gbbr leadership conference "back of beyond"

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BACK OF BEYONDTrends in Association Management

Judith Lindenau, CAE, RCE October, 2012

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WHAT WE KNOW ABOUT REAL ESTATE TODAY• Undergoing major

transformation• Members revising

job descriptions from bird dogs to counsellors

• Members have personal finance anxiety

• Brokers reinventing brokerage practicesJWL Associates

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WHAT WE KNOW ABOUT ASSOCIATIONS TODAY• Members have a

different profile, though ’leaders’ may not

• Dues are a declining source of income

• Traditional Real Estate associations have less relevance to members and consumers

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WHAT’S HAPPENING NOW: HOW ARE REAL ESTATE ASSOCIATIONS COPING?

1. Subcontracting, partnering, and shared services

2. Streamlined Governance

3. Volunteer Management

4. New Approaches to Strategic Planning

5. Diversification of Income

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1. SHARED SERVICES

*Mutually beneficial relationships *Building capacity with a minimum of infrastructure investment*Not duplicating services

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GBBR SHARED SERVICES:

Shared Lockboxes—in effect in this area!Working with MAR on Foundation projectHuston Association of Realtors Online StoreMAR resources for videosMRIS resources for business statistics

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• To Other Realtor Associations NSBAR: Contracts out the processing of complaints to Main Street AOR

To Non-Realtor OrganizationsTAAR: Consumer

Complaints to a Dispute Resolution system in the community

SUB-CONTRACTING—A MERGER ALTERNATIVE

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SHARED SERVICESIS GOODBUSINESS

‘members insist that their associations practice good business’

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COMPETITON FOR MEMBERS

NAR-MAR MRIS

GBBR

ASSOCIATION 1

ASSOCIATION 2

ASSOCIATION 3

ASSOCIATION 4

80% OF GBBR’S INCOME IS DUES-BASED. WHAT IS OUR MARKET SHARE FOR THIS MONEY?

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• As brokers see shrinking profitability– They look for ways to reduce

expenses; increase revenues– They see large aggregate

expenses such as duplicate dues and MLS fees to cover market area

• Member expectation is that the REALTOR organization needs to – Build in more efficiencies – Deliver more value for the dues

dollars– Run like a business

• Duplication of efforts and costs - vertically & laterally– Resources could be re-directed to

maximize quality/value

SHARED SERVICES: WHY NOW?

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2. STREAMLINED GOVERNANCE

• Governance Audit: Track a decision process. How many people? How long before approval or dismissal?

• Solutions: – Eliminate committees (3)– Form a separate corporation

for unrelated activities—own board of directors (GBBR Foundation. Possible Real Estate School, Building Management)

– Do what works for your association—avoid the policy tangles of NAR or state association.

– Insist on a Strategic Board of Directors. Have a strategic plan for the Association, for each activity center, for technology and acquisition.

– Work in partnership with staff.

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• Bylaws rules that change frequently. Use policy manuals for operational guidance

• Eliminate from bylaws the items you do not follow completely

• Extra Committees: Internal Affairs, External Affairs, Governance. Read about it: http://www.realtown.com/Judith2/blog/managing-volunteers/three Use task forces, work groups, online forums.

• In-person meetings and body-in-seat educational events whenever possible.

ELIMINATE:

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GOVERNANCE:THE CORPORATE MODEL

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ASSOCIATION MODEL

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• Create strategic agendas• Create future-thinking budgets

(leadership development, technology, R and D, transition/contingency fund)

• Education sessions—community issues, political issues, legal update

• Introduce state/national issues affecting GBBR (why you send leaders to these meetings)

• Focus Director’s attention on the things members do best, not the things staff does best.

• Treat meetings professionally and with respect. Timed agenda, use of consent calendar, plenty of time for ‘homework’

HOW DO WE CREATE A STRATEGIC

BOARD?

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3. VOLUNTEER MANAGEMENT-ADOPT NEW PRACTICES!

Seniors: Association ‘junkies’ Youngers: Geeks

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THE NEWVOLUNTEER

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• Value time. Manage big jobs in little chunks.

• Change your reward system.• Maintain a skill database base

(CRM)• Change your evaluation system for

participation• Accommodate new means of

participation (social media, crowd sourcing, online meetings, interactive website

• Create diversity in every gathering• Embrace Transparency• Encourage Strategic Thinking

VOLUNTEER MANAGEMENT

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4. NEW APPROACHES TO STRATEGIC PLANNING

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• Leadership Assessment• Purpose and Structure• Communication• Adaptability and Innovation• Human Resources• Financial Resources• Professional Resources• Collaborations and Partnerships• Physical Resources• Financial Management• Intelligence• Actions• Evaluation• Community Buy-In• Technology

CONDUCT A CAPACITY AUDIT

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Organizational Life Cycle Stage CharacteristicsConception/ Infancy Voluntarily coming together to solve a

problem; high energy & enthusiasm

Infancy Founder in charge; work expands beyond what the founder can do

Puberty Organization expands but is awkward in dealing with coordination & external affairs; professional management emerges

Young Adulthood More formal management, policies, and procedures; emerging politics

Adulthood Mastering environment; serving clients; established management;New ideas contemplated; high energy; risk- trying to be everything

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Organizational Life Cycle Stage CharacteristicsLate Adulthood Excitement beginning to wane;

Past valued over innovation;Complacency; no sense of urgency or need

Old Age Diminishing ability to serve others;Lack of cohesion among leaders;Little energy available for renewal and reversal of situation

Revitalization Revitalization of mission; re-defining service niche

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• Undefined leadership roles• No policy direction to staff• Decision-making authority is

undefined• Weak communication to

membership• No future vision and goals• Association does not resolve

conflicts• Member needs not regularly

assessed• BOD does not set governing policy• Decision-making by leadership is

not transparent• New ideas from members and

staff are not encouraged and welcomed by leadership

• Volunteers are not trained in their jobs

GBBR CAPACITY AUDIT RESULTS:AREAS WHERE WE ARE WEAKEST

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• Board of Directors attendance is consistently strong

• GBBR has sufficient financial resources to meet its goals

• GBBR has good insurance coverage as an association

• GBBR has a strong cooperative relationship between state and national associations

• Association produces regular financial reports

• Association follows good fiscal management

GBBR CAPACITY AUDIT RESULTS:AREAS WHERE WE ARE STRONGEST

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5. DIVERSIFYINCOME

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• Know your % of income from various sources. In GBBR, 80% comes from DUES

• Know your % of expenses for each program (including professional standards enforcement). Know your ROI for each program. (see the project planning worksheet)

• Set goals based on this inventory• Don’t think pennies, think dollars• Appoint a business development

committee (members + management)

• Report programs based on outcomes, both $$, members served, and indications of success

• Always tie expenditures back to the strategic plan for the association

PROGRAMBUDGETING

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SIZE IS A FRAME

OF MIND

Strategic PlanningCapacity Assessments

Leadership TrainingIndividual Coaching for AEs and Leaders

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JUDITH LINDENAUJWL CONSULTING

WWW.JUDITHLINDENAU.COM(231) 715-1416