leadership: real estate association executives out front/media/files/leadership/trainers/crae/m4...

Leadership: Real Estate Association Executives Out Front Canadian REALTOR

® Association Executive (CRAE)

Table of Contents

Leadership: Association Executives Out Front ............................................................................... 1

Module Objectives ....................................................................................................................... 1

Cases ............................................................................................................................................... 2

Running Time Worksheet ............................................................................................................ 3

Welcome ......................................................................................................................................... 5

Housekeeping .............................................................................................................................. 5

Overview ..................................................................................................................................... 5

Case One: Times They are a Changing........................................................................................... 6

Case One Wrap Up ...................................................................................................................... 6

Applying Mindsets ...................................................................................................................... 7

Case One Sample Solution .......................................................................................................... 8

Case Two: Time to Take a Stand? ................................................................................................ 12

Case Two Wrap Up ................................................................................................................... 12

Case Two Sample Solution........................................................................................................ 13

Case Three for Small Groups: Opportunity Knocks ..................................................................... 17

Case Three Wrap Up ................................................................................................................. 19

Case Three for Large Groups: Opportunity Knocks ..................................................................... 20

Case Three Wrap Up ................................................................................................................. 23

Conclusion .................................................................................................................................... 24

Adjourn ...................................................................................................................................... 24

Case Three Sample Solution...................................................................................................... 25

V.1 June 24, 2011

Leader Guide

All rights reserved. Copyright @ 2011 – Canadian Real Estate Association and

OREA Centre for Leadership Development

Leadership: Real Estate Association Executives Out Front 1

Canadian REALTOR® Association Executive (CRAE)

Leadership: Association Executives Out Front

This case study based course enables participants to draw on the knowledge and skills acquired

throughout the CRAE designation program. Participants work in small groups to assess

situations, analyze research, refer to business documents, build consensus and present their

outcomes to their peers. Participants leave with a worksheet for addressing situations in their

own associations based on the case study analysis template.

Module Prerequisite: CRAE Modules One, Two and Three (as listed below)

Designation Prerequisite: To achieve the CRAE designation one must:

complete Leadership 100, 200 and 300 in the Leadership Program

complete all modules specific to the CRAE designation program

be an AEC member in good standing

Leadership 100 is an online course accessible through REALTOR Link®. Leadership 200 and

300 are half-day workshops offered at various local, regional and national venues. The

CRAE designation program modules include:

MODULE ONE Perspectives: Real Estate Associations Yesterday, Today and Tomorrow

MODULE TWO Services: Real Estate Associations Delivering Value to Members

MODULE THREE Operations: Identifying Real Estate Association Options & Opportunities

MODULE FOUR Leadership: Real Estate Association Executives Out Front1

Preferred group size: 15 - 25 participants

Participant profile: Staff leaders such as Executive Officers, Chief Executive Officers and

other staff at the highest levels of real estate association leadership

Length: 6 hours

Module Objectives

By the end of this module, participants will be able to:

1. Apply more of the skills and knowledge learned in previous modules

2. Make better decisions by applying a model for assessing and addressing problems and

opportunities

3. More confidently handling situations, make decisions and initiate change

4. Ensure a more comprehensive decision-making approach by apply a variety of mindsets

1 CRAE Designation Modules One, Two and Three are pre-requisites to attending Module Four.



Cases

Case Study 1: Times They are a Changing

Case Study 2: Time to Take a Stand?

