Better Operations with Gordon James Millar, SLO Native

Gordon James Millar, of San Luis Obispo, shares his perspective on bettering your engineering and operations organizations. This perspective does not speak on behalf of Gordon's employer.

Apartment complex community area with residents interacting Apartment complex community area showing resident interaction spaces. Photo by Visitor7, CC BY-SA 3.0, via Wikimedia Commons

I was conducting my quarterly property inspection when Mrs. Chen in unit 4B asked me something that stopped me in my tracks.

“Do you actually know how we live here?”

I’d been managing this 48-unit apartment complex for eight months, focusing on maintenance requests, rent collection, and compliance issues. I thought I was doing a good job—low vacancy rates, timely repairs, decent cash flow numbers. But Mrs. Chen’s question made me realize I was managing the property like a manufacturing facility rather than understanding it as a place where people build their lives.

“I mean,” she continued, “you know our lease terms and our payment history, but do you know that Mr. Rodriguez in 2C walks his daughter to school every morning at exactly 7:15? Or that the Williams family in 3A hosts a weekly dinner for their elderly neighbors? Or that we’ve all been dealing with noise from the parking lot lights that buzz all night?”

I didn’t know any of those things. And in that moment, I realized I was missing the most critical data for effective property management: how the property actually functions as a community and a home.

The Systems Thinking Gap in Property Management

Coming from manufacturing operations, I was accustomed to understanding every aspect of system performance: throughput rates, quality metrics, resource utilization, bottleneck identification, and process optimization opportunities. I could walk through a production facility and immediately identify inefficiencies, predict maintenance requirements, and recognize optimization potential.

But I was applying this same systematic analysis approach to property management while missing the most fundamental component: the human systems that determine whether the property succeeds as a place where people want to live.

The Manufacturing Analogy Failure: Buildings aren’t factories, and residents aren’t products being processed. While manufacturing efficiency focuses on optimizing material flow and minimizing waste, residential property management requires optimizing for human satisfaction and community health—objectives that don’t always align with traditional efficiency metrics.

The Critical Insight: Effective property management requires understanding how the physical systems (building, utilities, maintenance) interact with the social systems (community relationships, communication patterns, shared norms) to create an environment where people thrive.

Property management office and community bulletin board Property management office showing community communication systems. Photo by Tomwsulcer, Public Domain, via Wikimedia Commons

The Hidden Operating System: Community Dynamics

Most property management training focuses on technical and financial aspects: maintenance procedures, lease administration, regulatory compliance, and financial optimization. These are important foundation elements, but they miss the operating system that actually determines resident satisfaction and long-term property success.

Community Operating System Components:

Information Flow Networks: How residents share information about building issues, community events, and local concerns. These informal communication networks often determine how quickly problems get resolved and whether residents feel informed and included.

Social Coordination Patterns: How residents interact with each other, resolve conflicts, and build relationships. Strong social networks within a property create informal support systems that improve quality of life while reducing management burden.

Shared Space Utilization: How common areas are actually used versus how they were designed to be used. Understanding actual usage patterns reveals optimization opportunities and unmet community needs.

Temporal Activity Cycles: When and how residents use different areas of the property throughout daily, weekly, and seasonal cycles. These patterns affect everything from maintenance scheduling to amenity planning.

Informal Leadership Structures: Which residents others look to for information, guidance, and problem-solving. These informal leaders often have more influence on community atmosphere than formal management communications.

The Investigation Methodology: Ethnographic Operations Analysis

Mrs. Chen’s question prompted me to apply anthropological research methods to property management—treating the residential community as a complex social system that could be studied and optimized.

Phase 1: Observational Research

Instead of relying on formal surveys or complaint data, I spent time observing how the property actually functioned as a lived environment.

Daily Activity Mapping: Tracked when and how residents used different areas of the property, identifying patterns that weren’t obvious from management office perspective.

