GBBR Leadership Conference "Back of Beyond"
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This document summarizes trends in real estate and association management. It discusses how real estate associations are coping by pursuing shared services, streamlined governance, improved volunteer management, new strategic planning approaches, and diversifying income sources beyond dues. Specific strategies mentioned include subcontracting services, eliminating unnecessary committees, creating a strategic board, assessing organizational capacity, and budgeting programs to improve return on investment. The document emphasizes the need for associations to run more like businesses in order to provide value and remain relevant to members.
GBBR Leadership Conference "Back of Beyond"
- 1. BACK OF BEYOND Trends in Association Management Judith Lindenau, CAE, RCE October, 2012 JWL Associates 1
- 2. WHAT WE KNOW ABOUT REAL ESTATE TODAY • Undergoing major transformation • Members revising job descriptions from bird dogs to counsellors • Members have personal finance anxiety • Brokers reinventing brokerage practices JWL Associates JWL Associates 2
- 3. WHAT WE KNOW ABOUT ASSOCIATIONS TODAY • Members have a different profile, though ’leaders’ may not • Dues are a declining source of income • Traditional Real Estate associations have less relevance to members and consumers JWL Associates JWL Associates 3
- 4. WHAT’S HAPPENING NOW: HOW ARE REAL ESTATE ASSOCIATIONS COPING? 1. Subcontracting, partnering, and shared services 2. Streamlined Governance 3. Volunteer Management 4. New Approaches to Strategic Planning 5. Diversification of Income JWL Associates 4
- 5. 1. SHARED SERVICES *Mutually beneficial relationships *Building capacity with a minimum of infrastructure investment *Not duplicating services JWL Associates 5
- 6. GBBR SHARED SERVICES: Shared Lockboxes—in effect in this area! Working with MAR on Foundation project Huston Association of Realtors Online Store MAR resources for videos MRIS resources for business statistics JWL Associates 6
- 7. SUB- • To Other Realtor Associations CONTRACTING NSBAR: Contracts out the —A MERGER processing of complaints to Main ALTERNATIVE Street AOR To Non-Realtor Organizations TAAR: Consumer Complaints to a Dispute Resolution system in the community JWL Associates 7
- 8. SHARED ‘members insist that their SERVICES associations practice good business’ IS GOOD BUSINESS JWL Associates 8
- 9. COMPETITON 80% OF GBBR’S INCOME IS DUES- FOR BASED. WHAT IS OUR MARKET SHARE MEMBERS FOR THIS MONEY? GBBR ASSOCIATION 1 ASSOCIATION NAR-MAR MRIS 2 ASSOCIATION 3 ASSOCIATION 4 JWL Associates 9
- 10. SHARED • As brokers see shrinking profitability SERVICES: – They look for ways to reduce WHY NOW? expenses; increase revenues – They see large aggregate expenses such as duplicate dues and MLS fees to cover market area • Member expectation is that the REALTOR organization needs to – Build in more efficiencies – Deliver more value for the dues dollars – Run like a business • Duplication of efforts and costs - vertically & laterally – Resources could be re-directed to maximize quality/value JWL Associates 10
- 11. 2. STREAMLINED • GOVERNANCE Governance Audit: Track a decision process. How many people? How long before approval or dismissal? • Solutions: – Eliminate committees (3) – Form a separate corporation for unrelated activities—own board of directors (GBBR Foundation. Possible Real Estate School, Building Management) – Do what works for your association—avoid the policy tangles of NAR or state association. – Insist on a Strategic Board of Directors. Have a strategic plan for the Association, for each activity center, for technology and acquisition. – Work in partnership with staff. JWL Associates 11
- 12. ELIMINATE: • Bylaws rules that change frequently. Use policy manuals for operational guidance • Eliminate from bylaws the items you do not follow completely • Extra Committees: Internal Affairs, External Affairs, Governance. Read about it: http://www.realtown.com/Judith2/b log/managing-volunteers/three Use task forces, work groups, online forums. • In-person meetings and body-in-seat educational events whenever possible. JWL Associates 12