Case Study 3: Opportunity Knocks

Room Set-up

A room that seats participants comfortably

U-shaped table set up with 2 additional tables for 4-6 people for break-out groups

A table for the review panel (i.e. Board of Directors)

Table for leader’s materials

White board and dry erase markers or blackboard and chalk

Two flip charts with sticky flip chart paper and markers

Materials Checklist

Pre-Course Assignment for sending electronically

Case Analysis Template: An analytical tool (3/participant)

Tent Cards (1/participant)

Name Badges (1/participant)

Instruction Cards Large Groups (4 cards/set) (1 set/course)

Instruction Cards Small Groups (4 cards/set) (1 set/course)+

Extra sets of Case Study handouts (for participants who forget to bring them)

Preparation

Send Pre-Course Assignment to participants 2 weeks prior to the course date

Prepare name badges for each participant

Work out the timing for the session based on start and end times using the Running Time

Worksheet

Place at each seat:

Tent Card



Running Time Worksheet

Segment Length Running Time

INTRODUCTION

Welcome and Overview

Introductions

Housekeeping

Overview

30 min. 8:30 – 9:00

CASE STUDY ONE: TIMES THEY ARE A CHANGING

Large Group Case Discussion

Case Wrap-up 80 min. 9:00 – 10:20

Break 20 min. 10:20 – 10:40

CASE STUDY TWO: TIME TO TAKE A STAND?

Large Group Case Discussion

Case Wrap-up 80 min. 10:40 – 12:00

Lunch 60 min. 12:00 – 1:00

CASE STUDY THREE: OPPORTUNITY KNOCKS

Large Group Case Discussion (60 min)

Break-out Group Preparation of Presentation to

Directors (20 min)

80 min. 1:00 – 2:20

Break 20 min. 2:20 – 2:40

Group Presentations to Board of Directors (20 min)

Board of Directors Feedback (10 min)

Case Wrap-up (10 min)

40 min. 2:40 – 3:20



CONCLUSION

Conclusion

Solicit key learning points

Complete Ideas Page

Requirements for CRAE Designation

Evaluation Sheet and Sign-Out Sheet

10 min. 3:20 – 3:30

Adjourn 3:30

Total time: 6 hours



Facilitation Notes

INTRODUCTION Welcome

5 MINUTES

Introduce yourself and your background in leadership.

Welcome everyone to the session.

Conduct participant introductions.

Housekeeping

Cover housekeeping items, including:

Session length and end time

Break time

Location of washrooms

Availability of refreshments

Cell phones off

Overview

Give an overview of this course:

This module is the summative of what you’ve taken in the

three previous modules.

After this module, you will better be able to take action on

what you’ve learned.

The case study methodology is an analytical framework that

you can apply to any situation. It helps you take a mess of

facts and sort them so you can truly understand the problem

and take action.

Refer to the ‘fictional’ nature of the cases (disclaimer)

Explain about case study review:

Cases are reviewed from an Executive Officer perspective.

There are no right and wrong answers.

Collectively stick to the case facts – don’t bring in other info

Take things as facts and do not debate them.

Your goal is not to convince each other, but to build an

action plan that could be advanced at the association.

Everyone will be asked to participate – quiet people will be

called upon so it’s better to speak up.



Case One: Times They are a Changing

Refer to Case One in the Pre-course Assignment.

Facilitate a total group discussion on this case using the questions

from the Pre-course Assignment:

What is the problem?

What is the objective?

What are the key success factors of which we need to

consider?

What are the issues that need your attention now? And, what

will you do?

What are the issues that need your attention in the future?

And, what will you do?

Does your plan solve the problem?

NOTE: Be sure to include some Mindset questions such as:

If we wanted to look at this from the Members’ perspective,

what would be important to them?

Looking at this from a risk perspective, what kind of risk is

the association exposed to?

What opportunities exist here to take a leadership role at the

association?

Case One Wrap Up

Ask questions to get participants to reflect on what was discussed

and how they might apply this to their jobs, with questions such as:

What are some of the key learning points you’re taking away

with you from our discussions on this case?



Applying Mindsets

Explain that throughout the day we will be applying different

mindsets to our conversations.

Ask: What do we mean my a mindset?

Solicit answers.

Explain:

A mindset is sometimes defined as the mental attitude that

determines how you will interpret and respond to situations.

The term was coined by Stanford University psychologist

Carol Dweck

In its simplest form, a mindset is the ‘lens’ through which

you see a problem.

