PROPERTY UPKEEP – in a challenging Environment

“How long can an organization postpone renovation/rehab and not risk losing move-ins?” asks the ALFA[1] Case Study: “When Looks Really Matter”. In response, there is no universal right answer, as each company and its situation are different.  Factors influencing management’s reaction to occupancy challenges include the type of business (i.e. acute hospital, SNF, ALF, IL, etc.), type of clientele, level of competition, census level / amount of decline, and the organization’s overall financial condition.

As a former CFO, I understand that the company must live within its means and that there are often financing considerations behind decisions and timetables for rehabbing a building.  But, unlike a hospital or nursing home where admissions are driven by need and paid by third parties, independent and assisted living communities have a greater requirement in maintaining their properties to remain competitive and continue to attract private pay clientele.

SHOULD MANAGEMENT CUT OR SPEND?

Traditionally, organizations tend to do nothing extraordinary for a 1–2 % change in census, but cut costs and eliminate expenditures as occupancy drops 5–10 points.  Then when the occupancy decline hits 10 points, management panics and starts spending more money, bringing in outside sales/marketers and doing more advertising, special events, etc.  At 12 – 15 points, they call out the National Guard!

So, why wait for it to become a crisis before responding?  No matter the state of the economy, if the census drops, management should do something POSITIVE for the community instead of cutting costs.  Create value-added services[2] to increase the satisfaction of existing residents and marketability for potential residents.  In the private pay world, you must overcome inertia to obtain a move-in and CUTTING COSTS IS NEVER THE ANSWER!

[In fact it can become a “self-fulfilling prophecy” as the company continues to cut costs, reducing the perceived “value” of the services, thus leading to still lower occupancy.]

RENOVATION CYCLES

Many organizations schedule total renovations for their properties on an 8-12 year cycle.  This process generally includes an updated color scheme with new upholstery/furniture and furnishings in the building core and other common areas.  A conventional approach in difficult times is to delay these major expenditures until a) the census improves or b) the economy turns around.

The problem with this strategy is that the appearance of the building may be a CONTRIBUTING FACTOR to its census challenges, so management must look at each situation individually.  For instance, a well-maintained building with consistent local management might require a rehab for only cosmetic purposes and could likely postpone its renovation without adverse consequences.

On the other hand, a property that clearly shows wear and tear – regardless of age – needs attention NOW!  Executive management must convey support for the marketing efforts of the local management team.  In addition, efforts to instill “pride of ownership” in the local staff will be negatively impacted if it appears that management doesn’t care how the place looks.  This will only make the wear and tear cycle worse in the future.

Yet, in this economy, financial limitations are a reality.  No one expects everything to be fixed at once, but the key is to DO SOMETHING! Additionally, PLANNING, PRIORITIZATION and COMMUNICATION are essential for successfully managing renovations.

So, suspend the traditional cyclical renovation program and focus on extending the life of the existing color schemes with repairs and partial replacements.  At the same time, communicate to all properties and the residents in each of those communities that there is a plan and assure them that their concerns will be addressed in due course.  The key is to do a little something for everyone so that the management and residents of the “good” buildings are recognized and shown appreciation for their efforts in maintaining the property.

You don’t have to spend a lot of money to do this.  We promoted a lot of goodwill in a turnaround situation by throwing away a couple of rickety park benches and spending about $500 to replace them with rockers for the front porch.  In another situation, we simply re-arranged the lobby furniture to create several conversation groupings in a less formal setting.

DOES REAL ESTATE SELL?

Roger Bernier, the President and COO of Chelsea Senior Living states in the ALFA Case Study:  “Our buildings are our single most important marketing tools …” and he makes a compelling argument for maintaining a community in good repair, even in hard economic times.  However, a superior building may not be enough to stimulate new move-ins.

Psychologist Abraham Maslow teaches that physical and security are the basic needs for all individuals and most senior living communities focus on meeting these needs.  But, the real potential is in helping the retired adult achieve social, ego and self-actualization goals, which Maslow identifies as higher level needs.

IF management shifts its focus to providing a fulfilling lifestyle for their existing residents and then highlighting these activities and services in their marketing efforts, they will find their clientele to be much more accepting of a little normal wear and tear.

