Copyright 1995, Saul D. Klein. All Rights Reserved Information and Context “Text without context...

Copyright 1995, Saul D. Klein. All Rights Reserved

Information and Context

“Text without context is pretext”

Information out of context paralyzes

Information in context empowers


Information

Doubles every 18 monthsGordon Moore

Sources of Power• Violence• Wealth• Knowledge (information in

context)Alvin Toffler - Powershift

What business is your association in?


Change

Change causes upset

“Every organization has to be ready to abandon everything it does, to reinvent itself”

Peter Drucker

Change is continuous, it bubbles along until it reaches a critical mass and then it becomes visible to the casual observer.


Change

We are living in and through no less than a revolution and transformation of the real estate industry.

The way our members practiced real estate yesterday is not the way they practise today...and the way they practice today is not how they will practice tomorrow.


Change

What business will you be in 5 years from now?• Fewer practitioners• More technology

Not knowing will bring your demise• Railroads• Typewriters

Don’t dilute this. It is taking place whether we like it or not


Change

Fewer Brokerages No listing agents Changing (reduced)

compensation structures

From Time Magazine on typewriters:

Point of no return? Last week, typewriter maker Smith-Corona Filed for bankruptcy.


Change

An inevitability in the computer age? People in the typewriter business don’t seem to think so:

“People still like the idea of seeing the letter directly on the paper and being able to crumple up a sheet if they don’t like it, the way journalists used to do.”

Typewriter repairwomen, NYC


Change

“The typewriter...combines mechanical efficiency with a sense of individual freedom. Typewriters don’t straitjacket you like a computer can.”

Press release, typewriter manufacturer Lexmark Int’l

“Computers take a long time to boot up.”

Typewriter repairman, Albuquerque, NM


Change

“If you always do what you’ve always done

You’ll always get what you’ve always got.

If what you’re doing doesn’t work, try something different.”

“Insanity - doing the same thing over and over again and expecting a different result.” Rita Mae Brown


Context

It is a paradigm It has boundaries Boundaries shift A real estate association

serves within the context of the real estate industry, both now and in the future

You can design the future• Default• Design


Context

Creating and marketing products and services to our members and others to:

A. Replace lost income streams

Decrease in dues income

Loss of MLS income

B. Subsidize Core Services

and allow us to compete in a “board of choice environment”


Future by Design

Program Evaluation Review Technique

Critical Path What’s currently impossible

in our industry, and if it were possible, it would fundamentally change the way we do business?

What’s currently possible, and if it were impossible...?


Critical Path Programming

In scheduling any step in an overall program or job, there are three considerations:

What must be done before each particular phase can be started?

What things can be done concurrently

As we reach each phase, what do we do next?


The REALTOR as Consumer

Speed Convenience Choice Value added Discounts Quality Service Technology


Components of a Real Estate Transaction

Educate Locate/Market Negotiate Administrate Educate

Life cycle (selling cycle) of a real estate transaction

Days of the “real estate mortician” are gone forever!


Who is your Customer?

Survivors• Technophobic• Use office computer reluctantly• Prefer printed information over

computer information• Manage their data base with

paper and pencil• Take only required education


Customer

Young Lions• Highly automated• Extensive use of personal

computer• Use automated tools

aggressively• Attend educational events for

content value, not CE necessarily

• Not active in organized real estate


Customers

Established Successes• Automated or automated

through assistants• Utilize network prospecting• Utilize association offered

training and education• Participate in organized real

estate or at least understand its value

The Public


Board of Choice

Eliminates artificial boundaries

Leaves no room for artificial pricing, duplication of fees

Boards must competitively offer quality products and services services to REALTORS

An opportunity to redine our associations role

State of Choice


Board of Choice Choices

Do nothing Market subtly to surrounding

areas Target market • Adjacent major brokers• Dual member offices

Aggressive all out effort Merge

What is in the best interest of your member?


Board of Choice Consequences

Fewer future past presidents Fewer officers Fewer directors Fewer committees Fewer executive officers Less staff

Paradigms:Board of Choice plus technology will mean

fewer job opportunities

If we uncouple board membership and board membership, our boards will loose all their members


Current Programs

Core Services - those services our members can get no where else, or no where else cost effectively• Dues supported

Non - Core Services• Business or profit centers• Associations must compete for

member’s business Paradigm: Boards should not

make profits


Current Programs

Resources• Staff• Volunteer• Capital

Revenues Expenses Allocated expenses

What’s Missing?

What Works


What Does the Customer Want?

Develop a method of receiving input from your customer• At every gathering–Orientation–Educational programs–Mail back cards in publications– Outside surveys–Seminars–On-line

Ask continuously


What Do They Want?

Develop a “Menu of Services” Want it all Want it now Want it for nothing

Make more money

Stay out of trouble Legislative advocacy Legal and risk reduction Education Information


What Do They Want?

Forms Technology• What type of computer?• What type of software?• How do I set it up• What do I do when it doesn’t

work?• Can you send someone out?• Can the other board in the

area (competitor) help?


Competitor

Survival in a “board of choice environment” requires you know:

Who What Where When How


Marketing

Elected leadership in a redefined role

Seminars Orientation• First impression• CE credits

On line Managing data base - targets Staff must be customer

oriented


Tracking Results

Effective use of technology - Figure out a way to take technology to the consumer

Allows for cost effective target marketing

Costs of products and services -Gold or fools gold; allocation of expenses.


Create a Plan

Critical path Budget Manage resources Track Recognize the value of your

data base and develop and use it

Promote your association to your current members


This is a Project

Formulation - Brainstorming, ideas, dreams, vision

Concentration - Details

10 in: NONE out.

No “tangible visible results”

A necessary passage to reach the next plateau

Momentum

1 in: .75 out

Results are visible, but just barely


Projects

Stability

1 in: 1+ out

Results are now tangible

Break even or better Break through

Discontinuous result• Apple • Microsoft


Critical Path Context Consider change Concept Current Program Consumer Components Canvas Competitor Create Cast your net Count Chart a course What “C” word is missing?


Committees

“Committees should always be made up of an odd number of people and 3 is too many.”

What is the true cost of committees?

Allocate:

Staff time

Meeting Space

Administration/minutes

Volunteer time


Public Access to the MLS

Microsoft “M”LS Diffusion and confusion on

the internet New breed of home buyer Our monopoly on home

information is about to be broken REALTORS could lose control of the inventory

Time to unite RIN’s Internet Advertising


What is Internet Advertising?

An inexpensive new medium accessible by 20,000,000 users

.

Exists now, wave of the future

Currently over 300 real estate sites

Each site offers few listings

Site sponsors:

Newspapers/Magazines

Brokers

New entrants


Why Be concerned?

Continued fragmentation will weaken one of our strongest

assets, our inventory.

Continued fragmentation by brokers will allow non

traditional services to gain a foothold.

New entrants are not necessarily “REALTOR

friendly”


What is needed?

A critical mass

one place for the consumer to go to find real estate

RIN Internet advertising

Proven user friendly

Patented search

Ads written automatically

National Public Relations

MLS provide as member service


Conclusion

“A ship with no way on has no steerage”

You must continue to move forward

You must take action NOW. Inaction is a choice.

This is not a drill.

Copyright 1995, Saul D. Klein. All Rights Reserved Information and Context “Text without context...

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Transcript of Copyright 1995, Saul D. Klein. All Rights Reserved Information and Context “Text without context...