Share an example, such as:

Viewing a problem through a Member mindset (through the

lens for the customer) versus through a Risk Management

mindset (through the lens of risk mitigation).

Ask:

How useful is it to consider your mindset when addressing

problems and opportunities? What can this do for you?

Possible answers:

It can ensure that you see a problem from many angles

It can help you achieve larger goals such as: improving

service for members, better mitigating risk and improving

efficiencies at your association.

Summarize the value of adopting different mindsets.

Explain that throughout the day participants may be asked to adopt

different mindsets, including:

Member mindset

Risk Management mindset

Leadership mindset

Break



Case One Sample Solution

What is the problem(s)?

Carterton appears to have been passive in the face of a changing environment and, as a result,

they have not kept pace with change. They have a number of serious issues that must be now

addressed and a difficult climate in which to address them. These issues include:

An operating deficit of $195,966 on revenues of $2,134,259

Declining reserves since they have been used to finance daily operations

Member dues have not kept paced with inflation. (If the $60/month fees had kept pace,

fees would now be $90.12/month/member. This would result in an additional $614,448 in

revenues.)

Declining membership that is likely to continue given recession which will result in more

financial pressure for the association.

Lack of investment in office technology

Dysfunctional board of directors along with blurred lines of governance with directors

giving instruction to staff

Demotivated staff due to both these blurred lines as well as the general sense of member

dissatisfaction. This dissatisfaction has been reported informally by the directors and staff

also report through their contact with members

No evidence that the association recognizes the depth of the issues they are facing, and

the cost of continued passivity around these issues.

In addition to this long-standing situation, they are now hit with a recession that could put

Carterton’s long-term survival at risk.

What is the objective(s)?

Financial stability

High quality member services

High-functioning board of directors

Motivated, high-functioning staff

Satisfied members

An action plan for identified risks

What are the key success factors?

A higher level of member satisfaction so that association can implement necessary

change to address this crisis and prevent similar crisis in the future



What are the issues that need your attention now?

In the future?

What do you do?

Dysfunctional board of directors Short-Term — Bring matter to attention of the president

and/or executive committee.

Suggest to president that he/she address the

importance of thorough discussion at the board table

at the next meeting.

Remind directors that staff management is your

responsibility as EO, likely through the president to

the director who is not following protocol. Invest in

training in meeting management, board of director

orientation including importance of confidentiality.

Longer-Term — IF, additional assistance is required, invest

in team building to begin the work of creating a new

organizational culture.

Ongoing — Continue to discuss this issue with the president

and/or executive committee to prevent a relapse in board

effectiveness.

Operating deficit Short-Term — Delegate review of finances to finance

committee/ outside advisor/auditor. Prepare a briefing that

outlines variety of financial options including:

Reducing staff complement AND corresponding

services

Review all services to eliminate old, dated practices

such as printed newsletter

Create incentive/training program to shift ALL

brokers to broker-load.

Exploring potential of shared services with other real

estate association.

Brainstorm and evaluate non-dues revenues

Eliminate all unnecessary expenses (such as the

charitable donation) for the short-term

Consider a dues increase (along with careful

consideration of the required communications plan

given the current economic situation).



Longer-term — Work with the Directors to implement a

policy that calls for an annual cost of living increase.

On-Going — Conduct a regular review of programs and

services to ensure that the right programs/services are being

delivered in the right way with the right resources.

Rumours of member

dissatisfaction

Get feedback from the members through either/both

representative focus group(s) an online survey.

Report on the results of this survey to directors.

Communicate the results with the members (in summary

form) along with a plan to address areas of concern.

Repeat the research annually to give members a chance to

communicate their impressions and create tangible data that

can be used to develop policy.

Communicate with members Once a plan has been developed it will be vital to 1) inform

members of the changes that they can anticipate 2) give

members a forum where they can provide feedback. Ideally,

this feedback should there is evidence that changes are being

made. (If it is too early in the process, it risks becoming a

public complaint sessions.) This feedback can be in a variety

of ways including electronic, small meeting, town hall

meeting

What is your implementation plan?

