WorkPuzzle

How Your Expectations Shape Your People

In the last edition, I revealed definitive research that should forever alter your approach regarding professional negotiations...from one of an aggressive--win/lose strategy, to one of positive expectation.  If you haven’t read it yet, please read it now...My hope is that it will change your view forever regarding what makes for a successful negotiation process.

How do you decide who will succeed and who will fail?  Despite the fact that some of you are convinced that you can reliably predict who will succeed and who will fail, research suggests that it might actually be your expectations that are producing the results. 

The Rosenthal Effect refers to the phenomenon in which the greater the expectations placed on people, the better they perform.  Since 1968, a number of experiments have proven that the reality of performance can be greatly influenced by the preconceived expectations of others.

In the famous first study, Robert Rosenthal told a number of teachers that they had assessed all of the incoming 5th graders with a special new instrument that was designed to identify which children were poised to experience an intellectual “growth spurt” in the upcoming academic year; they were “high potential” children.  In reality, these children were chosen at random, and there was nothing special about them at all.

By the end of the year, the majority of that group had, indeed, made the greatest strides among all the children, despite the fact that there was nothing different about those children, outside of having the highest expectations placed on them.

What did the teachers do differently with these students?  They tended to downplay obstacles, they showed more positive patience and, most importantly, they conveyed a strong confidence in their belief that these children would do well.  The children apparently picked up on this positive expectation and lived up to the challenge of achievement.

The Rosenthal Effect is a form of self-fulfilling prophecy.  In this respect, people with poor expectations internalize their negative label, and those with positive labels succeed accordingly.

We all are guilty of doing this.  We make snap judgments about people early on in our experiences with them.  When we do this, we unconsciously set the stage for failure.

This once again proves a simple, yet eternal principle:  If you want to bring out the best in people, expect the best; expect that they CAN do it...show patience, positive confidence, and a greater number of people WILL succeed.

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

How to Guarantee Improved Negotiations

In Real Estate, perhaps more than most industries, much of the work requires good negotiating skills.  Whether you are helping clients buy or sell as an agent, or recruiting an experienced agent, there are numerous opportunities to practice your skills.  Do you trust your skills?  Or, do you need to brush up on them?

The surprising news, according to researchers Anderson and Ross (Journal of Experimental Social Psychology), is that your techniques may play a considerably lesser role than you would imagine.  So, what does matter?

Before I tell you the answer, allow me to describe how Anderson and Ross set up their research:

Varda Liberman and colleagues had undergraduates negotiate with a postgraduate student (Stooge- who was told nothing of the purpose or design of the study) about the division of university funds between undergrad and post-grad students.  Half of the undergrads were told that previous negotiations had reached agreement (a positive expectation), and half were told just to "try their best" (no expectation).  The result was that all 17 of the "positive expectation" group reached an agreement, while only five out of 17 of the "no expectation" group agreed.  Also, the positive group rated the offers made to them as much more fair and were more satisfied with the outcome.

Another, much tougher experiment required Jewish Israeli Business School students to negotiate with an Arab Israeli woman over the division of funds between Israel and Palestine.  You can imagine all the pre-concieved biases that would potentially have a negative impact on this discussion.  But, again those who had their expectations set toward a positive outcome found far greater agreement (31/38 vs. 13/38), and were also happier with the outcome.

So, clearly, what we anticipate greatly influences outcome.  If you go into a negotiation believing the worst, and expecting to be taken advantage of, you're likely to be too aggressive and competitive.  Your motive is to win "the battle."  Or, on the flip side...if you are overly concerned about offending and are too passive, you might make easy concessions and likewise, not be pleased with the result.

So, why does positive expectation work?  Positive expectations breed trust and acceptance of the other person as a reasonable, rational person.  That in turn creates a baseline of legitimacy of both parties needs, and minimizes the gamesmanship.  The jockeying for the best maneuver to "win" is no longer the central goal.

Now don't get the wrong idea... It's not that it makes you blindly trust the other person.  You still retain the right to assess whether your opinions/beliefs are being considered as well.  Expectations can remain high.

The overall principle is a simple one:  Assume the best in people first, and your success will improve.  The right principles are always the eternal ones.  They aren't just the right things to do...they are what's best for everyone.

In the next edition, I'll share how this principle is vital for those who recruit, train, and mentor new agents.

