The New Normal…Are We There Yet?

ThE ApRIL 18, 2013 uNC REAL ESTATE CONfERENCE ENTITLEd “ThE NEW NORMAL…ARE WE ThERE yET?” WAS AN INfORMATIvE ANd ThOuGhT-pROvOkING pRESENTATION Of CuRRENT REAL ESTATE TRENdS RELEvANT TO ThE COMMERCIAL dEvELOpER ANd INvESTOR

The presentations reviewed national marketplace trends and stats. Three significant issues presented themselves as occurring in the investor development world of transactions: joint ventures, company culture and knowing the numbers. Not surprisingly, the matters have relevance in the residential market as well.

Partnership or Joint Ventures

It appears that mutual cooperation fosters an “it makes sense to do this” transaction. A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge and of course, profits.

Joint ventures have been apparent in the commercial arena for a few years. The residential market may want to consider teaming up with another REALTOR®, group of professionals, or business entity for the purpose of expanding their business influence and creating a more powerful market presence. Joint ventures are in, and if you’re not utilizing this strategic weapon, chances are your competition is, or will soon be, using the strategy to their advantage. Possibly even against you!

The Company Culture

Company Culture can be defined as the shared values and practices of the company’s employees or affiliates. Daily interactions and professional execution of duties play an important part of the company philosophy and overall public perception of the organization.

According to Sohrab Vossoughi in the Harvard Business Review, (company) culture is one of those fuzzy terms that makes business analysts roll their eyes. Its true power lies in the fact that unlike other competitive advantages, it is nearly impossible to copy. Vossoughi defines culture as “the things that people in an organization do without thinking, often because of a precedent set by management.” He cites companies like Southwest, Costco and IBM as examples.

One of the conference’s joint venture company participants and Kenan-Flagler alum proved their expertise in the “git ‘er done” culture. It was evident in the successful venture’s outcome that the company culture was focused on competent and positive behaviors.

Inside the Numbers

I was first introduced to the Sunday morning NFL program “Inside the Numbers” a few years ago. If ESPN can examine the numbers for an NFL team or individual football player in just about any category you name, shouldn’t REALTORS® do the same? It is very important for REALTORS® to stay abreast of various statistics, market reports and trends to further assist buyers and sellers. It was evident during the conference that the presenters displayed a depth of detail and knowledge of their projects. The commercial REALTOR®, especially those involved with investment properties, looks “inside the numbers” with absolute rationale. A proposed project is analyzed from Main Street to Wall Street and then the area is surveyed with reconnaissance as ground troops pose as accountants!

James D. Murphy in his book, “Flawless Execution”, states a purposeful standard of execution. First a project is Planned, participants are Briefed, the plan is then Executed and afterward in the Debrief, the participants examine the plan’s outcomes creating a culture of learning.

Participants of the Kenan-Flagler alum project shared knowledge and discussed the entrance into the power of cognitive diversity. The established company culture helped facilitate individual accountability leading all contributors to learn and know the numbers. Everyone was not only accountable but also able to identify their part and others. Knowing the numbers meant knowing the anticipated outcome. Debriefing the team on the outcome creates a culture of learning that’s critical to adapting in a rapidly changing environment and producing better leadership skills.

The New Normal…Are we there yet? Yep-some of us are. v