1. Call a meeting of the executive committee to present the current challenges that are faced.

The goal of this meeting would be to get their input and support

2. EO and executive committee to present the refined action plan to the board of directors

for approval. Be sure to include a budget and timeline.

3. Report and monitor on the progress of the action plan at board meetings.

4. Develop and implement member survey.

5. Develop and implement a member communication plan that includes regular

communication as change is implemented (especially around a dues increase).



Does this plan solve your problem(s)? How and Why?

This plan does solve the problem by bringing the situation to the attention of the directors, and

laying out an action to address the issues. The plan involves directors as well as outside advisor

so that the solutions will be a result of policy input, combined with expert advice. In addition to

the shorter-term financial solutions, there is also a plan in place to solve some of the longer-term

issues and preventing the association from slipping back to this crisis level. Finally, there is a

clear plan for member communications both through the crisis and on an on-going basis.

What are the main lessons/ ‘the takeaways’ from this case?

Be proactive so that situations don’t get to a crisis.

Insist on proper governance even when a situation gets difficult so that directors

communicate through the president and staff report to you.

Present problems and potential solutions to Directors — so that directors have something

specific to respond to.

Evaluate relevance of programs on a regular basis.

Know your budget very well.



Case Two: Time to Take a Stand?

Refer to Case Two in the Pre-course Assignment.

Mention that participants need to take all of the facts as presented –

whether they feel wind turbines are harmful to the environment or

not is not the issue.

Facilitate a total group discussion on this case using the questions

from the Pre-course Assignment:




consider?

What are the issues that need your attention now? And, what

will you do?

What are the issues that need your attention in the future?

And, what will you do?

Does your plan solve the problem?

NOTE: Be sure to include some Mindset questions.

Case Two Wrap Up





Relate the case discussion to different mindsets: Were some of these

more prevalent? Which ones haven’t been discussed? Why?

Member mindset


Leadership mindset

Lunch



Case Two Sample Solution


Hartland has four main problems that emerge from this case.

1. There is the short-term issue of how to respond to the pending construction of wind

turbines the local area. This has becoming pressing due to the imminent construction and

the journalist’s query regarding the association’s position on this hot, local issue.

2. There is the issue of determining an appropriate response to the Young Professionals

Task Force. On one hand, the association wants to encourage this group’s contribution,

yet, on the other hand, a decision of this nature normally rests with the board of directors.

3. There is a potential conflict of interest that exists with Bill Pollock who is the chair of the

Stop the Wind Turbines coalition, and is also potential using his influence as a long-

standing director to obtain a donation without it being clear if this is the right cause for

the association.

4. There is the issue of establishing Hartland’s advocacy strategy on local issues of concern

so that the association has some policy direction to guide its response.


Developing a response that is appropriate for the membership/the association

Resolving the conflict of interest issue without negatively affecting the relationship with

Bill Pollock

Responding effectively to the journalist while also giving the association time to develop

its formal response

Acting cautiously enough so that any short-term actions in this situation support — rather

than undermine — the association’s long-term advocacy


A timely response given the pressure from the journalist as well as the actual construction

of the wind turbine

A balanced response from the association that fits with its mandate of representing

REALTORS®

A clear strategy to communicate the strategy developed by the directors to the members




In the future? What do you do?

Responding to the pending

construction of the wind

turbine/Responding to request

for SWTC’s request for funding

Immediately — Do not release cheque to SWTC, until the

board has had a chance to review and respond to memo from

Young Professionals Task Force. Notify the board of

directors that the cheque is being held and the issue will be

revisited at next BofD meeting. Acknowledge receipt of

memo from Young Professionals Task Force.

Respond to the journalist to state that Hartland is always

interested in local issues that affect quality of life in the

community. Assure the journalist that the board of directors

is evaluating the situation and that you will get back to

him/her in very short order.

