There’s No Marking Time

Of all the sayings I despise the most, it’s this one: “If it ain’t broke, don’t fix it”. This one’s for losers.

I have heard people use this saying as justification for not training, not leading, not prospecting, not developing a team, simply put, as justification for leaving things exactly as they are.

To illustrate how stupid and dangerous this saying is, let’s apply it to your car. Would you drive your car, kilometre after kilometre, never adding oil, checking the tyre pressure, never having it serviced? Just drive it into the ground? MORE

Why not? “If it ain’t broke, don’t fix it!

Treat a car this way and it’s only a matter of time before it will be ‘broke’ and you will need to fix it. No doubt there will be a hefty repair bill to follow.

Imagine if you did this to your business!

Sad news: MANY LEADERS DO!

Leaders who don’t study leadership, work at developing their teams, who fail to determine a culture and set standards, who fail to control expenses, who fail to keep a watchful eye on profit, who lack discipline, are leading their companies downwards.

There is no marking time; you don’t stay exactly where you are.

You’re either going backwards or forwards, and it’s up to leaders to decide in which direction we will take our companies.

Great leaders are constantly fine tuning their companies and their teams for peak performance. Leaders who fail to do this are attempting to mark time, not realising that they are, in fact, going backwards.

Leaders who think, “If it ain’t broke, don’t fix it” may have businesses that are doing fine at present, but it’s only a matter of time before the business will be ‘broke’ and the leader in damage control, and probably broke, too.

Ditch the loser saying, “If it ain’t broke, don’t fix it” and replace it with this one:

“If it ain’t broke, I’ll maintain it!”

Gary Pittard

Profit Systems

In the eighties, management expert Michael Gerber coined a phrase that became popular across the world: Work on your business, not in your business”. A lot of us were very excited to hear that.

I still am. However, I saw a few people send their business bankrupt and then blame Gerber’s maxim. Let me make it clear: it wasn’t Gerber’s fault. His ideas were sound then and now. What these leaders overlooked was the word “Work”. WORK on your business… MORE

Over the ensuing decades, I saw some leaders turn their back on their business by appointing an ineffective manager who ran the business into the ground.

And the “Work” that was supposed to happen? It didn’t happen either. The systems urged by Gerber failed to materialise.

Another of Michael Gerber’s maxims was:

“Systems run the business. People run the systems.”

This is what these leaders were supposed to do: find or design profit systems for their businesses. Without profit systems, a business is highly susceptible to the winds of change, especially the market.

Some businesses generated large sums, often from income generated by the leader, but turnover and profit are different things.

  • Without financial foundations, cash flows in… and then flows out.
  • Without marketing systems… there is little generation of new business.
  • Without a hiring system… little is done to find, develop or retain winners.
  • Without MODERN training systems… mediocrity becomes the norm.
  • Without monitoring systems… warning signs aren’t detected.

These are some of many systems a real estate agency needs to maximise profit.

Big profit requires comprehensive profit systems.

How would you rate your profit systems?

Gary Pittard

When Salespeople Won’t Do the Actions

In my work as a real estate agency profit consultant, I have heard all the excuses. It’s twenty years since I heard a new one. The complaints remain the same. The same conversations we had in the nineties are still around this century.

One of the top complaints is from leaders: “I can’t get salespeople to focus!” Two others are “It’s different in my area” and “I can’t get my people to prospect”. MORE

Getting salespeople to focus is a topic all on its own. To get salespeople to focus there are seven major actions that leaders must tackle with each team member, in one-on-one meetings. If you would like to learn more about how to do this, contact us for the next screening date of the webcast Prospecting: how to get salespeople to FOCUS.

But what do you do when salespeople won’t do the actions?

In profitable agencies, leaders hold their salespeople accountable for actions.

These leaders set action expectations with their team members, and then record and monitor those actions with a Weekly Call Report.

