CULTURE
CULTURE
CULTURE
CULTURE
CULTURE 1
Copyright 2017 THE CONNOR GROUP
PEOPLE COUNT 23
CONTENTS
INTRODUCTION
CULTURE 5
When I get a chance to talk to people who are in the hiring process, sometimes I have
to keep myself from going into sales prevention mode, said long-time Connor Group
observer and leadership coach Roger Lipson of The Lipson Group. Because I dont think
most people really realize what its going to be like and how strong the culture really is. To
me, it comes down to one word: relentlessness. Its an intense, overachieving, competitive
environment. People who like candid feedback like The Connor Group. That works for
certain people.
People and how they fit into our culture always have been the key to our success.
Always will be. No person is irreplaceable, but every person is important. Everyone
holds the rope; those who pull hardest are rewarded and recognized for their efforts. The
Connor Group started with three partners. It has grown to 33. That group includes service
technicians, administrative assistants, property managers, sales associates, trainers and
top executives alike. In 2015 we promoted our first groundsperson to partner. Weve never
had a glass ceiling, so our associates have a skys-the-limit attitude.
Our people pride themselves on constant evaluation and improvement, but certain
concepts are non-negotiable. Theyre detailed in this book, but theyre more than
catchphrases or words on a page. They are, more accurately, the language we speak.
Every day.
We came up with the five core values detailed in these pages. They represent who we are
and who we want to be.
Mission statements, by contrast, are an attempt to answer one question: Why do we exist?
Thats never been a question at The Connor Group. We exist, quite simply, to be the best.
Its the concept upon which the company was founded in 1991, when we had no assets and
no apartments. Although our size has changed dramatically throughout the years, that
ideal never has.
But be the best at what? The best company in the apartment industry? Were competitive
by nature, but measuring ourselves against others who just happen to make their living
the same way we do has never been our focus. We dont join professional organizations.
Weve grown from $0 to nearly $2 billion in assets. And weve done it mostly with
individuals who have never worked in the apartment industry. Our associates dont know
the industry standards. They have no knowledge about what has been deemed impossible
by others in the business. We like that. Because we dont deal in industry standards, or
impossibilities for that matter. What we do as recruiters, trainers and leaders is find
the best and brightest individuals and teach them The Connor Group way of doing things.
Weve never really focused on what anyone else does, said managing partner Larry
Connor. There are some good people in the apartment industry and some not-so-good
people in the industry. But thats not really relevant to us. We focus on what we can do
with our people and our properties.
Our methods are different and unconventional. And anytime youre different and
unconventional, people are going to criticize you. Either they dont understand it, theyre
envious, or they just cant perform at that level. No matter the reason, were not going to
spend a lot of time worrying about it. Were going to continue to focus on our business
and how we can improve it.
Frankly, were not all that passionate about the apartment industry in and of itself. Were
passionate about the five values detailed in this book.
Any dilemma or decision that comes our way both as a company and as individual
associates can be solved with these five core values. Everything else, weve found, takes
care of itself.
CULTURE 7
DO THE RIGHT THING
As he passed one unit, Joe heard a faint but odd sound from its
attached garage. It was the low roar of an engine. And it was coming
from behind the closed garage door. Joe, the propertys resident-
friendly lead tech, knew the woman who rented the apartment. He knew
she drove a large Dodge Ram pickup truck. And he knew she recently
had experienced some personal problems.
I went up to the door and I could just feel the heat coming off it, he
said. At that point, you start to think that something isnt right.
CULTURE 9
resident slumped over the center console, unresponsive.
Unable to pull the resident out alone, he called Ranch at Ridgeview turn technician Bob
Madrulli, a navy veteran. Bob hurried to the scene and the duo pulled the woman out of
the truck and to safety. They were unable to revive the resident later, they found out, she
had overdosed on prescription pills so they called 911.
Rescue workers later were able to revive the woman. The other heroes the two guys
who maintained Ranch at Ridgeview went back to work.
It was a crazy situation, but when that kind of thing happens I think you just react, said
Joe, who is now a partner in the firm. Obviously, you never want that kind of thing to
happen, but a couple weeks later we got a call from the womans son. He thanked us and
said we saved his moms life. That was a nice feeling.
The actions of Joe and Bob on that day are by no means an accurate representation of an
ordinary do-the-right-thing dilemma for a Connor Group associate, or any associate of any
company for that matter. But, ideally, its an accurate representation of the kind of people
who work for the company.
