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August 2023 Production Data – Manufactured Housing Institute (MHI) Leaders Should Embrace Responsibility for Continuing Manufactured Home Production Decline – Consolidators Fueled Crisis?! 
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Through the Looking Glass

In literature, phrases and words can have various meanings. In the case of through the looking glass, it may mean a window, or a mirror. Let's talk today about mirrors and a valuable, proven Good to Great concept.

When something goes wrong for a person or an organization, Good to Great author Jim Collins says that the first thing you do is look in the mirror.

Great leaders – coaches, elected or public officials, business owners, managers, professionals, etc. – all should start by looking in the mirror when an issue exists.

Yes, there are times when circumstances or this or that person on the team may have hampered an outcome. But where does the buck stop? Obviously, with the leader.

If you happen to be that leader, then that look in the mirror is very important to advance past the problem and turn a temporary failure into some future success.

In terms of leadership, ask yourself this question. Does the leader make excuses or take responsibility?

If a job isn't getting done, look at the top spot, and the person at the top spot has to ask her or himself, “What did I miss? What did I fail to do?”

This look-in-the-mirror is the polar opposite of the “blame game” or of scapegoating.

mirror-wikicommons-posted-masthead-blog-mhpronews-com-.jpgWhen something goes wrong in a career, the same process should take place. You start by looking in the mirror.

The Manufactured Housing Industry Looking Glass

A one legged stool is not easy to balance. A football team that only plays defense will eventually lose.

We believe that stating the obvious can bring clarity to many topics. An association executive stated the obvious to me by sharing, 'as industry new home shipments have gone up (the past two years), the association has done better financially. This has allowed us to tackle items we simply could not afford to do before.'

For those who don't know, associations get floor fees from participating manufacturers, so more sales generates more revenues for state, regional or national associations. So right on, association executive.

We are happy for that exec and ALL execs that can say the same, that shipments are rising in many places.

But let's ask:

  • was there a lack of strategic vision that might have avoided such a steep down turn in the first place?

  • Is there a lack of strategic vision today that might fuel a farther, higher and more sustainable upturn now?

  • Couldn't we do more that would produce even more revenues for members and associations alike, while creating more happy manufactured home owners and residents?

When any organization is putting more sales up, that obviously ought to be good for all involved. The same is true for trade associations.

When associations are putting more points on the board – by helping their members drive more sales – would that association then have the same financial challenges they've experienced in recent years?

Part of the point is that the crunch was in part avoidable. Not that we have to cite anyone else, but there are many who feel this is true. Let's mention one that has been a periodic contributor here, Marty Lavin. If you read Marty closely – this is my paraphrase and thought, not necessarily his – it isn't that Marty wants to sing 'gloom and doom,' what he is doing is saying, 'Hey! Make the changes needed to raise the industry back up! Or suffer the consequences.'

For those who don't know, Marty was a long time supporter of an image campaign. Why? Because it could help. But Marty also called for the systemic changes needed to move the industry ahead.

Another such voice is Green Courte Partner's chairman Randy Rowe, with his well known 5 Point Plan for Industry Recovery. Or UMH's CEO Sam Landy, who urges businesses to invest in marketing, but who has also recently invested in the industry's budding image campaign. Others we've interviewed in our A Cup of Coffee interview series have in their own words said similarly, see what this month's interviews had to say on this topic!

We can't change what happened, and this isn't about blaming anyone. It is about saying, let's look in the mirror. Let's learn the lessons, and triuly move on – ahead!

Grow Associations Via Member Victories

We get association leaders who tell us they are routinely looking for ways to grow their membership. Of course, it is wise to do so.

But the biggest no-brainer of all for associations is to make their value proposition to current and potential members so powerful that you'd have to be an idiot not to be a member.

To accomplish that, it has to be about true win-win-win. Most manufactured housing associations count their member companies in the hundreds. Many get only 20-25% market penetration in some segments of their membership (I do know a state that has 100% HUD code retailer membership, so there are exceptions). Everyone involved in the association should benefit.

An association should strive to offer or facilitate what the members can't do for themselves solo as well. That makes it easy for big, small or in between to WANT to be a member, because it is a no-brainer. This isn't new thinking, associations do this. But why not do this in a way that puts more points on the board?!

But there are certainly other things to do too.

An Actual Example

I'm thinking of one of the over 50 associations in our industry. They facilitate an insurance program for their members. The insurance plan is so good, it more than saves the cost of annual membership for most who join. That's one example of a “no-brainer” to become a member.

Another – and perhaps the best example of all – would be for associations to facilitate the sale of more new homes. More new homes sales means more loans, more installations, more insurance policies, more AC's, anchors and foundation enclosures (skirting), more homes built and…

…because of floor fees paid to associations, it means more revenue for the association as a bonus!

Many associations have the mantra – protect, educate and promote. Perfect! We agree.

  • Protect: That's defense (protect against or promote agendas that are legal or regulatory issues).

  • Promote: That's offense (scoring points – measured by the sales of more homes).

