A Broker’s Dozen: 13 Productive Culture Trends - Part 2

This is the second part of a pair of articles on culture trends that impede success. Read Part One here.

The following outlines the remaining real world observations of trends that are, I believe, counterproductive to a positive and growing culture. If you make changes in any of these areas, expect positive results.

7. Forgetting profitability is tied to desk production. Recently I spoke to an owner who had learned that a licensee had taken a full time job since he wasn't making it in the real estate business. The broker wanted to bring that person back onto his own personal sales team and utilize him on a periodic basis. If a desk cost is calculated at $10,000 a year, the licensee would need to bring in at least $20,000 in gross commissions on a 50/50 split in order to pay for himself. At what point do we let go and move on?

8. Haphazard orientation for new recruits and staff. Not having a 90-day plan to acclimate an experienced licensee into your company, update them on procedures, review processes and introduce them to all members of the team one-on-one is like walking a tight rope – you are balancing between having a great relationship with that sales associate or creating a poor first impression which may last through their entire affiliation with your company. The more effective you are in creating a powerful positive impression for a licensee in the first 90 days, the greater the loyalty over the long run. Take time to establish a sound, interactive orientation and enjoy the increase in retention of your key performers.

9. Lack of follow through. I'd like to ask you not to promise something if you don't plan on delivering on that promise. This applies to all levels of decisions and support staff. Agreeing to meet once a week for 30 minutes on Monday and then ignoring that schedule because of other more pressing issues is a sure way to create apathy in your company. If you feel your sales associates and staff aren't showing enthusiasm or failing to support company programs, look to yourself first and your commitment to keeping your word. Staff and sales associates alike can become jaded and may decide not to believe anything you promise. That doesn't bode well for a productive long term relationship.

10. No real presence in the community. A company that gives is a company that gets back. The focus is so much on making money; many offices forget that they are a vital part of creating a thriving community. Brokers as well as licensees should be actively seen participating in community events, belong to organizations that they believe in, and take leadership roles whenever they can. Nothing creates a firmer foundation than an organization that works towards something they believe in that ultimately supports the greater good.

11. Not having clear or updated office policies that are adhered to on a uniform basis. As a result of my surveys, licensees desire a sense of structure that results in fair play. In a brokerage, that is your office policy and procedures manual. The more consistent you are in applying decisions in similar situations, the more settled the agency force and staff becomes. As new issues arise and you define a process to handle it, consider updating the office policy and procedure manual to reflect that decision so that others can use it for future reference. There is no reason to reinvent the wheel every time a situation comes up. If you do not know where to start, there are several excellent policy manual templates for real estate that can be found on-line.

12. Avoiding confronting difficult situations with staff and licenses in the hope that the problem will disappear. While attending a sales meeting, I observed a broker manager speaking at length about a contractual completion issue that applied to only one of the 25 licensees. The rolling of eyes, sighs of disinterest truly reflected the resentment the licensees felt about being chastised for something they didn't do. I recommend that handling a problem directly is the most efficient and effective way to proceed. Once you have identified the problem, speak to the individual directly about the situation and move on to the solution. Only do group "update" sessions when you have a trend evident for the entire group. Remember, it needs to be applicable to everyone or you risk the result of your audience tuning out when you speak.

13. Failing to update décor and technology in your company. The consumer marketplace is transforming and your offices and technology must be updated to reflect consumer expectations in order to remain competitive. Those companies who recognize that the public wants a social experience, know that redefining how the public is greeted and how their office space should be redesigned to accommodate new expectations is imperative. Budget yearly to "spruce up" your technology and environment.

Regardless whether the trends are communication or systems based, the thriving brokerage of today keeps their attention fixed on social changes and reacts accordingly in a reasonable manner. Recognizing that a fine balance of budget vs. results must be maintained, I encourage that you maintain a transparency in your leadership decisions and include your team in making critical business decisions.

It's about connection and interaction that matters when you create a productive business culture. Are you ready?