The Weekly Call Report measures the level of actions for each salesperson in a number of areas, including:

  • Prospecting calls – people spoken to
  • Listing appointments
  • Properties listed
  • Number of listings on hand
  • Number of listings sold
  • Property Inspections with buyers
  • Sales made

When leaders gather statistics and interpret them, it becomes very clear who is doing the actions becomes very clear. Remove the uncertainty around the numbers – count actions and hold your people accountable for them.

While monitoring actions and determining ratios are important, there is one big question leaders should always consider:

What are the consequences in your agency when people do not do the actions?

The consequence of doing the actions is results. The consequence of a lack of action is mediocrity. But is that the only consequence? It shouldn’t be.

Great leaders never tolerate mediocrity. They train their people and set action expectations. If those actions are not performed, they counsel the salesperson and retrain if necessary.

After that, however: no more chances. The consequence for inaction, then, is dismissal. This is fair enough. If they won’t do the actions, what are they doing there?

I love the saying, “If you can’t change your people, change your people“. If you have “Won’t Do’s” on your team, and they won’t change their ways, PART WAYS.

Invest your time, energy and money into the right people. Profit will be your reward.

Gary Pittard

Less Selling, More Leading

Multi-tasking is a myth.

While performing two straightforward chores at the same time is easy – you can stir the custard while talking on the phone – it is folly to think that this transfers to complex tasks. The law forbidding texting while driving is for good reason – you cannot safely do both at the same time. Likewise, you cannot perform other complex tasks simultaneously. MORE

One ‘deadly combo’ of tasks that should never be performed together is selling and leading – trying to lead a team while being heavily engaged in listing and selling. When you are selling, you are NOT leading.

If you own a real estate business, and are a principal who sells, you should examine your reasons for doing so.

Do you sell because you need to bring money into the business? If so, why?

  • Are you selling because your team is not performing – your production is necessary to keep the doors open?
  • Are your team members being paid too high a commission percentage, meaning that after commissions there is little left over to cover expenses?
  • Is your sales team too small?

While I understand that you need to sell to keep the doors open, unless you address the reasons why you must sell, you will always be a slave to your business. Your business needs leadership, urgently!

Do you prefer selling over leadership?

If so, why have you got a real estate office? Leadership and Sales are different skills. If you are working hard as a salesperson and not making much profit, sell the business and work for somebody else.

Do you think you can do both?

Perhaps you can, and there’s an easy way to find out:

Examine your previous year’s income. Subtract the income from the Property Management Department and income generated by you. How much is left? What is the profit, or loss, on that income?

If the profit is low (under $200,000), or if there is a loss, clearly you cannot lead and sell. Your business needs leadership!

I don’t mean to offend you by making these statements, but too often agency leaders measure their success by how long they have been in business. This means nothing!

Measure your success by the PROFIT you make, profit generated by your Property Management Department and by your Sales Department, MINUS any fees generated by you. Your profit should exceed $400,000 per annum without you needing to list and sell.

If you’re not making this profit, there is room for improvement, and certainly for more leadership.

And if you want a hand to figure out a way forward, please let me know.

Gary Pittard

Get Rich Quick Is Not a Plan

Many people who open real estate agencies expect it to be easier than it eventually turns out to be. Many suffer from the Field of Dreams thinking, “If you build it, they will come”. That doesn’t happen very often.

It does not take long for agency owners to realise that Get Rich Quick is not a plan. Most times, business is a hard slog, which can be made harder by a lack of planning and a lack of training. MORE

In almost three decades as a real estate agency profit consultant™, I have seen few agencies that have a business plan. While get rich quick is not a plan, neither is it smart to have no plan at all – at least if you want to become financially independent through your business!