  • Educate: education (coaching) can actually be helpful on offense and defense.

Let's be clear. One reason that mom and pop operators flock to Louisville is to get some information that may help them grow sales. Bob Crawford, with famous Dick Moore Housing is hardly in a 'mom and pop' operation, but they are at Louisville and Tunica to learn routinely too, as the article linked above that Bob shared recently mentions a lesson learned at a show that profited their business.

Again, associations are doing this too. But there is a big difference between an association bringing in a speaker for an hour or two or even for a day, vs. providing ongoing training that could be done nationally year round with modern online technology as reasonably as the periodic state meeting cost would be.

We aren't saying, drop one for the other. We are suggesting, that strategic plans can be crafted and implemented that could drive business in a state, region or the country.

Doing so would help big boys, small and those in between. Why? Because professionalism is part of the image issue. After a couple of years, we now have some associations privately admiting that their members need professional training. Let's think, if Best Buy makes you study for two weeks before you hit the sales floor, why do we think that a one day (or two hour…etc.) course on manufactured home sales is going to last someone a lifetime?

Clearly, it won't.

So just as obviously, something ought to be done to correct it! Create a win-win-win, one that includes home buyers, and watch the Industry's sales soar!

Football: Offense, Defense and Special Teams

The return of football season makes it a good time to use this sports analogy. Let's look at some well known coaching maxims.

  • A good offense is the best defense.

  • Special teams can make the difference in a close game.

  • Training is a focus for every major sporting team, without exception.

Ladies and gentlemen, arguably in part because manufactured housing failed to pull off the much-ballyhooed image campaign in the mid-2000 (or earlier...), we failed to put the points on the board that would have made fighting the frightful unintended consequences of the SAFE Act, Dodd-Frank easier.

Because we have not maximized positive relationships with enough home owners, a vacuum exists that allows groups like Ishbel Dickens' to flourish.

Let's look for a few moments at Dickens' very committed group, and see what we can learn from it.

national-manufactured-home-owners-association-logo-and-community-photo-posted-mhpronews-masthead-blog-.png

First, all you have to do to know that we don't see the world the same as Ishbel Dickens does is to click on this article; mindful that the same facts were spun quite differently by the local media that presented those same facts. This is one of many things that trade media can do for a story, re-frame an issue to be more balance and thus more pro-industry.

ishbel-dickens-manufactured-home-owners-of-assocation-mhpronews-com-.png

That point shared, let's compare Ishbel's group's results with the two national MH trade associations. Before doing so, let's underscore again that this is a clinical, factual look. This is NOT meant to embarrass anyone or any group, as should be clear from the fact that we are active and engaged MHI members and routinely share MHARR news items unedited.

isahbel-dickens-mhpronews-com

Now, let's look at Richard 'Dick” Jennison's results. We need to emphasize that this isn't apples to apples in any way, because Dick has been on the ground for about 18 months, while Dicken's has been for many years.

dick-jennison-mhpronews-com

Next, lets look at MHARR's CEO, Danny Ghorbani. Since Danny has a unique name, not unlike Ishbel's, the only quotes needed are around the name itself.

The tally is like this:

  • Ishbel Dickens = 3,250 results

  • Richard Jennison, MHI = 198 results

  • Danny Ghorbani = 4,330 results

We could dig deeper and show that the search for:

  • “Manufactured Housing Institute MHI” produces per Google= About 48,700 results

  • and a search for the “Manufactured Housing Association for Regulatory Reform” = 33,100 results.

The point is that Ishbel's relatively small, and tremendously outgunned group in terms of funding has drawn a disproportionate share of links online. Why? A simple three word answer.

Committed volunteer members.

Let's park that for a moment, and turn to a related topic.

Association staff can't do it all alone!

Another set of comments being heard from grass roots association pros is that there has to be an understanding that with limited staff, associations can't do it all alone. There is a need for direct, personal member engagement.

While two states – Oklahoma and Mississippi – have 100% buy in by their Congressional representatives on HR 1779, what about the other states?

We know that Jim Ayotte has a strategy, he spells it out beautifully in his interview, among other points that tend to dovetail with the offense-defense topic here. Let Florida's executive spell out there strategic vision in his own words at the link above.

Other states do an often terrific job on their state issues, but seem to be lagging on this 'national' issue that clearly has a state by state impact. I see emails from many of these associations, they are calling on their members to jump in and call their elected officials. Do those members expect the exec to do it single highhandedly?

If so, those members who think that need to look in the mirror!

If it is to Be…

My training (much of it came from sources outside our industry) was blessed by people who may have seemed tough at the time, but who made me internalize some helpful maxims. For example, “If it is to be, it is up to me!”

One fine boss I had as a young MH salesman (also demanding, but he was honest and I learned a ton) in this business, told me “It's the Man and not the Land.” What that meant was the person makes all the difference in the world, so long as the person is motivated to do what it takes to make it happen.