And that notion cant be a top-down directive. If simply telling people to do the right
CULTURE 11
TO OUR CORE
Think about high school. Along with certain socioeconomic factors, whats the difference
between a really good high school and a really bad high school? At one end of the
spectrum, its cool to be involved in extracurricular activities; its cool to do your
homework; its cool to get good grades and get into a good college. At the other end of
the spectrum, skipping class, acting out and even dropping out is cool.
The Connor Group is no different than any other culture in that regard. People tend
to follow the crowd, even some really good people. At The Connor Group, the coolest
associates are the ones who do the right thing and preach doing the right thing.
I work it in every time Im training someone, said Rob Murray, who started with the
company as a turn technician, before working his way up to lead tech, regional service
trainer and eventually partner. Always do the right thing. If youre working on someones
apartment, think about how you would want it fixed if it was your apartment.
Fix it right and fix it right the first time. Its the right thing to do.
Its one thing for a trainee to fix something right the first time during training. Not many
people are going to take a shortcut when they know theyre being watched. Integrity,
they say, is doing the right thing when nobody is watching. People who act with integrity
CULTURE 13
typically do well at The Connor Group.
In the end, his efforts helped provide more than 800 toys and 80 Christmas dinners.
The toy drive is one initiative of The Connor Groups external version of do the right
thing The Connor Group Kids and Community Partners. The foundation was established
in 2007 to expand the companys impact through worthy causes. Its goal is to identify
good causes, invest in them and help turn them into great programs.
In the process of finding worthy causes, Kids and Community has developed some of
its own. In addition to the toy drive, it renovated a City of Dayton park and the Red
Cross headquarters. It has set up and funded an after-school program. Its flown medical
supplies to earthquake-ravaged Haiti.
CULTURE 15
IN THE COMMUNITY ...
Our causes are not ... Kids and Communitys main focus is
Gifts or endowments; theyre identifying good causes and helping
investments transforming them into great programs.
Mass funding appeals or Causes its helped include a charter school
big-box charities system that produces first-generation college
Tickets or advertising for grads, an employment program for homeless
fundraising events teens, an amateur boxing program for inner-
One-off check-writing city kids and an organization that removes
opportunities educational barriers for homeless kids.
Programs we cant vet from It has also helped fund The College Promise
the ground up and develop Program, which offers college scholarships for
personal relationships with poverty-impacted students who participate in a
four-year high school mentoring program. Once
a week, Connor Group associates meet their
mentees for lunch. They set goals, problem solve, motivate and offer
advice.
This isnt charitable giving, said Kids and Community director Ryan Ernst.
Its more like activist investing. We want to use the companys resources,
relationships and culture to have a big, measurable impact where its most
needed.
Kids and Community Partners looks for programs that impact kids on a regular
and timely basis. Its goal is to work with a limited number of programs that make a
significant, long-term and quantifiable difference in kids lives.
Potential causes are put through a vetting process that examines their culture,
goals, leadership, structure, results, long-term planning, funding and staffing. Once
the Partners decide to partner with a program, they provide much more than
funding. Oftentimes, programs can benefit from other Connor Group resources. The
company employs experts in recruiting, communications, finance, accounting, IT and
operations. It also has strong business relationships that can pay dividends in the
form of special pricing from vendors, pro bono work from professionals, networking
opportunities with other organizations, etc.
CULTURE 17
PEOPLE COUNT
Why do you think the same five guys make it to the final table of the World
Series of Poker every year? he asks. What, are they the luckiest guys in Las
Vegas?
Its the same reason a really good lead tech can bring a propertys
controllable expenses into line or a really good sales associate can raise rent
roll growth or a really good manager can positively impact net operating
income. Its the same reason why the industry average revenue per associate
is $300,000 while the average for Connor Group associates is $547,000. It
has nothing to do with luck or happenstance. It has everything to do with
the right people in the right places doing the right things. And the number
of people who work at a property is far less important than the quality of
those people.
CULTURE 19
PUTTING PEOPLE FIRST
Companies, of course, can stack the
At The Connor Group, youre bound deck in their favor by starting with the
to hear a lot about people. Youll hear right people. The Connor Group actively
virtually nothing, however, about recruits associates it feels are among the
human resources. Why? Because top 10 percent of all people working. The
the company doesnt even have an companys recruiting process is thorough; its
HR department. And, according to based on competency and commitment. Simply put,
managing partner Larry Connor, it The Connor Group looks at skill, but it hires people
never will have one. based on their will. You dont have to be passionate
Its the responsibility of every person about apartments, but you have to be passionate
in a leadership role to manage, about excellence. Playing your role at a really high
motivate, set clear expectations level, no matter what that role is, has to get you fired
for, measure, hold accountable and up. Achievement, discipline and responsibility have
reward and recognize people, Larry to be a priorities in your life. This cant be just a job,
said. At a lot of companies, any issue not for any person in the organization. Not if the
gets turned over the HR. Thats a company is going to get where its associates want
fundamental flaw. it to be.