Reference:  Liberman, V., Anderson, N., and Ross, L. (2010).  Achieving difficult agreements:  Effects of Positive Expectations on negotiation processes and outcomes.  Journal of Experimental Social Psychology, 46 (3), 494-504 

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

Are You a River Person or a Rut Person?

By river people, I'm not talking about the guy who lives in a van down by the river (like on Saturday Night Live).  Rather, I'm referring to the type of person who keeps everyone around them hopeful and motivated to press on toward a goal, even when times get tough.  Don't confuse my use of the term with what a few self-help gurus have suggested.  I'm talking about these people in contrast to those (some by no fault of their own) who have become "rut people," or those who have been infected by the dreaded learned helplessness (LH).  (I'll explain more about LH in the next edition.)
 
Over the past 25 years of providing psychotherapy, my chief mission has been to free people from unconscious ruts that control their lives.  This isn't easy.  People rarely see how they have boxed themselves into a view of themselves and a view of the world that limits their perspective, beliefs and actions.

When a person is in a rut through learned helplessness, they limit their own movement, growth, vision and freedom to act.  They see the world in a fixed way, and try to convince everyone around them that their "rut trapped" perspective is indeed reality.  The way they lead their life unveils consistent themes, describing their own personal rut repeatedly acted out.

A person who is not stuck in a rut, flows like a river, emanating wisdom, humor, and humility, even in difficult times.  They may have a long list of things that haven't worked out, but have no regrets for their efforts.

When things are going well, economically and emotionally, it is much more difficult to differentiate the "rut people" from the "river people."  In good times, everyone can fake their way to appearing like positive, hopeful geniuses.  But when the tide goes out, you can sure see who isn't wearing a swimming suit!  In difficult times, ruts are bound to show themselves.  Even the most fluid people can be temporarily thrown into a rut in these extreme circumstances, simply because life isn't familiar or secure.

Losing a job, a home, and plans for the future can certainly appear as an insurmountable rut.  "River people" however, don't allow themselves to get stuck there.  They manage to continually pull themselves up and out of the rut, dust themselves off, and move on with life.  I feel fortunate to know many river people and they are always refreshing and encouraging to be around.  They are the Salt and Light of our world.

As leaders, you owe it to yourself and those you coach to be this Salt and Light for your organization, to give people hope.  Whether you're coaching agents or interviewing new candidates, help people find hope and envision the opportunities that can unfold if they exercise the "formula for confidence."  Help them realize their freedom and potential through new ideas, new innovations, new training, new commitments, new values, and perhaps even an entirely new direction.

You'll find that everyone within an organization benefits once every single individual tributaries finds their "flow," and can contribute their full potential once again.  It's not only practical to encourage this hope, it's the right thing to do.

But, change is difficult - Even the most healthy, rational people tend to avoid change, preferring instead the security and safety of what is known.  Ironically however, change can produce incredible growth, if responded to effectively.  If you're interviewing new candidates without both empathy around change, PLUS the encouragement to change, you're missing an incredibly useful and helpful tool.

Have candidates answer this question:  When have you experienced the most growth in your life?  For most people the answer is when they were undergoing tremendous change, accompanied by uncertainty...perhaps when they were much younger.

It's normal to risk more when we're younger, because we don't have that much to lose. If you analyze that statement, you will begin to see the problem:  Security and hanging onto what we've acquired becomes paramount for most of us when we're older.  We cling to it and cherish it, without ever reflecting on its inherent value to our well-being.

Of course it's irresponsible to take foolish risks.  But, you can also make the argument that it is foolish to follow a course of action simply because it offers the illusion of security.

In the next edition, I'll describe the concept of Learned Helplessness, so that you can better understand how people get stuck in ruts, and how you can help them out...

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

Blazing A Trail For New Agents To Follow - Part 2

Last week, I shared a hiking experience I had with two of my teenage sons.  Toward the end of the discussion, I mentioned that I gained some unexpected recruiting insight from the experience.
 
The insight came on the heels of an article I read the week prior in CNBC.  The article discusses the fact that many employees are starting to give up on corporate America, and are making the decision to strike out on their own.  Here is a short excerpt:

“With the U.S. unemployment rate at 9.1 percent as of July 31 and a fragile economic recovery underway, many workers feel they are left with no choice but to take their careers into their own hands.
 
