Principles of Management

Advanced Management is a "Body of Knowledge" that was initially designed by the three partners at Marquette Management as a means to create extraordinary value on their properties. During the past seventeen years, this body of knowledge has increased as the practical application of these guiding principles has been tested on the more than 8,000 apartments managed by Marquette Management. Marquette’s unique culture and approach to property management, from its atypical organizational structure to its "hotel" style approach to customer service, is a direct result of these underlying principles. These key principles and beliefs are the heart and soul of Advanced Management:

Your People, not buildings, are your most important asset!

The real issue is that PEOPLE are the most valuable asset in our business ranging from our employees to our residents to our investor retirees. There are hundreds of examples of well-located and beautifully designed properties that are financial failures because of poor staff selection and the resulting property management. Sound, innovative property management performed by passionate and dedicated professionals is the single most effective way to ensure long term property success and asset value enhancement. The notion that "if one builds it, they will come" does not hold true in property management. It takes the right staff with passion and commitment and a well-developed marketing plan to make them come!!

Staff training and development is the key to employee productivity and fulfillment.

Marquette’s unique commitment to staff training and personal development is evidenced by the fact that more than $200,000 a year is dedicated to staff training and development through the Marquette School of Advanced Management (MSAM). A fully operating school with a Director who monitors a curriculum of more than 25 courses offers a unique opportunity for employee growth and training that directly impacts each employee’s ability to utilize their talents, making them more productive and enhancing the property’s bottom line cash flow.

Value is perceived and lies solely in the mind of the renter!

It is critical to understand that "value" is perception. It is not an absolute; that is, something that means the same to each renter. What someone is willing to pay in rent is a totally subjective issue and is based on the needs, wants, perceptions, and judgments of each individual. This means that value is created each time a staff member speaks with a customer or each time a customer visits one of our properties. During the past 13 years, we have developed a model that reflects the different levels of value. Our success depends on our ability to fulfill these different value levels for each resident.

This also means that each Marquette employee has the ability and obligation to understand what customers see as "valuable" and make sure this value is being provided at each property. Over the years, Marquette has developed a number of specific methods to accurately assess customer "value". These include:

• 4 Part Resident Survey Program
• Resident Focus Groups
• Maintenance Service Call Back Program
• Resident Phone-a-thons
• Move in Inspections
• Resident Interest Surveys

The ability to generate income is the key to property success!

Fulfilling people’s needs translates into residents who will pay higher rent levels, want to stay longer, and refer others to be their neighbor and friends. That means more income to us making the properties that we manage financially successful. To that end, we focus on methods to enhance gross income rather than just control costs. After all…managed costs consume 40% of the gross income. Would you rather focus on a 10% savings on 40% or 10% growth on 100%? The real source of property financial success lies primarily in the ability to generate revenue through high rental rates, high occupancy and ancillary income. Expense control is also critical to achieving high returns on investment. But most properties live and die by their ability to control vacancy loss.

A Decentralized organizational structure will increase the likelihood of resident satisfaction and property success!

The more control, decision making, and accountability you can develop at the "point of customer contact" with those staff members who deal directly with your customers, the greater sense of "partnership" you will create and the more likely you are to increase resident satisfaction and property success. Corporate hierarchy that slows response time to market conditions and resident needs disempowers employees and decreases the ownership level a staff will have on a property.

Developing an "Open Book" style of Property Management will empower your staff and create ownership.

Keeping employees in the dark about financial matters and key property decisions is a sure way to create distrust and disinterest. Opening your books and involving your property staff in the important decisions, successes and failures of a property on a monthly basis, encourages more "ownership", "risk taking", and "personal development". One way that Marquette does this is through Leadership Community; where Property Managers, Maintenance Supervisors, Staff Group, and partners come together to promote the vision, contribute ideas, share property successes, and much more. The Managers and Maintenance Supervisors are then able to go back to their properties and do the same with their staffs. No one else uses that to their advantage like we have. It requires sharing of information, intentional contribution to others, open book management, etc.

Residents will pay more for Legendary Customer Service.

The entire approach to generating income at Marquette hinges on the conviction that residents will pay more in rent and stay longer at a property if they are receiving the type of legendary customer service and attention to detail found in the finest five star hotels.

Marquette has gained national recognition for its legendary, trademarked "We C.A.T.E.R." Service Program which stands for Customized Attention To Every Resident. A host of services found typically in luxury hotels are provided for residents by a dedicated concierge and property management staff that truly cater to a resident’s every need.

Systems are the Key to Consistency and Quality.

This principal is more about franchising the properties and entrepreneurial approach to property management. "Effective" and "Lean" systems are fundamental to the franchise concept. Think McDonald’s and their systemic approach to Quality. Their systems are essential because they empower their franchisees and allow them to replicate the product delivery. To that end, Marquette managed properties strictly adhere to approximately 30 systems that ensure the smooth and consistent operation of a luxury apartment community. An internal Systems Administrator monitors the effectiveness of each system and works closely with Property Managers, Property Mentors and Staff Group Trainers to maintain the highest level of quality and consistency throughout the entire portfolio. This consistency and quality translate into increased resident satisfaction and favorable bottom line performance.

Marketing innovations are critical to maintaining your competitive edge.

Years of experience have taught us that all properties compete on the basis of two of the following three criteria: price, quality or service. It is virtually impossible to compete effectively on all three criteria. Competing on price lowers profitability with properties in contrast to other consumer commodities. Through Advanced Management, we have learned that the two most effective ways to compete are generally on service and quality. To accomplish this requires a commitment to innovation and cutting edge marketing and management practices.

During the past seventeen years, Marquette has earned a niche as one of the most creative marketing companies in the nation. We have created a host of innovative programs and collateral pieces that have won numerous industry awards and made a positive contribution to the quality of life at our properties.

Advanced Management—The Key to the Future.

Marquette’s mission has always been to "Redefine the Quality of Life Through Real Estate Development and Management Services". Marquette’s commitment to raising the quality of life for its employees, residents, and investors remains as solid today as seventeen years ago. The successful implementation of Advanced Management has been the key to Marquette’s constant and noteworthy success as it will be for years to come.