agenda 07 10 08
TRANSCRIPT
Residents Voice 1
LWVJuly 10, 2008
Residents Voice
07/10/08
Residents Voice 207/10/08
The age-old question;
“How should we know what we don’t know ?”
Residents Voice 307/10/08
Why would you ask,
“Does PCM Utilize
Epistemology in their Management
Philosophy?”
Residents Voice 407/10/08
Residents Voice 507/10/08
For Example:Who Would Have Thought To Ask;
• “Do we have an Incentive Plan?”– There was no documented reference to it.– No verbal reference to it by the GM.
• So, Why would anyone ask that question before it came to light in late 2006?
Residents Voice 607/10/08
Residents Voice 707/10/08
Why do we need an Incentive Plan?
As Opposed To:
Residents Voice 807/10/08
Managerial “Carrots” in the Corporate World
• Compensation • Extra Bonus• Benefits• Responsibility • Treat With Respect • Expertise at Job• Enjoys Job & Environment
Residents Voice 907/10/08
PCM Philosophy
• Apparently PCM believes that motivation comes through Bonuses (Money).
Residents Voice 1007/10/08
What is the Problem ?
• That we have an incentive plan?– No! It may or may not be justified in the future!
• That the resident/owners were unaware of the plan?– Yes! Implementing a plan that costs millions of
dollars without approval of the owners is THE PROBLEM!
Residents Voice 1107/10/08
Where Could We Have Started looking for ?????
• A Job is defined by what is called a; “Job Description”
• This defines what is expected of an Employee by an Employer.
• Using this Job Description to compare with what an Employee does, defines when employees get raises and promotions.
Residents Voice 1207/10/08
Who Creates the Job Descriptions?
• Managing Agent?– The employees are employed by PCM.
• Boards of Directors?– They have no part in this.– The employees belong to Managing Agent.– Should they be involved?
•DEFINITELY!
Residents Voice 1307/10/08
WHY?
• We would have recognized that the “Incentive/Bonus Plan” if it was included in the Job Descriptions.
• Or, WAS IT ?
Residents Voice 1407/10/08
Was it In The Management Agreement ?
• No! There is no reference to it prior to 2007.
Residents Voice 1507/10/08
When Did Bonuses Originate?
• ???? 1996 ????
Residents Voice 1607/10/08
How Did They Originate?
• The Managing Agent Implemented the Incentive Program.
Residents Voice 1707/10/08
Who Authorized the Incentive Plan?
• The Managing Agent.
Residents Voice 1807/10/08
Where Did The Money Come From?
• When PCM came in under budget, 15% of the savings went into the Bonus Plan (it is rumored).
• By-the-way: –What motivation is there for the
GM to have a low budget?
Residents Voice 1907/10/08
Who Reviewed the Bonuses?
• Managing Agent – YES!
• Boards – NO!
Residents Voice 2007/10/08
What Should We Expect Now?
• A full disclosure of all past years Bonus and Incentive costs:
– How Much.– Why? (The justification!)– To Whom.
Residents Voice 2107/10/08
WHY?
“To know what we don’t know ?”
Residents Voice 2207/10/08
Maybe we will learn to ask a pertinent question and expose something else
that we
“Don’t Know!”
Residents Voice 2307/10/08
THE END