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Welcome from Angus Taking your Real Estate Business to the next level We are delighted to have you on board for our Agency, Profit & Growth Seminar to help you discover your potential and set you on the path to greater success. Over the next two days participants will enhance their own understanding of leadership, business planning and strategy and engage in powerful, shared learning experiences. You have got what it takes: motivation, ambition and personality. Now it’s time to hone your skills and fuel your performance to become the extraordinary success you were born to be. We look forward to supporting your growth and achievements on this journey and those still to come. Angus Raine Executive Chairman - Raine&Horne Group Welcome | 3
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Course Objectives • To truly understand the key drivers in your business. Recognise, apply and embrace the toolbox. • Articulate the brand’s value proposition to retain and recruit. • Know and interpret your numbers to make more informed decisions. • Drive revenue and activities to build wealth. • Coach, lead and inspire to be sustainable in yourself, your business and thrive. • Adopt best in sector marketing, business planning, art of execution, and high performance culture. • Understand CX and EX technology. Disclaimer: This presentation is intended for general information only and does not constitute legal or other professional advice. Opinions expressed in this presentation/workbook are accurate as at the time of printing, complete and up-to-date, and to the extent permitted by law, Raine&Horne Group excludes any liability for negligence, loss or damage arising from any reliance by you with respect to these materials. Unless otherwise indicated, these materials are the Copyright of Raine&Horne Group. You may use these materials for your personal, non-commercial use only, providing Raine&Horne Group is acknowledged as the source. Any proposed commercial use requires Raine&Horne Groups prior written consent and a payment of a fee. Logistics & Housekeeping • Bathrooms • Emergency evacuation • CPD Welcome | 5
Time Activity Page 9.30 - 10.00am Welcome, Overview, Objectives, Rules of Engagement 02 10.00 - 10.15am Executive Chairman/Chief Executive Officer 10 10.15 - 11.00am Get to Know Each Other & Morning Tea 24 11.00 - 12.00pm State of Play & Key Numbers 28 12.00 - 1.00pm REEF 48 1.00 - 1.45pm Lunch – 1.45 - 2:15pm Macquarie Bank 50 2:15 - 5.00pm Leadership & Recruitment & Afternoon Tea 52 5.00 - 5.15pm It’s a Wrap 74 6.30 - 9.30pm Dinner – Schedule Day 1 6 |
Day 2 Time Activity Page 8.45 - 9.00am Welcome – 9.00 - 10.30am Property Management 76 10.30 - 10.45am Morning Tea – 10.45 - 12.15pm The Games that People Play & How to Master Them 86 12.15 - 12.30pm Home Loans 90 12.30 - 1.00pm Lunch – 1.00 - 2.15pm CX & EX 92 2.15 - 3.00pm Marketing Masterclass 108 3.00 - 3.15pm Afternoon Tea – 3.15 - 4.00pm Product Technology 110 4.00 - 4.15pm Accountability 114 4.15pm Key Takeways & Close – – Agency Profit&Growth | 7
Get to know each other. Practical Exercise 1. Name? 2. Do you have a nickname or preferred name? 3. How many years have you been in Real Estate? 4. How many years as a business owner? 5. Where is your office location / service area? 6. Key priority right now? 7. Most successful business integration that has made a difference or impact in the last 12 months? 8. If you were an animal, what animal would you be and why? 9. If you could live anywhere, where would you live? 10. What are you hoping to learn from the next few days? 11. Favourite food? 12. Favourite beverage? 13. Family, partner, or pet or significant something? 14. What are you proudest of? NB. Put your key priority on a post it note & put it on the wall so we can aim to achieve it over the next two days. 8 |
Commitment Pledge • So we can all get the most from the next two days please ensure we embrace mutuality. • Respect your peers. • No racism. • No sexism. • Turn your mobile onto vibrate and even better off. • Be present – you owe it to yourself, your team, and your family. • Respect confidentiality. • Speak with truth and respect. • Positive body language and comments. • Be punctual – show respect for the group and speakers. • Network. • Increase referral opportunities • Collaborate, learn, give yourself the ability to see what is possible, and increase referral opportunities. Agency Profit&Growth | 9
“You can’t do a good business with a bad person. Find the right people to work with and you can’t gowrong” Richard Branson Est. net worth $7B AUD 10 | Get to know each other | 10
Your Product Ecosystem Amplify Portals DigikitPlus rhc.com.au Spotlight rh.com.au DesignPlus / RP Data RP Data REI Forms Google rh.com.au Live Maps rhc.com.au CompassPlus / CommercialPlus DigikitPlus ProcessPlus RHome RHome SSO Login Email | O365 Digital Proposals Digital Sales Workflow CRM/Database R&H Website Social Media Advertising REA, Domain etc E-marketing Platform National Property Data Digital Proposals Intranet Agency Agreements Property Geocoding R&H Comparables National Comparables Your Product Ecosystem Agency Profit&Growth | 11
R&Home Welcome Home Visit your new intranet: home.rh.com.au Not in the office? We have your R&Home access covered with our Android and Apple apps! Apple Android Option 2 1. Open app store on phone 2. Search for Workvivo and download 3. Choose the R&Home app face 4. Log in using your existing details and enjoy your platform on the go! Option 1 1. Scan the below QR codes 2. Download - the app is free of course! 3. Choose the R&Home app face 4. Log in using your existing details and enjoy your platform on the go! 12 |
ProcessPlus is an end-to-end sales workflow designed for salespeople, principals, assistants and administrators to take you and your team from good to great with its collaborative and cohesive process, all in a one-stop digital structure. Exclusive to Raine & Horne, we’ve worked with Daniel Spencer, a professional sales coach, to develop ProcessPlus posters and an online productivity hub to take you on a journey through the sales process with complete integration behind each step including training videos, checklists, templates and visual strategies to ensure that each step is completed at the highest productivity standard. Framework and resources are available via R&Home. Spaces > Products & IT > ProcessPlus Welcome | 13
