Archive for the ‘Thursday's Thoughts On Leadership’ Category

Thursday’s Thoughts On Leadership: The speed of the leader determines the pace of the pack

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Market uncertainty has always played a role in our industry, but perhaps never more so than today. It seems each month there are new insights on what the market will do next. Have we hit bottom? Will it be a v-shaped recovery, or a u-shaped one? What does that even mean? As Realtors, our clients expect us to guide them through this process. Should I sell now? Should a buyer wait for prices to drop a little more… but what about interest rates? Change and uncertainty are difficult to manage and leaders need to navigate carefully without freezing in their tracks for fear of being wrong. We have to be careful how we lead in uncertain times but as renowned horse trainer D. Wayne Lukas once said, “The speed of the leader determines the pace of the pack.”

This does not mean you have to always be at full throttle. Being the fastest through the process is not always the answer. When I look at the most successful real estate offices I find that they are managed by good leaders that understand this. A good example is the manager/leader who goes to work everyday thinking, “what can I do to be better.” They are always looking for innovation and ways to improve their skills as leaders and managers. They understand that the process of leading is never complete. Their offices become mirror images of themselves. If the manager is motivated, the office is motivated. If the manager gets to work early each day the agents get to work early.

The legendary Green Bay Packer coach Vince Lombardi embodied this leadership spirit. He took a rag-tag crew of players and within two years molded them into champions. This wasn’t because of wholesale changes on the team. In fact, he only changed one player on the team that won 2 games in 1959 and won the championship in 1961. He did this by starting with himself. He said that, “Only by knowing yourself can you become an effective leader.” His uncanny ability to motivate others along with an insatiable drive to win molded him, but also shaped his charges.”

Many times in my career, I have witnessed agents without any business experience join an office with a great leader and take off because they are able to mold themselves into the image of the manager/leader.  I have also witnessed the effect of bringing new leadership into an office with little life and watching it explode. Bill Walsh had the same effect on his new team as did Vince Lombardi. He immediately created an aura of winning despite a history of losing in the years before he took over. Like Lombardi, he expected success first from himself and then from his players.

You can always improve and get better, and you can do it today, regardless of the market. Great leaders know this. This allows them to navigate through change. The manager/leader that goes to work every day working to improve is ready when a challenge or change presents itself, because they are already in the mindset that you have to adapt to whatever lies in front of you. This creates a focal point in the office that the agents can emulate. They too soon learn to come in every day deciding to be better than they have ever been. When this attitude infects the entire office, suddenly, uncertainty in the market does not present such a challenge.


Thursday’s Thoughts on Leadership: Planning is The First Act in the Script of Success

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Sometimes, it’s the smallest things that make the biggest difference. Those simple, seemingly insignificant details often have the greatest impact.

They lie in the hours, minutes and seconds of our lives.

In his book The Ultimate Sales Machine, Chet Holmes lays out a system for managing our days more effectively. One of his rules is to list the six most important things you need to do each day and, by hook or crook, get these things completed. Every day. No excuses.

To do that, Holmes argues, requires figuring out exactly how much time each thing will take.

Forty Niner coach Bill Walsh was also a master of scripting his way to success. When Walsh coached at Stanford he scripted out the first 15-25 plays of every game. The result? Stanford scored on the first possession 8 times in 11 games – an unheard of rate of success.

I began to understand that this success was not an accident; it was written in a script.

It was with this inspiration that I began create my script – my “Perfect Day.”

Much like a personal playbook, on the surface, this Perfect Day script is little more than a to-do list. Scratch beneath it just a bit, though, and it becomes so much more. Each evening, before going to sleep, I plan out every facet of my upcoming day – from my morning walk to my evening reading.

Each day, I have constants, like going to the gym, eating dinner, and even taking a little free time for myself. Each day has time that’s flexible, but is built in to the same time each day, so that I can tackle important business that mightn’t have been foreseen.

With my script, I know exactly what I need to accomplish each day. I know where I’m going to be and how long I have to meet my goals. This simple plan gives me direction. It gives me focus. It puts me in the mindset to take 100% control of each and every day. In short, it gives me the power to succeed.

You’d be amazed at the power such a simple idea can hold. Take a cue from Coach Walsh and start scripting the plays of your perfect day. Give yourself the power to succeed!


