National Property Management Association1

10 Worst Mistakes to Make in Property Management

Bill Beedle, CPPM CF

Cheri Cross, CPPM CF

National Property Management Association2

Disclaimer:

The 10 mistakes in this presentation are randomly selected. The numbering from 1 to 10 does not rank the mistakes according to severity or importance, but merely gives the workshop attendees an overview of mistakes that can be made within the asset management industry. .

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1. Failure to read the requirements in your organization’s contract

Contract requirements:Request a copy of the contractUnderstand details and legal requirementsWork closely with quality assurance personnel

and customers

Example – Executive Orders & Regulations

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2. Failure to ensure organizational Lifecycle Asset Management Plansare developed

Property Management Professionals (lead)

Plans should include:Maintenance costs Operation costsReplacement costsAsset lifeDisposition

Periodically reviewed and updated

Example – Lifecycle Asset Mgt PLAN

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3. Failure to back-up and maintain a Recovery Plan for asset management records

System features

Alternative locations

Data recovery companies

IT recovery plan

Custodian records: ElectronicHard-copy

Example – Natural &

Man made disasters

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4. Failure to properly train new hires and custodians of asset management responsibilities

Level of training new hires versus custodians

Development of a training curriculumLevel of training (new hires v. custodians) Method of training (classroom, online, reading) Formal/Informal grading

Refresher training

Periodic training bites

Corrective action training

Example – Training requirements

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5. Failure to establish a process for terminations

Employees terminating for a variety of reasons (planned and unplanned)

Items remained in the custodianship of terminated employees

Established an electronic process for clearing terminations

Established a procedure for transferring property when employees do not complete the termination process

Example – Ballistic vest

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6. Failure to appropriately conduct major asset transfers between custodians

Exiting custodian:Provide inventoryOffer to conduct joint walk-down Reconcile records

Exiting/Incoming joint inventory

Acceptance/Documentation

Offer follow-up inventory

Example – Major receipt holder transfers

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7. Failure to keep warehouse and storage clean and free of hazards

Safety indicator

Responsibility

Procedures/Accountability

Participation/Set example

Example – Warehouse accidents

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8. Failure to conduct periodic walk-through reviews of the organization

Scheduling walkthroughs

Inventory inspection

Damaged/Excess/Idle

Customer service

Markets Property Department

Reports

Corrective measures

Example – Walkthrough experience

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9. Failure to check repositories for assets/documents prior to disposition

Check drawers

Test combinations

Record combinations

Movement requirements

Example – Transfer repositories

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10. Failure to understand how to advance your Asset Management career

Provide value

ExpertCertifications Licensing College degree

NetworkNPMAOrganizationCommunity

Market yourself

Experience – Recent career change

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Failure to

Identify assets

Appropriately tag assets

Account for subcontractor held property

Understand ownership & streams of finance

Hold employees & subcontractors accountable

Develop maintenance plans

Take advantage of audits

Effectively initiate, and analyze inventories

Track assets

Sanitize computers

Remove tags

Conduct export control reviews

Appropriately demil/dispostion assets

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Thank you – feel free to contact us!

Bill Beedle - beedlewf@y12.doe.gov , 865-574-2527

Cheri Cross – crosscl@ornl.gov , 865-574-6046