CULTURE

CULTURE

CULTURE 1
Copyright 2017 THE CONNOR GROUP

All Rights Reserved.

No part of this book may be reproduced, stored in a

retrieval system or transmitted in any form or by any
means, mechanical, photocopying or otherwise, without
the written permission of the copyright holder.

This book is dedicated to all Connor Group associates.

People always have been, and always will be, our key to
success.

2 THE CONNOR GROUP

INTRODUCTION 5

DO THE RIGHT THING 11

PEOPLE COUNT 23

LIVE THE CIRCLE OF SUCCESS 37

LONG-TERM TRUMPS SHORT-TERM 49

RELENTLESS PURSUIT OF EXCELLENCE 61

CENTRAL SUPPORT OFFICE 71

CONTENTS
 INTRODUCTION

4 THE CONNOR GROUP

 INTRODUCTION
Lets make one thing clear. This is not a mission statement. At The
Connor Group, we dont have, never will have a mission statement.
We have culture. When you have the latter, the former is wholly
unnecessary, and, frankly, kind of silly.

A mission statement is nothing more than wannabe culture. Its a Ferrari

with a lawnmower engine. Its all show, no go.

A mission statement is something that hangs on the wall and collects

dust. Its something a few people conjure up, fewer people look at and
even fewer practice. To have a successful organization, you need much
more than a mission statement.

Successful organizations often talk about their way The Yankee

Way, The Patriot Way, The Marine Way. For that matter, even The
American Way. Their victories are not accidents or coincidences. Their
disciplines are reinforced over time. Their philosophies are passed down
from veterans to rookies. Their consistency, eventually, becomes a
culture.

The strongest organizations have the strongest cultures. (Again, thats

no accident.) We at The Connor Group have developed our own culture.
Its a culture rooted in discipline, training, innovation and hard work.
And, admittedly, its not for everyone.

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.

So instead of researching and tweaking some kind of top-down preachy mandate, we

decided to take an introspective look at our culture. It was much more mirror than
microscope. It was organic; and it was fairly easy. Again, we merely had to look in the
mirror. Over a long enough time period, every organization wears the face it deserves for
better or for worse. More than 25 years into our existence, we looked around and asked,
What do our people believe? What do they do? What has made them, and this company,
successful?

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.

6 THE CONNOR GROUP

 We arent regulars on the conference circuit. We are, for lack of a better term, outsiders.
And thats OK. Frankly, were not very concerned about what others are doing or the
industrys conventional wisdom.

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

8 THE CONNOR GROUP

 DO THE RIGHT THING
In early 2012, Connor Group maintenance technician Joe Salas was
driving his golf cart through Ranch of Ridgeview. It was a quiet day at
the off-the-beaten-path gated apartment community, flanked by a golf
course in the upscale town of Plano, Texas. Joe, with a work order in
hand from his property manager, was making a service call.

It was a normal day, until it took a dramatic turn.

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.

Joe, an army veteran, raced back to the managers office, where he

located the units garage key. By the time he made it back to the
garage, even more heat was emanating from inside. He unlocked the
garage, disengaging the automatic opener and then hoisted the door
open. Once inside, he made his way through the exhaust-filled garage
and to the vehicles driver-side door. He opened the truck and found the

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.

Do the right thing. Its the most basic

and most fundamental of all the
companys core values. Its terribly
uncomplicated. In almost every
situation every day, you can do the
right thing or you can do the wrong
thing. The Connor Group asks its
people to do the right thing. More
often than not, they do.

When they do the wrong things, they

cant stay.

Unfortunately, some people even at

the companys highest levels have
been quickly and unceremoniously
dismissed because they chose to do
the wrong thing. At some companies,
those might have been difficult
decisions to make. After all, the
people involved were important to
Joe Salas the financial success of the company.
Partner

10 THE CONNOR GROUP


The company had a lot invested
in them. At The Connor Group,
those kinds of decisions are decided
by the companys core values. When
your first core value is do the right thing,
and you have a person sitting in front of you
who cant be trusted to do the right thing, its a
layup. The decision is as easy as it is final.
When a new associate joins The Connor Group,
one of the first pieces of paper he or she reads
contains big, bold lettering that states Connor
Group associates should not LIE or CHEAT or
STEAL. Not exactly lawyer talk, or even HR
talk. It wasnt meant to be. It wasnt designed
to detail every specific dilemma an associate
might face or to be copied and pasted into an
affidavit. Its a cultural statement and an easy-
to-reference touchstone.
We all know whats wrong and we all know
whats right, says Larry Connor, the companys
managing partner. Internally, everyone can
identify with those things. We all know that
lying, cheating and stealing are wrong. And we
all know when were doing one of those things.
So dont do them. Simple.
Competition more specifically, winning
is essential to The Connor Groups culture.
The company hires competitive people and
then evaluates their performance based on
numerical results. Daily, weekly, monthly,
annually. How did you perform? Did you win?
The answer to that question is important,
in every job category in the company. But
associates must win the right way; they cant
win at all costs.
And that notion cant be a top-down directive. If simply telling people to do the right
CULTURE
ON ETHICS ...
The Connor Group expects its
associates to practice simple
ethical ideals. And while we trust
in our people to do the right
thing, weve learned to verify that
they understand what behavior is
acceptable and what is not. Simply
put, Connor Group associates
should not LIE or CHEAT or STEAL.
In practice, more than 20 years
of business have taught us to
monitor for the following unethical
practices, among others:
Lying: misrepresenting utility rates
to a customer, misrepresenting
credit underwriting files, hiding
traffic, hiding invoices
Cheating: misrepresenting
approved rentals or renewal
numbers, reporting fake white glove
units, manipulating transfers to
increase occupancy
Stealing: taking and keeping cash
and/or money orders, bonusing
on false statistics, taking materials,
parts or tools from a maintenance
shop for personal use without
permission, taking belongings from
any apartment
11
 TO OUR CORE