The last thing you would want to cut, in any business, says Larry Connor, is training.
Since the company rarely hires associates with previous experience in the apartment industry,
new associates arent expected to know everything right away. In their first weeks and months,
they should have twice as many questions as answers. Really, once theyre hired, all they need
to know is that the company has a blueprint in place for you to be wildly successful.
At the end of the day theres only this: How well do they fit and how hard do they work?
Connor Group associates freely admit the company isnt for everyone. In certain job
descriptions, the company has extremely high turnover. Its a problem that people in the
organization continually look to improve. But they do so with the understanding that Connor
CULTURE 21
PEOPLE &
PROMOTIONS Group turnover always will be higher
than most companies. Unlike some
The Connor Group prides itself on companies, The Connor Group will not
developing people and promoting transfer a problem. That theory applies to
them from within the ranks. problem residents and problem associates
alike.
A few stats
Ninety-five percent of all problems are people-
based, says Larry Connor. And 95 percent of all
All 16 of the companys full-
solutions are people-based.
time trainers started out in
entry-level positions in the Take, for example, Jennie Juran the first Connor
field. Group sales associate to be promoted to partner.
Ten of the companys 33 She joined the company out of college, with no
partners started out in entry- experience but plenty of talent. Throughout the
level positions in the field. years she learned The Connor Group systems,
Five of the companys partners and applied them to perfection at a number of
started out as administrative apartment communities. With a sales associate like
assistants in the Central Office. Jennie, the property doesnt matter. She produces
results. In early 2013 the company assigned her to
Orchard of Landen, a suburban Cincinnati property
that had been struggling with rentals. For seven
straight months the property posted net losses of
residents. On average, it lost four residents a month.
In Jennies first month at the property, it gained
10 residents. From there, Jennie went to Atria of
Crabtree Valley in Raleigh-Durham, an operation
that had lost 55 residents during the previous eight
months. In her first month, it stopped the bleeding
and added six residents.
CULTURE 23
associates like Jennie. (Well get to that in the next chapter.)
The company also believes in sharing the wealth, a fact Jennie learned first-hand when she
became partner and earned partial ownership in the firm. She is one of 33 partners, all of
whom received equity from managing partner Larry Connor. In some years, profits from their
partnership surpass their salary. The partnership program is open to all job categories. It
consists of maintenance technicians, trainers, administrative assistants and top executives alike.
When I first learned about The Connor Group, the partnership program was something that
really drew me to the company, said maintenance trainer and partner Paul Leber. Personal
goals and professional goals are important to me. And I always think about it as an Olympian,
who keeps a picture of a gold medal as motivation. We all have good days and bad days, but
knowing that reaching the partnership level is something thats possible is something that puts
me in a good mood and gets me excited to go to work every day.
But the company shares more than just tangible gifts. Just as important or possibly more
important it makes a point to share all critical information with its associates. Constant
feedback and open communication are basic tenets of The Connor Group. The company utilizes
video conferencing systems to dial in associates for inter-region meetings. There are print
newsletters, e-mail newsletters, social media updates, an associate mobile app and townhall
CULTURE 25
TO OUR CORE
Im proud of them because they did
Ive been here almost 20 years and the right things and they worked hard.
I cant tell you the number of times Im proud of our company because it
Ive seen people make the difference. rewarded and recognized them with growth
Weve seen properties that were opportunities.
poor performers completely turn
If you take a look around, youll see examples all
around with the right people.
over the place.
Properties dont change much year
to year, submarkets dont change Youll see examples like Rodney Johnson. Rodney
much year to year, its the people started with the company in 2008 as a maintenance
who operate the property. technician. He spent his first months with the
company going from unit to unit at The Villager
We could go through countless Apartments in Dayton, Ohio, converting closets
examples. Its always about the right into washer/dryer bays. Now he manages millions
people doing the right things at the of dollars in capital projects every year. His office
senior management level, property is four doors down from managing partner Larry
operations level, Accounting, Connors. Hes a partner in the firm.
Finance, IT, Recruiting, etc. Its a
The transition didnt happen overnight. After
story Im proud to tell and never get
finishing the conversions at The Villager, Rodney
tired of telling it.
established himself as one of the companys best
lead technicians. He then became a trainer. When
Patrick Rini, Partner,
vice-president of Capital Expenditures Chris Mullins
Investor Development
was looking to expand his department, he looked
internally and found Rodney.
