copyright 1995, saul d. klein. all rights reserved information and context “text without context...
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Copyright 1995, Saul D. Klein. All Rights Reserved
Information and Context
“Text without context is pretext”
Information out of context paralyzes
Information in context empowers
Copyright 1995, Saul D. Klein. All Rights Reserved
Information
Doubles every 18 monthsGordon Moore
Sources of Power• Violence• Wealth• Knowledge (information in
context)Alvin Toffler - Powershift
What business is your association in?
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
Change causes upset
“Every organization has to be ready to abandon everything it does, to reinvent itself”
Peter Drucker
Change is continuous, it bubbles along until it reaches a critical mass and then it becomes visible to the casual observer.
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
We are living in and through no less than a revolution and transformation of the real estate industry.
The way our members practiced real estate yesterday is not the way they practise today...and the way they practice today is not how they will practice tomorrow.
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
What business will you be in 5 years from now?• Fewer practitioners• More technology
Not knowing will bring your demise• Railroads• Typewriters
Don’t dilute this. It is taking place whether we like it or not
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
Fewer Brokerages No listing agents Changing (reduced)
compensation structures
From Time Magazine on typewriters:
Point of no return? Last week, typewriter maker Smith-Corona Filed for bankruptcy.
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
An inevitability in the computer age? People in the typewriter business don’t seem to think so:
“People still like the idea of seeing the letter directly on the paper and being able to crumple up a sheet if they don’t like it, the way journalists used to do.”
Typewriter repairwomen, NYC
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
“The typewriter...combines mechanical efficiency with a sense of individual freedom. Typewriters don’t straitjacket you like a computer can.”
Press release, typewriter manufacturer Lexmark Int’l
“Computers take a long time to boot up.”
Typewriter repairman, Albuquerque, NM
Copyright 1995, Saul D. Klein. All Rights Reserved
Change
“If you always do what you’ve always done
You’ll always get what you’ve always got.
If what you’re doing doesn’t work, try something different.”
“Insanity - doing the same thing over and over again and expecting a different result.” Rita Mae Brown
Copyright 1995, Saul D. Klein. All Rights Reserved
Context
It is a paradigm It has boundaries Boundaries shift A real estate association
serves within the context of the real estate industry, both now and in the future
You can design the future• Default• Design
Copyright 1995, Saul D. Klein. All Rights Reserved
Context
Creating and marketing products and services to our members and others to:
A. Replace lost income streams
Decrease in dues income
Loss of MLS income
B. Subsidize Core Services
and allow us to compete in a “board of choice environment”
Copyright 1995, Saul D. Klein. All Rights Reserved
Future by Design
Program Evaluation Review Technique
Critical Path What’s currently impossible
in our industry, and if it were possible, it would fundamentally change the way we do business?
What’s currently possible, and if it were impossible...?
Copyright 1995, Saul D. Klein. All Rights Reserved
Critical Path Programming
In scheduling any step in an overall program or job, there are three considerations:
What must be done before each particular phase can be started?
What things can be done concurrently
As we reach each phase, what do we do next?
Copyright 1995, Saul D. Klein. All Rights Reserved
The REALTOR as Consumer
Speed Convenience Choice Value added Discounts Quality Service Technology
Copyright 1995, Saul D. Klein. All Rights Reserved
Components of a Real Estate Transaction
Educate Locate/Market Negotiate Administrate Educate
Life cycle (selling cycle) of a real estate transaction
Days of the “real estate mortician” are gone forever!
Copyright 1995, Saul D. Klein. All Rights Reserved
Who is your Customer?
Survivors• Technophobic• Use office computer reluctantly• Prefer printed information over
computer information• Manage their data base with
paper and pencil• Take only required education
Copyright 1995, Saul D. Klein. All Rights Reserved
Customer
Young Lions• Highly automated• Extensive use of personal
computer• Use automated tools
aggressively• Attend educational events for
content value, not CE necessarily
• Not active in organized real estate
Copyright 1995, Saul D. Klein. All Rights Reserved
Customers
Established Successes• Automated or automated
through assistants• Utilize network prospecting• Utilize association offered
training and education• Participate in organized real
estate or at least understand its value
The Public
Copyright 1995, Saul D. Klein. All Rights Reserved
Board of Choice
Eliminates artificial boundaries
Leaves no room for artificial pricing, duplication of fees
Boards must competitively offer quality products and services services to REALTORS
An opportunity to redine our associations role
State of Choice
Copyright 1995, Saul D. Klein. All Rights Reserved
Board of Choice Choices
Do nothing Market subtly to surrounding
areas Target market • Adjacent major brokers• Dual member offices
Aggressive all out effort Merge
What is in the best interest of your member?