At The Connor Group, we do

things the right way, even if its not
necessarily the easiest way. Our
relationships with other businesses
and our associates are built on this
basic principle. We do it because it
is a direct reflection of our integrity
and our credibility. We do whatever
it takes to get the job done and
strive for excellence in all that we
do.

Bev Yates, Partner, Finance

Everything starts and ends with

Do the Right Thing by the
investors. Our decisions are driven
by doing whats in their best
interest. They recognize that we act
on their behalf first and foremost
and it builds trust and credibility
over a long stretch of time.

Bob Holzapfel, Partner, Chief

Financial Officer

12 THE CONNOR GROUP

 thing worked, there would be a lot of police officers and judges out of work. For people to
really embrace and live this core value, they have to be surrounded by it. Doing the right
thing has to be, for lack of a better term, cool.

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.

Take, for example, Chris Mullins. Now

a Connor Group partner, in December
of 2011 he was running the companys
Capital Expenditures Department
when a package arrived at the office
for him. It was December and that
package was from a vendor that had
worked on some large-scale projects
for the company that year. Chris
opened the package to find a watch,
one that retailed for more than $500.

On one hand, Chris could put the

watch on his wrist, privately thank
the vendor and go merrily on his way.
On the other hand, the company has
a policy against taking expensive
presents from vendors. Giving it back
would be the right thing.
Chris Mullins
But Chris thought of an even righter Partner
thing. The Connor Group was in the
midst of its annual toy drive, during which associates and residents collected toys for
needy kids and provided Christmas dinner for needy families. Chris returned the watch to
the vendor, explained the companys policy and asked if the vendor would instead write
a check to the toy drive in the amount of the watchs value. He did. Then Chris solicited
other donations from other vendors.

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.

14 THE CONNOR GROUP

 IN THE COMMUNITY ...

A large part of doing the right

thing has nothing to do with
The Connor Groups business
interests. The Connor Group Kids
and Community Partners is an
organization that transforms good
causes into great programs. Its
kind of like non-profit investing.
The Partners, which consist of
Connor Group associates and key
leaders from outside the company,
find programs that fit the following
model.

Our causes must have ...

A focus on disadvantaged kids
A basic premise that resonates
with us and excites us
Operations in Cincinnati and/or
Dayton
Accountability to measurable,
results-driven goals
Strong and dynamic leadership
Initial success, but a long
runway to grow.
A model to use our resources
on the end result, not
administration.
Beliefs that align with The
Connor Groups core values
An opportunity for us to
contribute more than just
money
A five-year plan we believe in

CULTURE 15
 IN THE COMMUNITY ...

Our causes are not ...
Gifts or endowments; theyre
investments
Mass funding appeals or
big-box charities
Tickets or advertising for
fundraising events
One-off check-writing
opportunities
Programs we cant vet from
the ground up and develop
personal relationships with
mentees for lunch. They set goals, problem solve, motivate and offer
advice.
Kids and Communitys main focus is
identifying good causes and helping
transforming them into great programs.
Causes its helped include a charter school
system that produces first-generation college
grads, an employment program for homeless
teens, an amateur boxing program for inner-
city kids and an organization that removes
educational barriers for homeless kids.
It has also helped fund The College Promise
Program, which offers college scholarships for
poverty-impacted students who participate in a
four-year high school mentoring program. Once
a week, Connor Group associates meet their

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.

16 THE CONNOR GROUP

 IN THE COMMUNITY ...

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

18 THE CONNOR GROUP

 PEOPLE COUNT
People are the No. 1 key to success. Its a familiar refrain among Connor
Group associates. If the company has a slogan, thats it. People plain and
simple. Its not the properties, not the markets, not the systems, certainly
not serendipity. All have played a role. All have been trumped by the role
people play in the organizations success.

Theres a scene in the movie Rounders, in which Matt Damons character is

trying to explain his affinity and talent for poker to his worrywart girlfriend.
Shes afraid hes going to ruin their lives if he catches a bad run of cards. He
insists hes not really gambling per se.

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 a skill game.

The Connor Group didnt grow from $0 to nearly $2 billion in assets by

getting a lucky run of cards. People always lead growth, not the other way
around.