GROUP PURCHASING

Lastly, having worked for both large and small enterprises, I understand the substantial price breaks from group purchasing that Todd Kaestner (Brookdale Senior Living) discusses in the case study.  But, to think outside of the box, the operator may get a better return on their investment by purchasing locally! Yes, I know it will likely cost more, BUT . . . you are only doing partial renovations and any exposure within the local community is good and provides inexpensive advertising.  A local owner-operator to whom you bring business (and even the local trades-people that do the work) can be turned into exceptional referral sources to “spread the word” as they visit your property and observe the level and quality of service you provide.  The fact that the company is putting money back into the community – especially in “tough times” – will produce positive public relations on MAIN STREET……one of  your targeted markets.

Again, these suggestions won’t work for everyone, but hopefully they’ll make you consider new options and maybe come up with even better ways to respond to the economy.

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[1] Assisted Living Federation of America

[2] Please contact me via email at art@progressiveretirement.com or phone at 615-414-5217 to learn more about the types of value-added services that can be provided and how Progressive Retirement Lifestyles could help you with today’s challenges.

Beyond “DEATH and Dying” — Part 1

Managing Grief to Improve Occupancy

Introduction

Forty years ago, Dr. Elisabeth Kubler-Ross wrote “On Death and Dying” and her theories have been used every since to help caregivers provide support to terminal patients.  BUT, THESE SAME CONCEPTS APPLY TO EVERY ONE OF US EVERY DAY!

Because we work with seniors, dying and the prospect of death are something with which we deal; however this article will    expand Kubler-Ross’ theories into everyday life, dealing with all forms of GRIEF.  By learning her “5 Steps of Grief” and applying them to all aspects of a current or prospective resident’s life, you will be able to build a better relationship with that individual and achieve higher occupancy levels.

Basically, GRIEF MANAGEMENT = Learning to Accept Loss! Kubler-Ross stated that a human will – and must – go through 4 stages of grief before reaching the 5^th stage of ACCEPTANCE, as depicted below:

This diagram shows that the stages are progressive, but that the individual may regress from one stage to another before finally reaching a level of acceptance.  Hope is the one emotion that influences this behavior.

Whenever any of us suffers any type of loss, we grieve and must progress through these stages to cope with the situation and maintain good emotional health.  Here’s an example to demonstrate how these emotions play out in a real-life situation:

You are driving down the highway when you see flashing lights in your rear-view mirror – what’s your first reaction (after quickly checking the speedometer)?  DENIAL – it’s not a policeman and/or he’s not after me – right?

Then, when he pulls in behind you and motions you to move over, don’t you tend to get a little angry?  Don’t you think, “why is he picking on me, there were at least 3 other cars that went speeding past me – why didn’t he catch them instead of me?”

Next comes a little bargaining – and HOPE that maybe you can get off with a warning this time:  “Officer, I didn’t mean to speed, I didn’t see that the speed limit changed, I was just over the speed limit for a little bit there – I don’t normally speed, etc.”  And then there’s the silent prayer – “Dear Lord, I promise I’ll never speed again if you just let me NOT GET A TICKET TODAY!”

But, you get your ticket and notice to pay a fine or appear in court.  Now, you’re embarrassed (after all, you got caught “breaking the law”), and hurt financially (maybe you have to forgo buying something that you wanted).  Every time you look at that notice, you get a little angry again and try to figure out some way to avoid paying the fine.  Then, you just get depressed over the whole episode – LIFE’S NOT FAIR!

Finally, you decide to just pay the fine and get on with your life – you’ve reached ACCEPTANCE.

Of course, the losses faced by seniors are much more serious, but the process is the same.  In building a relationship with that individual, it is important to understand what losses they have endured and their psychological stage in the grieving process related to that loss.  One or more of those “losses” will likely have a direct impact on their decision to move into a senior living community.

Common examples of losses encountered by seniors include:

The death of the spouse or other long-term companion. This is particularly problematic when the death occurs unexpectedly and the surviving spouse has not prepared for the death.  Several classic cases are a) the husband who has always handled all of the finances for the couple passes away, leaving the wife over-whelmed with the details of wrapping up his finances and b) the wife who dies first with the husband unprepared to deal with daily household activities.

