The First 100 Days In Development

Recently, the news was full of reports on President Obama’s first 100 days in office. As could be expected, reviews were mixed. But, no matter what you think about the success of our new administration over the past three months, it occurred to me that so many of the strategies that Obama and his team have employed since taking the helm can be applied to developers in the hospitality industry as well.

In January, 2009, during the inauguration week of President Obama, pundits were marveling at how much Obama had on his plate at the start of the 44th Presidency. Prioritization and a special dedication to deliverables for the American people were deemed to be the cornerstones of his successful launch strategy. Not surprisingly, there are many transferable lessons here for us.

To compose this blog, I engaged the help of Jerry Zietner, vice president and principal at Gettys, as he oversees our development arm at Gettys and has navigated the choppy economic waters of the past six to 12 months with skill.
 
The atmosphere in development has changed greatly in the past year and continues to do so. I asked Jerry to share three strategies that are key to success in development during these times, drawing parallels to what the current administration has done as they traversed their own First 100 Days. This is what he had to say:

Do Your Homework
Presidential Parallel: When referring to the AIG bonuses during a recent Presidential Press Conference: Obama declares, “I like to know what I am talking about before I speak.”

No one would balk at the idea of doing one’s due diligence, and it is certainly something that we have all heard before. But, it is true in a way that it hasn’t been in the past. Two years ago, when development was still booming, developers were up against ferociously competitive deadlines as they submitted their proposals to take part in a new project. These quick turn-arounds were demanded, sure, but they did not lend themselves to being able to participate in a great deal of due-diligence as a developer was determining whether or not to engage in a project. As a result, a new developer may have won a new project, but there could have been holes that were unforeseen and resulted in a deal that wasn’t what was expected on the outset.

The timeline in development has changed greatly. Deals are moving much more slowly as a result of the hampered banking institutions. Many are frustrated by this, however, it allows for the ability to really research a new project possibility… Take advantage of it!

Work With People You Trust
Presidential Parallel: After a number of different candidates for Treasury Secretary fell through, Obama stays true to the goal and appoints Geithner to the post.

Back when the climate in the development world could only be described as “desperation for a deal,” partnerships weren’t always carved out of kismet, so much as determined as a result of immediacy and need.  It is important to work with people who you trust and who share your vision.  Moreover, it is even more important to work with people who aren’t afraid to walk away from the table when it is warranted. Sometimes, development deals can get forced because of the “we have 100 man-hours on this,” pressure that we feel. But, great deals happen when they are supposed to. If it is a square peg and a round hole, it doesn’t matter if you look at the deal from 10 different angles, in the end, it isn’t going to work. (And, if it does, it still won’t work well….)

Stick to What You Know and Respect Specialists for What They Know
Presidential Parallel: With the first reports of a new and unknown Swine Flu, Obama looks to the World Health Organization and his Homeland Security Officer for recommendations.

As there are fewer development deals in the works, it is common for developers to have more time on their hands. What is great about this time, as mentioned above, is that it allows for more time dedicated for researching the mechanics of a deal. What isn’t as productive, however, is when a developer uses newfound time and begins to get involved in the project from a number of different levels where their area of expertise isn’t strong.

When choosing partners, it is a developer’s responsibility to ensure that they are credibly talented at what they do, that they have depth to their bench strength and that they have strong financial backing. Don’t, however, get mired in the details of their day-to-day business just because you can. A developer’s greatest chance for success is in remaining the “chief executive” of the project. Allow your people to report to you – handling issues themselves as asking for guidance when they need it. Your project will run much more smoothly as a result.