What brokers often fail to do is examine their business models for adaptability to the evolving environment. This type of reflection helps determine under which scenario you should revamp your model and whether you have the capability to support it. There are 3 approaches we have adopted to help maintain our position in the market with the new consumer. These approaches include:

• leveraging our core competencies across all segments of the business model, • interpreting information and data strategically to create foresight and prioritize actions,

and most importantly, • tap the leadership skills of our managers to affect change and flexibility within the

organization. Hyundai adopted a similar approach to help establish their goals for adaptability in the highly competitive automobile market. They successfully exploited products, processes, and concepts that significantly transformed the demand and needs of the existing automobile industry. It disrupted former key players like Toyota, Honda, and GM creating a completely new business practice focused on customer experiences and service quality. During the global recession that followed the financial crisis of 2008, Hyundai was the only automaker that expanded its sales in the U.S. market and has overtaken Toyota in the Initial Quality Studies in North America.

To be successful, a broker’s business strategy, internal infrastructure, and strategy deployment requires synchronization. When strategy is aligned with a “lifestyle” approach, it retains and motivates agents and appeals to the generation of “wired” home buyers and sellers. This translates into optimal organizational performance and subsequently a competitive advantage. Successful organizations don’t benchmark against the competition. As in Blue Ocean Strategy, innovative brokerages don’t subscribe to conventional strategies of benchmarking commissions, cost, or value to the competition. The core belief of Blue Ocean Strategy is that organizations should create new approaches that behaviorally differentiate them with the consumer rather than wasting resources on trying to out-market the competition.

Strategy for the Millennial Brokerage By Oscar Gonzales Approaches to strategy are competitively driven. A broker’s strategy typically includes growing their geographic footprint, farming for new customers, recruiting new agents, and streamlining operations. Unfortunately, following this model doesn’t accommodate realignment strategies if disruptive products or services enter the space (i.e., Zillow, Trulia, discount brokerages, etc.). Tracking, monitoring, and managing strategy is imperative to keeping the organization’s goals and objectives in alignment.

Copyright 2013 Oscar Gonzales