Employees are bidding farewell to corporate America in the hope of finding a more secure, or at least fulfilling, future.  They are reinventing themselves by starting their own companies or by pursuing long-put-off dreams that include creative or charitable endeavors.
 
While it might seem like a bold move, countless workers believe the abundance of uncertainty in today’s job market mitigates the fear factor.”

I’ve read 10 to 15 articles like this in the last couple of years.  Most of them (this one included) contain a few anecdotal stories about frustrated individuals who have a passion to strike out on their own. 
 
Does this mean there is some significant new trend toward corporate employees starting their own businesses?  I don’t think so... This is a frequent topic in business publications, which tells me there is always a group of individuals in our society who feel a strong desire to own a business.  From various sources I’ve read, there are usually about six million people per year who start small businesses.  I would bet that many of the individuals who have this desire would be great candidates for the real estate industry. 

So, back to last week's hike...  As we were hiking the last mile toward the lake that was going to be our final destination, we came across a number of obstacles along the trail.  The previous winter, there was apparently a severe windstorm that blew down a number of trees.  Over this part of the trail, there were about a dozen “blow-downs” that obstructed the path.  Hiking into one of these lakes is hard enough, but climbing over large tree trunks, crawling on your hands and knees through brush, and even holding some of your gear in your teeth so that your hands are free to grab branches (all with a 30 pound pack on your back), makes it all the more difficult.  
 
As we crossed over the fifth or sixth obstruction on the trail, my son Camden said, “I’m sure glad I was not the guy who explored this area for the first time.  Can you imagine how hard it would be if there was no trail to follow?  It would be like constantly going over these blow-downs!”
 
If you think about it, this is exactly how most people feel when they start a business.  It’s like forging a trail though a forest for the first time.  It takes lots of energy, perseverance, and luck to be successful.  This is why more than 50% of new businesses fail in the first year.
 
So, what do you have to offer the six million people who want to venture out each year and start a small business?  
 
Quite simply—a trail.
 
Your company has explored an area of business, found some great destinations, and built a trail for others to follow.  If a person is willing to make a commitment to follow the trail, they have a much higher chance at success than venturing out on their own.
 
Keep in mind, embarking on a 13-mile hike and climbing 2,000 feet in elevation is not for everyone.  In fact, there is a large portion of the population who would fail to accomplish this, whether they follow a  trail or not.  But, there are some individuals who are physically fit, motivated, and willing to make the necessary sacrifices to reach the destination.  For those people, the trail is often what makes the difference between success and failure.
 
Finally, as you’re talking to candidates, let them know there are more obstacles on the trail in recent years than there used to be.  It’s nobody's fault—sometimes trees blow down and make things more difficult.  Eventually, the park rangers will come and clear the trail with chainsaws and the path will once again be clear.  

The real estate industry has faced some difficult circumstances in recent years that have made everyone’s job more difficult.  It won't always be that way, but acknowledging the current realities is important.
 
While my sons and I were on the trail to the lake, we met a group of hikers who were on their way back.  They warned us about the blow-downs and told us it would be slow-going for the last mile.  Then they said something really important…"It is tough to get into the lake, but the fishing is incredible."  At that point, you couldn’t have kept us out.
 
Hope of success, plus a trail, are the best things you can offer to someone facing the prospects of blazing their own trail.... 

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.

Blazing a Trail for New Agents to Follow

Since it’s summer, I thought I’d lighten things up a little bit and share a personal experience I had with two of my sons over the weekend.   

One of the advantages of living in the Seattle area is our close proximity to the Cascade Mountain Range.  As you may know, we get near constant rain (and snow in the mountains) for most of the year.  But when the rain does stop in July and August, we’re left with a lush landscape in the nearby mountains.

This year, there was a particularly large snowpack, so the mountain streams and rivers are flowing strong, and most of the alpine lakes are up to their brims with cold, clear water.  Perfect for trout fishing.

Every summer, I try to take each of my kids on a backpacking trip near one of these pristine alpine lakes.  Last weekend, we decided to hike around Lake Snoqualmie.  You can view our route by checking out this posting on Trimble Outdoors.  You can also take a look at a satellite view on Google.

