A Broker’s Dozen: 13 Productive Culture Trends - Part 1

Are you caught in an endless cycle of putting out fires, quelling arguments, dealing with difficult agents, and financial survival every month? After years of consultation work with brokerages, I'm convinced that the goal should be one oriented to solution-finding for increasing productivity and decreasing stress. The following list is a compilation of real world observations of trends that are, I believe, counterproductive to a positive and growing culture. Once you know the issue, correction and improvement isn't far behind.

1. Not switching from building their own sales business to building a company. Often top salespersons strike out on their own when they hit a "critical" mass in their production. Financially, it may make sense to establish their own office and identity in the marketplace. Initially, these top salespersons must continue to sell in order to afford the expenses that coincide with business ownership. What occurs, however, is that over time many will not relinquish or scale back on their personal sales in order to concentrate on building up their licensees to replace the income they once earned. Consequently, a double workload is laid upon the owner/producer's shoulders--keeping their own sales production at a high level and stressing out at not being available to handle inner office issues.

2. Not having a clear strategic plan. Consistently, I've seen real estate companies plan from year to year, comparing past results with how they are doing at the moment. As a result of not having a long term outlook on their business, branding is less structured with no clear focus as to what the company stands for. As a result, the public, as well as the sales associates, fail to have a solid picture of what the brokerage stands for. The question I encourage you ask yourself is, "How do we solve the customer's problem better than anyone else?" Once you answer that, you build a fluid plan that shifts with marketplace changes. Without a clear idea of a company culture and identity, it makes it very difficult to carve out a niche in the marketplace.

3. Wrong Recruits. Without an identifiable corporate culture as to how a brokerage represents their clients and how they are engaged with the community, it is almost impossible to design a recruiting program that is targeted to bringing in the best fit possible. Often, other top producers are targeted as likely recruits, but limited thought is given as to how that person would actually work with the licensees already in the company. Has the ideal recruit/sales associate/staff person been defined? If not, now would be a great time to do so before making any further recruiting attempts.

4. Not understanding that setting a corporate culture "that others can't wait to join" IS a recruiting strategy. The best opportunities for adding to your sales force is utilizing the informal talk of the people who already work with you. If your services and support is top of the line and you are passionately involved in each licensee's personal success, word gets out to the masses. The number one reason why licensees leave is because of fouled up internal systems, no sense of loyalty to their broker manager, and/or they don't "fit" in the ethical culture that is supported by the owners and managers. Creating a powerful internal supportive structure will make create a solid foundation from which to maintain a high licensee retention rate and increase the success of your recruit program.

5. Forgetting about the value of "appreciation." Results of several company surveys I've conducted reveal appreciation and loyalty are the top reasons motivating sales associates and staff. Compensation and benefits frequently end up last on the list. It's startling the number of times I've seen brokers fail to catch someone doing something great and then acknowledging that success publicly or privately. People who are part of your company want to be seen and then acknowledged for how they contribute to the overall success of the organization. Don't be one of those overworked, stressed out owners or managing brokers who are so immersed in maintaining their own production that they don't have the time or energy to spend on their associates or staff.

6. Hiring from within out of loyalty. Frequently, I've witnessed broker decisions to move an salesperson into a sales manager administrative position or placed on staff to handle other areas of the business when that person really isn't the best fit for the role. Often, it is due to the fact that the brokers either don't like the aspect of "firing" someone from their ranks, or they love the personality of that person so much they are willing to retain them in any capacity. Brokers who make the hiring decision based upon loyalty or fear of how other licensees would react if the non performer was actually asked to move on are creating a whole other set of problems. Unfortunately, these types of hires only compound the problem and day to day operations become more complex in the way it needs to be managed. Hiring appropriately every time is not only the most effective way to run a business but is ultimately a risk reduction tool.

Part Two continues tomorrow with the last seven trends in broker management.