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
At The Connor Group, youre bound
to hear a lot about people. Youll hear
virtually nothing, however, about
human resources. Why? Because
the company doesnt even have an
HR department. And, according to
managing partner Larry Connor, it
never will have one.
Its the responsibility of every person
in a leadership role to manage,
motivate, set clear expectations
for, measure, hold accountable and
reward and recognize people, Larry
said. At a lot of companies, any issue
gets turned over the HR. Thats a
fundamental flaw.
Instead, in 2016, the company
introduced the People First
Department. The two-person
department tracks and reports
reward and recognition, training and
advancement opportunities for high-
performing associates.
We want to look at game-changers
that can impact our people, said
VP of talent acquisition Chris Jemo.
Do people have what they need to
be productive? Are our productive
people getting what they deserve?
The more productive people
obviously deserve and receive more
reward, recognition and opportunities
for their efforts. There arent any
participation trophies at The Connor
Group.
20
Companies, of course, can stack the
deck in their favor by starting with the
right people. The Connor Group actively
recruits associates it feels are among the
top 10 percent of all people working. The
companys recruiting process is thorough; its
based on competency and commitment. Simply put,
The Connor Group looks at skill, but it hires people
based on their will. You dont have to be passionate
about apartments, but you have to be passionate
about excellence. Playing your role at a really high
level, no matter what that role is, has to get you fired
up. Achievement, discipline and responsibility have
to be a priorities in your life. This cant be just a job,
not for any person in the organization. Not if the
company is going to get where its associates want
it to be.
The companys rule of thumb is to never hire
someone unless recruiters are 90% sure theyre
going to work. Hiring just to fill a hole inevitably
will fail. So, in order to identify the right people,
the company has developed certain listen-fors,
phrases that prick up a recruiters ears during the
interview process. When a prospect says any of the
following, theyre speaking Connor Group language.
More often than not, they become Connor Group
associates.
Some listen-fors:
Were they active in extracurriculars in high
school or college?
Can they talk in detail about specific
achievements?
Do they avoid generalities?
Do they like competition?
Do they come from a family of strong character?
THE CONNOR GROUP
 Before theyre even hired, potential associates are put through a day in the field. Its a chance
for key associates to sign off on a hire and potential associates to come face-to-face with the
company culture. After theyre hired, they go through a meticulous training regimen both in
classroom settings and one-on-one in the field. Even veteran associates take part in ongoing
training to improve their skills and advance them to the next level of their Connor Group career.

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
The Connor Group prides itself on
developing people and promoting
them from within the ranks.
A few stats
All 16 of the companys full-
time trainers started out in
entry-level positions in the
field.
Ten of the companys 33
partners started out in entry-
level positions in the field.
Five of the companys partners
started out as administrative
assistants in the Central Office.
Jennie Juran
Partner
22
Group turnover always will be higher
than most companies. Unlike some
companies, The Connor Group will not
transfer a problem. That theory applies to
problem residents and problem associates
alike.
Ninety-five percent of all problems are people-
based, says Larry Connor. And 95 percent of all
solutions are people-based.
Take, for example, Jennie Juran the first Connor
Group sales associate to be promoted to partner.
She joined the company out of college, with no
experience but plenty of talent. Throughout the
years she learned The Connor Group systems,
and applied them to perfection at a number of
apartment communities. With a sales associate like
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.
The property hadnt changed. Neither had our
policies.
Once again, it was all about people. People count.
Its a concept associates have demonstrated to the
company since it was founded. And its a concept
the company continually strives to demonstrate
to its associates. The Connor Group believes in
rewarding and recognizing its high-performing
THE CONNOR GROUP
 PEOPLE BY THE NUMBERS
Recruiting, evaluating and hiring
associates is a team sport at The Connor
Group. Prospective associates interview
with multiple people to determine their
fit with the company. In some cases for
instance, when a candidate has been
identified as a cultural fit and could fill
more than one role candidates have
interviewed with more than 10 Connor
Group associates.
Its important that all those interviewers
speak the same language when evaluating
people. So the company constructed a
rating system for candidates. Its also used
to evaluate associates once theyve been
hired. The rating system is as follows.
CULTURE
9 Elite, significant upside
potential
8.75 Great, no negatives
8.5 Very good to great, no big
negatives
8.25 Good, 1-2 gaps or holes in
personality traits
8 OK, target zone, some
concerns, want a second
opinion
7.75 Target zone with red flags, pass
7.5 Above average, target zone
with enough negatives to pass
7 Average, mediocre
6.5 Below average
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.

