Transcript Best Practices for REALTOR Association Executives

Best Practices for
REALTOR Associations
Presented by Judith Lindenau, CAE, RCE
Traverse Area Association of Realtors
July 2006
BEST PRACTICES
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http://www.realtor.org/aesubs.nsf/pages
/bestpractices
AEC Best Practices Work
Group
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Christine Todd, Chair
Cindy Butts
John Fridlington
Nancy Gilmore
Carol Hawk
Keith Holm
Carol Hyman
Lee Kurtz
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Bett McCarthy
Sandy Naragon
Jerry Panz
Diane Ruggiero
Ty Strout
Kay Wertzberger
Malcolm Young
Consultants Interviewed:
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Henry Ernstthal
Philip Lesser
Dadie Perlov
Susan Sarfati
Jim Sherry
Report Addresses the Following
Critical Association Issues:
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How REALTOR associations can better serve their
members.
How AEs can achieve desired outcomes for their
leadership, staff and themselves.
How REALTOR associations can remain viable
and relevant to their members in a climate of
relentless change.
Explores Five Key Aspects of
Association Management
Member Services
 Public Policies
 Leadership and Staff Relations
 Human Resources Management
 Financial Management
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Part One:
MEMBER SERVICES
The best associations are those
that know how to “custom
tailor” the services they
provide to meet the everchanging needs of the
member.
In Member Services:
One Size Doesn’t Fit All
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One association may have the
resources to offer many services;
another may need to focus on
providing just one or two essential
programs to members.
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“Shared Services” may be used
among associations to enhance
existing services or offer additional
services.
If You Want to Provide and Maintain
the Best Possible Member Services,
You Must:
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Know what the important issues are now
and in the immediate future and be able to
discuss them intelligently with members
Talk to members about what is happening
in their business and be able to explain the
bigger picture
Continually seek input on member wants,
don’t just sell current associations
services
Ask non-members why they aren’t
involved in the association
Watch the Member …
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Observe members in their work
environment-- you will see patterns that
you won’t get from polls or surveys (staff
visits)
Respond positively to the style of younger
members (interest groups, leadership)
Focus on the needs of your high-achieving
members, avoid always responding to the
lowest common denominator (put your
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target market in your planning, and in
your strategic plan)
Utilize Member Service
Programs …
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Hold an annual “priority oriented” business
planning session and avoid writing open-ended
goals
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The Annual Planning session for incoming and
outgoing leaders…Plan and Prioritize
Make sure your members know the “real” cost
of every program you offer
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Use Planning Sheets: www.judithlindenau.com
Use your plan to drive the association’s programs
and services and its budget
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If you fail now and then make it a positive
learning experience
Stay away from offering services that do not
provide value to the member
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Relate Each Budget Item to the Plan
Who Determines this? The Member!
Always deliver more than you promise
Member Services -
Recognize geographic diversity and be careful
about adopting another association’s program.
What works in one area, may not work for your
association. Real estate is local and so is the real
estate business.
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Use technology both to network and to deliver
programs. Listserve! Blogs! Members only webs
(community building!)
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Continually remind members about the value of
the services you offer. Market with logos, slogans,
on every email.
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Be able to react quickly to challenges. Structure
Time Management—agendas, preparation.
Part Two:
PUBLIC POLICY
“You have to Educate Both
Members and Consumers”
“The Stakes are High
and Getting Higher”
REALTOR® associations determined to remain
effective are now allocating a significant
portion of their resources to “advocacy
efforts”.
Influencing the legislative and regulatory
process requires continual development of
personal relationships, a commanding
knowledge of the issues and strong
member backing.
The Advocacy Goal:
Move beyond RPAC fundraising and press
releases to become the “Voice for Real
Estate” in your community (Affordable
Housing, relief housing, smart growth)
Key Components of an
Advocacy Program:
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1. Provide public policy orientation to incoming
leaders so they understand the nature of legislative
relationships. Ask local advocacy groups to partner
with you on this: Chamber, Education, others.
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2. Put volunteer leaders in situations visible to
legislators, regulators and public officials. Be
systematic—make a list of visible places. Then
strategize.
3. Prepare a “Public Policy Statement” that documents
the association’s position on issues. Make sure the
members have it, and are informed.
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4. Have a dedicated advocate. This could be a
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5. If resources are limited, share a GAD. In
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volunteer.
Michigan, we depend on the state association.
6. Allow your advocate to receive input, provide
testimony and offer regular reports to the
members on all issues
7. Form partnership and coalitions with other
associations. Really important, and some unlikely
bedfellows…it depends on issues
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8. Don’t hesitate to think creatively. Be proactive
on some issues, like environment and affordable
housing.