I can relate to the people I work with. Ive done sales, Ive played the PCM role. Ive been on
my hands and knees cleaning apartments. Im not above any of that. I think people respond to
that kind of experience. They like to know that you were once doing exactly what youre asking
them to do and that its been part of a career path.
In 2013, the company made promoting from within an even bigger priority, instituting
Personalized Development Plans, designed to give associates long-term goals and move them
up in the organization.
We have a very unique culture, Larry said. I always tell people its the best place youve ever
worked or the worst. And we go through extensive recruiting. But hiring great people who fit
into our system is difficult. Thats why I would love to see promotions from the inside
It gives us a great chance of success. And developing people is the right thing to do.
CULTURE 27
NO GLASS CEILING ...
Mollie Courtney had been with the Shes just one of those people that
company just a few months when she everyone loves and everyone can count
first witnessed a partner promotion. The on, said Connor Group Partner Pat Rini.
new partner, upon hearing the news from She puts in more hours than anyone I
Larry Connor, sprinted across the room know. She never says, Thats not my job.
and gripped the managing partner in a Its obvious she has a passion for what
bear hug. she does.
I thought, Wow, this is a pretty big It wasnt always that way. Before coming
deal, Mollie said. I thought nothing to The Connor Group shed worked
could top that. several office jobs. None, she said,
offered the kind of fit she found with The
Not until it was her turn anyway. Connor Group.
Its the engine that drives the company. Its the vocabulary associates use.
Its the common denominator that links every Connor Group associate in
every job description in every location on every day. And its as simple as it
is effective.
CULTURE 31
Im a Connor Group property manager with a problem. My property is at 87 percent economic
occupancy. Along with my senior manager weve set a clear expectation. In the next three
months, the property needs to reach the minimum company standard of 94 percent. The
reward, if my team reaches it, is an item off each associates wish list. The consequences, if we
dont, are once-a-month training classes, held on Saturdays.
So what do I do?
With the help of my senior manager, I set individual expectations for all members of the team
that will help us collectively achieve the goal. We measure our performances specifically and
individually repair and maintenance budget, upgrades, rentals, renewals, delinquency, etc. I
hold everyone individually accountable. We measure each day, week and month and dole out
individual reward and recognition and consequences. My SMT holds me accountable.
Ideally, we hit the goal and get the team reward and the recognition. And the circle continues.
CULTURE 33
R&R TIME ...
said partner Bob Lloyd, our chief
When a Connor Group associate operations officer. Thats where
consistently hits his or her goals, individual accountability comes into play.
theres a good chance theyll
Or, as Connor Group partner Mike McQuiston
receive something off their Reward
has said, People have a tendency to think its
and Recognition Wishlist. Every
OK to screw up, as long as theyre all screwing up
associate is asked to fill out his or
together.
her wishlist on The Huddle, the
companys intranet. The idea is to But the Circle of Success, at its core, is a study in
list a variety of items you want, but individual accountability within a team setting. I
probably wouldnt buy for yourself. have a goal, which I helped set. Whether or not I
As for giving R&R, there are hit my goal is up to me. The rest of the team knows
standards for that as well. A look at what my goal is. The rest of the team is going to
the dos and donts: know whether I hit my goal. The rest of the team has
a stake in my success. If I hit my goal, Im rewarded.
Effective praising must be If I fail, I suffer the consequences.
specific.
Is it easy? Rarely. Comfortable? Not really. Fair? More
Present R&R in front of the
often than not. Effective? You bet.
recipients peers.
The present should be So lets take a closer look at each step in the Circle.
wrapped.
Clear expectations
Remember, attention to detail
and presentation make a big Lets revisit that brainstorming session through the
impact. lens of the Circle of Success. At a Connor Group
Dont be afraid to recognize meeting, if a worthwhile meeting idea comes up,
someone because you might its immediately put into the Circle. Heres how that
hurt someone elses feelings. conversation might go.
Whats more important, Associate A: Hey, what if we did XYZ?
the person who did a great
job or the person who is Associate B: Thats a great idea. Who is going to be
And just so everyone is crystal clear on the expectations, one of the associates in the meeting
will be assigned the note-taking responsibilities. He or she will send a follow up memo with all
the assignments, broken down by WWW what, who, when. Connor Group culture places a
premium on putting things in writing.
If you dont memorialize things, said Larry Connor, youll be surprised how much selective
memory people have.
At the property level, for example, every monthly goal is documented on a Stat Sheet.
Turn technicians turn goals, lead techs repair and maintenance budget goals
Its all there. And its all accessible online, companywide. Not only do associates know whats
expected of them; everyone else knows as well.
Measurement
CULTURE 35
Trainers use the same scoring system to evaluate new hires.