Our original plan was to stop at Dear Lake (the third of the four alpine lakes along this trail), but we couldn’t find a campsite we liked.  So, we hiked an additional mile to get to the northern most tip of Snoqualmie Lake.  The total distance to our campsite from the trailhead was just over six miles.  The hike took about four hours and we logged about 2,000 feet of elevation change along the trail.

When we finally arrived at the lake, we were rewarded with perfect weather, clean, crisp air, breathtaking scenery, and amazing peace and quiet.  Since there were a few other people camping around the lake, we used our small inflatable “trail rafts” that allow us to fish away from the shores.  With no one else on the water, it makes you feel like you have the lake to yourself.  As the sun was setting, we cooked up some of the trout we caught, and then enjoyed a warm campfire for as long as we could keep our eyes open.  

The next morning, my boys jumped back in rafts and headed back out onto the lake to do more fishing, while I stayed back and read.  During this morning session, my son Clark hooked into the largest fish of the trip—a fat 16-inch cutthroat trout.  Before leaving, we hiked down the outlet stream that empties what the snowmelt inlets continually feed the lake.  After lunch, we packed up camp and made it back to the trailhead just after 5pm, and we were home before dark.

What a great privilege to be able to enjoy this type of natural beauty...and to experience it with my teenage boys.  These are great memories.  But, is there a recruiting lesson in all this?  Believe it or not—there is!  And, it originates from a comment my younger son made as we were hiking out from the lake on Sunday afternoon. 

I’ll share more about this in my next WorkPuzzle entry... 

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.

What Bank of America and Apple Can Teach You About Recruiting

Like many of you, I was intrigued by the all the turmoil in the financial markets last week.  It made me glad that my occupation is not tied directly to the financial industry.  Some of my business associates in those career fields had a very stressful week.  I guess being a stock broker would have been better than being a policeman in London, but not by much!

As I discussed the financial news with one of my business partners (who happens to be our company's CFO), he again suggested that I consider buying some Bank of America stock.  He's mentioned this stock tip a couple of times in the last six months (of course, I didn't listen), but this time it came right after the stock lost 17% of its value on Monday.

I'm normally not one for watching stocks, but with this conversation fresh in my mind, I came across an article in Yahoo Finance that caught my eye.  The article started like this...

"CHAPEL HILL, N.C. (MarketWatch) — How many of you are willing to bet that Bank of America stock will outperform Apple's in coming months?  Hardly any of you, I am sure.

After all, Apple is on an unbelievable tear — close on the heels of Exxon Mobil to become the most valuable company in the world.  Bank of America, in contrast, is off nearly 50% from its 52-week high, which was set in early January — including a stunning 17% drop on Monday of this week.

But your aversion to betting on Bank of America over Apple just goes to show how hard it is to be a genuine contrarian."

As I thought through that last sentence, I couldn't help but ponder how this principle has proven true in so many areas of my life.  It has always been tough for me to go against the flow, let alone convince someone else to be a contrarian (if you're a parent, you know what I'm talking about).

But, that's exactly what you're doing if you've tried to convince an individual to start a real estate career in the last few years.  From the candidate's perspective, it's very counterintuitive.  In fact, for most people, it borders on being perceived by their friends and family as complete craziness!

Is it crazy to become a new real estate agent under today's market conditions?  For many people...yes, it is.  But for some, it is as profound a decision as buying low and selling high. 

The article goes on to explain how the process of connecting a company's market cap to its future potential is notoriously flawed.  A much better indicator of future stock performance is the natural and long-term migration that most stocks have towards a baseline of business fundamentals (sales, earnings, book value, etc.).

So, would it be a smart move to buy Bank of America stock?  Who knows... But what I do know is that if I were responsible for selling financial advice based on the concept of being a contrarian, I'd certainly learn how to articulate this line of reasoning.    

If you're an owner, general manager, or recruiting manager, I would recommend you put some thought into selling a real estate career from this perspective.  

Like some financial advisors, many interviewers try to remain positive and just pretend that nothing is wrong.  Your interviews will be much more authentic if you identify and address the fear and anxiety a person undoubtedly feels from considering entry into an industry that appears to be depressed.  Bring this objection out on the table--believe me, it's there.

It's up to you to bring the benefits of entering a real estate career in today's market to the forefront of your conversation.  If people were comfortable operating with a contrarian mindset, there would be a lot more people buying Bank of America stock right now...  

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.

