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

Thursday Thoughts: The 10 qualities of a true leader

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People often ask me to share the secret to successful leadership – the one magical thing that propels people to positions of responsibility and respect.

But there is no “secret” and there is no one thing I can impart. The truth is the recipe for true leadership is a complex blend of qualities that shift in importance with time and circumstances. This is not an easy answer, but then leadership is not easy, is it?

Here, in no particular order of importance, are the 10 qualities I believe every leader must understand, cling to and put to practice.

It’s a list I reflect on often myself. I hope you will too.

  1. A desire to be recognized, and a commitment to achieving that recognition through unfailing honesty
  2. Resilience: the capacity to overcome setbacks, adversity, rejection quickly – and with grace
  3. An awareness that the extremes of your personality will be the drivers of your success (but may also be talked about at company parties!)
  4. A boundless willingness to work hard – not only to achieve your personal goals, but to inspire tenacity in those around you
  5. An ability to alternately employ passion and common sense to solve problems.
  6. The confidence to rise above fear of strong colleagues. Famed marketer Guy Kawasaki said, “A players surround themselves with A+ players – it’s the only way to get where you want to go.”
  7. A willingness to make unrecognized sacrifices for those you lead. It is often the smallest kindness or most private act of generosity that has the biggest impact.
  8. A passion to succeed that is matched only by a desire to see those who work for you succeed
  9. An ability to recognize that you are unfinished work that can be constantly improved upon by learning
  10. An abiding sense of humility that keeps you down to earth no matter how far you rise

As you think about your career – indeed, your life – ask yourself which of these qualities you might work more diligently to cultivate. Your progress toward leadership will accelerate to the extent you answer with honesty and conviction.


Thursday Thoughts: Want to lead? Be prepared to take the bad with the good

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That sounds obvious, doesn’t it? And, theoretically, it is. But in the real world of real estate management things don’t always work out that way.

Have you ever worked for a manger that couldn’t make a decision? Or, when presented with a failure, sought to deflect responsibility?

There is nothing more unsettling to agents and employees than being under the command of a manager who shows a lack of commitment in his or her responsibility as a leader. Someone who wants the perks of leadership without the challenges.

These failed leaders don’t understand that it is better to make a bad decision than no decision; more admirable to accept responsibility than to avoid it.

In accepting responsibility for the Bay of Pigs fiasco – a military disaster of massive proportions – President Kennedy said, “Success has a thousand fathers; failure is an orphan.”

It’s true. But leaders accept the good with the bad.

Bob Moles has always said, “Show me a great leader and I will show you a successful office.” Realtors will choose to follow only those managers who demonstrate a desire to lead.

Such leaders may be as different from one another as agents are different from one another. They will not have every human virtue, nor will they possess a flawless character.

But they will be distinguished by their good judgment, sincerity, compassion, authority and courage. They have a human quality, a strong commitment to their cause – and to those they serve.

In the next issue of Thursday Thoughts on Leadership, we will examine the question: “How do you know if you Possess Sufficient Desire to be a Leader?”


Thursday Thoughts On Leadership: If You Want To Lead, Grow

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“No man ever steps in the same river twice, for it’s not the same river and he’s not the same man.”
– Heraclitus

Leaders and aspiring leaders would do well to heed this quote from Heraclitus, because, well, the ancient Greek philosopher had a point.

Things change. Constantly. And people who want to be effective in what they do change with them. If you’re not able to grow, to change, to shift and move with the times you will never be a great leader.

If you want to be a leader, you must always be learning and adapting. The hallmark of the humble leader is that they continuously strive to get better, to be open to the possibility that what they know and who they are today is not enough.

Pat Reilly, the great basketball coach, summed this up nicely:

“If you’re not getting better, you’re getting worse.”

Leadership is the single most important factor in the success or failure of a real estate office or company.  And getting good at leadership requires hard work – and a commitment to continuous improvement.

The good news is good leaders can be made. As legendary management scholar Peter Drucker wrote, “There may be such a thing as a natural born leader, but there are so few of them that they make no difference in the great scheme of things.”

So when an agent asks me on how they can one day become a leader and a manager in our company, I respond with these three things: 1.) Be coachable 2.) Be willing to grow, and 3.) Be in alignment with the Intero visions and values.

If you want to lead, you’ve got to grow.