Morning Rush Hour (7:00-8:30 AM):

  • Primary entrance becomes social coordination center as parents arrange carpools
  • Parking lot serves as informal communication hub for quick neighbor interactions
  • Mailbox area becomes information exchange point for community updates
  • Children’s play patterns reveal safety concerns and supervision needs

After-School Period (3:30-5:00 PM):

  • Courtyard transforms into supervised play area with informal parent networking
  • Lobby becomes homework space for children waiting for working parents
  • Parking lot becomes recreation area for older children and teenagers
  • Laundry room serves as childcare coordination center

Evening Hours (6:00-9:00 PM):

  • Cooking aromas and open windows create informal community connections
  • Outdoor spaces become social gathering areas for adult conversations
  • Walking patterns reveal preferred routes and areas residents avoid
  • Noise patterns indicate conflict zones and community tolerance levels

Weekend Patterns:

  • Maintenance activities become community interaction opportunities
  • Shared laundry facilities serve as social coordination centers
  • Children’s activities create parent networking opportunities
  • Community problem-solving happens through informal conversations

Phase 2: Community Needs Assessment

Rather than assuming what residents wanted, I developed systematic methods for understanding their actual needs and priorities.

Informal Interview Process: Conducted casual conversations during routine property visits, focusing on understanding how building operations affected daily life rather than collecting formal feedback.

Key Discovery Questions:

  • “What works really well about living here that you’d hate to lose?”
  • “What daily routines get disrupted by building or community issues?”
  • “How do you usually find out about important information?”
  • “What spaces do you wish worked better for your family’s needs?”
  • “When do you feel most connected to your neighbors?”

Community Asset Mapping: Identified existing social connections, informal leadership, and community resources that could be supported rather than replaced.

Example Findings:

  • Mrs. Rodriguez in building B informally coordinated childcare among working parents
  • The Williams family had become the unofficial community information hub
  • Residents had self-organized a tool-sharing system in the storage areas
  • Multiple informal support networks existed for elderly residents

Residents participating in community meeting or activity Residents participating in community discussion or meeting. Photo by Seattle Municipal Archives, CC BY 2.0, via Wikimedia Commons

The Systems Integration Challenge

The most complex aspect of community-focused property management is integrating physical building operations with social community needs in ways that optimize both simultaneously.

Maintenance Scheduling Integration: Instead of optimizing maintenance schedules for staff efficiency, I redesigned them to support community rhythms and minimize disruption to family routines.

Example: Moved noisy maintenance activities from early morning (when parents were managing school routines) to mid-morning (when most adults had left for work but activities wouldn’t wake evening-shift workers).

Communication System Redesign: Replaced one-size-fits-all communication with multiple channels that matched how different resident groups actually shared and received information.

Digital Platforms: For time-sensitive information and two-way communication Physical Bulletin Boards: For community event coordination and neighbor-to-neighbor communication Informal Networks: Supporting existing communication patterns rather than trying to replace them Direct Contact: For individual concerns that required personal attention

Space Utilization Optimization: Modified common areas to support how residents actually used them rather than forcing predetermined uses.

Example: The original community room design assumed formal meetings and events. Residents actually used it for children’s play during bad weather and informal adult conversations during evening hours. Simple furniture rearrangement made it work better for actual uses while maintaining capability for intended functions.

The Financial Impact of Community Investment

Traditional Property Management ROI: Focus on minimizing operating costs, maximizing rental income, and maintaining property values through physical improvements.

Community-Focused ROI: Optimize for resident satisfaction and retention, which creates financial benefits through reduced turnover costs, lower maintenance expenses, and premium rental potential.

Quantified Results After 18 Months:

Turnover Reduction: Annual turnover decreased from 35% to 18%

  • Cost savings: $2,400 per avoided turnover (marketing, cleaning, lost rent, administrative time)
  • Total annual savings: $19,200

Maintenance Cost Reduction: Proactive care and resident partnership reduced maintenance expenses by 23%

  • Annual savings: $8,400
  • Additional benefit: 85% reduction in emergency service calls

Rental Income Optimization: Community reputation enabled 8% premium over comparable properties

  • Annual additional income: $14,400
  • Referral rate increase from 15% to 42% of new leases reduced marketing costs

Property Value Enhancement: Community stability and resident satisfaction increased property valuation by 12% beyond market averages

  • Value increase: $73,000 on $610,000 property
  • ROI on community investments: 340% over 18 months

The Leadership Philosophy: Facilitation Over Control

Traditional Property Management Approach: Establish rules and procedures to control resident behavior and minimize management problems. Focus on compliance and conflict resolution.

Community Operations Approach: Facilitate community self-organization and support resident-driven problem-solving. Focus on enabling positive community dynamics rather than preventing negative ones.

Management Philosophy Shift:

From Rule Enforcement to Norm Facilitation: Instead of imposing behavioral requirements, support the development of community norms that residents create and maintain themselves.