Great for new starters, those who need a refresher and office level recruitment. iMag available via R&Home. The Essentials is a one-stop-shop for all Raine & Horne products, tools, tech, I.T, marketing and brand information. 14 |
We’re about our people and their clients. The Values we're built on... Integrity We pride ourselves on always doing the right thing – acting in our clients best interests' is non-negotiable. Innovation We embrace creativity, innovation and continuous improvement. We implement cutting-edge technology to create a seamless customer experience. Knowledge We embrace change through perpetual learning and development. Reliability We are there every step of the way. We are authentic, dependable and aim to deliver consistency always. Collaboration We are greater than the sum of our parts and know that working together is crucial for success. Professional We support and develop our teams to be the best they can be. Raine & Horne’s shopfront offices at 70 Pitt Street, Sydney, 1915. Welcome | 15
Commenced real estate career outside the family business, predominately in the Commercial space. Worked in the Sydney market for over 15 years, with three major blue-chip international real estate firms. He returned to the family fold as a director of Raine&Horne Holdings PTY LTD in 1998. With over 30 years experience, his academic and industry qualifications include Diploma of Business (Valuation), Diploma of Business (Franchising), LREA - Stock & Station, Graduate of Harvard Business School Owner/President Management Programme, and is a registered valuer. Angus Raine Executive Chairman 16 |
Has extensive experience in business management and ownership, having owned and managed Hotels and Real Estate businesses across many states and territories. Worked in the real estate industry across Australia in SA, NT, VIC, TAS, QLD, WA and NSW. Understands all facets of the Australian Property Market. Responsible for growth and innovation throughout the Raine & Horne network nationally and focused on adding value to all our real estate team members in our network. Andrew Brien Chief Executive Officer Executive Chairman | 17
Our Story Our remarkable story began in 1883 when property pioneers Tom Raine and Joseph Horne first opened for business in Wentworth Court, Elizabeth Street in Sydney. In the 1970s, the Raine & Horne network decided to franchise nationally which was a watershed moment for us. A fourth generation, and proudly 100% Australian owned family business, today we are one of the oldest family-owned firms in the Southern Hemisphere. “Although we are proud of our long history we are a forward-thinking, dynamic & diverse business”. 18 |
1968 The first suburban office opened in Double Bay, Sydney 1976 First franchise office open in Liverpool, NSW 1975 The first company to open a dedicated Home Unit division 1982 The 100th office opened in Armidale, NSW 2006 The first to send text messages to consumer mobiles with property details 2007 Mobile-specific webpages were introduced and the ability to send property details to mobiles via signboards 2007 OFI check-ins where consumers received emails with property details & buyer/tenant matches via CRM 2008 Supported the ban on plastic by introducing re-usable shopping bags. 2008 The first to launch an e-mag, called Flashmag 2008 First to use Facebook in Australia to market properties 2010 Introduction of exclusive virtual tour cameras 2011 Pioneered the use of QR codes across 300 offices 2017 Introduced multi-million dollar digital appraisal platform – DigiKit. 2017 First Australian company to use AI digital technology; Amplify 2019 Introduced brand new CRM – VaultRE to entire network. First real estate group to use the innovative platform 2021 Adopted Single Sign On - One login for access to our suite of products 2021 First franchised company to launch a sales process, incorporating best practice, multiple systems, and compliance 2022 Raine & Horne Corporate won the 2022 REB Training & Education Program of the Year Award Raine & Horne Firsts Executive Chairman | 19
Fun Facts The company’s longest serving employee was Mr Harold Horsley, who chalked up more than 60 years. In 1968 the first suburban office opened in Double Bay, Sydney. The first franchise office was in Liverpool, Sydney in 1976 and in 1982, the 100th office opened in Armidale, NSW. It took Max Raine over 30 years to purchase all the shares in R&H from family and employees which he completed in 1998. Angus Raine joined the firm in 1998 after 15 years working for a number of rival firms. Max Raine started in 1950 and retired in 2011. When Raine&Horne first started, TomRainewas 22 years old, whereas Joseph Horne was 43 years old. Raine &Horne didn’t have a phone line in its earliest years but are listed in the 1891 telephone directorywith the phone number ‘1088’. For R&H’s 135th year, corporate headquarters purchased and built a state-of-the-art facilitywhich is used for training, events and continuous development for the network. 1968 Double Bay 1982 Armidale 60 In July 2021 we launched the R&H Foundation raising over $220,000 in the first year. 20 |
“The strength of the team is each individual member, the strength of each member is the team.” Phil Jackson NBA Lakers & Bulls Basketball Coach Executive Chairman | 21
logins to R Home DigiKit’s sent visits to rh.com.au 3,500 staff across the globe 11k+ 1883 since 15.3m+ R H Foundation raised to date $141k+ worth of property sold $8.2b+ offices globally 300 22m+ viewers reached through social media coverage over 4.3b people reached in print/online media over Amplify campaigns 6.2k+ training events 160 managed properties 120k+ impressions on social media 17m+ hours of training provided 9,600+ over 300k over over 2021 Performance Matrix 22 |
We are all part of “A Bigger Picture” The property industry is Australia’s biggest employer. 1.4 millions jobs. More than mining and manufacturing! Property touches the lives of all Australians. Property secures your future. 13% of Australian GDP = $202.9 Billion. Did you know? Residential Real Estate Underpins Australia’s Wealth. There are 10.5 Million dwellings in Australia. And 52.5% of household wealth in Australia is held in housing: 52.5%. 2 Trillion 4 Trillion 6 Trillion 8 Trillion 0 Trillion Residential Real Estate Australian Superannuation Australian Listed Stocks Commercial Real Estate 10 Trillion As of October 2021 CoreLogic Executive Chairman | 23