The Challenges

  • Businesses with leaders who were good salespeople usually have leaders who get caught up listing and selling, instead of growing and developing their teams.
  • Businesses with leaders who were good managers often have leaders that are good at saying ‘no’ to everything, including expenses that might grow the business. Any fool can say ‘no’ to everything. Good management requires making decisions that grow the business.
  • Most businesses have leaders who hire either ‘by gut feel’ or by poaching their competitors’ salespeople. Neither are successful hiring plans.
  • Most businesses have no idea where their income will come from – what marketing sources will bring them listings and sales. This leads to haphazard marketing and inconsistent results.
  • Most real estate businesses need listings, but spend most of their marketing dollars to attract buyers.
  • Most businesses have no plans for finding, inducting and developing salespeople. Most salespeople in the real estate industry produce mediocre results (as is evidenced by industry averages).
  • Most businesses continue flogging the same tired industry practices (debit/credit reward schemes, high commission-only percentages, sales systems with no points of difference for example) despite evidence that those practices are unprofitable.

If by now you have realised that get rich quick is not a plan, and if you do not have a business plan at all, may I ask, are you happy with the profits you make from your residential sales department?

Now, take out your own PERSONAL PRODUCTION. Are you still happy?

If you are not happy, this means that your sales department would not be profitable without your own personal production. While you are in this state, you do not have a business, you have a job – essentially, as a salesperson in your own company.

Consider doing something different. Formulate a business plan – take control of the direction of your business.

And if you need a hand with a good plan, please do contact me.

Gary Pittard

Is Excellence Compulsory In Your Agency?

As leaders, we should be the ones setting the standards in our businesses. One standard that should be compulsory is Excellence. Is Excellence compulsory in your agency?

There is an old saying, “Anything worth doing is worth doing well”. No doubt you have heard this gem. I agree with it wholeheartedly.

If we are going to do anything, shouldn’t we do it well? Personally, I’d rather be known for quality than mediocrity, or carelessness. I am sure you feel the same way. I have great difficulty understanding why anybody would want their name applied to anything less than excellent. MORE

I don’t claim to be the best at everything I do, but I like to think that in everything I do, I give my best. Ask me to do something, and I’ll do my best to deliver something that meets or exceeds your expectations. I regard this as an obligation – if I say I’ll do something for you, as a matter of pride and courtesy, I’m going to give you my best.

Show the way

Leaders must show the way. Whenever we commit to our teams to do something, we give it our best effort. Quality work is a fine example for leaders to set for their team members.

And when we do it, we have every right to expect the same from our team members. We do it, so they must too:

  • Do what they say they are going to do, when they said they would do it
  • Follow up promptly and courteously
  • Study, practise and develop their skills
  • Show respect to their team members
  • Help their team members
  • Give honest, helpful advice to clients
  • Set targets that stretch them
  • Achieve those targets
  • Never give excuses for lack of results

These are just examples, but you get the idea. In business, giving less than your best is a sure path to low profit. Allowing mediocre people to fester on your team sets a bad example to those team members who look to you to set and enforce standards.

Excellence is a standard that no business can afford to do without. Are you serious about building a great business? If you are, you will become the best leader you can become. And you’ll send this message to your entire team:

Be excellent or be gone!

Gary Pittard

You Cannot Motivate People

In almost three decades as a real estate agency profit consultant™, I have worked with many leaders and interviewed many more. Over this time, I have heard many leaders say, “I can’t seem to motivate… [insert name here]”.

Leaders who say such things do not appear to understand the source of motivation: motivation comes from within. Leaders cannot motivate people – it’s a waste of time trying – we all must motivate ourselves. MORE

Inspiration is different to motivation. The dictionary definition for motivation is “enthusiasm for doing something”. The definition of inspiration is “someone or something that gives you ideas for doing something”. As leaders, we can inspire people, but each person is responsible for his or her own motivation and drive.

Prospecting is one task that leaders struggle to get some salespeople to do. Let me rephrase that: prospecting is one task that leaders struggle to get the WRONG salespeople to do. With the right ones, it’s not so hard.

People who are motivated – driven – who set goals and happily work toward achievement of those goals, are easier to lead. For these people, prospecting takes them closer to their goals; it’s a necessary task in the journey toward a successful life.

As leaders, we can help our salespeople to clarify their goals, decide what they really want and are willing to work hard to achieve. We can inspire them, acting as a sounding board. We can help them see the bigger picture, then help them to set goals and plan the actions necessary to achieve those goals.