From Problem Response to System Support: Instead of waiting for problems to emerge and then responding, invest in community systems that prevent problems from developing.

From Resident Management to Community Development: Instead of managing individual tenant relationships, focus on developing community health that improves everyone’s experience.

The Implementation Process:

1. Community Asset Recognition: Identify existing positive community dynamics and informal leadership that can be supported rather than replaced.

2. System Integration: Design building operations to support community needs rather than forcing community adaptation to operational convenience.

3. Facilitated Self-Organization: Provide resources and support for resident-driven initiatives rather than organizing activities for residents.

4. Feedback Loop Development: Create systems for continuous community input that inform operational decisions rather than making assumptions about resident needs.

The Scalability Question: Community Principles in Larger Operations

Small Property Advantages: Direct relationship building, personal knowledge of residents, and informal communication systems work naturally in smaller communities.

Large Property Challenges: Maintaining community focus while managing hundreds of units requires different approaches that preserve community principles at scale.

Scalable Community Management Strategies:

Micro-Community Organization: Organize large properties into smaller community units (by building, floor, or family type) that enable personal relationships while maintaining operational efficiency.

Distributed Leadership Development: Identify and support informal leaders within different resident communities rather than trying to manage all relationships directly.

Technology-Enabled Community: Use digital platforms to facilitate communication and coordination within and between micro-communities while preserving face-to-face interaction.

Community Liaison Programs: Train maintenance and administrative staff to recognize and support community dynamics rather than just completing operational tasks.

Large apartment complex showing community organization Large apartment complex showing organized community spaces and infrastructure. Photo by David Shankbone, CC BY-SA 3.0, via Wikimedia Commons

The Manufacturing Manager’s Trap in Property Management

Coming from manufacturing operations, I approached property management the way I’d approach factory optimization: focus on efficiency metrics, minimize costs, solve problems as they arise, and optimize for standardized processes.

This approach works well for managing buildings as assets. But it fails completely at managing buildings as homes and communities.

The False Metrics Problem

What I Was Measuring:

  • Maintenance response times
  • Vacancy rates and turnover costs
  • Utility efficiency and operating expense ratios
  • Compliance with safety and regulatory requirements
  • Cash flow optimization and NOI maximization

What Actually Mattered to Residents:

  • Quality of life and community atmosphere
  • Predictable, respectful communication about changes
  • Proactive problem identification before issues become emergencies
  • Understanding of how property decisions affect daily routines
  • Feeling heard when concerns are raised

The Disconnect: I was optimizing for landlord efficiency while residents were experiencing tenant satisfaction. These aren’t necessarily aligned objectives.

The Investigation That Changed Everything

Mrs. Chen’s question prompted me to spend the next month actually understanding how people lived in the property. I started conducting what I called “community operations analysis”—applying the same systematic observation skills I used in manufacturing to understand residential workflow patterns.

What I Discovered:

7:00-8:30 AM: Heavy pedestrian traffic as families walk children to the nearby school. The main entrance becomes congested, and parents congregate in the lobby area to coordinate carpools and share information.

3:30-4:00 PM: Similar patterns in reverse, with children returning from school and using common areas for informal play while parents connect with neighbors.

Evening Hours: Different areas of the property serve different community functions—the courtyard becomes a social space for adults, while the parking lot serves as an informal gathering place for teenagers.

Weekend Patterns: Residents use laundry facilities as informal social coordination centers, sharing information about community issues and building relationships that affect overall property dynamics.

The Insight: The property wasn’t just a collection of rental units—it was a complex community system with workflows, social patterns, and interdependencies that affected everything from resident retention to maintenance requirements.

The Community Systems Approach

Applying Operations Analysis to Residential Management

1. Workflow Pattern Recognition

Just as manufacturing efficiency depends on understanding material flow and bottlenecks, resident satisfaction depends on understanding people flow and community interaction patterns.

Community Traffic Analysis: Mapping when and how residents use different areas revealed design opportunities that could improve quality of life while reducing maintenance issues.

Example: The main entrance congestion during school hours created wear patterns on flooring and frustration for residents trying to enter during peak times. Installing a secondary entrance with direct access to the courtyard eliminated the bottleneck while creating better community circulation.

Social Infrastructure Assessment: Understanding how residents naturally interact revealed opportunities to support community building that improved retention and reduced management problems.

Example: The informal gathering patterns in the courtyard suggested that residents valued community connection. Adding simple amenities like outdoor seating and better lighting transformed an underutilized space into a community asset that residents actively maintained and protected.