Maintenance response time is tracked. Every potential resident is tracked once he or she makes
a phone call or walks through the door.
Sales associates are mystery shopped at the property level and assigned a numeric score.
Curb appeal and the interior of ready-to-lease apartments are scored similarly.
Social media posts made on behalf of properties and the gifts bosses buy for their associates
all are measured against a standard.
It all falls under two Connor Group commandments, Inspect what you expect and Trust but
verify. In other words, the company has specific systems in place for specific reasons. They
work, as long as people adhere to them.
Individual accountability
In nearly every company in every industry, there are hiding places. Maybe they exist due to a
tenure system or a union or a nameless bureaucracy. Maybe theyre the result of overstaffing or
nepotism. But they are very real places. The mediocre find these places. Its where they go to
punch the clock sometimes for years, sometimes
for an entire career.
Tenniel Wilson Good people will reach the expectation you set for
Partner
them, even very high expectations, said partner
CULTURE 37
Reward and recognition is common in Connor Group culture. Its also fun.
You could give a maintenance tech $75 or you could be them a tool thats on their wish list,
said Bob Lloyd. See which lights up their eyes when you hand it to them. Its personal and
it sends the right message your work mattered and you went above and beyond and your
reward was personalized.
Reward and recognition or R&R in Connor Group parlance is a unique part of The Connor
Group culture. And its probably the most talked-about among associates. It takes many forms
but its function is always the same. When you reward and recognize people you incentivize
them. You reinforce cultural themes. You let people know they matter. The Connor Group says
people are its No. 1 key to success. But thats not enough. The company has to show it.
The Connor Group shows its appreciation of people in ways both big and small. There are
biannual awards breakfast in every region. Teams that successfully sell their properties are
taken on whirlwind trips in limos and a company jet. Theyre wined and dined and feted by the
companys top executives.
There are company-wide publications that highlight individual and team accomplishments, as
well as a mobile app. There are bonus and incentive opportunities for most positions. There
are Winners Circle and Core Value cards part certificate, part thank you note, part merit
badge. And there are wish lists, online forms associates are asked to fill out shortly after their
start date. On that form they detail 10 items of varying value, items theyd love to have but
probably wouldnt buy for themselves. In the past, associates have received flat-screen TVs,
trips, jewelry, designer shoes, weekend use of an exotic sports car.
Its always interesting to see peoples reactions when they receive reward and recognition,
especially for the first time, says Larry Connor. Most people dont know exactly how to react
because most people arent accustomed to being rewarded and recognized for doing a good
job. We dont think R&R alone is enough. Its the way in which you present it.
And there are other guidelines. Associates should be criticized in private, praised in public.
Monetary value of the gift takes a backseat to the presentation. When is it given? Whos giving
it? It should be wrapped. It should be presented in front of a group of the associates peers. The
specific reasons for the gift should be outlined.
And, not surprisingly, it should be tracked. All associates in a leadership position have a specific
quarterly standard theyre to meet for reward and recognition. Their R&R gifts, winners circle
cards, communications are tracked and recorded. And those leaders are held individually
accountable for what theyve done or havent done.
CULTURE 39
LONG-TERM TRUMPS
SHORT-TERM
Those businesses that merely hoped for the best or, even worse, carried
on in denial that anything had happened were doomed from the start.
The ones that hunkered down, made dramatic cutbacks and waited for the
storm to pass would fare slightly better. They aimed merely to survive, and
many of them did. The leaders of The Connor Group also decided to take
drastic measures. But their goal wasnt just to survive; it was to thrive.
When the world was coming to an end, everyone had a decision to make,
said Connor Group managing partner Larry Connor. We simply decided
that we werent going to participate in the Great Recession.
In the years that followed, The Connor Group would grow in leaps and
bounds, setting one company earnings record after another. And although
that success can be attributed to much more than the simple decision
to forgo the economic woes gripping the rest of the world a lot of
strategizing and hard work made it happen it all started with the correct
mindset. The long-term, always, always, always, must trump the short-term.
Take, for example, a football program. In either college football or the NFL,
there are plenty of shortcuts to take in order to win right now.
Lets say youre a college football coach and you want to win a national
CULTURE 41
championship. You could recruit the most talented players, regardless of character or academic
standing. Then, you could make illegal payments to them in hopes they stay in your program.
You could spend your entire budget to bring in a hot-shot coach from the pros. You could turn
a blind eye to the academic responsibilities of your players and make sure theyre focused 100
percent on football. You could look the other way when your best players get in trouble off the
field.
In the NFL, you could trade all your draft picks for proven players. You could sign those players
to contracts that pay large sums in the future, but very little money up front. You could replace
your college scouts with pro scouts, who will help you better prepare for next week as opposed
to next year.