Loss of some type of physical ability. The senior may have had a stroke or heart attack resulting in limited mobility.  They could have restrictions in their activities as the result of a fall or surgery.  Or, they may face on-going decline in eyesight or hearing, effects of arthritis, diabetes or other chronic disease.

Some level of diminished mental capacity. This may be as simple as increasing forgetfulness or early stages of Alzheimer’s or other dementia.  Often, this “loss” is noticed and expressed as a concern by family members.

The Spouse or other caregiver experiences a decline in their own health and becomes unable to provide the previous level of support. It’s not uncommon to see a fairly rapid decline in the health and condition of one spouse after the other suffers an acute episode.   In other situations, the single individual may have one or more friends who provide various caregiving services (e.g. take them to doctor visits).  When that friend is unable to continue that service, the senior loses a degree of independence.

Child / grandchild caregiver moved away. Especially in today’s volatile economy, a senior may not be able to count on their adult child remaining in place and able to provide care services for them.

Driving privileges suspended.  This may be a result of doctor’s orders due to physical or mental capacity, family members’ “taking away the keys”, or state licensing restrictions.

If the individual suffering one or more of these losses is already a resident in your senior living community, you can enrich their experience by understanding the impact of the loss on their life and independence.  By providing HOPE and demonstrating alternatives, you will be able to retain the resident and delay or prevent their “discharge” to a higher level of care!

For the prospective resident, the KEY is to build an effective relationship that will lead to a move-in.  Learn the type of losses the senior has endured and then understand their stage of grief.  The right marketing approach must then be customized for that loss and stage of grief!

Part 2 of this series will discuss the Denial Stage and what you should do to effectively market individuals in that phase.

You may also want to view the PowerPoint Presentation on SlideShare.

Do Senior Living Communities Need a Wake-up Call?

Although the housing slump may have “bottomed-out”,  occupancy declines, especially for independent living, are more widespread [1]. Will the industry re-bound with a business-as-usual mentality?  Will new generations of customers be satisfied with today’s level of service?

There is no question that the real estate crisis and decline in portfolio values have impacted occupancy in senior living communities.  AND, it’s easy to buy into the concept of “We just need to hold on, the demographics are still there, and we’ll be OK as soon as the housing market recovers”.  The reality may be very different.

While the country has been in the economic doldrums over the past couple of years, several dynamics have been changing, largely un-noticed by the industry.  First, the demographics are changing – the target market is gradually moving away from the “greatest generation”[2] [World War II vets are dying at the rate of 1000 per day] – and the industry must prepare for the “bobby-sox” generation (as a prelude to the “baby boomers”).

This generation, born between 1935 and 1945, is affluent and benefitted from the medical advances and healthy lifestyle initiatives of the 20^th century.  As a result, they will have longer life expectancies with more males in the target population.  They demand value and will be less willing to compromise than their parents and older siblings who were tempered by the depression and WW II.

In the 1990s, assisted living (“AL”) developed as an alternative to nursing homes, and independent living (“IL”) has in large part developed as an alternative to assisted living facilities.  The newest option is “aging-in-place” with various surveys documenting the desires for aging adults to stay in their own home.  In the past, this wasn’t practical for many people, but we are seeing the development of a number of new companies that use various enabling technologies to provide cost-effective alternatives to senior housing. For example:

A study several years ago indicated that up to 80% of AL admissions were driven by the need for assistance with medication management.  Yet, there are now numerous automated medication reminder systems for use in the home.

Numerous organizations have developed cognitive fitness systems to provide brain exercises and delay the effects of Alzheimer’s and other senile dementia.

Rosemary Bakker, a gerontologist with Weill Cornell Medical College has established the website This Caring Home to help caregivers and family members design a “smart home”, allowing individuals with early stage dementia to remain in their own home.

In addition to the psychological appeal of these options, the current economic malaise is forcing prospective residents – and their families – to become more value-conscious consumers.  These products and services will take market share from IL and AL communities by offering greater independence at lower costs.

As a result, the standard AL resident in the future may become a medically complex individual with multiple health/psychological conditions.

The impact on the traditional IL model may be even more dramatic.

Is Everything “Doom & Gloom”?

The answer is that it doesn’t have to be – IF operators heed the wake-up call and are willing to consider new options:

1.   Embrace new technology, instead of resisting it.  Future generations won’t appreciate things such as internet access, a social networking site for the community, etc. as an added value – they will expect it as a minimum level of service.

