1. BACK OF
BEYOND
Trends in Association Management
Judith Lindenau, CAE, RCE
October, 2012
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2. 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 practices
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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
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4. 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
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5. 1. SHARED
SERVICES
*Mutually beneficial relationships
*Building capacity with a minimum
of infrastructure investment
*Not duplicating services
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6. GBBR SHARED
SERVICES:
Shared Lockboxes—in effect in this area!
Working with MAR on Foundation project
Huston Association of Realtors Online Store
MAR resources for videos
MRIS resources for business statistics
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7. SUB- • To Other Realtor Associations
CONTRACTING NSBAR: Contracts out the
—A MERGER processing of complaints to Main
ALTERNATIVE Street AOR
To Non-Realtor Organizations
TAAR: Consumer Complaints to a
Dispute Resolution system in the
community
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8. SHARED ‘members insist that their
SERVICES associations practice good business’
IS
GOOD
BUSINESS
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9. COMPETITON 80% OF GBBR’S INCOME IS DUES-
FOR BASED. WHAT IS OUR MARKET SHARE
MEMBERS FOR THIS MONEY?
GBBR
ASSOCIATION
1
ASSOCIATION
NAR-MAR MRIS
2
ASSOCIATION
3
ASSOCIATION
4
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10. SHARED • As brokers see shrinking
profitability
SERVICES: – They look for ways to reduce
WHY NOW? 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
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11. 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.
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12. ELIMINATE: • 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/b
log/managing-volunteers/three Use
task forces, work groups, online
forums.
• In-person meetings and body-in-seat
educational events whenever
possible.
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15. HOW DO WE • Create strategic agendas
CREATE A • Create future-thinking budgets (leadership
STRATEGIC development, technology, R and D,
transition/contingency fund)
BOARD?
• 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’
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18. VOLUNTEER • Value time. Manage big jobs in little
MANAGEMENT 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
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20. CONDUCT •
•
Leadership Assessment
Purpose and Structure
A • Communication
CAPACITY •
•
Adaptability and Innovation
Human Resources
AUDIT • Financial Resources
• Professional Resources
• Collaborations and Partnerships
• Physical Resources
• Financial Management
• Intelligence
• Actions
• Evaluation
• Community Buy-In
• Technology
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21. Organizational Life Cycle
Stage Characteristics
Conception/ 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
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22. Organizational Life Cycle
Stage Characteristics
Late 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
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23. • Undefined leadership roles
• No policy direction to staff
GBBR CAPACITY
• Decision-making authority is undefined
AUDIT RESULTS: • Weak communication to membership
AREAS WHERE • No future vision and goals
WE ARE
WEAKEST • 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
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24. • Board of Directors attendance is
GBBR CAPACITY consistently strong
AUDIT RESULTS: • GBBR has sufficient financial resources
AREAS WHERE to meet its goals
WE ARE
• GBBR has good insurance coverage as an
STRONGEST
association
• GBBR has a strong cooperative
relationship between state and national
associations
• Association produces regular financial
reports
• Association follows good fiscal
management
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26. • Know your % of income from various
sources. In GBBR, 80% comes from DUES
• Know your % of expenses for each
PROGRAM program (including professional
BUDGETING 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
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Agendas: Consent Agenda. Education/Strategy item. Mission Statement. BOD List serve (seed it with issues). Makeup of the Board—affiliate rep, young professional rep (reverse mentor)
Members are younger. Not association junkies. Won’t do meaningless tasks or be motivated by traditional loyalties. They will demand your competency.