Angus’ Take Aways from the Inman Connect Conference NYC • Disrupters “a lot of smoke, not a lot of fire” – “start-up alley” was full of companies streamlining the transaction (utilities, mortgages, photos, conveyancing) not disrupting the real estate space. • Website – everyone’s got one (they all look similar) with old school tech. Now, it’s all about AI and predictive analytics. • Agents MUST provide what customers want – service, real knowledge of product and market. • Still a contact sport – agents need to have emotional intelligence, build rapport. • Better and more meaningful experience with consumers so we can keep ahead of ‘the robots’. • Trust technology – and use it! • Chat bot – instantly responds to consumer question(s). • All about videos – still relevant. • Monitor your phone – great insight into how you work/business activities (settings > screen time) • Collect data > collect > and use. • When you combine market intel + emotional intel + tech intel all together, you get a SUPER AGENT. • Not about leads… it’s all about qualified leads. • Agents need to “innovate or die”. “Raine &Horne are ahead of the curve in their offering, major challenge is getting offices to adopt it.” 24 |
Embracing the Products & Services IT PM Single Sign On (SSO) Platform PM Retreat - NSW and QLD R&Home - New Intranet PM Spotlight Newsletter Supporting Intranet Mobile App BDM Growth Program Kick Start and Monthly Webinars Social Media templates targeting Investors New resources on R&Home New Rent, Landlord & Tenant landing pages on R&H Websites. Marketing Operations R&Home CommercialPlus Amplify DesignPlus Refresh National campaign refinement Daniel Spencer Sales Blueprint incorporating Sales Training & Videos R&H Foundation DigiKitPlus - Residential Incentive Campaign: Good as Gold DigiKitPlus - Commercial Spotlight New product Training Videos E-Marketing platform CompassPlus Fact Sheets ManagementPlus Induction & Product Workshops All Raine &Horne’s products & services can be found in The Essentials booklet. Executive Chairman | 25
“An idiot with a plan can beat a genius without a plan.” Warren Buffett CEO | Berkshire Hathaway Est. net worth $AUD 130B 26 |
Executive Chairman’s Summary Q’s for Angus What does this mean for you in your local market and how would you use this information to build trust with your team, brand ambassadors and recruit? Why Raine & Horne? Write your thoughts here… Why Raine & Horne A National and Global Network Highest Ethics A Superbrand Your Full Service Network An Iconic Australian Brand Professional Standards Genuine Referrals Marketing Approach Leading Technology Ecosystem Executive Chairman | 27
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State of Play & Key Numbers Knowing your numbers & understanding key drivers Depending on where your business is at in its lifecycle will probably impact your business goals and strategy for the journey ahead. Understanding your numbers and having a true understanding of the key drivers in your business will ultimately determine the viability, sustainability and long-term success of your agency. Having sound financial management will help you make more informed and sound business decisions. Being able to interpret your key metrics will assist you in building wealth and allow you to have an easier exit with greater financial freedom. Where is your business at in the life cycle and what does this mean with respect to strategy, growth & investment? Each principal should always seek their own individual financial advice for their personal situation, business structure and needs. This session will provide an overview of widely accepted formulas, benchmarks and best practice key performance indicators to help you run a profitable and efficient agency. Agency Profit&Growth | 29
excited frantic invest good times relaxed payback euphoria frustration Stress disillusioned research re-energised lost time 1. start-up 2. Growth 3. Advanced growth 5. Decline 4. Plateau Day 1 1. Position 2. Distribution 3. Functionality 4. Capability 5. Succession skills Notes – Refer to page 126 for Business Plan. 30 |
State of Play & Key Numbers | 31
State of Play & Key Numbers There are a number of drivers that will impact top line revenue, cost of sale, profit & your ability to scale. It’s critical you have a true understanding of the levers in your business and impacts of moving those levers. There is never a truer saying than cash is key and cash flow is king. Supporting your pre-course work: In the last 12 months what was your top line revenue? Or if you are a new entrant, consider your projections for the 12 months ahead as prepared in your business plan. Business Owner Exercise Total revenue Sales Income ex GST PM Income ex GST Take it further Sales Expenses PM Expenses As a % of your revenue what did Sales represent % What did PM represent % Now apply that to your expenses Sales expenses as a % of expenses PM expenses as a % of expenses 32 |
Working out your break even & profit point You should speak with your accountant about whether you will assess your business in separate cost centers or in its entirety. More sophisticated structures can be considered when scaling or planning for a smooth succession plan. It is imperative to consider how the set up of your business will affect your exit. All considerations should be explored when setting up your business for when you may look to scale, acquire or merge. Allocating expenses – options to consider. For example, if your office is split evenly between property management, admin and sales, many would split business expenses 50-50. However, another approach is to split expenses based on the revenue derived from your business. If 80% of your agency’s revenue is derived from sales then you would allocate 80% of the expenses to that particular side of the business, the cost centre, or if it is a separate P&L then allocate accordingly for each cost centre. More complex structures may involve service centers, corporate teams and different locations or cost centres, if your organization is at this size then we would recommend you reference the Raine & Horne Group for a preferred professional partner to best work with your goals and objectives. You should always seek independent financial advice or liaise with your accountant who works closely on your personal financials to assess which is preferable and more relevant for your business and personal assets. It is difficult and inefficient to operate a business without knowing your break even and desired profit points. In fact, it is a great way to go broke. Even if you have a strategy of aggressive growth you need to know how long you can spend money without a return on investment. It is important to know how to analyse these figures based on what we have discussed utilising the percentage or allocation of expenses based on income derived from the business, once you have your fixed expenses and cost of sale separated you are now in a position to calculate key metrics. In the annexure there is a sample P&L that we can use for the exercise if you do not have yours with you, but we would always encourage you to do this exercise with your figures to hand. State of Play & Key Numbers | 33
