Figure 7.1

For the third year in a row, Camden Property Trust (NYSE: CPT)
has been named one of Fortune magazine’s
“100 Best Companies to Work For.” In 2010, the company went from 41
on the list to number 10. Established in 1982 and headquartered in
Houston, Texas, Camden Property owns and develops multifamily
residential apartment buildings. With 183 properties and 63,286
apartment homes, the real estate giant focuses its development on
the fastest-growing markets in the United States. But like so many
organizations in the real estate industry during the 2007 and 2008
subprime mortgage crises, business took a turn for the worst, and
the company was faced with a substantial slowdown.
Camden realized that cuts would be inevitable and in 2009
announced that it would be reducing the number of planned
development projects, which meant a 3% reduction of overall
employees and a 50% cut of development staff. Camden’s
organizational culture and motto is to “have fun.” Because the
company understood the importance of honesty and open communication
with its staff, a strong sense of mutual respect had been developed
and cultivated well before the crisis, and as a result the company
was able to maintain the trust of its employees during the
difficult time.
Downsizing and layoffs are two of the most prevalent forms of
stress at the workplace and if not handled properly can create
severe psychological strain. Part of Camden’s success during the
transition was the company’s ability to give staff the necessary
information about the situation. Reinforcing the culture of fun at
a past annual conference, the then CEO of Camden dressed as Captain
Kirk from Star Trek and referred to the
tough economic times as “attacks” on the company, and then he laid
out a plan of action to bring about victory. Camden has found a way
to successfully relate its organizational culture through various
modes of communication.
The value and respect that Camden Property shows to its
employees has carried over to the way it treats its customers. The
company has discovered that doing the right thing makes good
business sense. With the increase in foreclosures and unemployment,
Camden is marketing to individuals in tough financial situations, a
segment of the population once thought of as undesirable tenets.
“We’ll forgive a foreclosure, as long as they didn’t totally blow
up their credit,” says Camden CEO Richard Campo. The company has
also created layoff-proof leases, which grant extensions to people
and allow them extra time to come up with the rent. If a resident
loses his or her job, the company will let them out of their lease
without penalty or try to get them into a less expensive unit.
Camden’s ability to build trust with both its employees and its
customers during a period of extreme emotional stress ensures that
the company will have a committed organization moving forward.
Based on information from 100 best companies to work for. (2010,
February 8). Fortune. Retrieved February
21, 2010, from http://money.cnn.com/magazines/fortune/bestcompanies/2010/full_list;
Marino, V. (2008, March 23). A bright spot for housing investors?
New York Times. Retrieved April 22, 2010,
from http://www.nytimes.com/2008/03/23/realestate/23sqft.html?fta=y;
Palmeri, C. (2009, March 16). Courting the foreclosed. BusinessWeek, p. 12; Thrash, R. (2009, December
11). Leasing agents use idea from car sales for renters. St. Petersburg Times, p. 3; Jones, B. (2009,
December 28). REITs look to get back on track. Real Estate Finance and Investment; Caccamese, L.
(2008). Managing under stress: How the Best Companies to Work For
address staff reductions. Great Place to Work
Institute. Retrieved February 21, 2009, from
resources.greatplacetowork.co...managing-staff -reductions.pdf.
Discussion Questions
- What do you think the long-term benefits will be for Camden
Property Trust and its employees as a result of the way it handled
this economic downturn?
- What other suggestions do you have for Camden in creating
business opportunities during a period of economic volatility?
- How does a company as large as Camden effectively and
authentically communicate to its employees?
- Does Camden increase or decrease its credibility to staff when
the CEO dresses up as Captain Kirk?
- What steps has Camden taken to help employees manage their
stress levels?