Thursday Thoughts on Leadership: Post-its® – why didn’t I think of that…

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Opportunity often comes suddenly. Great ideas sometimes come from an unexpected place.  And every once in a long while breakthroughs emerge in a manner that makes you think, “Why did I never think about that before?”

These things can’t be forced, but good leaders know to recognize – and act – on them quickly.

Here are three examples:

#1. The Post-it ® note story

Spencer Silver, a researcher at 3M in the early 1970’s, was working to develop a strong, lightweight adhesive. He failed. His work remained on the shelf, never reaching the market.

A few years later, Arthur Fry, another 3M researcher, became frustrated that the markers he placed in his church hymnal to keep track of each Sunday’s selections kept falling out.

Then he remembered Silver’s “failed” adhesive.

Fry coated his markers with the stuff and, well, you can guess the rest. Post-it Notes® hit the market in 1980 and became an office staple.

#2. Tight end in motion

The great Forty-Niner Coach Bill Walsh tells his own “Post-it story” in his book ‘The Score Takes Care of Itself.’

It happened when Walsh was an assistant coach with the Cincinnati Bengals, in a game against the Oakland Raiders. Bob Trumpy, the Bengals tight end, mistakenly lined up on the left side of the line of scrimmage. Trumpy realized his mistake and went in motion to the right side before the ball was snapped. All hell broke loose in the Raider defense. The tight end had never gone in motion in the NFL. Three of the Raiders actually collided in the middle of the field trying to adjust to this move.

Soon every team in the NFL started putting the tight end in motion.

#3. The triplicate file

My own Post-it story came early in my career. My assistant John Thompson (yes, that John Thompson) was just out of college. He had no experience in real estate. He also did not have what we referred to in those days as a “Brag Book,” a book filled with client testimonials and listings you had sold that you brought with you to listing or buyer presentations.

So John, lacking a Brag Book, took along a triplicate file  – one of those nice looking file folders lawyers use. He would fill it with the contract and other forms used in a transaction. Although he was very inexperienced I observed sellers’ reaction to John improved simply by virtue of this rather impressive looking prop. Soon, I started inserting the triplicate file into my presentations and it was one of the biggest factors in me closing 50+ transactions in a single year.

Brian Crane, our Los Gatos Manager, refers to this as an “X Factor,” that small thing that makes a big difference.

What is your Post-it® story?

I suspect you have your own version – that moment when something that profoundly changed your life or business came unexpectedly.

Email me with your story and I may share it in future installments of this newsletter.


Thursday’s Thoughts On Leaderhip: Leading In Uncertain Times

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Joe Cool. We all are familiar with that archetype from the movies and literature and even the comic book pages. He is the person who is unflappable, no matter the situation. The situations may change, but they follow the same routine: everybody panicking, except for one guy, who is unruffled as he does his assigned task. They exist in real life, one example was Joe Montana.

He was famous for a lot of things, most prominently, the Super Bowl titles he won leading the San Francisco 49ers. Those who played with him point to one thing above everything else: his ability to stay calm in the midst of chaos, especially with the game on the line in the fourth quarter. While others saw turmoil and danger after the snap, Montana saw order and opportunity. He was Joe Cool, the unflappable king of the comeback.

In the 1989 Super Bowl against the Cincinnati Bengals. The San Francisco 49ers found themselves down by three points with 3:20 left in the game. Despite their belief in themselves, they, like all professionals, felt some nerves in the huddle to start that last drive. Harris Barton, who played tackle on that team, remembers the nerves and how quickly they disappeared, not because of a play on the field or because of a rousing speech, but one simple observation and a comment from Montana that seemed out of place. Harris remembers Montana stepping into the huddle to start the drive and all of a sudden saying, “Hey, there, in the stands, standing near the exit ramp. Isn’t that John Candy (the late actor and comedian)?”

At that moment, Barton remembers the anxiety leaving him and his teammates. That Montana could seemingly be so unaffected by the pressure of the moment, brought great ease to his teammates and the belief that he would lead them the final 92 yards to victory. And that is exactly what he did.