Paul Leber, Partner

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

24 THE CONNOR GROUP


meetings. Managing partner Larry
Connor is accessible to all associates
via an Ask Larry function on the
companys intranet.
The company takes the same open
communication stance with its other key
stakeholders. Connor Group investors receive
regular unvarnished updates on the properties
their investments have purchased, even when
theres bad news. Customers are afforded the
same communication, because they deserve it.
Customers of an apartment community expect
more than a retail customer service experience,
which makes sense. People dont live at Macys;
they live in our workplace. Its not a place they
shop. Its their home. Connor Group associates
are expected to treat residents accordingly; and
their efforts are measured with quarterly customer
surveys designed by Gallup. The results are used
to improve the customer experience. They also
factor into bonuses and promotions.
Promotions play a key role in Connor Group
culture. Many of the companys most successful
associates are home-grown, progressing through
the ranks into leadership roles. Recently, while
shooting a company recruiting video, Connor
Group associates from across job categories
were asked to reflect on their experience with
the company. Time and again without any
prompting they echoed the same refrain. They
might have had jobs in the past, but working at
The Connor Group was their career.
FITTING BENEFITS ...
If youre going to say that people
count, you better back it up with
the benefits you provide. At The
Connor Group, in addition to
great health insurance and PTO,
associates receive a number of
unique benefits, including
Free health insurance after five
years.
Bonus and incentive programs
for associates at all levels.
A debit card with a $500
annual allowance for medical-
related expenses.
Awards ceremonies, trips and
dinners with company partners
for associates who have
successfully sold a property.
Opportunities to invest in
Connor Group properties.
A 401(k) program that matches
50 cents on the dollar for up to
5% that associates put into the
401(k) and allows associates
to invest retirement funds in
Connor Group funds.
A company store that allows
associates to receive discounts
on products and services from
vendors.

I look at the people who have moved up in the

organization, and theres a tremendous amount
of pride, said Patrick Rini, who ran properties
when he joined the company in 1998 and is now
the partner in charge of investor development.

CULTURE 25
 TO OUR CORE
Ive been here almost 20 years and
I cant tell you the number of times
Ive seen people make the difference.
Weve seen properties that were
poor performers completely turn
around with the right people.
Properties dont change much year
to year, submarkets dont change
much year to year, its the people
who operate the property.
We could go through countless
examples. Its always about the right
people doing the right things at the
senior management level, property
operations level, Accounting,
Finance, IT, Recruiting, etc. Its a
story Im proud to tell and never get
tired of telling it.
Patrick Rini, Partner,
Investor Development
26
Im proud of them because they did
the right things and they worked hard.
Im proud of our company because it
rewarded and recognized them with growth
opportunities.
If you take a look around, youll see examples all
over the place.
Youll see examples like Rodney Johnson. Rodney
started with the company in 2008 as a maintenance
technician. He spent his first months with the
company going from unit to unit at The Villager
Apartments in Dayton, Ohio, converting closets
into washer/dryer bays. Now he manages millions
of dollars in capital projects every year. His office
is four doors down from managing partner Larry
Connors. Hes a partner in the firm.
The transition didnt happen overnight. After
finishing the conversions at The Villager, Rodney
established himself as one of the companys best
lead technicians. He then became a trainer. When
vice-president of Capital Expenditures Chris Mullins
was looking to expand his department, he looked
internally and found Rodney.
We were looking for someone who was a proven
producer, Chris said. Rodney doesnt focus on
problems; he thinks of solutions. Any project
hes involved with, he owns it 100 percent and he
always has a positive can-do attitude. We already
knew that about him after all hed accomplished
at the property level. It made sense to give him an
opportunity to advance his career. Its been a great
move for both Rodney and the company.
When Bobbie Toretzky joined The Connor Group as
an entry-level Columbus sales associate in 2006, her
only experience was in retail. She didnt know it at
the time but she was headed on a path that would
THE CONNOR GROUP
 eventually lead to managing multi-
million businesses and, eventually, to an
ownership stake in one of the nations
largest privately-held real estate
investment firms.

Bobbie progressed from sales, to

senior sales to sales management.
She eventually became a property
manager. Shes taken part in training
new associates; shes managed multiple
properties at once.

In 2014 Bobbie earned a promotion to

partner. She still works in the field daily,
much of the time with people who
started with the company similarly to
the way she did.

That is a big advantage, she said.

How are you going to trust someone
with your development if they dont
Bobbie Toretzky really know the Connor Group and
Partner know what we do?

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
company just a few months when she
first witnessed a partner promotion. The
new partner, upon hearing the news from
Larry Connor, sprinted across the room
and gripped the managing partner in a
bear hug.
I thought, Wow, this is a pretty big
deal, Mollie said. I thought nothing
could top that.
Not until it was her turn anyway.
After starting as an administrative
assistant, Mollie established herself as a
go-to person regardless of the problem
or the department. In six years she was a
partner.
28
Shes just one of those people that
everyone loves and everyone can count
on, said Connor Group Partner Pat Rini.
She puts in more hours than anyone I
know. She never says, Thats not my job.
Its obvious she has a passion for what
she does.
It wasnt always that way. Before coming
to The Connor Group shed worked
several office jobs. None, she said,
offered the kind of fit she found with The
Connor Group.
I came here expecting a job and it
turned into a career pretty quickly,
Mollie said. I feel incredibly lucky.
THE CONNOR GROUP
CULTURE 29
 LIVE THE CIRCLE
OF SUCCESS

30 THE CONNOR GROUP

 LIVE THE CIRCLE OF SUCCESS

In the book Tribal Leadership, which is widely-read in Connor Group circles,

the authors assert that culture comes down to two things: the relationships
people have and the language they share. At The Connor Group, both
relationships and language are dictated by the companys Circle of
Success.

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.

It starts with clear expectations, then measurement, then individual

accountability, then reward, recognition or consequences. One flows into the
next seamlessly and cyclically.

Lets start with an example.

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.