Technology should be utilized to promote independence (no matter what level the resident demonstrates at move-in).  View this as an investment in extending the higher functioning of the resident for extended periods of time, which should decrease the turnover rate, extend the average length of stay, and increase the occupancy percentage.

Offer the same technology services that are marketed for “at-home” care in a bundled package, so that the senior living community becomes the value-added solution.  Sell the advantage of having someone on-site who can and will MANAGE the technology for the senior, at the same time they are receiving other traditional services such as meals and transportation.

2.  Meet more than the basic needs for the residents. Abraham Maslow developed a Hierarchy of 5 levels of needs, as depicted in this diagram.

The senior living industry has traditionally done a good job of meeting the basic physical and security needs of the residents.   However, there is tremendous opportunity to offer and market services that address their higher-level social, ego and self-actualization needs.

In fact, programs meeting those needs could be the differentiators that trigger the move-in decision.  Interestingly, these needs are the most difficult for the senior to achieve while living alone in their home.

Too often society has assumed that seniors forgo these higher-level needs when they “retire”.  Yet Lasell Village, a CCRC located on the campus of Lasell College in Massachusetts was created around the principle that retirees would move into an independent living setting where they would be committed to an annual continuing education curriculum.  This program is clearly helping the “villagers” achieve their “Peak needs”[3]!

Senior living communities must adjust with the times and add these value-added initiatives if they wish to overcome the inertia caused by the economy and plan for the future generations.

What initiatives are you taking to use technology and/or meet your current or prospective residents’ higher level needs?  Please add your comment by clicking on “Leave a comment” below:

Additional Links for New Technology Options:

Good Design Age Well

Center for Technology and Aging

CareData Trak

CogniFit

Dakim, Inc

GrandCare Systems

MyFitBrain

TheCaringStore.com

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[1] NIC MAP®, 9/1/2009

[2] “The Greatest Generation” by Tom Brokaw (1998)

[3] “Peak – How Great Companies Get Their Mojo from Maslow” by Chip Conley (2007)

Building the Foundation

“A house built on sand will not stand”.     Similarly, a marketing campaign must be built on a solid foundation of satisfied residents to be successful.

Management’s efficiency is often measured on its ability to turn its resources into assets. The existing residents, who I often present as “our most precious resources” when conducting training sessions, are a great resource for the senior living industry  Successful senior living centers go to great lengths to ensure that, like the country’s natural resources, these assets are protected and nurtured, and not allowed to become a liability when marketing the project.

Every available means must be utilized to attract prospective residents and convince them to move in, especially in these challenging times.  The existing residents can become the best marketers for the community, but first a solid foundation of resident satisfaction and support must be built.

Word-of-mouth is still the best advertising for the senior living business. A customer who has a good experience will tell 3 people; BUT will tell 10 people if their experience was bad!  And then those 10 people will tell 10 people, etc. etc. Therefore, the first step is to make sure that the resident experience is perceived positively by those living in the community and that it adds positive value to their lives.

So, what can we do to insure that our residents are reporting positive experiences to their family and friends?  My most successful properties – those that ran consistently at 100% occupancy – were those in which the managers became extended family for the residents.  I would tell new manager applicants during the recruiting process that there were just two basic rules regarding the treatment of residents: 1) always treat them with the utmost dignity and respect, and 2) treat them as you would treat your own mother or grandmother.

Dignity and respect are terms that are used in various settings across the spectrum of senior living and health care, including the confidentiality of medical information under HIPAA (Health Insurance Portability and Accountability Act) and proper handling of the notorious medical gown.  I have added the term UTMOST to encourage management and staff to think first and foremost of the resident’s dignity in their actions every day and actively demonstrate an appreciation and respect for the accomplishments that each resident has made in their life prior to coming to live in the senior community.

Recognizing and treating each resident as an individual and not as a group demonstrates this attitude of utmost dignity and respect. Otherwise, there is a tendency to fall into the trap of “us” (e.g. staff and management) versus “them”.  The prior management at one independent living property had been so unresponsive that the residents had banded together to form their own independent committee as a means to getting their concerns heard and/or addressed.  This committee had elected officials and held formalized meetings, with published minutes, in which management was not allowed to attend or participate, unless specifically invited by the residents.