Earlier this week, in the Intero Insider, I wrote of the uncertain times we face in our industry with fast coming changes: the expiring homebuyer tax credit, the increase in the incidence of foreclosures and the Federal Reserve’s plan to stop purchasing mortgage-backed securities that have been helping to keep interest rates low. How these changes and many other factors might affect our industry in the coming months is unknown, but we can see it as our own fourth quarter drive. How you react, and how we react as a company and as leaders in this company can set the tone.

Just like his teammates, we can learn from the words of Joe Montana: “I just try to treat every moment the same, whether it’s the first part of the game or the last part of the game,” Montana said. “You try to be yourself. The biggest thing that is the difference to your team is when you get into tight situations and all of a sudden your personality changes. They see a difference, and if you’re the same, they have more of a tendency to be the same.” When the pressure was on, Montana was at his best. He knew he was prepared. He knew the game plan. He knew the strengths and weaknesses of his teammates and his own, and how to minimize them or exploit them. Above all, he knew the task at hand and he only concentrated at executing. Because of his ability to lead in uncertain times, his teammates could concentrate on their tasks and execute their responsibilities. The result was not just a touchdown, but a championship and a legacy that will never fade.


Thursday Thoughts on Leadership: Measure leadership by those who follow you

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Every true leader understands the value in measuring the caliber of people in their organization. It doesn’t matter what kind of group or organization you are leading, or the size; the caliber of people you lead speaks volumes about you, your organization, and your direction.  As Dennis Peer put it, “One measure of leadership is the caliber of people who choose to follow you.”

There is a great relationship that is developed within a great organization, the leader motivates, and guides, but eventually the group matches the challenge and catches up, and now they push the leader forward so that the whole company can grow. Against that push, the leader must strive to find new objectives, new models and new goals in order to once again bring the organization forward in its development. The French diplomat Tallyerand, once said “I am more afraid of an army of 100 sheep led by a lion, than an army of 100 lions led by a sheep.”

At the 2007 NAR Conference & Expo Bob Moles and I were recognized and awarded the prestigious RISMedia National Home Ownership Award for “outstanding achievements among residential real estate’s most influential and charismatic leaders.”  Often, as President of Intero, I accept such awards, but these awards are truly achieved because of the team that I lead. The Intero team of agents, staff and management are the highest caliber in the business, and I have the privilege of leading them.

Soon, it will be time to turn the spotlight back on those who push me every day to be a better leader by once again recognizing the best within our group through the Intero Achievement Awards. Every year it is a nice benchmark for where we stand as a company and as individual members of the whole.

It has been demonstrated that people’s motivation to increase their productivity only increases when they have a challenging goal and receive feedback on their progress. The awards are a very public way to give that feedback. It lets us know if we are still climbing, and it lets me know how much more I need to do to meet the challenge.  As described above, the leader pulls the group forward, and the group rises to the challenge and pushes the leader to still greater achievements, the group’s momentum never stops.


Thursday’s Thoughts on Leadership: Leaders Understand – Failure is a Part of Success

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Most of us have heard the story of Thomas Edison failing his way to success in the invention of the light bulb.

He literally failed 10,000 times before getting it right.

If Edison had said, “I am a failure. My idea is bad, my work is misguided, my mission is lost,” the world would be a much darker place. Of course, what he did do was learn from the failures, made changes, and tried again.

Bingo.

Early in my real estate career I seriously was considering quitting the business. I struggled greatly for my first deal. Then out of the blue a friend called and said he wanted to move. I said to myself, “OK, I will get out of the real estate business after I close this one deal.” That deal led to another and another and pretty soon there was no looking back.

One year later I had closed 52 deals!

Here is what I have learned: when you have a setback – losing a big sale, being passed over for a career-making promotion, even getting fired – allow yourself a short time to grieve, then get right back up on your horse and plan your next move.

The great coach Bill Walsh, in his book “The Score Takes Care of Itself,” recounts how close he came to quitting in the second season as 49er head coach, hitting rock bottom after a crushing loss to the Miami Dolphins. He spent part of a transcontinental flight experiencing an emotional meltdown.

Sixteen months later, the San Francisco 49ers became world champions, defeating the Cincinnati Bengals 26-21 in Super Bowl XVI at the Silver Dome in Pontiac, Michigan.

A football dynasty was in the works. The 49ers won five Super Bowls over fourteen years.