How many times have you

found yourself part of a group
that produces lots of ideas
but very few results? Weve all
been there. The group comes
together for a brainstorming
session that seems to be
going really well. People
are rattling off innovative
solutions left and right. Hey,
what if we ? Yeah, and then
we could And then well
And then everyone pats one
another on the back, walks
out of the room and doesnt
do a damn thing.
Its common. And its human
nature. The Circle of Success
flips that mindset on its head.
Everyone has a specific role
to play. The goals are clear,
well-communicated and
done in an open setting,
BEFORE AND AFTER
Due in large part to the Circle of Success, The
Connor Group is able to do more with less. The
company wont buy an apartment community
unless it thinks the on-site team can improve the net
operating income compared to the previous owner
by 50 percent in the first three years.
And almost always, that on-site team is smaller than
the one that operated the property under previous
ownership. For example, heres how the two owners
might run a typical 300-unit property.
Previous owner The Connor Group
Manager Manager
Assistant manager Sales associate
Sales associate Sales associate
Sales associate Lead tech
Maintenance supervisor Turn tech
Lead tech
Turn tech
Turn tech

32 THE CONNOR GROUP

 TO OUR CORE

The Circle of Success makes it

clear to all associates how we
do business, regardless of your
job. Everyone knows what the
expectations are, where they stand,
what their responsibilities are and
whats at stake.

Dave Peacock, Trainer

We in the Accounting Department

recognize that were here to serve
those who operate our apartment
communities. We all play a role and
our role is to provide a high level of
customer service so that the teams
in the field can be at their best.

Connie Hart, Partner, Accounting

Meetings have two purposes

communication or decision-making.
You better come to a meeting at
this company prepared. Meetings
have an agenda, they start on time,
end on time and either have a
definitive outcome or a deadline to
do so.

Chris Mullins, Partner, Capital

Projects, Acquisitions and
Dispositions

CULTURE 33
 R&R TIME ...
When a Connor Group associate
consistently hits his or her goals,
theres a good chance theyll
receive something off their Reward
and Recognition Wishlist. Every
associate is asked to fill out his or
her wishlist on The Huddle, the
companys intranet. The idea is to
list a variety of items you want, but
probably wouldnt buy for yourself.
As for giving R&R, there are
standards for that as well. A look at
the dos and donts:
Effective praising must be
specific.
Present R&R in front of the
recipients peers.
The present should be
wrapped.
Remember, attention to detail
and presentation make a big
impact.
Dont be afraid to recognize
someone because you might
hurt someone elses feelings.
Whats more important,
the person who did a great
job or the person who is
underachieving?
Track the R&R you give out.
Lunch, dinner, drinks, etc. is not
reward and recognition.
Gift certificates are at the
bottom of the reward and
recognition barrel. They have
very little meaning.
34
said partner Bob Lloyd, our chief
operations officer. Thats where
individual accountability comes into play.
Or, as Connor Group partner Mike McQuiston
has said, People have a tendency to think its
OK to screw up, as long as theyre all screwing up
together.
But the Circle of Success, at its core, is a study in
individual accountability within a team setting. I
have a goal, which I helped set. Whether or not I
hit my goal is up to me. The rest of the team knows
what my goal is. The rest of the team is going to
know whether I hit my goal. The rest of the team has
a stake in my success. If I hit my goal, Im rewarded.
If I fail, I suffer the consequences.
Is it easy? Rarely. Comfortable? Not really. Fair? More
often than not. Effective? You bet.
So lets take a closer look at each step in the Circle.
Clear expectations
Lets revisit that brainstorming session through the
lens of the Circle of Success. At a Connor Group
meeting, if a worthwhile meeting idea comes up,
its immediately put into the Circle. Heres how that
conversation might go.
Associate A: Hey, what if we did XYZ?
Associate B: Thats a great idea. Who is going to be
in charge of XYZ?
Associate C: I will be.
Associate B: OK. And when will it be done?
Associate C: January 1st.
So, instead of everyone walking out of the meeting
with a general sense of premature accomplishment
and no real responsibility, associates leave the
THE CONNOR GROUP
 meeting with specific assignments for specific people with specific deadlines. Associate C, for
instance, knows whats expected. More importantly, he knows that the rest of the group knows
whats expected of him.

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.

Sales associates rental and renewal goals

Property managers total income goals

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

More often than not, those expectations

are manifested in a number the simpler
and the more specific, the better. Connor
Group associates dont deal in generalities.
Percentages, ranges, round numbers,
guesstimates all are frowned upon.

Stat sheets are reviewed daily, weekly and

monthly to determine where the property is
succeeding or failing in terms of occupancy,
collections, expense control, traffic,
maintenance and sales.

If something doesnt lend itself to being

measured by a number, Connor Group
associates find a way.

Potential candidates are scored on a 1-10

scale developed by recruiters and other
interviewers over the years.

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.

Customer satisfaction is measured on a five-point scale via a Gallup-designed survey

administered quarterly at every property.

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.

Employees are allowed to hide out for a variety of

reasons. Either their organization is OK with just
being OK, or their boss is afraid to give them direct
and honest feedback or they get lost in the shuffle.

There are no hiding places at The Connor Group.

The Circle of Success leaves no room for them.