But trying to motivate people who are not motivated, who aren’t passionate about Excellence, is draining for leaders. We can threaten and nag, but if there is no motivation, it won’t happen.

What leader in his or her right mind would keep salespeople who are not motivated? Compare the listing presentation to somebody who is driven, passionate and motivated to the listing presentation of an unmotivated plodder. Whom do you think would do the best listing presentation?

You know the answer, and so now for another question: do you want less than the best representing your company?

Yes, we can be inspiring, and we should be, but trying to inspire the unmotivated is like giving medicine to a dead person. Face the fact that you cannot do your people’s wanting for them. If they cannot bring enthusiasm and motivation to their work, find somebody who will.

Do you really want to work with the unmotivated? I don’t!

Gary Pittard

A Leader’s ‘Non-Negotiables’

In my 25 years as a real estate agency profit consultant, I have often heard leaders complain that they can’t find good people. A second complaint is that they can’t get salespeople to do the winning actions necessary for success. Prospecting is always top of that list of actions they can’t get people to do.

When are we going to stop whinging and start acting to fix the problem?

Great leaders set standards. Great leaders have Non-Negotiables. Depart from these and you no longer work on the team. MORE

7 Non-Negotiables

  1. Speak with 40 potential seller each working day – 200 per week. Can’t get salespeople to prospect? Are you willing to fire people who won’t do this essential task and find people who will do it? If you aren’t, don’t complain that you can’t get salespeople to prospect. The wrong people will never prospect; the right people will!
  2. Study for 30 minutes every day. Read a book, attend a seminar, watch a video, listen to an audio. Study, practise and develop your skill.
  3. Review goals every day. Salespeople who have goals are more focused. They are also easier to lead. I say in my book, Why Winners Win, “No goals, no hope”.
  4. Check progress toward targets. Instigate catch-up measures if falling behind. Why wait until the end of the month to discover that you’ve fallen behind target? Target-correction should be a daily discipline.
  5. Conduct Weekly Price and Marketing Reviews. Go over the week’s marketing and discuss sellers’ current pricing. Do this with all sellers, every week.
  6. Conduct 10 Buyer Property Inspections every week. Show one buyer four properties, and that’s 4 Buyer Property Inspections. Focus on the number of properties demonstrated and not the number of buyer appointments. We are not big fans of open inspections – too labour intensive.
  7. Seller feedback the same day. Following every inspection of a listing, contact the sellers immediately and pass on the buyers’ feedback. This is important if you want the sellers to believe you are on their side, doing your best to represent them.

If you are willing to set standards and insist that those standards are met, you are taking firm measures to set your company culture. This can only be a good thing!

Do you have Non-Negotiables in your company? If not, what are you waiting for?

Gary Pittard

Strict or Soft: the problem with extremes

Some leaders are too strict with their teams. Others are too soft. There are problems with being at either extreme.

Soft leaders

Soft leaders should not be in leadership positions. They seldom build excellent companies. They rate avoiding conflict higher than they rate setting standards and enforcing them. If these leaders do build excellent companies, it is often because they have deputies that have the real control. MORE

When leaders are more interested in being liked than they are in developing their people, they accomplish neither – they fail to bring out the best in their people, and while they may be liked, are usually not respected. Often, they are pitied by their teams – pitied for being too soft, for allowing people to be slack, sometimes allowing people to get away with outrageous behaviour.

These leaders are most likely to keep the wrong people and by failing to set and enforce standards, harbour mediocrity in their teams. They most often fear their teams, fearing that if they call people out on unacceptable standards, those people will leave.

Occasionally these leaders do have winners on the team, but the winners soon move on once they lose respect for their soft leaders.

Strict leaders

Leaders can be too hard on their people, too. But strict leaders are often strict about everything and can micromanage to a point where their people are afraid to show initiative, and even more afraid to convey bad news to their leader.

These leaders often fail to celebrate results and, while they are quick to point out what people have done wrong, can feel awkward metering praise to their people. Their offices are often dour places to work, with very little fun.