Short-Term — Request that the president call a meeting of

the PAC and/or the BofD to evaluate the current situation

and prepare a response. Consider provide backgrounder to

PAC/BofD that includes best practices on this issue,

experience from other association on similar issues.

Evaluation should include impact of SWTC on members/

homeownership/quality of life principles, the fit between the

association’s position and SWTC, SWTC’s plan moving

forward, anticipated member response, human and financial

resources to take a position on this issue. IF PAC takes the

lead, should be presented to BofD for approval at next

meeting. IF BoD approves cheque to SWTC (again), seek

volunteers to become active with SWTC so that the

association is actively involved in the issue.

Determining a response to the

Young Professionals Task

Force’s memo

Short-Term — Craft a response to Young Professionals Task

Force that thanks them for their input and informs them of

the BoD’s decision in this matter. Be sure to encourage

further participation from this group on emerging issues.

Develop a communication plan with members at large.

Responding to the potential

conflict of interest with Bill

Pollock’s role as chair of SWTC

Suggest to the president that she/he privately address the

conflict of interest issue with Bill Pollock by asking him to

excuse himself from the funding discussion.

If that is unsuccessful, encourage the president to add this

issue to the agenda of the next BoD meeting.



Longer-term — Establish clear conflict of interest guidelines

from the outset. Include these guidelines in the board of

directors’ orientation.

Establishing Hartland’s

advocacy strategy on local

issues of concern

Once there is an action plan in place on this wind turbine

issue, shift the focus of the political action to develop a local

advocacy strategy. This strategy should include a priority of

list of issues of interest (those related to homeownership,

real estate values and quality of life) and well as a template

to craft a response and develop an action plan that can be

used to develop situation specific responses.


1. Hold the cheque to SWTC.

2. Inform the B of D that Young Professionals have submitted a request

3. Encourage the president to resolve the potential confict of interest issue with Bill Pollock.

4. Contact the journalist to confirm the association’s interest in the issue and that you as

evaluating your response.

5. Assign PAC (or another group if no PAC) the task of studying the issue further.

6. Provide that group with a backgrounder on this issue and association experience with

advocacy issues in general.

7. Add this response to the agenda at the next board meeting (or consider calling an

emergency board meeting, if required).

8. Develop a communication plan that includes updating the members, responding to the

Young Professionals Task Force and proactively managing the pubic relations piece with

local media.

9. Work/ Establish a to develop an advocacy strategy on local issues.

Does this plan solve your problem(s)

This plan does solve the problem by managing the more urgent elements efficiently and

effectively, respectfully communicating with Bill Pollock as a long-standing director while also

protecting the association from a conflict of interest, managing the Association’s image with the

media (both in the short-term by buying time and in the longer-term by communicating the

association’s position on this issues), respectfully responding to SWTC in the short-term and

then, encouraging their further involvement once a position has been established. The plan also

includes a member communication strategy that is driven by the board’s policy decision. Finally,

with once this issue is managed it becomes a catalyst for a local political action policy.



What are the main lessons from this case?

It is important to evaluate this issue from the point-of-view of how their position fits with

the association’s objective.

As executive officer, it is important to create a process to evaluate this issue so that

directors can form their opinion.

Because it is a hot topic, it will be important to be create the discussion, yet also be

neutral in it.

With a ‘hot issue’ like this, it is important to move through the steps in a structured

timely way, but at the same time not to be rushed.

Relationship managed will be important both to develop a response to this issue as well

as keeping smooth relations with all internal and external stakeholders



Use these

instructions for

small groups

SMALL GROUP

Case Three: Opportunity Knocks

Refer to Case Three in the Pre-course Assignment.

Explain:

This afternoon’s case is a two-part activity.

The first part is similar to how we’ve been discussing the

cases this morning.

The second part has an interesting twist.