The Circle of Success, and the company at large,

thrives on individual accountability. Properties and
departments pride themselves on low headcounts
and high productivity. Everyone has a defined
role. Everyone knows exactly who their boss is.
And that boss doesnt shy away from candid and
continuous feedback.

Tenniel Wilson Good people will reach the expectation you set for
Partner
them, even very high expectations, said partner

36 THE CONNOR GROUP


Sherry Blanc, who oversees North
Carolina, Atlanta and Nashville. If
you set expectations at an OK level,
you will get OK performance. We set
very high expectations and when people
hit them, we reward them publicly and in
tangible ways.
If they dont hit them we give them honest
feedback in a productive way. You need two
things to really succeed in this organization:
competency and commitment. We can teach
the first one, the second one is all about the
associate.
Because of the streamlined operations
the company will often acquire a property
previously run with a staff of seven or eight
people, then run it at a higher level with four to
five associates the best associates easily stand
out. So do the worst. Those who fall short of
their goals are given particular attention extra
training, monitoring, motivation or explanation.
Those who continually miss their goals cant stay
with the company.
Reward, recognition, consequences
So that covers the ultimate consequence.
Connor Group associates freely admit the
company has a turnover rate higher than many
others in the industry. And although systems
are in place to improve associate retention, the
company is able to live with a certain amount of
turnover because, ultimately, it is the product of
a certain kind of productivity. Higher standards,
higher demands, higher turnover for better
and for worse.
Its super if you had a great year but it doesnt
mean you can take the next year off.
CULTURE
CONNOR SPEAK
R&R: In Connor Group parlance,
R&R has nothing to do with rest
and relaxation. It stands for reward
and recognition. And it takes a
variety of forms at The Connor
Group: gifts, memos, newsletter
stories, cards, cash. All are forms of
R&R.
WWW: Among Connor Group
associates, it has nothing to do
with the Internet. WWW means
who, what, when. Its a way to plan
projects with an accountability
function. If youre working with a
team on a project, its important to
know who is responsible for what
and exactly when everyone will
have their assignments completed.
PLANNER: The Connor Group
believes in technology, and its
served the company well over the
years. But when it comes to holding
oneself accountable, Connor Group
associates still use pencil and
paper. All managers and above are
expected to utilize a Fanklin-Covey
planner. Theyre expected to keep
annual, monthly and daily lists of
priorities.
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.

At The Connor Group, taking an associate to lunch is not R&R.

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.

And the circle remains unbroken.

38 THE CONNOR GROUP

 PUT ER THERE PARTNER ...
Becoming a partner in The Connor Group
is the ultimate reward and recognition for
an associate. The program is open to all
associates. Numbering at 33 associates
at the time of this printing, its a group
that includes maintenance technicians,
sales associates, trainers, administrative
assistants and executives alike.
Connor Group partners own a
percentage of all Connor Group
properties. They also own a percentage
of The Connor Group.
If history is an indicator, a partner will
receive income equal to 50 percent of his
or her base pay, above and beyond his
or her normal paycheck in most years.
In some years that partnership income
CULTURE
could be more than a partners normal
paycheck. But the program is about
more than making dollars. It also make
sense. The partnership programs goals
are:
Keep key people at all levels with the
company long term
Motivate and incentivize
Provide future retirement
Share the wealth
The goals and ideology of the program
are actually very simple.
Weve always asked people to think
and act as if they are owners in the
company, said managing partner Larry
Connor. Whats the best way to do that?
Give them ownership interest in the
organization!
39
 LONG-TERM TRUMPS
SHORT-TERM

40 THE CONNOR GROUP

 LONG-TERM TRUMPS SHORT-TERM
In September of 2008, investment bank and global financial titan Lehman
Brothers filed for bankruptcy. The news reporters broadcasting live from
Wall Street resembled bit characters in an apocalyptic thriller. The meteor
had touched down, and the worlds businesses were awaiting the fallout.

A global recession of epic proportions was inevitable.

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.

42 THE CONNOR GROUP

 LONG-TERM GROWTH
Unlike many companies, The Connor Group always has made strategic decisions
based on long-term goals. Those decisions have led to record-setting numbers in
most years of the companys existence.

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 ...
Buying the right properties is a
key component of ensuring the
companys long-term success. In
order to do that, it has developed
a property acquisition weighting
system that scores property in a
number of different categories.
For example, properties with
average square footage of more
than 1,200 per unit receive a +3 in
the weighting system. Properties
that average less than 800 square
feet receive a -1. Properties that
were built in the last 10 years
receive a +4; properties 29 years or
older receive a -3.
There are 10 categories in all.
They have been developed over
more than 20 years of property
acquisitions.
DID YOU KNOW ...
The Connor Group spends more
than $1.3 million annually on
training. The company has 15 full-
time trainers.
44
Never underestimate the power of
high expectations.
We think its smart to reinvent yourself
every five years, said Larry Connor. Now,
that doesnt mean we forget all the principles
that got us to where we are. Usually, our planning
reinforces our most important ideals. But its a great
way to start the conversation. Lets plan for the
future without any preconceived notions and see
what ideas come up.
As was the case with the $1 billion transactional
model, you start with one really good idea and build
off it. We were able to put all kinds of new standards
and goals in place to help us reach that goal.
And what did the company do as a follow-up during
2016 strategic planning sessions? The bar was upped
again. Dramatically. The $1 billion transactional
model became the $2 billion transactional model.
Historically, the company has set numeric goals for
just about everything: cost savings, work orders,
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
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-
term, the quality of the companys properties must
always trump the quantity.
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
THE CONNOR GROUP
 theyll be a quality resident. Time and again the company has learned that moving in borderline
residents for short-term gains increases in revenue, occupancy, etc. never works.