Pre-Course Work Prior to APG you received a pre-course digital workbook/link. In this you were asked to assess the revenue and expenses derived within your business. For the purposes of today we will assume expenses proportionately based on income derived. 34 |
The Numbers Looking at the entire business collectively, break even point can viewed as = General Expenses (separate to COS) divided by Gross Profit %. E.g. If total General Expenses for a business were $1,800,000 & Gross Profit was 48% then this business’s break even is $3,750,000. Sales to break even: per salesperson, per month Breakeven Worksheet Fixed expenses (per annum) 3,000,000 Less: PM income (MF’s) 1,800,000 Net fixed costs per annum (still to cover) 1,200,000 Net fixed costs per month Divide by 12 100,000 (a) Gross margin calculation Gross sales commission 100% Less: average variable cost of salespeople 65% Gross margin 25% (b) Break even gross sales commissions Company per month 285,714 (a)/(b) Fixed Costs Recurring Revenue Net Sales Commission to Business Average Commission Average Price of Property Sold Salespeople 12 State of Play & Key Numbers | 35
The Numbers Cost of a desk: General expenses divided by # producers = $1,800,000 and the office has 4 agents then the cost of a desk is $450,000. In the real estate industry, it is an ideal goal to have your property management fees cover your fixed expenses. In other words, every sale you make is profit. Depending on the marketplace in which you operate and where you are in the maturity of the business will affect this sound financial management metrics. Later in APG you will explore the break even and profit point of your property management business. There are things in the property management side of your business that will affect top line revenue. These include vacancy arrears, management and your ability to assess which property runs at a loss, or that you do not make profit on. Again, in the property management section we will review how you determine these numbers and how you calculate what business is good business. Now we know how to calculate our break even point and our profit point what we should be considering is what the financial endgame with profit is. Raine & Horne corporate consider 20% the benchmark as the minimum you should be aiming for. Large scale businesses with big rent roles that are more mature are likely to achieve in excess of 30% profit point. Assume this agency has 400 managements. The average weekly rental is $700 per week and has an average MF of 6% net MF from this example is $2,190 How many managements would you then need to cover fixed expenses for the entire business? If your fixed costs are $1,800,000 821 36 |
State of Play & Key Numbers | 37
The Numbers Knowing your profit points and break even will help you make better and more informed decisions. Once you have a clear understanding and analysis of these numbers it is ideal to work out with your trusted advisor at what day of the month you can break even in your business. The goal should be to know exactly what day and date of the month from there on in is profit. For example, many businesses know that once they run their mid- month for property management that anything from that point in time is profit. It is a wonderful and relieving thing to know that you are able to achieve profit point before the end of the month, best practice businesses break even earlier in the month and that should be a chart for all operators. To grow top line revenue there are a few things that should be considered. We would ask you review these annually and measure them monthly to ensure that your business is sufficient and there is no leakage in your profit and loss and that all staff are working to capacity. Participant involvement: These include: 38 |
To ensure sound financial management we would recommend that no less than annually you review an expanded version of your profit and loss and drill down into your chart of accounts to ensure that there are no expenses that provides little or no value or are not being utilised. Examples of line items in your profit and loss that should be reviewed often include: 1. Subscriptions 2. Technology costs – these may include things such as platforms that are not used or do not have enough take up, technology that does not integrate into your eco system and provide a great internal customer experience, auditing the number of subscribers (for example, CoreLogic), looking at the number of text messages being sent from your customer management system. 3. Mobile phones & landlines. 4. Unproductive BDM’s or BDM’s whose incentive structure is not viable, this will be discussed later. 5. Insurance and equipment like photo copiers should be audited annually to ensure that you are seeing the best commercial rate and servicing. There are specific industry insurance partners that provide better commercial rates than some of the larger groups. 6. Conduct an assessment around what grants or traineeships you might be eligible for. Engage in regional labour, explore offshore, provide flexible working hours for better productivity. 7. Please ensure you have an in and out line marketing. If your P&L is not set up to correctly show a true analysis of the numbers, you will limit your ability to truly analyse your business units. 8. Turn on the percentages feature in your accounting software. 9. BAS, PAYG, Superannuation. 10. Insurance – Cyber, equipment, office, income, life, key person. NB: Refer to page 147 for the template State of Play & Key Numbers | 39
Exercise Now let’s consider how you can reduce the cost of a desk in your office, practical exercise and discussion: 40 |