The Spark of Greatness in Everyone: Part 2

As I mentioned earlier this week, I spend roughly half of my work life practicing as a Clinical Psychologist (my first love, really).  I enjoy that, on occasion, I get a new and inspiring glimpse into the resiliency and brilliance of the human condition...I love seeing undiscovered treasures that are hidden within each of us, begin to surface.
 
I went into some detail about one of my clients who is a very successful businessman, and who was also, unfortunately, exposed to many years of significant and continuous childhood trauma.  I described how his sanity remained intact due to the fact that he had a very special gift...a gift of being able to boil complex business problems down into simple, core solutions.  He took solace in his goal to see this gift used for good in the world.

I had also mentioned that because of his gift, he was drawn to find others who were compelled to exercise their gifts in the world and "find ways to do what others think is impossible."  He was motivated to recognize gifts in others and developed some fundamental beliefs about people.  To recap, here are three of his beliefs that I mentioned last time:

1. There is a Spark of Greatness in everyone...
2. Very few leaders are looking to find or develop that spark...
3. And, if they are, they never know when they'll run into someone with a special gift to match the needs of their organization.

I also asked these questions of managers:

1. Do you look for that Spark of Greatness in others?
2. And, when you find it-- Do you look to develop it?
3. Do you make snap judgements that may lead you to miss potential talent?

I asked my client, "How do you interview to find people who want to develop to their full potential?"

He replied:

"The questions I ask help me figure out whether a person wants to be developed to their fullest.  I ask questions that get at whether they can see the difference between bosses who did this previously (mentored them to be their best), and those who didn't, and what their response was to each of them.  If they can't resonate with the power of tapping their strengths for the good of the organization and for their own satisfaction, I seriously doubt their ability to find their own spark and attempt the impossible."

He goes onto say:

“I have a firm belief that anyone who is willing to ride out market highs and lows, ups and downs...and be satisfied, isn’t the type of individual who will achieve something special.  Instead, I believe it is possible and preferable to be surrounded by people who want to exceed market expectations.”

As I think about his comments, what comes to me is this:  You need to be looking for people who hunger for Autonomy (a healthy need to be self-directed), for Mastery (a desire to tackle new learning and new goals), and for Purpose (a higher principle that will fuel their motivation).

Conversely, I asked him what he would recommend to those savvy candidates looking for jobs...What should they ask their prospective managers in order to successfully detect those who want to develop people well?  He offered this:

"Candidates should ask a hiring manager, 'What in your career are you most proud of?'  The next questions would be, 'Is there an employee (agent) you've worked with that you are most proud of?  Why?  Tell me about the situation?  How is your relationship now?  Could I talk with that person?'"

Another line of questioning would seek to uncover how many and what types of people have followed the leader.  Good leaders bring their teams with them as they move from company to company.  My client explains:

"Ask the hiring manager, 'How many people work for you now, who worked for you in the past?  Why did they follow you?  Who, if you had a spot, would you recruit right now?  Why?'  People who naturally think this way will have a bunch of stories off the top of their heads."

How would you, as a manager, answer these questions?  Would the most savvy candidates be attracted to you?  Would you have powerful and numerous examples of bringing out the best in people?  As an owner of a company, how many of your managers would fare well with the most skilled, less desperate candidates?

My guess is that many of you continue to interview as if you only expect the most desperate and time-wasting candidates to request an interview.  If that is your default recruiting mindset, then your system of recruiting agents is terribly broken, and you will miss out on the best and the brightest....because the best and the brightest are watching you.  You will, by the very nature of recruiting well, have to go through many duds to get to the stars -- And the stars don't respond well to arrogance.  Let me be clear:  The very best candidates will detect disrespect a mile away...and possibly, before the interview ever begins.

Sure, it takes enormous amounts of your effort and energy to make these discoveries, but so does mining for gold or sifting for diamonds...

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

The Spark of Greatness in Everyone

As many of you know, I spend about half of my work life practicing as a Clinical Psychologist.  This is not only my first love, professionally, but it occasionally gives me new and inspiring glimpses into the resiliency and brilliance of the human condition, and allows me to uncover some of the undiscovered treasures that are hidden within each of us. 

One of my clients is a very successful businessman, who was also, unfortunately, exposed to many years of significant and continuous childhood trauma.  No one under those circumstances escapes unscathed, and many get stuck in a world full of hopelessness.  What kept him going?

