1JWL Associates

BACK OF BEYONDTrends in Association Management

Judith Lindenau, CAE, RCE October, 2012

2JWL Associates

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

JWL Associates 3

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

JWL Associates

4JWL Associates

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

5JWL Associates

1. SHARED SERVICES

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

6JWL Associates

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

7JWL Associates

• 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

8JWL Associates

SHARED SERVICESIS GOODBUSINESS

‘members insist that their associations practice good business’

9JWL Associates

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?

10JWL Associates

• 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?

11JWL Associates

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.

12JWL Associates

• 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:

13JWL Associates

GOVERNANCE:THE CORPORATE MODEL

14JWL Associates

ASSOCIATION MODEL

15JWL Associates

• 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?

16JWL Associates

3. VOLUNTEER MANAGEMENT-ADOPT NEW PRACTICES!

Seniors: Association ‘junkies’ Youngers: Geeks

17JWL Associates

THE NEWVOLUNTEER

18JWL Associates

• 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

19JWL Associates

4. NEW APPROACHES TO STRATEGIC PLANNING

20JWL Associates

• 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

JWL Associates 21

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

JWL Associates 22

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

23JWL Associates

• 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

24JWL Associates

• 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

25JWL Associates

5. DIVERSIFYINCOME

26JWL Associates

• 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

27JWL Associates

SIZE IS A FRAME

OF MIND

Strategic PlanningCapacity Assessments

Leadership TrainingIndividual Coaching for AEs and Leaders

28JWL Associates

JUDITH LINDENAUJWL CONSULTING

WWW.JUDITHLINDENAU.COM(231) 715-1416