PART ONE Facilitate a total group discussion on this case using the first few

questions from the Pre-course Assignment:




consider?

PART TWO Explain:

An effective EO is an effective communicator.

The EO in this case would need to communicate to the board

all the information they need to make an informed decision.

You’re going to get a chance to apply some of your

communication skills during the second part of this activity.

NOTE: it is important to have participants complete each set of

the following instructions before giving the next set of

instructions to avoid confusion.

Split the group into two halves and assign them as Group A and

Group B.

Explain (on flip chart):

Group A – The Board of Directors in your case are very

reluctant to discuss any partnering opportunities

Group B – The Board of Directors in your case are so eager

to find partnering opportunities that they don’t even want to

take the time to do their due diligence.



Small Group Cont’d

Instructions to the EOs

NOTE: Explain these instructions and then handout the

appropriate card to each group. The card will reiterate what you

have explained.

Explain the following instructions to the EOs (on flip chart):

You are the Executive Officer of Dover Peaks Association of

REALTORS®.

Prepare a short presentation (5 minutes maximum) to the

Dover Peaks Board of Directors.

Decide what you will present that will help the Directors

make an informed decision.

Remember to consider how your Board of Directors

is feeling about partnering opportunities.

Involve everyone in your group in preparing the presentation

Select one person who will be the spokesperson for the group

– this person will make the presentation to the Directors.

NOTE: Even if you are not the spokesperson, you may

be asked a question about what has been presented.

Take 15 minutes to prepare your presentation.

Hand out the appropriate EO Instruction Card to each group of

EOs.

Allow 15 minutes for preparation.

Setting up the Presentations

After the groups have prepared their presentations:

Select up to 5 people from Group A to form the Board of

Directors for Group B.

Seat the Directors for Group B at the side of the room (they

will not participate in Group A’s presentation).

Hand out the appropriate Group B Board of Directors

Instruction Card to the Group B Board.

Then:

Select up to 5 people from Group B to form the Board of

Directors for Group A.

Seat the Directors for Group A at the front of the room.

Hand out the appropriate Group A Board of Directors

Instruction Card to the Group A Board.

Give the new Boards of Directors a moment to read their card and

consider their role.

Case Three Group A

EO Instruction Card

Case Three Group B

EO Instruction Card

Case Three Group B

Board of Directors Instruction Card

Case Three Group A

Board of Directors Instruction Card



Small Group Cont’d

Explain how the presentations will be conducted (on flip chart):

Group A will present to the Directors first (max. 5 minutes)

The Directors will ask questions of the EO group, however:

The spokesperson cannot answer questions.

Questions will be answered by someone else in the

group.

Each person in the group can only answer one question

from the Directors.

After the presentations the Directors will provide feedback.

Conducting the Presentations

Conduct the presentations and Director questions for each group.

NOTE: if you feel that the Directors are not asking an

important question, ask that question of the group once the

Directors are finished.

Feedback from the Directors

Solicit feedback from the Directors on the analysis and reasoning of

the EO group and how questions were handled:

What is something that was very helpful and effective that the

group presented?

What is something that could be improved in their analysis

and reasoning?

Case Three Wrap Up





What are some key learning points that came out of the

presentations to the Directors?



Member mindset


Leadership mindset



Use these

instructions for

large groups.

LARGE GROUP

Case Three: Opportunity Knocks

Refer to Case Three in the Pre-course Assignment.

Explain:

This afternoon’s case is a two-part activity.

The first part is similar to how we’ve been discussing the

cases this morning.

The second part has an interesting twist.

PART ONE Facilitate a total group discussion on this case using the first few

questions from the Pre-course Assignment:




consider?

PART TWO Explain:

An effective EO is an effective communicator.

The EO in this case would need to communicate to the board

all the information they need to make an informed decision.

You’re going to get a chance to apply some of your

communication skills during the second part of this activity.

NOTE: it is important to have participants complete each set of

the following instructions before giving the next set of

instructions to avoid confusion.