Ratios There are a couple of key ratios you need to improve in order to increase the productivity of your existing team, these include; 1. Appraise to list 2. List to sell 3. DOM In the last 12 months what were your numbers: Number of appraisals conducted Appraisal to list ratio Number of listings Number of sales List to sell ratio DOM Looking at the above conversion rates what would happen to your number of listings if your office increased appraised to list by 10% If the appraised ratio went up 20% Now if you listed that many properties and sold them at your above conversion, what would be the income generated? How much more income would that be for your company? What would that mean for expenses? NB: CompassPlus > Reports > Activity Report State of Play & Key Numbers | 41
Market Analysis | How to Guide Let’s analyse your core market place. Suburb (i): Size of market opportunity: Houses - Ave Comm multiplied by number of sales = Units – Ave Comm by number of sales = Natural market share 1 divided by # of agents in the market = E.g. 1 divided by 23 by 100 = 4.3% If you have two agents then it would be 8.7% and so on. What does this mean for your core market: When you return to your office this exercise should be done for each key suburb or marketplace. Houses Units Total number of Sales How many Sales did you have? Median Price Number of listing to the Market Your Listings to Market Average Commission Yield Total Value of Properties Sold 42 |
Market Analysis | How to Guide Let’s analyse your core market place. Suburb (ii): Size of market opportunity: Houses - Ave Comm multiplied by number of sales = Units – Ave Comm by number of sales = Natural market share 1 divided by # of agents in the market = E.g. 1 divided by 23 by 100 = 4.3% If you have two agents then it would be 8.7% and so on. What does this mean for your core market: When you return to your office this exercise should be done for each key suburb or marketplace. Houses Units Total number of Sales How many Sales did you have? Median Price Number of listing to the Market Your Listings to Market Average Commission Yield Total Value of Properties Sold State of Play & Key Numbers | 43
Market Analysis | How to Guide Let’s analyse your core market place. Suburb (iii): Size of market opportunity: Houses - Ave Comm multiplied by number of sales = Units – Ave Comm by number of sales = Natural market share 1 divided by # of agents in the market = E.g. 1 divided by 23 by 100 = 4.3% If you have two agents then it would be 8.7% and so on. What does this mean for your core market: When you return to your office this exercise should be done for each key suburb or marketplace. Houses Units Total number of Sales How many Sales did you have? Median Price Number of listing to the Market Your Listings to Market Average Commission Yield Total Value of Properties Sold 44 |
Market Analysis | How to Guide Let’s analyse your core market place. Suburb(iv): Size of market opportunity: Houses - Ave Comm multiplied by number of sales = Units – Ave Comm by number of sales = Natural market share 1 divided by # of agents in the market = E.g. 1 divided by 23 by 100 = 4.3% If you have two agents then it would be 8.7% and so on. What does this mean for your core market: When you return to your office this exercise should be done for each key suburb or marketplace. Houses Units Total number of Sales How many Sales did you have? Median Price Number of listing to the Market Your Listings to Market Average Commission Yield Total Value of Properties Sold State of Play & Key Numbers | 45
In Conclusion To summarise and close on your key numbers in your business it’s always important to consider. 1. Larger rent rolls reduce your risk, the larger the rent roll the greater the capacity to cover your fixed costs. 2. Often beneficial to have at least one selling principal because of the high profit margins or larger stronger team of high performers – Impact on profit. 3. Reduce your fixed costs per agent for more profit, this means recruiting better agents with a better profit point and better productivity. 4. Always know your real cash position, allocation of PAYG, BAS and taxes will give you a true indication. Embrace technology and workflow to achieve efficiencies. From today’s session what will you change, implement or explore more of with respect to your numbers and your local marketplace: 46 |
“He who is not courageous enough to take risks will accomplish nothing in life.” Muhammad Ali State of Play & Key Numbers | 47
REEF ANNA EGRI National Operations Manager Contact As one of industry’s most respected workplace and industrial relations experts, Anna Egri holds a Bachelor of Laws and a Bachelor of Business and Commerce, as well as a Graduate Diploma in Legal Practice. Anna previously worked with REEF as a Senior Workplace Relations Advisor, before joining DiJones Real Estate as their network Human Resources, Governance and Compliance Manager. While at DiJones, Anna held a position on the REEF Committee of Management, further cementing her commitment to the organisation. Now back at REEF as Operations Manager, Anna brings a wealth of experience and perspective from both within a large real estate network and as a professional workplace relations advisor. Bringing a dynamic and consultative approach to her role, she is strategic and results-focused, with the core focus of achieving practical outcomes for REEF members. Anna has a profound understanding of industry legislation and a strong desire to be involved in the continued evolution of employment law. Dedicated to the continued training and development of her REEF colleagues, Anna’s direct communication skills and ability to convey information in an understandable manner, has positioned her as one of the industries most trusted employment experts. Professional and dependable, Anna is renowned for providing REEF members with a world-class client experience. She is an exceptional industry leader and is dedicated to ensuring REEF’s dominant position as the leading industrial voice for real estate employers is not only maintained, but elevated. The Real Estate Employers' Federation 1300 616 170 / anna@reef.org.au / www.reef.org.au Notes… 48 |
Notes… Refer to page 164 for more information on REEF. REEF | 49
Macquarie Bank Notes… 50 |
Notes… Refer to page 168 for more information on Macquarie Bank. Macquarie Bank | 51
Leadership 52 |
LEAD - E + R – SHIP Energy + Results Energy is a decision and a choice. Results come from driving a high-performance culture. What is leadership for you? Notes... Leadership | 53