Prior management had allowed the equivalent of a “Resident Union” to be formed.  It was tempting to simply refuse to recognize this committee, but I decided that a) that was a battle I couldn’t win and b) that if I did “win”, I would do so by taking away some perceived rights, independence and the respect that the elected officials had with their peers.

I decided to use a sales approach in meeting this challenge instead of trying to dictate behavior to the residents.  We made it a priority each day to recognize and be more responsive to the individual needs and desires of each resident and made a conscientious effort to deal with each of them as an individual.

Most importantly, we demonstrated respect by communicating our plan, vision and proposed changes / improvements to the residents on a regular basis.

Then, we began to find solutions to their concerns, solved some long-standing problems and invested a few dollars for new activities and a few amenities to their environment.  We took the initiative to make changes without waiting for a complaint / suggestion from the residents.

We were successful in quickly turning around a negative situation by treating the residents with dignity and respect.  The President of the committee, after 2 – 3 weeks of this new focus, said that he felt that our new management team really cared for the residents, that he supported what we were trying to do and suggested that he disband the committee.

In exchange, I presented the concept of shared responsibility for the smooth-running of the building; replacing the “union” with a management-led resident meeting, 2-way dialogue and a cooperative effort between management and residents to solve common problems.  This allowed a forum for the residents to express their opinions and concerns (thus having some input and control of their own destiny), BUT management remained in control of the process.

A number of key residents volunteered to help in marketing the property as a result of these endeavors.

This scenario also demonstrates the importance of creating a selling atmosphere throughout all levels of the organization.  The clientele in independent living, and to a somewhat lesser degree in assisted living, are predominantly private-pay, heavily involved in the decision-making process as to their care and level of service, and fully capable of choosing another location / provider any day they aren’t satisfied with the level of service.  Management, for success in this environment, must focus on perceptions and marketability, with less emphasis on structure and compliance with policies and regulations. The individual staff members must sell every aspect of the service every day, including the description of the meals on the menu, presentation of the entree on the plate, the attitude of the housekeeper, wait staff, bus driver and others as they interact with the residents, and the quality of the activity program.¹

How many times have you heard the expression that we revert to childhood in our “old age”?  The sad fact is that too often management tends to treat their “charges” as though they were children, with senior centers run like child care centers with a lot of rules, limitations, etc.  This can become demeaning and demoralizing for a senior resident as they struggle to deal with the loss of their independence.  These residents, unlike children, have been accustomed to making decisions for themselves (and often for others through their positions of responsibility) all of their adult lives.

Therefore, PROMOTING INDEPENDENCE is another important ingredient to gaining the support of the residents for community marketing efforts.  This is the mortar that holds the foundation of resident satisfaction together.  A dynamic activity program that identifies and helps residents meet their needs and fulfill their life’s desires is an essential key to achieving these objectives and creating value for the residents.  Activities should be considered as a marketing investment; not merely as a necessary cost – as filler for the day.

Residents who become motivated to get involved with other residents in scheduled activity programs will help create a community that is an active and fun place to live; thereby attracting more potential residents.  The goal should be to stimulate an environment in which the residents can’t wait to get up each morning –> to see what types of exciting and rewarding activities are planned for the day.  In some of my best buildings, the residents complained that there was so much to do, that they couldn’t do it all! This is a good complaint to have because they are presenting the property in a very positive light as they speak with their friends and family. ²

In summary, if the residents are treated as individuals, with the utmost dignity and respect and their efforts to maintain their independence in all phases of their life are promoted, a strong foundation of resident satisfaction will be built and the residents will become friends who will be happy to help market the project.

Additional information may be obtained regarding the following topics:

¹ “Building a Winning Culture”

² “Promoting Independence in Mind, Body & Spirit”

Building a Winning Culture

The first step for success is creating the belief that you can achieve your goals; whether speaking of a sports team, getting to 100% occupancy in a senior living community, or creating a service level that exceeds customer expectations!  This belief becomes the nucleus of a “Winning Culture”, building on the principle that it is a lot more fun to win than to lose.

Tug McGraw

“Ya Gotta Believe!”