It turns out that he was one of the few people who, on his own and by the grace of God, became aware that he possessed a very special gift.  The gift first began to reveal itself when he was just eight years old -- At this young age, he was compelled to read almost anything he could get his hands on, if it had to do with great wars and leaders of the past.  He was especially enamored by leaders who could see things (solutions) that no one else could see, and through that "seeing" could convince others to attempt "the impossible."

This special interest, he would learn, didn't exist in a vacuum or appear out of the blue.  To the contrary, he began to see that the very existence of the interest in reading (what most of us would ignore) was because it was an extension and sign of his gift.  It was later, in his work life as an adolescent, that he began to see clearly that he had a knack for finding efficiencies that no one else could see, and implementing the changes necessary, much to the amazement of his employers.  And even later in college, graduate school, and beyond...he clearly grasped that he had a knack for boiling complicated political, financial, or business ideas and images down to single page descriptions that would get to the heart of the business solution that seemed to elude everyone else.

Because of this gift and his history, both at home and in business, he has developed many foundational ideas that have successfully guided his hiring and his expectations of others.  Here are just three of his beliefs:

1. There is a Spark of Greatness in everyone...
2. Very few leaders are looking to find or develop that spark...
3. And, if they are, they never know when they'll run into someone with that special gift to match the needs of their organization.

If you are a manager of people, ask yourself these questions:

1. Do you look for that Spark of Greatness in others?
2. And when you find it-- Do you look to develop it?
3. Do you make snap judgements that may lead you to miss potential talent?

In the next issue, I'll further this discussion with comments (as described by this client) regarding how to interview in a way that uncovers people who want to develop their talents, and how to elicit those cross interview questions that I'm hoping agents will be asking you.

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

Nine Steps That Will Help Your New Agents Get Up and Running Quickly

I had a conversation with a real estate executive yesterday, and a common theme again surfaced:  It is very difficult to bring new talent into the real estate industry and help those individuals attain a sustainable level of productivity.

There is no doubt that market conditions have made the process more difficult, but I don’t believe that this is the core problem.  There is still a tremendous amount of opportunity in the real estate industry.  I’ve watched hundreds of agents (through the performance statistics our company tracks) become productive in the last few years.  

How did they do it?  That’s an important question, but an even more important question is…How did their manager, trainer, or mentor help them find this success?  This is the primary value a real estate company offers a person who is starting a real estate career.  Make this your passion, and I believe you’ll find both success and meaning in your leadership role.

How can you become more successful in this role?  This is a complex question.  Here’s one idea that I ran across this week that resonated with me:

Help the new agent understand they are in an execution business.

The concept came from a outstanding blog written by Jim Estill.  Jim is entrepreneur who started a company out of the trunk of his car in 1979, called EMJ Data.  In 2004, he sold EMJ to SYNNEX for $350M.  He now runs a venture capital firm called Canrock Ventures.  Here is Jim’s advice on helping a new entrepreneur (agent) find success in an industry that has low barriers to entry (like real estate): 

"Some businesses have such barriers to entry and such competitive advantage that they can still thrive even with poor execution.  Companies that have patents, government regulation, rocket science (very tough intellectual property to copy), massive development costs to get into the business, high capital cost, high market share etc.

EMJ was an execution business.  It was simply not that hard for anyone to get a product line to distribute.  Over time we were able to grow to create barriers to entry with things like size, having the 'good' lines, and having market share within a niche, but in the end, it was always still an execution business.

It can be fatal for an entrepreneur not to realize that their business is an execution business.  Ask - Is it really that tough for someone to copy what we do?  If the answer is no then follow these steps for success:

