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Get Ready for Growth : simplebooklet.com

Key Takeaways and Insights

with


Charlie Young, President & CEO

Align and focus on future growth

10 -8- 20

10% sales volume market share / 8% unit market share / 20% sales price premium

Many of PAH companies are over these numbers in your local marketplace

Need to continue to be a leader in the categories and motivate to continue to grow

Important because they are quality measures (8% and 20%)

BHAG is 25,000 net incremental agents by 2020 = 11 agents/office over 3.5 years

How are we going to do it?

*Present ONE CB to the marketplace

*Utilize the brand in the way it was intended to be used

*Invest in growth initiatives

*Pilot in place in early July for recruiting agents in 6 markets

*Quick test, if test works, then we will roll out by the end of the year

*Looked at under-served markets (1%, 2%, 3% market share) and identified those markets / talk to local operator to stimulate growth in the marketplace and try to find a way to get us to our goal of 10%

*Serve agents, brokers, and consumers

*Agents making more decisions for themselves.  Re-direct marketing dollars to serve agents


*Differentiate via Products and Culture

*Focus on Zap platform, CBx and Smart Home

*Major investment in our learning platform / recommitting to education experience

Value Proposition: #1 place where they fall down is ability to articulate VP

Think about it two ways – consumer and agent/broker

Can model it back home in your marketplace

  • *Reason to buy – CB, rooter in a seller-based foundation, helps you achieve your maximum potential
  • *Sweet spot – how do we get agents to the next level
  • *CB Brand – is world renowned, standing for quality and integrity
  • *The network – 84,000 agents across the globe, there is a cultural connection.
  • *The Culture – Awesomeness, Homes for Dogs – tool to allow you to connect with your community,
  • *Tools that fuel agent productivity – CBx, Smart Home, Zap,
  • *Strategic Resources – Centers of Excellence, CB Business Advantage, Innovative Partners, Sales Resources, Financial Backing, Cartus TRG, Government and Industry Affairs,

  • How are you going to be consistent? How are you going to present your value proposition?

Brand goals

Getting to 10-8-20:

Mike Fischer, COO

Brand Vision & Growth Strategy

10 – 8 – 20 is the goal…leads to momentum.

Assuming market grows by 22% through 2020

  • *Increase price by 18%
  • *Agent count by 30%
  • *Sides by 35%
  • *GCI 60%

Brand Engagement – are you using the CB tech suite to your advantage?

If they are using the back end of Zap, your agents will be more productive.

Direct correlation between logins and increased agent productivity

BHAG 25,000 net new agents over four years

  • *Teams are here to stay and we need them to get to our 25,000 goal
  • *Average $70,000/agent to meet goal
  • *Growth goals are very doable based on averages
  • *25,000 net new agents / 1,400 from PAH companies
  • *Four years based on average increase per year
  • *Brand Tools, Brand Engagement, M&A’s

Broker Growth Panel

How do you approach growth?

  • Either get boutique or get bigger.  CB helped with M&A and we made a conscious choice to move in that direction.  We wanted to provide the right resources for agents/consumers – added marketing dept, accounting dept, etc.  we had to spread overhead among more agents.  Targeted location growth.  CB sales staff helped facilitate introductions for M&A.
  • Acquire other companies, decided to close one office (overlapping) and expand to other counties, we are strategically placing office in areas that we can dominate.

Do you set growth goals?

  • Yes, agent count, recruiting, retention.  Measure once/week.  Management call once/week – what have we done this week to improve things. Engage managers and set goals for them – recruiting, listings taken – go over every single month.  Put together bonus plan for office and company. Offer bounty for onboarding and bringing them into the company

Net agent growth/organic recruiting

  • New agents are low hanging fruit – lots of people want to get into the business.  Hot market in Colorado.  More difficult to bring in more experienced teams/agents, it’s possible, but a little bit harder.  Culture is key and word of mouth helps.
  • Started talking about recruiting to everyone – current agents, managers, etc.  This is going to be the year of yes.  Making the environment incredible…agents started telling other agents about environment.  Significant training program.  Weed people out who aren’t productive.  Not interested in agents who just hang a license.