Authentic&Inspiring Leadership In this next session we are going to talk about what relates to recruitment and retention. Authentic and inspiring leadership has a direct impact on your ability to retain and recruit talent. Your ability to build and grow your team is so important as a revenue driver and without high performance and inspiring leadership, you will find it difficult to grow profit and market share. Leadership means different things to different people. What is leadership to you? When you have seen inspiring leadership in action or poor leadership and what was the impact on you? 54 |
Leadership is like a muscle. The more you practice it and the more you train it, the better and stronger that skill will become. Trust is the fundamental foundation of leadership, if your team do not trust you, they will not follow you and they will not buy into your vision. It is important as a leader that you over communicate and clearly articulate your vision and where you are going, so your team is behind you and prepared to be beside you. Feedback is another important element of leadership. The ability to give feedback in a manner that motivates and inspires your team is a core competency an effective leader, but what is even more important is being able to take feedback and affect change. Inspiring leadership will impact everything in your business and affect your workplace, your team and what people say about you to potential recruits and potential clients. Your behaviour and actions will influence the behaviour and the actions of your team. Through the choices you make you will ultimately be the author of your own book. When you or a member of your leadership group do something or behave in a certain way, you can influence the people around you. Inspiring and elevating other key stakeholders in your business to be good leaders can be done through reminding them that energy is a decision to drive high performance. Leadership | 55
Pillars of Leadership Leadership used to evolve around the 4 C’s. Now it has expanded and evolved to be so much more: Competence – for your people to be inspired and respect you, you must be competent in what you do. Whether that’s being a selling principal, a knowledgeable business owner, knowing the law and legislation, or delivering on results. You will not be able to hide if you do not know what you are doing. Clarity – where are you heading, what can the team expect, will there be surprises. Give your team clarity of their role, what is expected and clarity of vision and values. Clarity is King. Consistency – do not be a principal that starts something and never finishes it. Always remember that consistency breeds trust. Trust is the foundation of good leadership. Inconsistency does not feed trust or support a united vision. Be consistent in your leadership, jump on things quickly so they don’t fester and your team know that you do not deviate from the values and the DNA of your company. If you handle confrontation consistently, then your team will be proud of the decisions you make and back you whether or not they initially agreed because they always know that you’re consistent in your values. Courage – back yourself and be courageous. If your team know that you have put your all into a decision and that you are going out on your limb to try and be different or the best, they will back you. You must instill that vision into your team and be courageous in the decisions that you make with integrity. Working towards a future that doesn’t exist yet is very powerful. Imagine the unimagined. Coach – every interaction that you have with your team is a coaching moment. How you behave, how you deliver a message and how you communicate is all a form of coaching. How you run the sales meeting, how you give feedback to somebody, guide your team and foster a high-performance coaching mentality will affect leadership. If you do not focus on being a coach and nurturing and support your team then they will look for other areas to find this. Remember where attention goes energy flows. 56 |
Consultant – listening to your team and showing them that you care whilst consulting with them about work, life, home, goals and aspirations will build rapport. They are also looking to you for consult. Give them the time, otherwise somebody else will. Share insight with your people. Counsellor – ultimately, your people will just want someone who will listen to them and provide support and encouragement. Connection – a great leader’s ability to truly connect with their people dramatically impacts the rate of retention and team loyalty. This includes what’s really important to them, what drives them, find some common ground share with them. Share stories about your own development in real estate so they can relate. True connection will foster any relationship. Collaboration – inside the organisation and externally, with our clients and community. Work together to produce something great. Culture – your vibe attracts your tribe. The environment that you provide your team and the energy and the inspiration you bring to work every day, along with the rewards and recognition you offer will affect leadership. Your integrity and values are the benchmark you set your people and will ripple through and determine your culture. A leader should reference their values to fix problems and reach solutions. What do you think your team or the local marketplace say about your culture? Do you have a culture of fun? Do you have a culture a vulnerability? Do you create a culture of accountability and excellence of execution? Are you transparent? Are you easy to understand as a leader and articulate where you’re going and why? Do you have a culture of financial waste or do you let people know what is expected and are you proud that you drive a culture of sound financial management? Leadership | 57