1973 New York Mets

The following is a proven, 10-step process to building a winning culture and a winning team in business:

1.  Recruit the “right people” for the team.

In his book “Good to Great”, Stanford Professor Jim Collins asserts that a common trait of successful 20^th century companies was “getting the right people on the bus”.  Chip Conley, the founder and CEO of the Joie de Vivre boutique hotel chain takes this concept to another level by relating employee behavior to Abraham Maslow’s Hierarchy of Needs.   He states, in his book “Peak”, that the needs of employees may be categorized into 3 groupings:  compensation (base needs), recognition, and meaning.   Quoting Peter Drucker, he suggests that the company must go beyond meeting the base needs of the employees if it wishes to instill loyalty and motivate employees.

Chip also classifies employees into 3 categories:  superstars, silent majority and weak links.  Interestingly, he doesn’t suggest that a successful organization must have all superstars, but recommends a 2 to 1 ratio between superstars and weak links.

Thus, the right people don’t have to be superstars, but they should be capable of being motivated by and committed to the underlying mission of the organization.   Even with superstar skills, they will not contribute to the winning culture unless they are motivated by more than pure money.

2.  Establish a vision with clear goals and expectations.

Henry Ford said “If you think you can … or if you think you can’t . . . you’re right.”  The team will follow their leader.

Employees look for a leader with a sense of where the organization is going and what is expected of them in that process.  That leader must possess a winning, “can do” attitude to inspire team members to stretch their efforts to meet goals.

3.  Create a Team Concept where everyone’s contribution is important.

Professor Collins doesn’t go far enough in his analogy; success depends on not merely getting “on the bus” but in working together as a Team to achieve common goals.  I prefer the example of a racing scull to illustrate that all members have to pull their weight AND work together.

Again, everyone doesn’t have to be a superstar and often a GREAT TEAM is made up of people with different strengths so that the total is greater than the sum of the parts.  A classic sports example is the strong defensive player on a baseball team who is not the home run hitter but contributes by advancing another runner while “sacrificing” his own “at bat”.

Together Everyone Achieves More!

4.  Implement a Rewards Program that gives tangible as well as intangible recognition of Team and individual achievements.

It is easy to identify accomplishments and provide rewards for the superstars, but the really successful manager will find a way to recognize all of the players, such as the batter who “sacrificed” to advance the runner above.  A critical component is recognition for achievement of Team, or company, goals, not merely individual successes.

5.  Assess each individual’s knowledge base, strengths and weaknesses, and then assign them to roles where they can / will be successful.

One of the worst mistakes a manager can make is to expect everyone to be a superstar, which is somewhat like looking for a poker hand with 4 Aces!  The art of management is the ability to mold a group of committed individuals, with differing strengths and weaknesses into a cohesive team working towards – and achieving – exceptional goals.

6.  Provide each individual with all the technical and management training and tools they need to successfully accomplish their job and mission.

The organization must make a commitment to training and dedicate resources to support the team.  Nothing kills the winning spirit more than a lack of tangible support from the organization!  Building the winning culture is a process involving a number of group dynamics that can only be achieved in a collective training setting.

7.  Establish defined benchmarks to attain small, manageable targets in reasonable timeframes.

Athletes are taught to take one game at a time.  In a fill-up or turnaround situation for a senior living community, simply stating the goal at 100% occupancy would be over-whelming and non-productive for local management.  Instead, they should be given daily, weekly and monthly targets for number of new contacts, follow-up phone calls, in-person visits, special events, etc.  These targets are within their control and should lead to increased occupancy.

8.  Empower the “players on the field” (i.e. local managers) the autonomy and opportunity to execute the game plan and the latitude to make adjustments when the need arises.

Management should avoid over-managing.  If you have followed the previous steps of hiring the right people, and giving them the proper training and tools to do their job, you must display confidence in their ability to deliver.  Otherwise, you would be like the football coach who refuses to allow his quarterback to “audible” when he sees that the called play isn’t going to work.

9.  Recognize and celebrate successes when targets are met.

Coach Vince Lombardi said “Winning is not a sometimes thing; it’s an all the time thing.  Jeffrey Gitomer, motivational author and speaker points out that “positive attitude is contagious” in his book “YES! Attitude”.

How do these concepts apply to Building a Winning Culture?

The answer is to find every possible reason to CELEBRATE A SUCCESS – no matter how small!  Publicly acknowledging those accomplishments creates recognition and helps employees achieve their higher level ego needs as defined by Maslow.  That recognition will motivate them, as well as other team members, to strive harder to achieve even more difficult goals.