Programs and teams have done all these things to win a championship in a particular year.
Some have succeeded.
The Connor Group, however, wants to win championships every year. And, again, it wants to do
it the right way.
In football, when you take shortcuts, you can hamstring your program for years. You might win
a title this year, but in 10 years youll have inferior facilities. Or youll be on probation. Or youll
have a bad reputation that will hurt in recruiting efforts. You might win one Super Bowl ring, but
youll eventually have a roster full of fading stars and no new talent to fill your roster.
In business, when you mortgage tomorrow for today, not only will you be without a roster, youll
be without a business.
Operationally, the approach is concise and disciplined. While some of the companys
competitors own some properties and operate others, The Connor Group only operates what
it owns and owns what it operates. While some mix commercial, industrial and multi-family
investments, The Connor Group deals only in apartment communities mostly luxury properties
in Class A locations. And while the company has grown to new markets, it focuses on studying
and deeply penetrating certain sub-markets.
But when it comes to planning and big-picture decision-making, company officials think
without bounds or right-here-right-now blinders. Every strategic decision must be made with
long-term benefits and repercussions in mind. Its an ideal company officials reinforce and
revisit every five years in months-long strategic planning campaigns.
At the onset of the 2011 strategic planning campaign, associates looked into the future and set
an ambitious goal. By the end of 2016, they figured, the company should reach $1 billion worth
of property transactions a year.
But the company didnt break the $1 billion barrier in 2016. It accomplished the feat in 2015.
ASSETS 2000
($millions)
From $0 to $2 billion. 1500
1000
500
50
19 1
92
19 3
94
19 5
96
19 7
98
20 9
20 0
20 01
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
10
20 11
20 2
13
14
20 5
16
9
0
9
0
9
1
9
1
0
9
0
0
0
20
20
19
20
19
19
19
19
37.5
EARNINGS
($millions)
From negative to $47 million. 25
12.5
200
19 1
92
19 3
94
19 5
96
19 7
98
20 9
20 0
20 01
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
10
20 11
20 2
13
14
20 5
16
9
0
9
0
9
1
9
1
0
9
0
0
0
20
20
19
20
19
19
19
19
150
REVENUE
($millions)
From $4 million to $178 million. 100
50
19 1
92
19 3
94
19 5
96
19 7
98
20 9
20 0
20 01
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
10
20 11
20 2
13
14
20 5
16
9
0
9
0
9
1
9
1
0
9
0
0
0
20
20
19
20
19
19
19
19
CULTURE 43
ACQUIRING MINDS ...
Never underestimate the power of
Buying the right properties is a high expectations.
key component of ensuring the
We think its smart to reinvent yourself
companys long-term success. In
every five years, said Larry Connor. Now,
order to do that, it has developed
that doesnt mean we forget all the principles
a property acquisition weighting
that got us to where we are. Usually, our planning
system that scores property in a
reinforces our most important ideals. But its a great
number of different categories.
way to start the conversation. Lets plan for the
future without any preconceived notions and see
For example, properties with
what ideas come up.
average square footage of more
than 1,200 per unit receive a +3 in As was the case with the $1 billion transactional
the weighting system. Properties model, you start with one really good idea and build
that average less than 800 square off it. We were able to put all kinds of new standards
feet receive a -1. Properties that and goals in place to help us reach that goal.
were built in the last 10 years
And what did the company do as a follow-up during
receive a +4; properties 29 years or
2016 strategic planning sessions? The bar was upped
older receive a -3.
again. Dramatically. The $1 billion transactional
model became the $2 billion transactional model.
There are 10 categories in all.
They have been developed over Historically, the company has set numeric goals for
more than 20 years of property just about everything: cost savings, work orders,
acquisitions. foot traffic, move-ins, customer service, recruiting.
During the interview process candidates are often
asked how they feel about constantly being held
accountable to a number. The Connor Group has
never, on the other hand, set a benchmark on
property acquisitions. The reason is simple: starting
DID YOU KNOW ... with a preconceived notion of how many properties
to buy should never trump buying the right
properties. If long-term is going to trump short-
The Connor Group spends more
term, the quality of the companys properties must
than $1.3 million annually on
always trump the quantity.
training. The company has 15 full-
time trainers. The same goes for the people who move into
Connor Group communities. Potential residents are
put through a stringent credit underwriting and
background-check process. It determines not only
if they can afford to live in the community, but if
When managers dont follow the company standards, and lower the bar on credit underwriting,
they might have a month of success. They might have two or three months of success. Heres
what else they get: skips, evictions and complaints from good customers. Customer satisfaction
drops. Delinquency goes up. Good residents move out. Apartment turnover becomes more
frequent, more difficult and more expensive. Poor credit underwriting has affected nearly every
function of the business. And the short-sighted manager is left holding the bag in what will
certainly be a massive and arduous rebuilding process.