Split the group into two halves and assign them as Group A and

Group B.

Explain (on flip chart):

Group A – The Board of Directors in your case are very

reluctant to discuss any partnering opportunities

Group B – The Board of Directors in your case are so eager

to find partnering opportunities that they don’t even want to

take the time to do their due diligence.



Large Group Cont’d

Creating the Boards of Directors

Direct each group to

Select up to 5 people from each group to form the Board of

Directors for that group.

Move the Boards of Directors to different tables.

Explain that those left in the group will act as the EO for that Board.

Instructions to the EOs

NOTE: Explain these instructions and then handout the

appropriate card to each group. The card will reiterate what you

have explained.

Explain the following instructions to the EOs (on flip chart or white

board):

You are the Executive Officer of Dover Peaks Association of

REALTORS®.

Prepare a short presentation (5 minute maximum) to the

Dover Peaks Board of Directors.

Decide what you will present that will help the Directors

make an informed decision.

Remember to consider how your Board of Directors

is feeling about partnering opportunities

Involve everyone in your group in preparing the presentation

Select one person who will be the spokesperson for the group

– this person will make the presentation to the Directors

NOTE: Even if you are not the spokesperson, you may

be asked a question by one of the Directors.


Hand out the appropriate Executive Officer Instruction Card to

each group of EOs.

Instructions to the Boards of Directors

Explain the following instructions to the Boards of Directors (on

flip chart or white board):

You are the Board of Directors of Dover Peaks Association

of REALTORS®.

You will be listening to a short presentation by the Executive

Officer of your Association.

Case Three EO Instruction

Cards



Before that presentation, discuss what concerns you would

have regarding possible partnering opportunities.

Remember, as a Director you are very reluctant to

discuss any partnering opportunities with the Shelby

District Real Estate Association.

Develop some questions that you may wish to ask the

Executive Officer group.


Hand out the appropriate Board of Directors Instruction Card to

each Board of Directors.

Allow 15 minutes for group preparation.

Setting up the Presentations

Once the groups have had time to prepare, seat the Group A Board

of Directors at the front of the room.

Explain how the presentations will be conducted (on flip chart):

Group A will present to the Directors first (max. 5 minutes)

The Directors will ask questions of the group, however:

The spokesperson cannot answer their questions.

Questions will be answered by someone else in the

group.

Each person in the group can only answer one question

from the Directors.

After the presentations the Directors will provide feedback.

Conducting the Presentations

Conduct the presentations and Director questions for each group.

NOTE: if you feel that the Directors are not asking an

important question, ask that question of the group once the

Directors are finished.

Case Three Board of Directors Instruction Cards



Feedback from the Directors

Solicit feedback from the Directors on the presentations and how

questions were handled:

What is something that was very helpful and effective that the

group presented?

What is something that could be improved in their analysis

and reasoning?

Case Three Wrap Up





What are some key learning points that came out of the

presentations to the Directors?



Member mindset


Leadership mindset



Conclusion

Handout the Case Analysis Template: An analytical tool.

Explain how it can be used when faced by challenges back at their

associations.

Explain that as the final module of the CRAE program, anyone who

successfully completes all requirements is eligible for the CRAE

Designation.

Requirements:

Complete Leadership 100, 200 and 300 in the Leadership

Program

Complete all four modules specific to the CRAE designation

program

Be an AEC member in good standing

Thank everyone for their participation.

Adjourn



Case Three Sample Solution


Dover Peaks is finding it more and more challenging to offer the programs and services that are

normally offered by a real estate association of this size.

They are running an operating deficit of $25,288 on revenues of $347,504.

They have drained the reserves by over $25,000 in one year, despite efforts to cut costs in

some program areas.

Staff wages appear to be uncompetitive in relation to Shelby District.

Members (and likely directors) will not tolerate a fee increase, yet, at the same time are

unhappy with the level of service that they are receiving.