Thursday Thoughts on Leadership: Leaders Are Not Always Predictable

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Leaders are not necessarily predictable people. Being unpredictable will keep the team from falling into a mental comfort zone. By suggesting that a leader needs to be unpredictable, does not mean they should not act the same way regardless of the circumstances. Those they lead should be able to anticipate how a leader might think and or act, because after all the act of leadership implies that your followers have a sense of where you are going. Great leaders are purpose-driven and their actions arise from an observable belief system and common goals. However, if the leader becomes too predictable, it will affect their ability to keep their people sharp and on their toes.

In managing a real estate office and coaching real estate agents, I have always believed that you should create an environment that is positive, conducive to growing, motivating and above all, challenges people to do their best. As a leader, you have to achieve this without becoming predictable.

The most effective leaders often have the quality of being somewhat unpredictable. They understand that if they are predictably difficult or predictably easy going, their charges will become predictably comfortable and will not be ready for the next opportunity or the next challenge. In real estate or any highly competitive environment, feeling comfortable is the first step on the road to complacency. Complacency is the most insidious disease in the world. It sits on your shoulder telling you everything is fine and that you don’t need to improve.

In last year’s Super Bowl between the New Orleans Saints and the Indianapolis Colts, one team fell victim to this. Obviously, both teams represented the best of what the National Football league has to offer. Great owners, great coaches and great players were represented on both sides, as well as great preparation. The game represented the culmination for what some players was a lifetime of training and preparation for this moment. At the start of the second half of what had been a close game, but one that had definitely started to favor the Indianapolis Colts, both in the score and the play on the field; a bold and unpredictable decision was made and it changed the tide of the game. The Saints Head Coach, Sean Peyton, decided to try an onside-kick, a highly questionable and very risky play that is an attempt to surprise the receiving team. So risky in fact, that it had never been attempted at this point in any of the previous forty-three Super Bowls.

The Saints not only recovered the ball, but regained the momentum in the game and went on to dominate the second half en route to the first championship in team history. They were not complacent; they were ready for the unexpected. I guarantee that when the play was called, they were as surprised as anyone, but they were ready for it. The Colts were not, they were complacent. No one had ever tried it, why would the Saints try it now? Peyton has created one of the most dynamic offenses in the league because he does not always do the predictable. He does not follow the script on how football should be played. He trusts his players and makes decisions based on the expectation that they will succeed. In turn, because his players know that he can call any play at any time and for any player, they are always ready to execute at any moment and in any situation. In fact, the player that made the biggest play was not a star, but a reserve, someone who barely gets on the field. But all men on the roster know they are accountable.

As an office manager, one method I used to help keep agents on their toes was in the way I announced sales results. Each month, instead of just posting what the top performers did, I would post what everyone did, even if they had no sales in the period. It kept everyone accountable and on their toes. Remember, our business of real estate is not for the weak-willed or faint of heart. It is for those of us that get sick to the stomach if we are not in the top 10% in any competitive environment. I can still recall seeing first-hand how it motivated the agents to be sure and not show up at the bottom of that list with a goose egg by their name.

Ideally, those you lead are driven to excel by the expertise, inspiration, motivation and example you offer. Many times it takes more than that. Sometimes changes are necessary, sometimes opportunities spring up or challenges present themselves out of nowhere. The leader who exhibits some unpredictability and thus instills an ethos of always being ready in the team will achieve success. Who knows, maybe some day you will be asked to make the most important play in the most important game of the season and the success of the entire team will ride on whether you are ready for the challenge or not.


Thursday Thoughts on Leadership: Leaders Must Have a Hard Edge

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In sports or in any results driven business like ours, some leaders find it necessary to constantly utilize a heavy-handed approach with their team members to get results. While this may work in the short term, it is almost impossible to sustain and keep a healthy productive work environment. This approach was famously portrayed by Alec Baldwin in the movie Glengarry Glen Ross, a film that depicts the lives of four real estate salesmen and what happens when the corporate office sends a productivity expert to increase sales in part by announcing a new contest in the office. We all remember the “prizes” in that first sales meeting. First prize was a Cadillac Eldorado; second prize, was steak knives; third prize was “you’re fired.” While obviously exaggerated for Hollywood, it rings true in many professions where leadership only understands the effect of the whip and not the carrot. The leader who fails to show compassion for his team is doomed to fail.