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

CULTURE 45
 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.

And oftentimes, after the Investor

Develop Departments Patrick Rini talks
to investors about the long-term plans for
the portfolio and its individual properties,
theyre left with one question. And it has
to do with people.

They know that Larry Connor has been

here since Day 1. And they know that
historically Larry Connor has decided
what to buy and what not to buy and
what to sell and what not to sell, Rini
Rob Murray
said. So obviously their next question is, Partner
Is this a one-man band? What happens
when Larry Connor goes away?

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.

We have a highly-detailed, highly-scripted succession plan in place should anything happen to

me, Larry said. As for the leadership of the company, weve constructed a team that is built
for the long haul.

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

46 THE CONNOR GROUP


more than $170 million invested in
Connor Group funds. That money
is invested right alongside the money
of all our outside investors, with the
same terms and conditions. It serves as
both commitment and motivation to see the
company grow long-term.
Really successful and highly-motivated people
have to feel success and they have to feel
ownership, said Larry. And when people actually
are owners, and they have skin in the game, they
have a different mindset and a different work
ethic.
CONNOR SPEAK ...
Strategic planning: Roughly every
five years, the company undergoes
a strategic planning process
that maps out the future of the
company. The 2011 version, dubbed
Vision 2016, came to fruition in
2016. Although the company plans
every five years, associates conduct
that planning with the next 30
years in mind.

Theres a story it just so

happens to involve real estate
that demonstrates this
point.

There was a construction

worker who worked for a
homebuilding company for
40 years. Halfway through
his career he had worked his
way up to become a foreman.
He and his team built custom
homes for wealthy people.
They were known throughout
the company as the best
at their respective jobs and
the foreman took great pride in knowing the houses he built would be enjoyed for
generations. They were solid and expertly crafted.

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.

CULTURE 47
 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.

The boss shook his head.

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.

48 THE CONNOR GROUP

 TO OUR CORE

Long-term trumps short-term.

What an important value for a
company to have! I think of this
on the maintenance side of the
business on a daily basis.

On the maintenance side its not

always easy to do a thorough
inspection on an air conditioner
when youre repairing it. Youre
busy; it doesnt seem important
at that moment. But long-term
you will probably have to go on a
callback to check for dirty coils,
etc. Short-term thinking might get
it running for the day. But we need
to think about the next day, and the
day after that, and the months and
years after that.

Rob Murray, Partner, Trainer

Were in this business for the

long haul. What an exceedingly
smart strategy that will ensure our
continued success as a company.
And long-term success for the
company means long-term success
for associates who put forth the
energy and effort to follow our
other core values.

Michele Peed, Partner, Marketing

CULTURE 49
 RELENTLESS PURSUIT
OF EXCELLENCE

50 THE CONNOR GROUP

 RELENTLESS PURSUIT OF
EXCELLENCE
Theres a funny thing about becoming an overnight success; theres no such
thing as an overnight success.

Any person or organization thats achieved something great has tasted

some failure. The Connor Groups ascent from zero to nearly $2 billion in
assets is no different. The company has succeeded not despite its failures,
but because of them.

Mistakes arent just acceptable. Theyre inevitable. And theyre as

intertwined with the companys success as acquisitions and sales.

Larry Connor had started a handful of different entrepreneurial endeavors,

to varying degrees of success. None, however, approached the stature in
terms of gains or growth The Connor Group has reached. Of course, The
Connor Group has had its fair share of setbacks.

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.