There is a potential risk of a lawsuit that will further drain staff resources that are already

stretched.

This current situation is unsustainable yet.

There is no clear path forward to resolving some or all of these issues.

Shelby District is proposing future collaboration — which could offer an opportunity that could:

Reduces their current risk levels

Enhances member services and

Eases the negotiation for the next MLS contract

Eliminates the operating deficit

The challenge is how to approach these discussions.


Gathering the necessary information from Ben, EO of Shelby

Evaluating the options and presenting those to the board of directors

Eliminating the operating deficit

Full range of programs and services, including representation for the members of the

association


Engaging directors they recognize the severity of the situation and have a clear

understanding of the path forward

A timely response to the Dover Peaks emerging crisis and the Shelby District opportunity

A high level of member satisfaction

Financial viable association with full range of programs and services




In the future? What do you do?

Possible collaboration with

Dover Peaks

Short-Term — Meet with Ben, EO of Dover Peaks to develop

a high-level understanding of the options. Wise to inform

president before meeting is scheduled.

Report on results of the lunch to the board of directors/

executive committee.

Medium-Term — Following this report — Ask the president

to establish a task force to evaluate the options in further

detail.

Task force to present options from shared services, to

collaboration on key programs such as education to

full merger.

Presentation should include the pros and cons of each,

along with the financial implications and a timeline.

Report should be presented to board for their approval.

Option A — Collaboration — Once board has selected an

option, a detailed implementation should be developed. If

they are leaning towards collaboration plan should include

nature of the collaboration, how to manage it across both

board, human and financial resources, and a member

communication plan.

Option B — Merger — If the board wants to merge with

Dover Peaks, the plan must include all of the above plus a

transition plan for the building, legal obligations to staff,

implications of the merger for the MLS contract, the cost

of the merger itself and the proposed timeline PLUS a pro-

forma budget for the new entity.

Consider bringing in other resources to help with this

evaluation. These resources might include the

association’s lawyer to address the contract and

employment law issues; an accountant to assist in

creating a new budget, a human resources consultant

to assist in creating a new organization.

Once a decision has been made to move forward,

detailed planning should include the appropriate mix

of staff from Dover Peaks as well as Shelby District.

The task force should also report on their progress to

directors on a regular basis.



Communicate with members Once a plan has been developed it will be vital to 1) inform

members of the changes that they can anticipate 2) give

members a forum where they can provide feedback. Ideally,

this feedback should there is evidence that changes are being

made. (If it is too early in the process, it risks becoming a

public complaint sessions.) This feedback can be in a variety

of ways including electronic, small meeting, town hall

meeting


1. Meet with Ben to better understand his position and the nature of the opportunity.

2. Inform the board of directors that the meeting has taken place

3. Create a task force — potentially include outside advisors — to evaluate the options Seek

direction from the board of directors based on this evaluation

4. Reconvene the task force to work through the details of the plan

5. Communicate with members on an on-going basis

6. Communicate with any staff affected by the changes on an on-going basis

Does this plan solve your problem(s)

Either a collaboration or a merger have the potential to solve Dover Peaks problem, since they

both have the potential to reduce expenses while at the same time increasing member services.

Both strategies can create a more effective level of member service and a sustainable association

structure, IF directors are prepared to address the seriousness of Dover Peak’s situation and the

value of the opportunity presented by Shelby District.

What are the main lessons from this case?

Change can be challenging: Most people respond to change better the more the nature

and goal of that change is communicated.

It is thoroughly evaluate all options, and if you don’t have the skillset, to bring in experts

who do.

The role of the EO in this situation is the guide the discussion, prepare a thorough

analysis, and respect the board of director’s decision.

It is important to separate the questions around the change scenario by first doing an

analysis, and then, understanding the political and governance implications.

It is important to remember that real estate associations are all businesses in the sense that

they must have a sustainable model to deliver services

leadership: real estate association executives out front/media/files/leadership/trainers/crae/m4...

Documents