- 15. HOW DO WE • Create strategic agendas CREATE A • Create future-thinking budgets (leadership STRATEGIC development, technology, R and D, transition/contingency fund) BOARD? • Education sessions—community issues, political issues, legal update • Introduce state/national issues affecting GBBR (why you send leaders to these meetings) • Focus Director’s attention on the things members do best, not the things staff does best. • Treat meetings professionally and with respect. Timed agenda, use of consent calendar, plenty of time for ‘homework’ JWL Associates 15
- 16. 3. VOLUNTEER MANAGEMENT- ADOPT NEW PRACTICES! Seniors: Association ‘junkies’ Youngers: Geeks JWL Associates 16
- 17. THE NEW VOLUNTEER JWL Associates 17
- 18. VOLUNTEER • Value time. Manage big jobs in little MANAGEMENT chunks. • Change your reward system. • Maintain a skill database base (CRM) • Change your evaluation system for participation • Accommodate new means of participation (social media, crowd sourcing, online meetings, interactive website • Create diversity in every gathering • Embrace Transparency • Encourage Strategic Thinking JWL Associates 18
- 19. 4. NEW APPROACHES TO STRATEGIC PLANNING JWL Associates 19
- 20. CONDUCT • • Leadership Assessment Purpose and Structure A • Communication CAPACITY • • Adaptability and Innovation Human Resources AUDIT • Financial Resources • Professional Resources • Collaborations and Partnerships • Physical Resources • Financial Management • Intelligence • Actions • Evaluation • Community Buy-In • Technology JWL Associates 20
- 21. Organizational Life Cycle Stage Characteristics Conception/ Infancy Voluntarily coming together to solve a problem; high energy & enthusiasm Infancy Founder in charge; work expands beyond what the founder can do Puberty Organization expands but is awkward in dealing with coordination & external affairs; professional management emerges Young Adulthood More formal management, policies, and procedures; emerging politics Adulthood Mastering environment; serving clients; established management; New ideas contemplated; high energy; risk- trying to be everything JWL Associates 21
- 22. Organizational Life Cycle Stage Characteristics Late Adulthood Excitement beginning to wane; Past valued over innovation; Complacency; no sense of urgency or need Old Age Diminishing ability to serve others; Lack of cohesion among leaders; Little energy available for renewal and reversal of situation Revitalization Revitalization of mission; re-defining service niche JWL Associates 22
- 23. • Undefined leadership roles • No policy direction to staff GBBR CAPACITY • Decision-making authority is undefined AUDIT RESULTS: • Weak communication to membership AREAS WHERE • No future vision and goals WE ARE WEAKEST • Association does not resolve conflicts • Member needs not regularly assessed • BOD does not set governing policy • Decision-making by leadership is not transparent • New ideas from members and staff are not encouraged and welcomed by leadership • Volunteers are not trained in their jobs JWL Associates 23
- 24. • Board of Directors attendance is GBBR CAPACITY consistently strong AUDIT RESULTS: • GBBR has sufficient financial resources AREAS WHERE to meet its goals WE ARE • GBBR has good insurance coverage as an STRONGEST association • GBBR has a strong cooperative relationship between state and national associations • Association produces regular financial reports • Association follows good fiscal management JWL Associates 24
- 25. 5. DIVERSIFY INCOME JWL Associates 25
- 26. • Know your % of income from various sources. In GBBR, 80% comes from DUES • Know your % of expenses for each PROGRAM program (including professional BUDGETING standards enforcement). Know your ROI for each program. (see the project planning worksheet) • Set goals based on this inventory • Don’t think pennies, think dollars • Appoint a business development committee (members + management) • Report programs based on outcomes, both $$, members served, and indications of success • Always tie expenditures back to the strategic plan for the association JWL Associates 26
- 27. SIZE IS A FRAME OF MIND JWL Associates 27
- 28. JUDITH LINDENAU JWL CONSULTING WWW.JUDITHLINDENAU.COM (231) 715-1416 Strategic Planning Capacity Assessments Leadership Training Individual Coaching for AEs and Leaders JWL Associates 28
Editor's Notes
- #12: Add a governance audit here
- #16: Agendas: Consent Agenda. Education/Strategy item. Mission Statement. BOD List serve (seed it with issues). Makeup of the Board—affiliate rep, young professional rep (reverse mentor)
- #19: Members are younger. Not association junkies. Won’t do meaningless tasks or be motivated by traditional loyalties. They will demand your competency.