Following the standards and moving in the right residents, meanwhile, sets the property
up for long-term success. Sure, the occupancy gains might come a little slower, but they
are sustainable. If a property moves in quality residents, delinquency and cost remain low.
Customer satisfaction, curb appeal, rental rates and renewal rates remain high. And the revenue
and overall value of the property improve.
The issue of long-term planning is often brought up when The Connor Group Investor
Development Department raises funds for new acquisitions. The company and its properties
arent publicly traded. Historically, the company has bought properties with money invested
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by individuals looking for an alternative
to stocks or bonds. A typical, or one-
unit, investment in a Connor Group fund
has ranged from $100,000 to $500,000.
Individuals who hand over that kind of
money want to make sure there is a
long-range plan for their cash and for the
company.
Larry says hes not going anywhere anytime soon. But, as always, he realized the need for a
long-term plan. Thats why in recent years the company has developed new leaders to help
make transactional decisions. Its also why the 2016 strategic plan included a succession model
that will develop people to perform each of Larrys functions at a high level.
Our 19-person Senior Management Team averages 42 years of age. Most of the people in that
group are partners in the firm. That means Larry Connor has given them part of his ownership
interest in the company. In some years, some of them make more money from their partnership
than they do from their salary. Moreover, many of the people in that group have invested their
own money separate from the partnership theyve been given in The Connor Group.
In fact, as a group, the companys associates are also the companys biggest investor with
But toward the end of his career, the foreman slowly became disenchanted with his job and
grew tired of his work, which became shoddy. He counted down the years and months until he
could retire. Just weeks before he was set to retire, the companys owner came to him with a
request.
I have a special project, the owner said. Its a one-of-a-kind million-dollar home. And I need
you to build it.
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The foreman balked at first, not wanting to take on another project just before retirement.
Eventually, however, he obliged.
His team poured the homes foundation, which cracked slightly. Normally, the foreman would
tear it out and pour a new one. But he was tired and uninterested, so the faulty foundation
stayed. Next, he found his crew was framing the house with warped boards boards he would
have never used in previous years. But waiting for new lumber would set back the project
weeks, and he didnt have the time. So the warped boards went up, framing the large house.
The bad wood made for a difficult roofing job, and the veteran foreman knew the roof would
eventually leak. But the leaky roof along with the warped walls and the cracked foundation
would be another foremans problem. By the time they began crippling the beautiful house, he
would be long retired.
On the final day of construction, the company owner showed up at the site. The foreman
thanked the owner for 40 years of steady employment, then handed the homes keys to his
long-time boss.
No, he said, handing the keys back to the foreman. Thank you. The house is yours.
Thats the difference between working and owning. Thats the difference between thinking
short-term and thinking long-term. The Connor Group wants its associates to act and think as if
theyll one day own the company, because many of them will. What kind of company they own
is up to them.
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RELENTLESS PURSUIT
OF EXCELLENCE
The idea at the beginning, in 1991, was to bring an entirely new approach
to the apartment industry. Instead of merely investing in real estate,
The Connor Group was going to buy apartment communities and run
them like operating businesses, not merely hold them as investments
and hope the market treated them favorably. The companys associates
would substantially improve the bottom line and then sell the business at a
significant profit for them and their investors.
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acquisition process it appeared everything was on track. Six months of hard work was about
to pay off. Then, days before closing, The Connor Groups first associates called their contacts
in Kansas City. There was no answer. From anybody. In any department. The bank had trouble
it didnt disclose and earlier that day had been seized by the feds. The contracts, the first
acquisitions, the fledgling business all were dead in the water.
So they started over. It took another full year, but finally all three properties were acquired.
The whole experience left a lasting impact. What came of it? Never give up. Pursue excellence.
Pursue it relentlessly.
Connor Group associates come from a variety of backgrounds, but those who thrive within the
company have some similar traits. They tend to be planners and goal-setters. They speak in
specifics, never generalities. They delight in even the smallest of details. They hate losing. They
tend to walk quickly and with a purpose. They take pride in evaluating and improving.
You can do better, you can achieve more but you have to be willing to look at yourself honestly
and openly, said partner Sherry Blanc. If you do that you can improve. If you expect that of
every associate, the organization can improve.
Every two months, a group of these type people meet at the Central Support Office for
whats called Volunteer Committee meetings. The group consists of the companys regional
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QUOTABLE ...
pursuing excellence just 40 hours a
The hallways of The Connor Group week and see how you fare.