One leader I know recently forbade his two salespeople to have lunch together. What did he think was going to happen – a conspiracy? I can’t even call this strict leadership – it’s downright dumb leadership. This leader has precisely ZERO salespeople now!
Some wear their strict leadership as a badge of pride, but being too strict can be as ineffective as being too soft. Strict leaders lose people, many who could have become winners had they received good leadership.

Extremes

Extremes of strict and soft are not good. I am not suggesting middle ground either.

Good leaders set standards for their people and, when people fall short of those standards, they are counselled, retrained if necessary, and terminated if they continue to fall short of the standard. If termination is required, they do it swiftly, but always with kindness and compassion.

But there are times when leaders must also allow minor things to pass without comment. Teams can get under pressure and leaders must release the pressure occasionally, or good people will leave. A bit of fun does wonders.

Good leaders have range in their leadership styles. Strict when necessary, uncompromising when necessary and soft on occasions. Always we must show our people that they are important to us, and the best way to show that is to be interested in them, and work at bringing out the best in them.

Avoid the extremes, they burn good people and kill profit.

Gary Pittard

Why Do We Do It To Ourselves?

There would not be one business leader who doesn’t know that it is easier to lead the right people than it is to lead the wrong people. Despite that, many leaders continue to keep the wrong people on their teams. Why do we do this to ourselves?

I spoke with a leader recently. He has a ‘salesperson’ who has been with him for less than one year. Despite having no previous experience in real estate sales, she refuses to attend training. She is ignorant, and intends to stay that way. MORE

The issue is confused as she is making sales, but she sells her colleagues’ listings because she is low on stock and her stock is overpriced. Her stock situation is unlikely to improve because, in addition to her refusal to train, she also refuses to prospect.

What value is this person to the team? I believe none. I asked the leader what he intended to do about this person. He said, “When I get back to the office, I’m going to read her the ‘riot act’”. I said, “There’s another option. Fire her”.

I explained to the leader that there is no hope with a person like this. Without training, she will never improve. Without prospecting, she will never contribute to the company’s saleable stock. And her personal culture is not one of pursuing excellence, but one of mediocrity.

Why do you do this to yourself?” I asked. The look on this leader’s face told me that this person was going to continue working with the agency, spreading her lessons of mediocrity to the rest of the team. Winners seldom ever positively influence the mediocre people; it’s the opposite – the mediocre infect the winners.

Leaders who tolerate mediocrity endorse it.

The death knell for a salesperson’s career is a disregard of training. Keep them and you send a message to your team that you are a weak leader who has no intention of building a great company.

Your team may feel sorry for you, they may think you are a nice person, but is pity the emotion you want when your team thinks of you?

I know why this leader will keep this person, for a little while longer at least. It is because he is not hiring. He doesn’t have a likely replacement for her.

Hiring is your insurance against mediocrity. If you won’t hire, you are stuck with the team you have. If it’s a team of winners, good luck to you. But if you are tolerating mediocrity because you have no other option, I ask you again: WHY DO YOU DO THIS TO YOURSELF?

Gary Pittard

Getting the Team to Focus

One of the top three complaints from agency leaders is that they cannot get their teams to focus on actions that produce results. Some have been complaining for almost as long as they have been in business. Wouldn’t you think that at some point they would do something about it?

If you are the leader of your business, you have control, and if you don’t, it’s high time you resumed control.

Agencies with salespeople paid by commission-only or by commission debited against retainer – typical industry reward systems – are most at risk of having little control. They can be too scared to set standards for fear of losing their teams. Is that any way to run a business?

Assuming that you have approachable people who want to win, then you can help them to learn to focus.

Motivation

MORE

You cannot motivate people. Don’t even try. If a person does not bring drive and energy to the table, anything you do to help this person improve will be a waste of your time. Hire motivated people and teach them to sell.

Goals

Set goals with your people. What do they want? I mean really want? Are they willing to work hard, to take themselves out of their comfort zones, to get it? Clarify their goals.