The companys first three acquisitions all in Dayton, Ohio were

properties owned by a savings and loan in Kansas City. Throughout the

CULTURE 51
 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

52 THE CONNOR GROUP

 RELENTLESS
heads, department heads and ACHIEVEMENT
others. Its a chance to address
issues facing the company across Connor Group associates have
regional and department lines, problem applied the relentless pursuit of
solve, strategize and plan. Its not a board excellence to a variety of endeavors
meeting or an executive gathering. People away from the office as well.
from different job descriptions come in and out as Connor Group associates have
different topics are addressed.
Summited Mt. Kilamanjaro and
The meetings are very structured agenda items,
Mt. Rainier.
handouts and the names of invitees go out weeks
Won national auto racing titles.
in advance but free-for-all discussions carry
Run a number of marathons.
the day. There are no written rules, but cultural
Competed in triathlons.
norms dictate the behavior. No side conversations.
Won national writing awards.
Dont bring up a problem unless youre willing
Won bullriding competitions.
to participate in the solution. New ideas are
Served on boards for a variety
encouraged, but theyre also assigned to a person,
of non-profits.
who is assigned a deadline. Avoid generalities;
Finished in the top 25 at the
focus on specifics. If you can assign a number to
aerobatic stunt-flying world
it, youre on the right track.
championships.
When people ask me about what its like to Acted in feature films.
work for The Connor Group, I always talk about Whitewater rafted in the
measurement, said Roger Lipson, who became Himalayas.
a partner in 2015. How do you feel about Won national titles in Irish
everything you do being rated, ranked or scored? dancing.
That cuts people evenly. Either youre into that or Appeared in squash national
youre not. rankings.
Played Division I collegiate
Members of the Connor Groups Senior
athletics.
Management Team set that clear expectation
Coached collegiate athletics.
before making any kind of job offer. And its not
Served as a Navy SEAL.
the only one. At the Central Office, during an
Competed in bodybuilding
interview, a potential associate likely will hear the
competitions.
refrain, We work Saturdays here. Translation:
Hosted TV shows.
if youre looking for a 9 to 5, you better keep
looking. Saturday hours, the parking lot full of
cars while other offices in the area are deserted, is
partly a badge of honor. But its also a simple fact
of how business is done at The Connor Group. Try

CULTURE 53
 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.

If someone comes to you six weeks after theyre

hired and we have this happen quite a bit and
says, I dont belong here, thats really a good thing,
Larry said. That means that
our culture is so strong,
people know right off the bat
whether or not theyre going
to make it.

That doesnt mean theyre

bad people. Everyone needs
a job. Everyone needs a
paycheck. But their mission
here cant be just to cash a
paycheck. It cant be, not for
any of us. It has to be about
that relentless pursuit of
excellence.

Generally, those who dont

have it arent going to sprout
it overnight. Thats why, in order to separate the
paycheck-cashers from the excellence-pursuers, The
Connor Group experimented in 2011 with a pay to

54 THE CONNOR GROUP

 quit program. After several weeks on the job, associates were given a choice a Lets Make a
Deal decision. Were they in or not? If they werent in, they could receive a cash payment, the
amount of which depended on their job description. Ultimately, the execution of pay to quit
proved ineffective it was far from the first or last failed program in Connor Group history but
the message remains. Be committed or be gone.

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.

CULTURE 55
 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.

But mostly, we just love when people say something is impossible.

Yes, the company now is headquartered at a state-of-the-art building, in the middle of a

thriving intersection with development on all corners. Yet its just a few yards away from a
hangar that houses a working model of the Wright Brothers first production airplane.

Its a great reminder of whats possible.

56 THE CONNOR GROUP

 TO OUR CORE

People who really understand

what excellence is all about know
that they have to be relentless in
their pursuit of it. Will you make
mistakes or fall down along the
way? Probably, but in order to
succeed we have to get up and
back in the race and never stop the
pursuit.

Paul Fischer, Trainer

Ive been with the company for 15

years, but I dont want to be known
for being one of our most tenured
associates. I want to be known for
setting the bar. When the senior
management team thinks about
who would be the best for the job,
I want them to think of me. I want
Larry to expect more from me than
he does any other sales associate.
I appreciate that challenge and
strive to prove I am the best every
day. After all this time, it would be
easy for me to just do a good job.
I know that would be acceptable
at any other company. I have too
much respect for this company to
do less than my best.

Jamie Strong, Sales Associate

CULTURE 57
 THE CENTRAL
SUPPORT OFFICE

58 THE CONNOR GROUP

 THE CENTRAL SUPPORT OFFICE
Like anything it does, when The Connor Group decided to build a new
Central Support Office building, it set clear expectations.

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.

The building, designed in partnership among managing partner Larry

Connor, Mullins and nationally-renowned architecture firm Moody-Nolan, is
a one-of-a-kind structure. In both form and function it is like the company
that occupies it totally unique.

In 2015 Moody Nolan won the American Institute of Architects Ohio

Honor Award for newly completed buildings for its work on the Connor
headquarters.

The two-story building is constructed on a 10-acre piece of land at Wright

Brothers Airport in Miami Township, Ohio. It cost $18 million and consists of
39,000 square feet. Its exterior features a brushed aluminum faade.

CULTURE 59
60 THE CONNOR GROUP
CULTURE 61
62 THE CONNOR GROUP
 ICONIC ...

The skylight in the atrium (2,740

square feet) consists of Soladigms
Dynamic Glass, which switches from
clear to several tint levels based on
the amount of sunlight. The two-
story front entrance is a wall of glass
with the same tinting feature.

The two-story atrium measures 3,495

square feet. It was designed to serve
as a large gathering space and to
increase access to natural light. The
building features state-of-the-art
offices and meeting spaces that
utilize video-conferencing systems.

CULTURE 63
64 THE CONNOR GROUP
CULTURE 65
 ICONIC ...

Moody-Nolan CEO Curt Moody

called the building an iconic
statement and a jewel for all of
Ohio.

We ask a lot of our associates,

Larry said. We wanted it to be a
place that makes people excited to
come to work. Like everything else,
we wanted it to be the best and
we wanted it to be innovative. The
building had to represent that.

66 THE CONNOR GROUP

CULTURE 67
68 THE CONNOR GROUP