal Issues – Etc., Etc., Etc. You CAN And MUST Be The Property Resource Resource That Management And The Customer Rely On For Every Issue 16

17. Summary & Experience How Do You Manage & What Issues Are Involved: “You Are A New Property Manager And Have A Requirement To Conduct A Physical Inventory. Your new Boss Calls You In And Demands That The Results Be Better Than Prior Inventories.” You Have No Evidence Of Any Corrective Action Taken After The 2 Previous Periodic Inventories That Resulted in The Loss Of Almost 12,000 Capital Items Valued Ay Almost $20,000,000. (Acquisition Value)” 17

18. Summary & Experience You conduct The Periodic Inventory And Report Results To Management Weekly. “ Upon Completion Your Results Indicate A Gain of Almost 11,500 Capital Items Valued At About $19,500,000. Did You Do A Better Inventory? What Problems Were Solved Or Created? What Can Be Done To Prevent Management Or Customer Concerns? 18

19. Summary & Experience In Addition You Inventoried Government Property And Had a Few Losses But Many Gains to Line Items & Dollars. Did You Do A Better Inventory? Were The Items Previously Reported & Relief Of Liability Determined? What Problems Were Solved Or Created? What Can Be Done To Prevent Management Or Customer Concerns? 19

20. Summary & Experience Your Company Acquires A Company And You Are Not Involved In The Do Diligence. You Are Told They Are Small, Have No Government Property And Were Acquired Basically For Their Technology & Some Key People Since Your Manage A Centralized Property System For All Property You Need To Accurately Bring The Assets Into Your System. The Purchase Terms & Conditions For Payment Were 50% At Acquisition & A Final Payment Of 50% In 18 Months. 20

21. Summary & Experience You Have Sworn Allegiance To The Reagan Philosophy! You Send A Small Team Down To Develop A Plan To Bring The Assets To Record BUT…… You Have A Well Trained Staff And They Have Questions – The Company Has Several Government Contracts – All Of The Contracts Are Cost Type – Research By The Property Team Indicates That Everything Was Charged Direct: Equipment Facility Items Material Office Supplies 21

22. Summary & Experience Hopefully You Are Even More Aware Of Your Role & The Importance To The Company’s Property Management Responsibility We have One Of The Most Exciting Business Opportunities In The Entire Organization I suggest You Not Only Learn The Property Rules BUT Understand The Importance Of All The Company Organizations That Can Impact The Efficiency And Effectiveness Of Our System Fully Understand And Communicate The Organizations Value & Contributions To The Bottom Line. 22