Wisconsin's respected Ross Kinzler sounded off some weeks ago, on that theme, “Are you ready to Grow? Are you ready to do what it takes?”

Are you? Are your peers and team mates and association members?

Let's not fall into the trap that someone will do it for you. Sure, they might, but far more likely that they don't.

http://non-profit-organizations.findthebest.com/l/1453371/Manufactured-Home-Owners-Association-of-America-Inc

Click the link above, and see how little money Ishbel's group are working with, and by implication, how much of a bang they get out of so little! Look at the link above a tab that says, IRS Form 990 and see for yourself.

Dicken's group is admirable in the following respect. They have dedicated volunteers who in many cases work their hearts out for their cause. Those volunteers get trained and they are held accountable.

There are MH associations that have 10 to 20+ times Dicken's budget. But dollar for dollar, Dicken's gets more free media inks and links. Why? Looking in the mirror, in a phrase, because of committed volunteers.

We as business people and associations have to look in the mirror and decide to do better.

We have to follow Strategies that will Win

Our industry has to have offense, defense and special teams.

  • We have to defend against bad legislation and regulation. Many associations do a fine job on this.

  • We have to 'market, image build and sell' (offense, points on the board, selling more homes). Sorry folks, but most states and both national associations get a failing grade on this one.

  • Special Teams. This can be the coaches and volunteers who can engage consumers, engage the media and put points on the board that can turn a game around in a flash!

Jeers and Cheers

Jeers: there are a handful who think that Tony preaches this stuff because 'it will make him money.'  It is fair to raise that topic, so let's dig into that thought for a moment or two.

As a download on a column on this page linked here, is an article from 25 years ago that I wrote then for the Merchandiser. Please read it carefully, because this was years before I sold my retail center (at a profit).  I was preaching the same basic things then as now!  

More to the point, I didn't make me a dime to write those articles, in fact, it cost time so it cost money.

But that was – and is still today! – my give back to an industry that I totally believe in has the ability to be first choice housing for millions! But becoming first choice housing will ONLY happen if enough of us do the right things, starting right away. Not easy, but the rewards for change make it worth it. My old article linked above said many similar thoughts then, and they still apply today.

Cheers instead of jeers:

For everyone that tries to disrespect our efforts (and this is team work here, as I say routinely, we get input and support from industry pros routinely that allow this all we do here to happen), there are a hundred that get it.  Below is the proof.

Many of the Linkedin "endorsements" and all of the recommendations come from people who know/experienced our work. But there are dozens of others, some of  whom I've never personally met, who are also endorsing us.  We are now getting DAILY connecting and/or DAILY endorsements. These are votes on Marketing, Strategy, Vision, etc. See this screen capture – 475 endorsements as of 9.4.2013 – at my Linkedin profile.

linkedin-9.4.2013-endorsements-.jpg

What this reflects is the fact that the grass roots (and not a few leaders) in our industry are HUNGRY for what we are 'preaching' here, and the proof is in the growth in readership seen in the chart below. Pros like you from businesses of all sizes are 'voting' with their time and browsers.

statisctial-comparision-voting-with-time-broswers-mhpronews-com-.png

You don't have to love me or anyone involved here to love the vision we are trying to build as a team that is pro-MHIndustry. A boat load of these visitors don't come on my blog, but they are reading our news, reading expert tips from others, etc.

This isn't about personalities or egos. It is about getting results that will benefit all involved. Please do read, the Thing Needed and see the free download attached!

We MUST work better together, and we MUST be more motivated, more willing to get our own hands involved.

leigh-j-abrams-drew-industries- (1).jpgI'm going to start wrapping up by encouraging those readers who are not among the thousands of who have already enjoyed Leigh Abrams' interview, to read it.

Success is rarely an accident.  Warren Buffett, Sam Zell, Steve Jobs, Bill Gates, Dave Thomas, Colonel Sanders, Henry Ford….name the success story, and they happened because of vision, planning, dedication, adaptation, effort and follow through.

I want to close with one more word about Ishbel Dickens and her dedicated followers.

If we industry pros were doing a better job of reaching out nationally and locally to engage those residents and home owners, would we have the same headaches we do today?

And wouldn't we as an industry be better off if we were as committed to our cause as Dicken's unpaid volunteers are to their cause?

Want to fix what keeps us under the very doable 100,000 a year annual shipments, or 300,000 or 500,000 shipments?

Start with the looking glass.

Then, lend others a hand up, as our volunteer writers and sponsors do. The rising tide will raise all boats. ##

PS: Check our many Exclusive and Red Hot Featured Articles for September and see the other new stories at MHLivingNews.com too.

L. A. "Tony" KovachL. A. 'Tony' Kovach
ManufacturedHomeLivingNews.com | MHProNews.com |
Business and Public Marketing & Ads: B2B | B2C
Websites, Contract Marketing & Sales Training, Consulting, Speaking:

MHC-MD.com | LATonyKovach.com | Office 815-270-0500 |

Connect on LinkedIN:
http://www.linkedin.com/in/latonykovach 

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