9 Ways to Thrive in an Execution Business

1 - Be frugal.  Frugal does not mean cheap, it means getting appropriate value for money spent.  Spend on function, not on show. 
2 - Focus on process.  The key is to create replicable steps that can be repeated time after time.  As an early entrepreneur, often this means trying it yourself.  Time how long it takes to make 10 calls.  Track which message gets the most meetings.  Refine and learn.
3 - Test everything.  Fail Often, Fail Fast, Fail Cheap.  This is a continuation of Focus on Process. 
4 - Look for areas of minor competitive advantage.  Really that is what execution businesses are all about.  Although they may lack the monopoly or defacto monopoly characteristics of other businesses, they can have minor advantages in many different small areas.  If I look at why EMJ was a success, it was not one thing, it was a number of tiny things.
5 - Know your numbers.  By nature, execution businesses have small margins for error.  Competition ensures that there are few 'high profit' opportunities.  So knowing what areas make and lose money and knowing true costs is essential. 
6 - Look for niches.  Often execution businesses can develop competencies within a specific expertise.  Within a niche, it is easier to be the expert - less to study, less people with your focus.  It is also easier to figure out ways to thrive and customize your company to address only those specific things the niche needs.
7 - Work hard.  We worked long and hard year after year.  My work ethic was a competitive advantage.
8 - Take full responsibility.  It does not matter if the economy is good or bad, if China is selling for X, if the US$ is trading at Y, or 'the VP sales cannot sell well enough' or any other 'condition.'  Those are just conditions.  We live with them and figure out how to be profitable.  There are no excuses - If we fail, we are the ones that did not execute well so we need to change our product, our approach, our tactics and anything else. 
9 - Study and practice time management.  I think that is why I ended up writing a book on time management.  This is really an extension of Be Frugal.  Time is the biggest cost so get the best value from it possible.

If you can teach your new agents to exectute well, they will be successful.  And at that point, you'll be exectuing well also. 

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.

Relationships or Objects: How Do You Treat Your Candidates?

The most common recruiting questions that I get from real estate owners and general managers usually involve the topic of interviewing.  More specifically, everyone wants to know if their hiring managers are interviewing effectively...and if not, how improvements can be made.

As you know, effective interviewing is critical to the hiring process.  While our company encourages the use of assessment technology early in the hiring process, many factors important for assessing a candidate can only begin to be captured by sitting down with a person in a face-to-face meeting.

At this point, there are many great practices and research-based methodologies for making the most of an interview.  However, even the best techniques will produce poor results if they are not built upon an appropriate understanding of people.

John Sumser, a recruiting consultant that I’ve referenced several times in WorkPuzzle, wrote a very insightful article on this topic.  He makes the simple point that if you treat candidates like objects or transactions, you’ve short-circuited the recruiting process before it has even begun.

“At the heart of good recruiting...is the mastery of relationship management.  Relationships are hard to develop in volume and many people take statistical shortcuts in processes that develop relationships based on the luck of the draw.

The reason that direct marketing techniques generally have a bad name is that they tend to treat people like objects as a precursor to a deeper form of relationship.  The message in this approach is 'If I can figure out what value you bring to me, I will invest in a deeper relationship.'

No good relationship begins with the proposition that it will depend on my understanding of the value I’ll get.  They begin with the question 'What value can I give?'  They start with the notion that the 'objects of our desire' are people first.  When they are 'objects' first, the very beginning of the relationship is sowed with the seeds of its ultimate failure.

In situations that require people to sift through volumes of potential relationships, the tendency to objectify feels like a quick shortcut to successful completion of the task… Remembering that each resume represents the desires, hopes and aspirations (and sometimes desperation) of a person is a nearly superhuman task that requires the constant availability of forgiveness, a sense of humor and a willingness to see beyond the data.  It is tremendously hard to keep this perspective fresh and foremost, particularly in a reactive environment.

But, it is the process of evolving and maturing relationships, that characterizes real sales or recruiting effectiveness.  It’s a process that can be supported but never automated because it involves the feelings of the person doing the recruiting or selling.

...All of the sourcing and record keeping programs in the world won’t begin to compensate for a recruiting process that treats potential candidates as objects.  To the extent that current systems perpetuate the myth that data constitutes a relationship, they are major contributors to the problem.”

Treating candidates with a “relationship-based” framework is a high calling—it is not an easy thing to do.  Seeing the candidates you interview as human beings first requires patience, compassion, and a sincere desire to want the best for those you engage.  Self-interest is a powerful motivator for all of us, but it can be crippling if you’re a short-term thinker or have a transactional mindset.

Please understand, I’m not suggesting that you run a charity or abandon your focus on results.  Quite the opposite.  Our highest performing clients understand and build upon this principle of sincerity much better than those who struggle to meet their recruiting and performance goals.  There is really no way to be successful (in the long-term) if you build upon a deficient foundation. 

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.