Pillars of Leadership Candour – your ability to be open honest and frank with your team will help with how much they respect you, listen to you and the influence you have. People will always appreciate getting feedback if it is delivered in a way that does not offend and is helpful and you give them solutions on how to improve. A good leader can give great feedback but also take the feedback. That is the key to success. Certainty – good decisions are not always popular, but it is important when you make a decision to back it and show the team that you are providing leadership to drive everybody in the same direction and that you’re heading towards a common goal. Do not show the team that you are unsure and second guessing yourself or the direction in which you’re travelling. You are encouraged to sometimes show vulnerability but most of the time your team will want a leader that is certain and confident and doesn’t second guess themselves. Curiosity – people love someone that is curious about the possibilities, providing it is not dangerous and you don’t break your team’s trust then people are often inspired by the curiosity of leaders that show entrepreneurial traits. Leaders who are curious about “what if?” will bring people with them on the journey. By empowering those around you to be curious, a company will evolve quicker and elevate all team members to contribute to new ideas which will benefit the greater good of the company. If you can promote curiosity within your organisation it often takes the load off the leader and you achieve more together, grow together and stay together. What are you best at? 58 |
What are your weaknesses? Opportunity... Leadership | 59
Peak performance of a business or their leader should be considered by linking the levels of the pyramid. Physical wellbeing is the foundation of great leadership as it allows you to build endurance to be more resilient under pressure then produce a sense and ability to overcome obstacles and make good decisions. Let’s take 5 minutes to discuss the importance of each layer, and ways you can employ the rituals and practices to build a solid foundation. We would encourage you to invest in ‘Morning Rituals’, a great book to promote health and well being and help with time management and increase capacity. When developing talent around you to create better upcoming leaders it’s important that you articulate to them the difference between a manager and a leader. This is true for leaders that perhaps might need some self- reflection from time to time. Give them some red flags or examples of language to watch out for. Consider Rituals Spiritual Capacity Provides a powerful source of motivation, determination, and endurance Mental Capacity Focuses physical and emotional energy on the task at hand Emotional Capacity Creates the internal climate that drives the Ideal Performance State Physical Capacity Builds endurance and promotes mental and emotional recovery Rituals Rituals 60 |
• Titles – they speak for themselves. • The boss/manager drives people the leader coaches them. • The boss loves authority and often depends on it, the leader relies on goodwill & trust. • The boss inspires fear, the leader inspires enthusiasm. • The manager says I in their dialogue, the leader says we • The manager is first to blame, the leader finds solutions. • The manager knows how it’s done and likes to tell people how it’s done, the leader shows and fosters encouragement and empowerment. • The manager commands respect, the leader earns it. • The boss or a manager never has enough time, the leader finds time. You know the ones, want something done, give it to a busy person who just gets stuff done. • If you don’t find time for your people someone else will. • The manager is concerned with “stuff”, the leaders primary concern is their people. • The boss will often take the credit, the leader will congratulate for it • Did you smile when reviewing any of the above, remind you of anyone you know? • Share a story that will help us all learn or something that has had impact for you in this space? What are your rituals or disciplines that make you a great leader? Leadership | 61
Leadership Health Check To promote and ensure great leadership in your organisation it’s often good to perform a health cheque on what you are doing well, can do better and where the pressure points might be as well as what you should stop doing or simply to get suggestions and new ideas. We would encourage you to conduct a 360-leadership audit on how you lead. What’s important to consider in these surveys must are: • Fair and equitable process for feedback. • Give employees a voice. • Identify where to focus and take action. • Not identify who the responses are if you want honest and open feedback. Secure an overall leadership rating out of 10, like an NPS. Remember the little things become the big things and they get noticed the most. What do you want your leadership legacy to be? What do you want your team to say at the pub on Friday afternoon? What do you want the agents in the marketplace, that you want to attract, to say about you when they’re thinking about meeting with you and moving brands. 62 |
Consistency breeds trust and if trust is the foundation to leadership. Ask yourself do you ever make meetings and cancel them or run late? Do you make a commitment to something and fail to execute or deliver? Always consider that your greatest weakness can often be your greatest strength. How does this affect your leadership in your organisation? What do you think they currently say about you and why? Will this affect your ability to recruit new talent and grow market share? • The little things matter and get noticed • The work you do in the shadows will reveal itself in the light • What sign or vibe do you radiate? • Show me your friends and I will show you your future • Your vibe does attract your tribe • Respect comes from demonstrating integrity, execution and confronting the hard stuff • Character is like a well-cut jewel – it will shine what ever way you look at it • To pass something on to another is not to lose it but to invest in it • Make your weakness your greatest strength • Develop your leadership & it will work like a muscle and get stronger and stronger Leadership | 63
The work you do in the shadows will always reveal itself in the light 1 Identify a recent commitment that you did not keep. 2 List the consequences of failing to keep that commitment. 3 List the consequences of failing to keep that commitment. 4 Identify what you got out of not keeping that commitment. What did you gain (perceived or real) from it? 5 Identify the truth that may be underneath the broken commitment. (Examples include: It confirms a belief about yourself; it wasn’t really your commitment to begin with; it’s a way to get even, etc.) 64 |