Having said that, I also recognized that a leader needs a hard edge and it must come out on occasion. Pat Reilly, in his book, The Winner Within, referred to it as a TI (temporary insanity). He explained it in the following manner in The Temporary Insanity Textbook:

  • A leader’s aggressive outburst is not an explosion, nor is it a regular or predictable event.
  • It is the art of being angry at the right time, to the right degree, with the right people.
  • TI requires plenty of advanced thought – a real and focused mental plan, not emotion-driven monologue.
  • A dose of TI demands a rapid follow-up of compassion.
  • The TI leader should always send out someone to complete the damage report and to get a quick, accurate reading of the emotional wounding done by the rampage.

At these times, compassion is vital. Without it, anger degenerates into brutality and tears the fabric of the team, office, or company. As much as possible, a positive emotional environment has to govern team, office, or company. Personally, after one of these tirades, there is a lingering sense of estrangement, and I feel compelled to repair it and get close to the team again. What made it even more difficult to deal with is that I have always tried to remember to incorporate compassion, even in the moments when I had to demonstrate a hard edge.

I can still remember some my first TI’s early in my career. I had a very young office (the average age was 26), almost all men. Back then, Tom Tognoli and John Thompson were young fresh agents who shared an office in the branch I managed. Often I called on them to give me insight on what the office attitude was from an agent perspective. After this specific TI moment I walked into their office and asked their thoughts. Was it good or bad? Their response was, “It was good and bad. Good, because you really got us to think and put us on the right track, but bad because you scared the hell out of half of the office. Some of them don’t know you as well as we do, and they thought you were only talking to them.”

The fact is – every moment of that Temporary Insanity (TI) was pre-thought out in words and gestures. I never once singled out any one agent. But the agents who knew they were guilty of withholding effort thought I was speaking directly to them!

We went on to finish the recession year of 1991 with 17 out of the 23 agents earning over $100k or more that year (which was a lot of money nineteen years ago).

A leader must be able to carry out harsh and at times ruthless decisions that are fast, firm and fair. When leaders apply this hard edge correctly it works in two ways: 1) by solving the immediate problem, 2) by preventing future problems because it sends out a very clear and important message: cross my line and you can expect severe consequences. Such actions will provide ongoing benefits for any leader and their organization.

In 2005 we did a spoof on the heavy-handed approach presented in the movie Glengarry Glen Ross. Click to view.


Thursday Thoughts on Leadership: Leaders Help You Find a True Purpose in Life

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Yesterday morning Tom Tognoli, John Thompson and I were guests of Intero Los Altos agent Andy Wong at a prayer breakfast where the guest speaker was Joe Ehrman. After spending 13 years in professional football, Joe is coaching high school football at Gilman High School in Baltimore, Maryland, but that is not all there is to his resume. After retirement, Joe became an inner city minister in East Baltimore, co-founded a Ronald McDonald House for sick children, and launched a racial reconciliation project called Mission Baltimore and serves as President of a national organization that supports abused children. This is a giant of a man in every sense of the word; a modern day St. Francis of Assisi with muscles. Joe not only knows what his purpose in life is, he helps thousands find their true purpose. This All-American Tackle at Syracuse University, where he also lettered in lacrosse, was called “The Most Important Coach in America” by Parade Magazine for the work he does to transform the young men who play for him and the culture of sports.

Joe has an entirely different view of sports and coaching. He doesn’t focus on victories (although with three undefeated seasons under his belt, he could). He focuses on developing young men that will be leaders in their communities. Perhaps it is because he goes all the way back to the initial definition of the word “coach.” In England during the 1500’s a coach was a horse drawn carriage with the specific purpose of transporting a person of importance from where they were to where they needed or ought to be.

Four hours before each game, the Gilman players file into a meeting room not to prepare for a game, but to prepare for the rest of their lives. They do this in a program called Building Men for Others 101. The boys are taught that they will ultimately make the greatest impact in life by learning the value of serving others and basing their thoughts and actions on one simple question: “What can I do for you?” They are also taught that they must allow themselves to love and be loved in order to build and value relationships. They also learn to practice the concepts of empathy, inclusion and integrity by “accepting the responsibility to lead courageously.” Finally, each player is asked to develop a cause beyond themselves, so that they may leave the world a better place.