Don’t hold onto agents who aren’t producers?

  • Depends on if they are trying.  Have minimum standards review twice/year.  Will hang on to agents for about 6 months.
  • Held onto agents and put workshops in place – how to sell, Zap, etc.  explain what tools are available to make them better. 

Productive Agents

  • Stuart - Bring across a culture when you bring on another office.  Some attrition occurs, but you must be recruiting to account for that attrition.  Will always be an ebb and flow with agents in your company.
  • Joan - Spent time getting the right managers in the right offices.  Great management team; managers are there full time and not competing; holding everyone accountable.
  • Stuart – had a general manager, didn’t feel like we needed a manager in every office.  Was wrong, that was not the case.  We needed to have a manager in each office.  Going back to managers and coaches in every office.
  • Have managers determine goals, and what they are good at.  One manager is responsible for going to open houses, etc., one is interviewing, etc.

Utilizing Zap

  • Stuart– have had great success with Zap.  However, have had some push back with agents because what they are currently doing is successful. 
  • Created a Kickstarter team of 7 people and 1-1, 2-1, 3-1 training…how to get started, how to enhance it…was really well received.  will help you own the market. 

Success with other CB tools

  • How are you driving engagement with CB tools?  Important for agents to feel like they are getting value – training, CB Exchange, keep on reinforcing it with little to no pushback

How did you ID M&A prospects?

  • Secret weapon franchise sales person.  Have geographically ID’d where we want to grow, couple with franchise sales to start the conversation and we propose what we will do.  People want to take part with something that is working.

Culture to recruit and retain agents?

  • Hired videographer and photography agents pay $100/video. 

Quick recruiting tip –

  • Just want to get to know somebody.  Know where they are going to be and get in their space.  And follow up with recruiting call.
  • Shark Spring targeted all agents within Summit County Colorado and would track to see they were watching us and follow up with a communication.

How to encourage agent usage of brand products –

*Share agent success stories to help drive attendance at agent training

  • * Decided to go “all in” with CB and CB tools and systems – Zap, CBx, CB Exchange, Global Luxury – send daily email – daily dose of Awesomeness

  • *How to get an emotional connection with your agents? – CBx as an example agents have embraced technology – leverage their successes combination of in house “evangelists” and out of house “evangelists” to help drive adoption

  • *Get agents to tell success stories – have agents tell the story.  Give gifts…who has the best Zap story

  • *Leveraging tools in a tight inventory market – not only does CBx help you earn that listing, but it helps you get full commission

  • *Retention tool…all leads are sent through Zap.  If agents are not logging in, they are not getting leads.  

  • *Find brand champions within the office for each product

  • *We’ve successfully taught Zap with 1-1, 1-2, 1-3 training.  The large group training not as successful as small group training.

  • *Increased success with Zap when office stopped running parallel sites

  • *Agents can earn GenBlue bucks towards GenBlue registration via office contests

  • *Withhold dollars from closings and match dollars for GenBlue registrations

Quote of the event:

And these are the stats:

"All In."

Deron Tucker

Coldwell Banker Rick Canup, Realtors

Dr. Kaihan Krippendorff is the founder of Outthinker, a former McKinsey & Co. consultant and author of four business strategy books, most recently Outthink the Competition. A sought-after keynote speaker, recognized expert and popular blogger on the topics of business growth strategy and innovation, he is helping a growing cadre of leading companies and corporations such as Microsoft, Oracle, Johnson & Johnson, Kellogg’s, TIAA-CREF and BNY Mellon prepare themselves to compete in a digital, agile, purpose-driven future.

A graduate of the University of Pennsylvania’s Management & Technology Program, Kaihan has spent more than a decade studying the intersection of language, technology, and innovation to drive competitive advantage. He earned his BS in finance from Wharton Business School, BS in mechanical engineering from the University of Pennsylvania, MBA from Columbia Business School, and Doctorate of Science in Economics from Abo Akademi.

The question today is how to disrupt and find the 4th Option.

First they ignore you, then they laugh at you, then they fight you, then you win. - Gandhi 

When the competition doesn’t take you seriously, you can sometimes advance your cause before they are ready to engage you.   You can win.