2. Predictive Problem Identification

In manufacturing, you don’t wait for equipment to fail—you monitor leading indicators and address issues before they become problems. The same principle applies to community management.

Community Health Indicators:

  • Changes in noise complaint patterns often signal underlying community tensions
  • Maintenance request frequency and type indicate emerging infrastructure issues
  • Common area usage patterns reveal whether community amenities are meeting resident needs
  • Informal communication patterns (how residents share information) affect how quickly community issues get resolved

Proactive Intervention Example: Noticing increased noise complaints from upper floor units, I investigated and discovered that new residents weren’t aware of community norms around noise consideration. Rather than waiting for the situation to escalate, I implemented a community orientation process that reduced complaints by 75% and improved neighbor relationships.

The Resident Experience Optimization

3. Service Design from the User Perspective

Manufacturing teaches you to optimize processes from the customer’s experience backward. Property management should work the same way.

Maintenance Request Workflow Redesign: Instead of optimizing for maintenance team efficiency, I redesigned the process from the resident experience perspective:

  • Clear Communication: Residents receive specific time windows rather than “we’ll be there Tuesday”
  • Context Understanding: Maintenance team understands how the issue affects daily routines, not just what needs to be fixed
  • Follow-up Systems: Verification that the solution actually addresses the resident’s underlying need, not just the technical problem

Community Communication Systems: Replaced periodic newsletters with real-time communication systems that respect how residents actually share and receive information:

  • Digital Community Board: For time-sensitive information and community coordination
  • In-Person Monthly Meetings: For complex issues requiring discussion and consensus
  • Informal Communication Networks: Supporting natural information sharing patterns rather than trying to control all communication

The Unexpected Results

Operational Improvements Through Community Focus

1. Maintenance Efficiency Through Resident Partnership

When residents understand how their actions affect building systems, they become partners in preventive maintenance rather than sources of problems.

Example: Teaching residents about proper waste disposal and HVAC filter maintenance reduced emergency maintenance calls by 40% while improving system efficiency.

Community-Sourced Problem Identification: Residents who feel heard and valued become early warning systems for emerging issues.

Example: Mrs. Chen mentioned that her neighbor noticed unusual sounds from the building’s heating system. Early investigation revealed a developing problem that would have caused a major failure and system-wide outage if not addressed proactively.

2. Retention and Revenue Through Quality of Life

Residents who are satisfied with community life stay longer and take better care of their units, reducing turnover costs and maintenance expenses.

Results After One Year:

  • Resident turnover decreased from 35% to 18% annually
  • Average lease renewal rate increased from 65% to 84%
  • Maintenance costs per unit decreased by 23% through proactive care and resident partnership
  • Referral rate for new tenants increased from 15% to 42% of new leases

The Property Management Philosophy Shift

From Asset Management to Community Operations

Traditional Property Management: Optimize building operations for landlord efficiency and regulatory compliance

Community Operations Management: Optimize building operations for resident quality of life, which naturally improves landlord outcomes

The Process:

  1. Understand Community Workflows: How do residents actually use the property and interact with each other?
  2. Identify Community Needs: What do residents need to live well and build positive relationships?
  3. Design Supporting Systems: How can property operations support community health and resident satisfaction?
  4. Measure Community Health: What indicators show whether the community is thriving or struggling?
  5. Optimize for Long-term Value: How do community investments create sustainable property value?

The Deeper Pattern: Operations Excellence Through Human Understanding

The transformation of my property management approach revealed a pattern that applies beyond real estate: the most effective operations excellence comes from deeply understanding how your system serves human needs, not just how it meets technical requirements.

In Manufacturing: Understanding how products actually get used by customers reveals design improvements that can’t be identified through internal process optimization alone.

In Real Estate: Understanding how properties actually get lived in reveals management improvements that can’t be identified through financial analysis alone.

In Leadership: Understanding how teams actually coordinate and communicate reveals organizational improvements that can’t be identified through org charts and procedures alone.

The question Mrs. Chen asked me—”Do you actually know how we live here?”—is the question every operations professional should ask about their system: Do you actually know how your system serves the people who depend on it?

The answer usually reveals the difference between efficiency and effectiveness, between technical optimization and human value creation.


What assumptions are you making about how people experience the systems you manage? What would you discover if you asked the people your operations serve: “Do you actually know how we work/live/function here?”