10.  Build on those successes to “raise the bar” and reach the next plateau, helping to motivate other team members to succeed.

Winners Lead to More Winners!

Importance of a Well-designed Sales/Marketing Office

The goal of a senior living community is to provide a positive experience – and not add stress – for each resident, beginning with the move-in decision.  A quiet, comfortable location for private conversations regarding the prospective resident’s personal losses, financial matters, and concerns over giving up their house and perceived independence will help foster the development of a relationship, promote “peace of mind”, and reduce the length of the sales cycle.

A room that looks like the prospect’s living room at home would be ideal for this purpose.  It should be a logical extension of the tour where the prospect and other family members, if present, can just sit back, rest and relax after the tour.

Some properties use the term “closing room” for this space, but it reminds me of a car dealership, real estate open house or attorney’s office.  We’ve all encountered these formal settings, but few would recall them as a great experience!

The move-in process for a senior has different dynamics because it’s a life decision and involves a number of different emotions.  If the time is right, the senior will communicate it; and if it’s not, no amount of “hard sell” is going to force them into a move-in decision.

So, how should the sales / marketing office be designed and what items should be included?

• Comfortable, upholstered furniture with enough seating for at least 4 individuals should be organized in a conversation grouping using living room style chairs, preferably high back, and a sofa.

• Create a “great room” feel (even using decorative screens if available) with a clear segregation of “family” area from “work” area.  The marketer should exude warmth and friendliness by getting up from behind their desk and joining the prospective resident and their companions in the living room area!

• This family area should be illuminated with warm lighting, using table lamps instead of harsh overhead fluorescent lights.

• Accessorize with a few throw pillows, maybe an afghan tastefully draped over the sofa and other “homey touches”.

One of my more successful managers even displayed a stuffed teddy bear on the sofa.  She noted that it was surprising how many potential residents would sit down next to the bear and surreptitiously “give it a squeeze”.

• Hang some nice artwork on the walls.

• Include a mini-refrigerator, stocked with bottled water and various soft drinks, and a set of air-pots with hot water, regular and decaffeinated coffee.  Offer some type of home-baked “sweets” and serve it with china plates and cups.

Some communities use a fine china set for this purpose.

Now, for a few don’ts:

• Avoid the use of large office-style desks, file and storage cabinets that create an institutional look.  If you must have a work area for the marketer, try to place this at the end of the room ensuring that it is kept neat, clean and free of clutter.  If budgets permit, use an upscale desk (e.g. Queen Anne style).Many people like to place a round table in this room, but, these are often unstable and may appear too formal.

• Many people like to place a round table in this room, but, these are often unstable and may appear too formal.

• Don’t use office style or dining room chairs in the living area.

• Although coffee tables and area rugs add ambience, they are generally not recommended for senior areas because of the risk of falls.

• Don’t display big charts, write-on boards and floor layouts that depict all of the empty units.

First, the use of those charts may be counter-productive.  If the marketer has just given a tour and helped the prospective resident narrow their choice down, why confuse them with a number of new options for consideration?

Second, this space shouldn’t look like a real estate office.  A senior living community sells a lifestyle, more than just a “unit”.

Third, since one of the primary benefits of the charts is as a motivator for the sales team, put them in the office – not in the living room area.

• The use of an interactive computer and electronic signatures for the move-in paperwork may be more time efficient, but gives an “institutional” feel to the process.  The marketer can build more trust with today’s senior by using the more familiar and old-fashioned paper method; using a conversational, inter-personal approach to obtaining the necessary data instead of turning it into an administrative, clerical process.  Once the information is obtained, the marketer should enter the data into the computer themselves and print documents for the prospect’s review.

In conclusion, move-ins occur in senior living communities when building personnel establish good meaningful relationships with prospective residents and their families.  The proper design and use of the sales / marketing room can be an effective tool in that process and management should view the money spent in outfitting the room as an investment that will provide returns over and over.

Given today’s economic challenges, it might make the difference between the prospect not only choosing your community, but in making the commitment to choose any senior living community!

Progressive Retirement Lifestyles is working to create the next generation of senior living communities.  Your input will be appreciated.

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