Plans

Goals without plans are wishes.

  • How much will it cost to get what they want?
  • How much do they need to earn after tax?
  • What production figure per annum is required?
  • How many listings per month do they need?
  • How many sales per month?
  • How many potential sellers do they have to prospect daily to make these results happen?
  • How many buyer property inspections must they conduct per week?

Train

It takes as long to lose a listing as it does to get it. The better trained they are, the more results they will produce from the appointments they attend. It’s no use planning to achieve a higher performance if you are not willing to train to get there. Follow up with your salespeople to ensure that they are training.

Monitor

Winners keep score. They know how many appointments they set and how many sales or listings they got from those appointments. They know how many people they prospected each day, week and month. They know their ratios.

If they know their statistics, they can work at improving them. If they don’t know, they aren’t serious about their goals.

The Leader’s Role

I would not expect that anything I have said here is news to you, and possibly not to your salespeople either, but this is not the point – what are you doing about it?

It’s not what we know that counts; it’s what we DO with what we know that defines a winner.

Our role as leaders is to sit our people down, one-on-one, and help them define what they want from their careers. Then it is our role to help them get it.

They will blame you if they fail. Wouldn’t you rather they thank you for playing such a large part in their success?

Gary Pittard

The Changing Face of Adult Education

As an educator in the real estate sector, I have seen the face of adult education change radically. Agency leaders should change their view of training, too, and should ensure that their trainers do likewise. That is, if they do not want their agencies and teams left behind.

Some things never change, however. Our industry still largely shows a disregard for training. In states such as NSW where Continuing Professional Development (CPD) is compulsory, many practitioners begrudgingly attend 3 to 5 hours training so they can tick the box with the state regulator and then attend no other training for the year. MORE

They say that they don’t need to train because they are ‘experienced’, but length of tenure in real estate does not make you a winner. Happy clients and high results are the benchmarks, and people who have spent their careers shunning training aren’t winners.

So what has changed?

Learning Styles

Modern audiences want variety in their training. They do not like lecture-style seminars as much as do older leaders and salespeople. Most do not have CD and DVD players, and none have cassette players, so much of typical offices’ training libraries sit around gathering dust.

Younger generations, particularly Gen Y, expect their training to be more hands-on.

Education Delivery

Because of changes in learning styles, how trainers deliver their training needs to change too.

If CDs and DVDs are old fashioned, and if audiences largely prefer not to attend lecture-style seminars, I say we should be delivering training in ways that complement our audiences’ learning styles, assuming that we want our audiences to learn, of course!

Streaming

Pittard® saw these trends in 2014 and in that year we developed iTrain®, our streaming portal, through which we deliver current and relevant training in video, audio and written formats.

iTrain® delivers training directly to our audiences across Australia, New Zealand and South East Asia, to the device of our customers’ choice, smart phone, computer, tablet, PC or TV. Our people have no excuse for not training!

Online Forums

Many people do webinars, but an online forum takes webinars to new levels. Leaders in different agencies can talk to each other and share ideas, and nobody has to leave their office. Collective wisdom, delivered online.

Webcasting

Through our webcasting portal, Pittard TV, I interview some of the world’s leading business minds and transmit live across five time zones. These are live seminars that nobody need travel to attend. We call Pittard TV, “Training that comes to you”.

Interactive Events

Instead of lecture-style seminars, we bring groups of salespeople together and have them share their knowledge and expertise with each other. Again, we come back to the collective wisdom of groups. As individuals, we might know a lot about real estate, but none of us knows more than a group of one hundred. Sharing knowledge is 21st century.

Old Style Still Has A Place

Pittard® still conducts some lecture-style events, we host our Leadership Conference and our Real Estate Agents’ Convention yearly, and these are popular, but if you want your people to LEARN, you must offer options to how they receive their educational material.

Adult education has evovled and smart leaders and teams evolve too.

Gary Pittard

Want to reach your profit potential? Contact us now.

Pittard


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