Thomas Edison and Bill Walsh both understood that failure is an integral part of success. We would do well to follow their lead.


Thursday Thoughts on Leadership: Recognition helps lead the way.

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In previous weeks, we have discussed how effective leaders can guide their organizations to success. A key leadership trait is the ability to inspire followership. The most effective leaders cannot simply create a shared vision and direction for the organization, leaders must develop a relationship with the people they inspire to follow them and then guide them. Following an effective leader, people accomplish and achieve more than they may ever have dreamed possible. One of the tools that the most effective leaders can employ to inspire people to follow them is recognition.

Like any trailblazer, a leader must leave tangible markers to ensure that those who follow are headed down the right path. Recognizing and publicly rewarding the most successful members of an organization accomplishes this. This can take many forms, from simple “thank yous”, and small prizes or certificates of accomplishments to monthly or yearly awards. A good leader never forgets to make other people feel important and appreciated. In order to accomplish this, the leader excels at creating opportunities to provide rewards, recognition and thanks to all members of the organization.

As Jim Kouzes and Barry Pozner write in their book, “The Leadership Challenge”, “Leaders are constantly on the lookout for ways to spread the psychological benefits of making people feel like winners, because winners contribute in important ways to the success of their projects. Leaders often serve as a mirror for the team. They reflect back to others what a job well done looks like, make certain that members of the team know that they have done well, and ensure that others in the organization are aware of the group’s effort and contributions”.

I first learned how powerful this was when I served as a Manager at Contempo Realty where our Chairman, Bob Moles, served as President and CEO. I can still recall that every time we gathered to recognize and reward the achievements of our top agents, Bob took the time to publicly acknowledge his managers, including me. Despite my own drive to be the best I could be, that type of recognition inspired me to go above and beyond my own expectations.

A study of the winningest high school and college athletic coaches reveals that they pay great attention to providing real-time feedback on their players’ performance and will, as appropriate, recognize and reward outstanding contributions.

But what of those that do not achieve that success. The answer is simple, don’t reward them. You cannot minimize the achievements of the superstars by recognizing those that just do enough to get by. To do so undermines the leader’s credibility and that of the role of recognition for outstanding achievement in your organization.

Besides the many other things that we do here at Intero to recognize achievement, we send an email out every week titled “Intero’s Top Weekly.” It lists the top producers in our organization for a given week. In an organization as large as Intero, it serves to publicly acknowledge and thank those individuals who have done the most to push forward the goals and the success of the organization. I often find that the individuals who make it on those lists are not typically the kind who would boast or trumpet their own successes, but private rewards do little to set an example.

Each week, at the bottom of each email, I include the phrase, “Grow for it! This is in recognition of everyone else who has contributed to the success of the organization and a reminder that we can all strive to achieve the status of top producer.


Thursday’s Thoughts on Leadership: What makes a person an effective leader?

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In today’s world companies come and go every single day. This is caused by any number of reasons, but often you find that the ultimate demise starts with flawed leadership. It takes good strong leadership and management to guide an organization to success. While many people consider management and leadership to be synonymous, they are in reality two different concepts. A person can be a good leader, but if he does not know how to manage a company, that company will be destined to fail. Also, if a person has great management skills but lacks in leadership, no matter how good he is, if he cannot lead his employees towards the goal, then it is a failed attempt at success. Management is considered a job description whereas leadership is considered a trait.

So what makes a person a great leader? For one example, we can turn to the story of one of the most admired and respected leaders in American history, John D. Rockefeller. Among his many accomplishments, Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy.

In his decades of business, one of the key characteristics that propelled Rockefeller to success was his strong leadership abilities. It wasn’t his status, nor his age that made Rockefeller a great leader. Instead, it was his influence. People around him wanted to follow him; they were inspired by him to do more than they ever thought they were capable of. It was his ability to create a strong sense of teamwork and his own energy and passion that drove his workers and thus his company.

He was a real professional who possessed good character and above all a good sense of business. He knew his job and he understood human nature and the importance of caring for his workers. He possessed the ability to motivate his employees by setting the example and by being a good role model for the workers.