Copyright 1995, Saul D. Klein. All Rights Reserved
Board of Choice Consequences
Fewer future past presidents Fewer officers Fewer directors Fewer committees Fewer executive officers Less staff
Paradigms:Board of Choice plus technology will mean
fewer job opportunities
If we uncouple board membership and board membership, our boards will loose all their members
Copyright 1995, Saul D. Klein. All Rights Reserved
Current Programs
Core Services - those services our members can get no where else, or no where else cost effectively• Dues supported
Non - Core Services• Business or profit centers• Associations must compete for
member’s business Paradigm: Boards should not
make profits
Copyright 1995, Saul D. Klein. All Rights Reserved
Current Programs
Resources• Staff• Volunteer• Capital
Revenues Expenses Allocated expenses
What’s Missing?
What Works
Copyright 1995, Saul D. Klein. All Rights Reserved
What Does the Customer Want?
Develop a method of receiving input from your customer• At every gathering–Orientation–Educational programs–Mail back cards in publications– Outside surveys–Seminars–On-line
Ask continuously
Copyright 1995, Saul D. Klein. All Rights Reserved
What Do They Want?
Develop a “Menu of Services” Want it all Want it now Want it for nothing
Make more money
Stay out of trouble Legislative advocacy Legal and risk reduction Education Information
Copyright 1995, Saul D. Klein. All Rights Reserved
What Do They Want?
Forms Technology• What type of computer?• What type of software?• How do I set it up• What do I do when it doesn’t
work?• Can you send someone out?• Can the other board in the
area (competitor) help?
Copyright 1995, Saul D. Klein. All Rights Reserved
Competitor
Survival in a “board of choice environment” requires you know:
Who What Where When How
Copyright 1995, Saul D. Klein. All Rights Reserved
Marketing
Elected leadership in a redefined role
Seminars Orientation• First impression• CE credits
On line Managing data base - targets Staff must be customer
oriented
Copyright 1995, Saul D. Klein. All Rights Reserved
Tracking Results
Effective use of technology - Figure out a way to take technology to the consumer
Allows for cost effective target marketing
Costs of products and services -Gold or fools gold; allocation of expenses.
Copyright 1995, Saul D. Klein. All Rights Reserved
Create a Plan
Critical path Budget Manage resources Track Recognize the value of your
data base and develop and use it
Promote your association to your current members
Copyright 1995, Saul D. Klein. All Rights Reserved
This is a Project
Formulation - Brainstorming, ideas, dreams, vision
Concentration - Details
10 in: NONE out.
No “tangible visible results”
A necessary passage to reach the next plateau
Momentum
1 in: .75 out
Results are visible, but just barely
Copyright 1995, Saul D. Klein. All Rights Reserved
Projects
Stability
1 in: 1+ out
Results are now tangible
Break even or better Break through
Discontinuous result• Apple • Microsoft
Copyright 1995, Saul D. Klein. All Rights Reserved
Critical Path Context Consider change Concept Current Program Consumer Components Canvas Competitor Create Cast your net Count Chart a course What “C” word is missing?
Copyright 1995, Saul D. Klein. All Rights Reserved
Committees
“Committees should always be made up of an odd number of people and 3 is too many.”
What is the true cost of committees?
Allocate:
Staff time
Meeting Space
Administration/minutes
Volunteer time
Copyright 1995, Saul D. Klein. All Rights Reserved
Public Access to the MLS
Microsoft “M”LS Diffusion and confusion on
the internet New breed of home buyer Our monopoly on home
information is about to be broken REALTORS could lose control of the inventory
Time to unite RIN’s Internet Advertising
Copyright 1995, Saul D. Klein. All Rights Reserved
What is Internet Advertising?
An inexpensive new medium accessible by 20,000,000 users
.
Exists now, wave of the future
Currently over 300 real estate sites
Each site offers few listings
Site sponsors:
Newspapers/Magazines
Brokers
New entrants
Copyright 1995, Saul D. Klein. All Rights Reserved
Why Be concerned?
Continued fragmentation will weaken one of our strongest
assets, our inventory.
Continued fragmentation by brokers will allow non
traditional services to gain a foothold.
New entrants are not necessarily “REALTOR
friendly”
Copyright 1995, Saul D. Klein. All Rights Reserved
What is needed?
A critical mass
one place for the consumer to go to find real estate
RIN Internet advertising
Proven user friendly
Patented search
Ads written automatically
National Public Relations
MLS provide as member service