Creating “efficiencies” and “streamlining workflows” are important, but the question almost always comes down to… How do we do it?
Five years into centralization, Mark-Taylor’s John Carlson and Blanton Turner’s Jesse Anderson are debunking myths like it’s their job (literally). Better yet, they are telling us what it really takes to centralize your teams in a way that can be applied to your business.
“This feels like therapy,” Carlson said as he took the Happy Summit stage with Anderson. But for the audience, it was a masterclass in avoiding centralization pitfalls that might otherwise come at the expense of invaluable time and money.
Why Change is Necessary
As resident expectations shift to 24/7 service and staffing challenges intensify, centralization has evolved from experimental to existential.
“When you think about Gen Z and Alpha, they’re going to be living in our buildings for the next 10-15 years,” John explained. “They want things in five minutes. We have to think like them as a sector.”
Companies that centralized early are now seeing measurable advantages that will soon create unbridgeable competitive gaps (to the tune of 70% efficiency gains).
If you’re just getting started on your journey or in the throes of centralizing, take note–these learnings just might get you closer to those game-changing results.
Avoiding Centralization Pitfalls
DON’T Rely Solely on Industry Veterans
“Our biggest mistake was trying to identify leaders from within... they were forced to unlearn everything they’ve learned for 20 years,” shared John.
DO:
- Recruit from outside industries like hospitality, retail, or manufacturing
- Place value in leadership experience, not necessarily property management
- Create job descriptions that emphasize business acumen over industry knowledge
DON’T Reorg Without Mapping Every Task First
“We ended up spending four months on just job descriptions,” said Jesse. Thorough preparation pays off—centralizing without a detailed understanding of existing responsibilities creates chaos rather than efficiency.
DO:
- Document exactly who does what at each property, including time spent
- Calculate realistic workloads to prevent teams from being overwhelmed in the transition
- Test your assumptions about how many properties one centralized person can handle
DON’T Let Communication Become a Free-for-All
“We had some significant burnout with certain folks,” Carlson stated. Without structured communication channels, centralized teams can quickly become overwhelmed by the volume of requests and information flowing from multiple properties.
DO:
- Implement team communication platforms (MS Teams, Slack) with strict protocols
- Build comprehensive playbooks with specific workflows for every scenario
- Create “start of day” to “end of day” communication expectations to keep everyone aligned
PRO TIP: start small, show results, then scale.
- Begin with a pilot using 2-3 of your own assets before convincing clients
- Document baseline metrics before centralization to quantify improvements
- Create visual dashboards showing performance gains to convince skeptical stakeholders
DON’T Ignore the Metrics That Matter
Those who implemented a centralized model early on are now seeing striking performance metrics:
- Response times: 62 minutes → 15 minutes
- Call answer rates: 30% → 75%
- Staff-to-unit ratios: 1:75 → 1:120-125
- Personnel costs: Down 5.8% with potential for 15-20% total savings
Jesse explained their goal: “We’re really going through and saying, what can we automate or take advantage of an AI solution as much as possible?”
John summed up the philosophy with a quote from FedEx founder Fred Smith: “Automate the routine and humanize the exceptions.”
The Bottom Line
The centralization journey is just that, a journey. Begin by evaluating your current operations against these new benchmarks. The gap represents your vulnerability to more innovative competitors.
Ready to start your centralization journey with experts who’ve learned from the industry’s early adopters? Connect with HappyCo to navigate the transition successfully.