To grow, some companies can cut their fees and reduce margins.  But others, like Urban Outfitters, work with a very small demographic and think about everything differently.  From the inventory, from store management, from displays.   


The Lesson: Look for 4th Options for your business and you may need to look in unusual places.

How to come up with 4th Options?

Predictable ideas come up with similar processes. To come up with different ideas, start with

Imagine - 

Dissect - 

Expand and come up with lots of ideas

Analyze to find strategies, 

Sell – to figure out how to get buy-in.  

IDEAS (Acronym).

Workshop Notes

To expand your thinking and recall more information or to generate more options, find a way to recall more information with new memory tricks. 

Finding strategic narratives:

3 Narratives that successful companies use

  1. Locking up Resources – getting preferable access to input or resources
  2. Capture Customers – makes it difficult for customers to switch brands.
  3. Building or Leveraging Economies of Scale – makes it hard to compete

5 Narratives to find a 4th Option:

  • 1. Move Early to the next battleground – a confluence of trends to understand how things will evolve.

(i.e. – Bcash – finding a way to solve a problem before the competition can get there)

Gretzky was great because he skated to where the puck was going to be not where it was…

A pet food company had  to think beyond on how to track animal health…a fit-bit to the collar…or an implant that can give info on activity and health and then give options to have Vet input or medicine automatically sent…look for technology, buyers, sellers, social shifts and marketing approaches that may be options

  • Where is the next battleground?  And what can we do to get there before the competition?
    • Technology?   Buyers/Sellers? Social Shifts?  Marketing Approaches?

  • 2. Coordinate the uncoordinated -  Fish are in schools, birds in flocks.   Coordinating things that may not seem easy to coordinate.

McMillan created Spoon Reads for the Romance segment…you can submit manuscripts…get ratings…and then a contest determines who gets a contract (much more cost-effective than the typical process)

  • How to coordinate Agents?  Customers?  Partners?
  • Force a two-front battle –
  •  what’s your unique advantage or capability?
  •  What does that kind of company do differently?


  • 3. Be good -  When you stand for a philosophy, when you stand for a purpose, people will be attracted to that.

"Best Doctors” – supplemental health plan…gave 2nd opinion; many cancelled primary doctors recommendation…company is growing at 30% a year because it is good for the world.  

Bright Farms is growing food the right way and for the right reasons 

MasterCard CEO ia using digital technology because of transparency and accountability, changed their culture and aligned behind being a force for good  

  • How can you create a situation that can create growth for the world? 
  • What can you do? 
  • How can you communicate it?

  • 4. Create something out of nothing. – most people play with the pieces on the board, by the rules (whether stated or not stated).   If you change the rules, if you think outside the box, if you are stuck, go create something out of nothing.   Create a new category.

Air Asia – Did not attempt to compete with existing customers…went after customers who were not in the market – railroad customers –  

Ikea was created because competition did not want him in the game…he created a new game and started IKEA.  

BOOGIE WIPES…exact same product as a baby wipe…created a different approach and category…sold on a different shelf and different row in the grocery store…P&G eventually hired her away to run the Puffs Brand for them…

  • What would you like to add to the game?
  • New Customer?  New type of Buyer/Seller?
  • Create a new concept?
  • New category of home?
  • New occasion for the need for real estate?
  • New Needs?
  • If your business was a façade (and you weren’t making any money from brokerage), what would you do?  Where would you move the action?   What façade could you create?
  • Exchange a Brick for Jade – take something that doesn’t seem to have much value and add something that is valuable and profitable.
  • What brick can you give away, in exchange for something more valuable?

  • 5. Close the Exits -  It costs less to retain a customer than to acquire a new one.   How do you shut the door so they cannot leave?What moments of power can you capitalize on?

The Workshop

Part two:

Part one:

Part one:

Thanks for joining us, and see you at Gen Blue in October!

Special thanks to the in-house journalists that helped pull this content together:

Kelly Guerrero

Jill Hixon

Steve Carr

and the entire Home Office team.

An *extra* special thanks to bob Christian for 

all his help and support.