During each football season, every player is asked to write an essay on how they want to be remembered. Before their biggest game of the year, they each have to stand before their teammates and read it to their teammates. They pick a topic or theme that they have devoted their lives to like, ending educational inequalities, fighting poverty, racism or ant-Semitism. Beyond the winning or losing, having his players stand before each other and dedicating themselves to these issues is the real pay-off for Joe; sending citizens out into the world that will make a difference.


Thursday Thoughts On Leadership: How Leaders Create Something Out of Nothing

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In his book “The Score Takes Care of Itself”, Bill Walsh asks the question, “Should desperation be the primary determinant for seeking new direction, innovative solutions?” He asks this because when he found himself as the quarterbacks coach of the Cleveland Browns, in charge of an offense with no ability to run the ball and a backup quarterback with a weak arm, he had to think of something. He couldn’t change the calendar. They had to play on Sunday. They couldn’t move up the player draft and restock players. He had to face the challenge each week of figuring out how to move the ball on offense with limited options. His answer…creating a short precision pass-oriented offense that would take advantage of the entire field and five receivers, led by a quarterback, Virgil Carter, who, while not able to throw hard or very far, was extremely accurate. He created something out of nothing. The West Coast Offense.

In fact, it wasn’t really created from nothing. He was forced by circumstance to re-evaluate the situation he faced and all the assets available to him and find a solution to his problem. As he put it, “… it was created out of existing assets that only needed to be ‘seen’ and then capitalized on in new ways.” In his book, Walsh outlines four main concepts that can be used to model your own progression in any endeavor:

  1. Success doesn’t care which road you take to get to its doorstep. Walsh did not let it bother him that many traditionalists looked down at his new style. In a manly game like football, you had to run the ball. As one executive sneered, “It’s not real NFL football”, but in football as in life, we only remember the result and after a while, those naysayers had to figure out how this new offense was beating them and in fact how to copy it.
  2. Be bold. Remove fear from the unknown – that is, change – from your mind. Try new things, even if it is just a new wrinkle on the old. One of the secrets of Walsh’s offense was that he simply moved the point of attack from behind the line of scrimmage, where the defense was concentrated, to down the filed where there was only one or two defenders at most.
  3. Desperation should not drive innovation. Don’t wait until you run out of options to try new innovations. Although he installed his offense only after losing his starting quarterback. In hindsight, the team would have been better off starting the back-up and running the new offense from the start as that system ultimately proved more successful than the traditional offense they ran before the change.
  4. Be obsessive in looking for the upside in the downside. It would be a mistake to think that Walsh thought of his new offense after their starting quarterback was hurt. In fact, it was born by watching Virgil Carter in practice and on film before he knew he had to turn the offense over to him. He new that Carter did not possess a strong enough arm to make the throws the current offense called for. Because Carter was smart, agile and accurate, Walsh started to design plays that took advantage of those skills. Of course, once he became the starter, he had to change all the plays. But because he had already started to look for the upside in his backup quarterbacks limitations, he was ready.

Thursday Thoughts On Leadership: March Madness

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March Madness begins today. No, I’m not talking about your latest short sale. I’m talking about the NCAA Men’s basketball tournament. The top 64 teams in the country begin a single-elimination tournament today to crown a National Champion. If you win, you keep playing. If you lose … you go home. Anyone can win. In theory the worst team has the same chance as the top team to win it all. Of course in reality only the top teams win. The best coaches, with the best players and the best preparation win. In fact the “lowest” seed to ever win was the eight seeded Villanova Wildcats in 1985. In fact, in the 71 year history of the tournament, four universities have won the tournament a total of 28 times, almost half. Even more telling, 33 coaches have one championship while the remaining 48 championships have been one by just 13 coaches. Is this starting to sound like top producers in the top real estate companies? It should. Like the tournament, in theory anyone with a real estate license can finish as a top producer. In reality, the best prepared, hardest working agent finishes at the top.

How can an agent, a manager, or the CEO ensure that they finish at the top in an open competition, in a tournament of sorts? Is every listing up for grabs? Do all new agents or recruits spread out evenly to all of the companies? Success is not distributed evenly. Although it can seem chaotic, when you peel back the layers you find that the leaders in our industry are the hardest working, best trained, most dedicated individuals. Consider again the basket ball tournament for an example.