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Childhood beliefs 360 leadership survey How much time, effort and money do your leaders invest in professional development and do leaders lead by example in this space Are you carrying a burden or have “noise” affecting your leadership or energy culture? DNA of your people Annual leave and time out – Book now Delivery and language Would your team say there is a clear vision Are leaders in the right seat, what is the benchmark? Where can your leadership improve? What are you doing about it? Being aware of where your feet are is important, being present. Out of 10, how present are you with your team when in meetings with them? What do you need to do more of and what do you need to do less of? Would you attend meetings you conducted? Do you make time for your people? You often teach people how to treat each other, are you happy with how your people treat you? Are you a taker or a giver? Are you accessible or do you have people saying they can never get in front of you? Are you responsive, or feeling overwhelmed returning teams’ emails and/or calls? What are you best at? How would your team describe your execution ability – personally and to hold the team accountable? What is your time management out of 10? What personality are you and how does this affect your ability to influence and lead? How effective, motivational and organised are your meetings? Sales – competency PM – competency One on ones – competency How well do you take feedback and how well do you take it? Do you and can you facilitate confrontation? Do you make time for your people, before someone else does? NB: Digital survey upon request. Health Check 66 |
Wellness Goal Connectivity Empower Perspective & Capacity Coach A 360 Holistic Approach Leadership | 67
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The lifeblood of your business In today’s competitive climate it’s important to have a strategic approach to recruitment for maximum impact, influence and conversion. Research around recruitment shows: • 60% - of your success is product knowledge of your market and the agents that you are looking to recruit. Demonstrating your competency will be key. They must like you, know you and trust you to move. • Ask lots of questions and show lots of interest in them. • 30% - Your overall company’s success, signboards in the market, ability to build and retain top performing professionals, success and a highperformance culture will attract talent. Candidates buy into your track record, reputation and image. • 10% - Ability The “r”s of recruitment should be fostered and adopted – lets discuss 1. Research 2. Relationship development & nurturing 3. Revisit – follow up and communication. 4. Reliable – do what you say you are going to, execution. 5. Resolve – no means not yet. At Raine & Horne we encourage you to be familiar with the resources and the tools available to help support you with recruitment. What is available in the tool kit to assist with recruitment? Your understanding and delivery of our world class technology, marketing, training and social strategy will be instrumental in how effective you are when recruiting. Articulate in two sentences your Raine & Horne pitch? What’s yours as the leader? Recruitment Recruitment | 69
Recruitment - the lifeblood of your business What effects your ability to recruit? What might affect your image in the market and what would be the impact on recruitment? • Exterior of the office – fresh paint, clean, look different to your competitor. • Internals – condition of floor coverings, paint, lounge and your team and it’s culture. • Your website – does it tell a story, does it scream success, do you showcase your teams wins and does the culture online fit the actual DNA. Include testimonials from your people not just clients. • Social – when was the last time you updated it or reviewed it to make sure it was reflective of what is really going on in your business? Share success case studies from your internal team. • Marketing – Are you leading the way in your market place and if you are trying to recruit an agent have samples of your marketing in a portfolio and allow the candidate to peruse, touch and feel the quality, be immersed in the offering. Again, remember its just like pitching for a listing except more important. • Your image as a leader and support of the local community– are you proactively involved in the local area, visible at events to give back, are you well presented, would talent be inspired to learn from you or be mentored by you. • Principals should take the time to become familiar with the recruitment booklet and have it readily accessible. Make sure it can be used electronically and/or be in a printable version. Preferably professionally if that is what is needed in your marketplace. • The Team. • Integrity & reputation. • Client Experience. • Communication Strategy – PR, right down to how your phones are answered or not answered, are you a responsive company, and do you provide ease of access to communicate? • What you do better than anyone else. • Tenure history. • Admin & Services. • Excellence of execution. 70 |
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The Recruitment Process If people are everything, how much time should you place in the activity for finding the right people? The recruitment process in agency needs to be streamlined and is fundamental to the success and sustainability of your business, people and profit. Recruitment in any industry is competitive, but this is particularly true with respect to certain rules in real estate practice. It is important for agency principals to consider that they must approach recruitment proactively and with the same energy and passion professional agents would apply when pitching for a new listing. To be a successful recruiter be confident, enthusiastic and motivational. The process should be similar to pitching for property and follow a clear process to harness speed to market, transparency and higher conversion rates for recruitment activities and outcomes. Personalised, consistent, relevant, responsive. What’s your current approach & rhythm to recruitment? Handy hints when recruiting: 1. Don’t start without the DNA decided 2. Be clear on role, budget and incentive 3. How will you change their life 4. Budget 5. Renumeration 6. Collateral and templates 7. Flexibility 8. Mutuality 9. Empower and reward your team to recruit 10. Tell the world, you have to put “a board out front” 11. Can you afford it, what happens to your break even See R&Home (Documents > Business Operations > Manuals) for your recruitment manual, guide, and presentation to help support your recruitment activities. 72 |
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