He was a great example of the fact that leadership is not a one way relationship. Because of his leadership, the people he worked with were inspired to achieve greatness too. Even his competitors joined him and achieved greater success following Rockefeller rather than competing with him! A successful New York refiner in his own right, Henry Rodgers, joined Standard Oil and became one of Rockefeller’s key men in the formation of the Standard Oil Trust.

By the time Standard Oil Trust was ordered to break up, it owned a 70% market share of the refined oil market in the U.S. It was broken up into 34 new companies. These included, among many others, Continental Oil, which became Conoco, now part of ConocoPhillips; Standard of Indiana, which became Amoco, now part of BP; Standard of California, which became Chevron; Standard of New Jersey, which became Esso (and later, Exxon), now part of ExxonMobil; Standard of New York, which became Mobil, now part of ExxonMobil; and Standard of Ohio, which became Sohio now part of BP. Pennzoil and Chevron have remained independent.

Quite the family tree and it all started with one effective leader.


Thursday’s Thoughts on Leadership: Why Does Being A Visible Leader Matter?

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Leaders need to be seen and heard. Most people take their cues from leaders. That is why it is important for leaders to be out and about all the time. Leaders must attend meetings with vendors, and business partners. They attend office meetings and social functions. They make presentations at the local, state and regional levels. They do this because the best leaders have taken the time to gain knowledge of their company and its values, mission and objectives and they make this known to others through their interactions. Every day, the leader on the go is modeling professional behaviors, responses and attitudes as well as sharing the values, mission and objectives of the company. When a leader’s actions demonstrate that certain behaviors and attitudes are important, they will be important for everyone.

John C. Maxwell writes in his book The 360-Degree Leader, “One of the greatest mistakes leaders make is spending too much time in their offices and not enough time out among the people. Leaders are often agenda driven, task focused, and action oriented because they like to get things done. They hole up in their offices, rush to meetings, and ignore everyone they pass in the halls along the way. What a mistake! First and foremost, leadership is a people business. If you forget the people, you’re undermining your leadership, and you run the risk of having it erode away. Then one day when you think you’re leading, you’ll turn around and discover that nobody is following and you’re only taking a walk.”

In fact, the word lead comes from the Old English word l?than, which means “to go.” It makes sense that a leader should be on the go. You can manage from behind a desk, but to truly lead you have to leave the comforts of the office.


What Is So Special About Leaders?

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What is so special about leaders? Do we ever really stop to ask ourselves this question? There are a million different responses, but consider this one … they bring out the best in us. Leaders recognize what is possible before we do. They recognize the potential in an individual and perhaps more importantly, they know how to bring it to the surface.

Consider, Joe Montana. We all know how his story ends, but do you know how it started? As a freshman at Notre Dame in 1974, Montana was the seventh string quarterback. The following year Dan Devine, the newly hired coach stated to his wife after being impressed by Montana’s performance during training: “I’m gonna start Joe Montana in the final spring game.”  When she replied, “Who’s Joe Montana?” Devine said: “He’s the guy who’s going to feed our family for the next few years.” Today we all recognize what Dan Devine recognized in that spring training game in 1975. It is a difficult task to find six better quarterbacks in the history of football than Joe Montana, much less on one college football team. It took a leader with vision to see that.

Montana did go on to have a very good college career at a highly regarded college program, yet when he entered the NFL draft in 1979 he was once again overlooked. He was selected in the third round by the San Francisco Forty-Niners because Bill Walsh, like Dan Devine before him, recognized the potential that everyone else missed.

Walsh knew that in Montana he had found the perfect understudy to lead his team and execute his plans. As Montana related years later in the foreword to the book, The Score Takes Care of Itself: My Philosophy of Leadership, “He (Walsh) had in his mind this ideal – an image of perfect football – couple with the nuts-and-bolts details of how to accomplish it, which he then taught … the place you dreamed of but didn’t know you could reach? Bill Walsh taught me how to reach it. He taught all of us how to reach it.”

I do not have any doubts that Montana believed he could make it in the NFL, but having a leader like Walsh who believed he could be one of the best ever played a vital role in Montana achieving that status. When others see potential in our abilities and they believe in us, and they reinforce that belief every day through their interactions with us, we are strongly influenced by that support. Our Chairman, Bob Moles played that role for me. If the potential exists within us, it will come out when a leader takes the time to bring us along.