The University of California, Los Angeles holds the record with the most championships with a total of 11. Of those eleven one coach, John Wooden, led them to the top ten times. Far from the Madness we talk about today, for a time the tournament was very predictable. From 1964 to 1975, UCLA won the championship 10 times. As with so many examples of extreme success, it is easy to try and justify why he won so much. He had the best players. The truth is that only two of his players made it to the NBA Hall of Fame.

His secret was that his leadership attracted top players because he was always able to draw the best out of each and every one of them. He inspired his players to always achieve their greatest according to their abilities. This is evident in his sayings, “Success comes from knowing that you did your best to become the best you are capable of becoming,” and “Don’t measure yourself by what you have accomplished, but by what you should have accomplished with your ability.” He was a great recruiter, he was a great teacher, and he was a great coach. He didn’t wait for the championship game to put it all together. He put it all together on the journey. He always emphasized that practice and preparation was the most important thing, so that when the championship game arrived, his team was always better prepared and inspired to win. And they did.

Finally, he built his teams on a Pyramid of Success based on principles such as enthusiasm, condition, skill, confidence, poise, team spirit with the top of the pyramid being competitive greatness that was applicable to not only basketball but to any endeavor. He explained competitive greatness by simply saying, “Perform at your best when your best is required. Your best is required each day.”


Thursday Thoughts: Leaders are Problem Solvers

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Real Estate companies and branch offices, much like all organizations, have more than one leader. It is never just the owner, the CEO or the branch manager. Throughout the organization, individual agents and staff can stand out as individual leaders with the power to influence the direction and performance of the group. It is these interior leaders that make possible what the guy in charge is trying to accomplish. Because they have more day to day interaction with their peers, they serve as guideposts on the road to the leader’s objective. In a real estate company, they would be a branch manager; and in the branch office, they would be a highly respected agent.

In baseball they are called club house leaders. With Major League Baseball’s Spring Training in full swing, every team is looking to fill out the best possible roster of players. Every team is searching for the next five-tool player like the great Willie Mays who can run, throw, field, hit for average and hit for power.  But managers are looking for that clubhouse guy too; the interior leader who carries intangibles. They are often described as “coaches on the field” or “glue guys” because they help bring a team together. It is a rite of spring. The veteran who maybe has lost a step, or isn’t as fast or as strong as the rookie trying to make it to the Big Leagues, but come April you will hear that the rookie didn’t quite make it and the old veteran made it for one more campaign.

These interior leaders play a major role in creating the culture of the team, company or office by instilling either a positive or negative mindset in the group. These are influential people who have got the leader’s back – or are putting a knife in their back.

Here is how this principle applies to a real estate office. You, as a branch manager, may have both a positive leader and a negative leader in your office. The positive leader enhances what you are trying to accomplish. The negative leader detracts from the message and the atmosphere in the office. Both have the ability to influence the agents in your office. What you must understand is that there is a group of agents in the middle that can be swayed by either one. They are up for grabs. They can be swayed by the actions and the attitudes of these two types of leaders. If you find that middle group being influenced by the negative leader, you must address this immediately. You must get rid of any and all interior leaders that are contributing to a negative office/company culture; no matter how much they produce.

The problem solving leader must be aware that both exist in the group and both can amplify the message and culture of the organization or distort it. There is a reason why a player like Derek Jeter of the New York Yankees, while never dominating any statistical category, is simply known as “the captain” and why he stands with players like Babe Ruth and Lou Gehrig and Joe DiMaggio as one of the greatest Yankees ever. His contributions go far beyond the play on the field. His demeanor, his preparation, his ability and willingness to stand before the media every day and answer the questions for his teammates, win or lose, are intangibles that are invaluable to a team and necessary to win not one but multiple championships.

At Intero, we have many example of leaders like this that influence our culture in a positive way,  highlighted by San Mateo Manager Jerry Kiss, the winner of the 2008 Intero Leadership Award, and Los Altos agent, and winner of the 2008 Intero Value Award, Albert Garibaldi. Both men exhibit the measurable results by which we define success in our industry, but their contributions go far beyond that. They both influence others in a positive way through their actions and lead by example. Their willingness to give of themselves and their time to help their peers and make sure Intero is a better company every single day defines them as positive interior leaders.


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.