Central Office are adorned with
Connor Group associates admit its not
glass panels that feature a variety
for everyone. And although the companys
of quotes. One of the associates
recruiting process weeds out most candidates
favorites is from Michael Jordan:
who arent willing to be accountable to a number
or work long hours, some cultural misfits split the
Ive missed more than 9,000 shots
defense and are hired. Typically, they dont last. Of
in my career. Ive lost almost 300
the 232 associates the company hired in 2015, 63
games. 26 times, Ive been trusted
quit the company or were let go within their first 90
to take the game winning shot and
days on the job. Thats more than one in four. And
missed. Ive failed over and over
although hed like to see the company cut down on
and over again in my life. And that
turnover, Larry Connor said early departures are a
is why I succeed.
sign and byproduct of something very positive.
Said partner Bob Lloyd: You wont confuse us with a company that has a place for everyone.
Frankly, we dont.
During a recent volunteer committee meeting, Bob told the story of a struggling property.
Specifically the property couldnt turn (or prepare) vacant apartments fast enough to make the
most of rentals and rental rates. The propertys turn technician, as it turns out, was having some
commitment issues.
So this guy, said Bob, he tells the manager, Hey, its just a job.
Silence. The rest of the committee was incredulous, like Bob was speaking in tongues or hed
just told the group hed hired a Martian. In Connor Group circles, just a job is completely
foreign. You dont come back from just a job. Its the ultimate sin. But that day, it was also the
running punchline. Volunteer committee members referenced it well into the evening.
At The Connor Group, the relentless pursuit of excellence is about many things. At its core is a
nearly maniacal obsession with constant evaluation and continuous improvement. The question
What else? is a familiar refrain whenever Connor Group associates gather. No meeting is
officially over until its asked at least once. Every endeavor from the way technicians repair an
air conditioner, to the way executives evaluate multi-million-dollar potential acquisitions is a
cyclical process of assessment, adjustment and innovation.
Change is one of the few constants at The Connor Group, said maintenance trainer Paul Leber.
And every once in a while youll hear someone complain about this changing or that changing.
I always tell them, Maybe you should have worked at Circuit City or Blockbuster. They never
changed.
At The Connor Group, were always going to look for better ways of doing things and adapting.
You have to.
And when it comes to change, no project is too big and no detail is too small.
One example: In March of 2000, on the eve of the companys acquisition of The Villager
Apartments, members of The Connor Groups Senior Management Team visited the Dayton,
Ohio property. There was one detail they wanted to review before officially taking over
operations.
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It was trash night at the property, and they had come to look at garbage. That night some of
the companys top associates went from dumpster to dumpster, recording how empty or full
each one was. They were, as it turned out, very empty. The next day Connor Group associates
reset the number of weekly collections and made the size of the dumpsters smaller.
I love to tell that story when Im talking to investors or potential investors, said partner Patrick
Rini, one of the dumpster inspectors. I think it says a lot about the company. We have an
unbelievable attention to detail. Were innovative and creative. And were relentless about what
we do.
The Villagers trash bill went from $35,000 a year for the prior owner to $8,000 a year for The
Connor Group.
Some of the companys methods have changed over the years. Dumpster diving, for instance,
has been replaced by a standard pre-purchase audit of the propertys trash disposal contracts
and practices. But The Connor Groups attention to detail and dedication to excellence in all
endeavors never have wavered.
In 2014, The Connor Group entered a new era with the completion of its Central Support Office.
The building, an architectural marvel that won an international design award before it was even
completed, is more than just a workplace. Its a project and symbolic statement as unique as the
company that inhabits it. Larry Connor explains:
We wanted our associates to work in an environment that inspires, motivates and rewards
them, he said. And we wanted to show our commitment to the Dayton region, which has been
our home since the beginning, by giving it a building it can be proud of.
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THE CENTRAL
SUPPORT OFFICE
And it set them high. We told all the architects that we met with that this
project would win awards and be something nobodys ever done before,
said Chris Mullins, a partner who oversees large-scale capital projects. The
ones who said well try, they didnt make the cut.
Even before ground was broken on the new building, Goal No. 1 was
accomplished. In August of 2012 the Chicago Athenaeum awarded it an
American Architecture Award. The winners which came from across the
U.S., China, India, Saudi Arabia, France and Switzerland, among others
became part of a traveling international exhibition.
The company moved into the new facility in summer of 2014, nearly four
years after the design process began.
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60 THE CONNOR GROUP
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62 THE CONNOR GROUP
ICONIC ...
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64 THE CONNOR GROUP
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ICONIC ...