While navigating AvalonBay Communities through IPO, merger, and the day-to-day challenges of a competitive marketplace, Dick Michaux has used his talents as a good listener to help assure that the company remains on course and growing. For Michaux, being willing to take the time to really hear what employees, stockholders and the market have to say is not just good manners, it's good business.

Portfolio: You have used the phrase "spirit of caring" to describe the corporate culture at AvalonBay. How you go about implementing that concept?
Michaux: A big part of that is being a good listener. When I go out to visit one of our communities, I try to spend no less than two hours there with the property manager, maintenance manager, etc. I want to really understand what their needs and thoughts are and what is important to them. I want our people to understand that at the top, we listen to what their dreams are, where they want to go in their life, how we can help them get there. And it is not just me doing this, all the top officers here embody this part of our corporate culture.

Portfolio: How do you balance the need for employees to have some personal time with the very competitive nature of the marketplace?
Michaux: It comes back to leadership. We do it, at the top. We encourage everybody to take their full vacations, and most top officers do. We have fun. Vacations are important for people to be happy when they come back to work. If that balance between work and recreation is missing they are going to be less effective at work and at home. And it is not just vacations. Sometimes it is more important to go to a play that your kid is in or to help your parents to move than it is to come to work that day. Of course, most days it is important to come to work and get something accomplished, but balance is vital.

Portfolio: When Avalon Properties and Bay Apartment Communities were blended together, what were the biggest hurdles for you?
Michaux: Of course the first important question we had to answer was, 'Where should headquarters be?' We figured it carefully. It wasn't a snap judgment. Alexandria, VA, was chosen for what we believe are good reasons and that meant San Jose, CA, became a regional office. It was not easy for the team in San Jose to make the transition from a headquarters office to a regional office. It was important that they understand that the San Jose team still had a vital role in the company. That's why I moved out there last summer for several months. I wanted those folks to realize that they were still crucial to the success of the company.

It was also important to listen to the values of people from both coasts in building the merged company. We wanted everyone to be able to make a well-informed choice either to buy into the new company's core values and goals, or opt out if they felt that was best for them. Some left, most stayed, but they all did so based on being fully informed about where the company was headed, what we believed in and how we were going to conduct our business. This way we know the people who are with us believe in the ideas behind AvalonBay.

Portfolio: You were quoted once as saying that going through the IPO process was the single most interesting event of your career, to that point. Do you still feel that way, and do you see anything of equal interest looming on the horizon?
Michaux: I think, in terms of why I came to work everyday and how hard I worked and the intense team environment among all the people in the company and the consultants, the IPO was a very interesting and satisfying challenge to pull off successfully. Since that time, we have had a lot of fun and a lot of challenges but they haven't been quite as focused. Even the merger itself, which was very challenging, did not have the time compressed intensity of the IPO. On the horizon, we are currently working on a new strategic plan and looking at all of the various aspects of the company. Our goal is to realize great value creation for our shareholders while still, of course, being very astute operators of real estate. That is a real focus now and an enjoyable process.

Portfolio: You served in the U.S. Navy on nuclear subs. Was there anything in that experience that has carried forward in your current career?
Michaux: I learned how to work as part of a team and to be prepared for any eventuality. The Navy made sure we were drilled constantly so that we could put ourselves in virtually any circumstance and know that we were going to feel comfortable with it because we had been there before. Also, to be a great team, we all had to be very comfortable around all sorts of people, because we lived in such close quarters. I would like to think that at AvalonBay we are very tolerant of all types of people in the hopes of getting the most out of each individual. To be successful in this world you have to have a team with you. I know that I am successful because of the great people here at AvalonBay who work hard and understand our mission.

Portfolio: We understand that you had a very close relationship with your grandmothers while growing up. How did those relationships help to guide you?
Michaux: Unqualified love is, I think, what I learned from them and what I would like to think is important in my whole life. I think that family is vitally important. They cared about me and wanted to see me succeed regardless of my missteps along the way, and I have carried that over into my personal and professional life. The most fun things that we do are with our families and closest friends. I had no brothers or sisters and my wife has one sister, so we have a small family, but we do a lot of things together. In the end, you are left with your family, friends and health; and, if you can preserve great relationships with all of them it carries through to your business career.