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8. Use electronic contact systems to generate
customized email/fax/mail messages to
legislators, regulators and public officials
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9. Use surveys, polling, etc. to provide elected
officials with useful data
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10. Regularly set aside funds for issues
mobilization
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11. Educate homeowners to become advocates
on key real estate issues. Keep the focus on
“ordinary people” (Homeowners groups)
Keys to Involving Members
in Advocacy:
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1. In all issues, focus on the bottom-line impact
to the members’ businesses
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2. Obtain relevant data (including input from
members) before making decisions on political
positions
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3. Supply members with regulatory and legal
information in a summarized and
understandable format--REGULARLY
8. Manage members’ expectations -- a favorable
outcome at the municipal, regional or state
government level may not always be possible
Media Tips:
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1. The media needs valuable information it can sell to the
public. But don’t appear self-serving.
2. Become a knowledgeable source of information on
housing and “quality of life” issues. If you need to, hire
some data collection and interpretation. The media will
get this information somewhere, so you be in charge!
3. Look for creative ways to get PR. House the affordable
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4. Have a primary media spokesperson for the association
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housing group, host a community website, TAAR’s
wireless program, Hurricane Relief
(www.mikatrinahelp.com)
(usually the President or the AE, or both.)
Part Four:
HUMAN RESOURCES
MANAGEMENT
“Everything Starts with the People”
Successful REALTOR Associations
Attract, Train and Retain Great
People
Top real estate associations are
distinguished by their talented, dedicated
and motivated staff.
What does it take to recruit, train and
retain the “best and the brightest” in
association management?
Everything Starts with People:
Regardless of non-profit status, REALTOR®
associations must still compete with the
private sector for top staff people (and
volunteers).
To be competitive, associations must offer
equal salary and benefits, an attractive work
environment, the opportunity to learn and
develop professional skills and the potential
for advancement.
Recruiting the Best and Brightest:
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1. Take adequate time to prepare
and conduct staff interviews
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2. Be clear about the position
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3. Look for traits like: leadership,
motivation, and conflict
management skills
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4. Interview candidates from inside
and outside the real estate industry
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5. Look for professional credentials
such as RCE and CAE
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6. Hire people with positive, “can-do”
attitudes and personalities -- you can
teach skills, but you can’t teach
attitude
The Interview:
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Ask questions related to leadership
situations.
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Ask the candidate if they have any
questions. What they ask is often an
indicator of the person’s priorities
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Know the law, and what questions you
legally CAN’T ask.
Avoid Sources of Conflict:
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Lack of clarity in job roles (revise job
descriptions annually
http://www.realtor.org/rare.nsf/jobs?OpenView
&Start=1&Count=30&Expand=2#2)
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Undefined expectations
“Hidden agendas”
Retention and Career Development:
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Give staffers autonomy and decision-making power to
address problems while being guided by the CEO
Build a team and recognize team members
Keep staff challenged and provide growth opportunities
Use meaningful tools to evaluate performance
Not all rewards are expensive: look for meaningful
perks!
Consider Outsourcing or Shared
Service Alternatives:
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Explore outsourcing options when
appropriate, including professional
recruiters
Share services with other REALTOR®
associations (or other organizations in
your community)
Part Five:
FINANCIAL MANAGEMENT
“If You Can’t Measure It,
You Can’t Manage It!”
The Issue:
Top Associations know:
1. How to add up the numbers
2. How to report them to the members
3. How to analyze figures, maximize profits and
increase income
Top AEs use these talents to assist leadership in
making timely financial decisions based on
strategies and not emotions.
How do they do it?
If You Can’t Measure It, You Can’t
Manage It:
Successful associations link financial
management with their strategic plans. They
identify priorities and allocate funds based on
stated plan objectives. Don’t spend money
which can’t be tied into the plan.
Sound financial controls ensure the fiscal
integrity of an association and show the
members the association is acting
responsibly. Pay particular attention to
internal controls.
Financial Management:
Fundamentals
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Either the AE or the “number two”
must have strong financial skills
Board members need to be educated
in several areas:
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Fiduciary responsibilities of Elected Leaders
Conflict of interest policies and procedures
Roles of the treasurer, finance committee and
audit committee
Employee management (not something they
always understand)
Use the Association Legal Counsel to review this
subject regularly with staff and Directors!
Financial Management:
Fundamentals
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Select the volunteer treasurer based on his or
her financial skills
Eliminate automatic progression to the
Presidency
Put the financial reserve policy in writing
Be aware of federal and state legislation related
to financial mismanagement
Know the percentage of budget from dues
income, and keep that equal to the risk of
losing members.
Financial Management:
Budgeting
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Adopt program-based budgeting procedures and add a
powerful tool to justify the addition of new programs
and get rid of “sacred cows”. Use separate corporations
for some projects, and always present a financial
impact statement after a program or event.
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Be effective when you present the annual budget to
the Board of Directors. Construct a presentation which
meets their informational needs.
Pay more attention to next month’s financial needs
than to last month’s financial reports
Always try to reduce operational costs
Suggestion …
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Consider adopting an association policy
that: no resolution be sent to the Board
of Directors unless it includes a
statement on direct costs, physical
resources and staff and volunteer time
required!
Financial Management:
Generating Revenue
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Separate the association’s income stream into dues,
fee-for-service, and non-dues revenue
AEs and consultants have varying opinions on the
three income sources--common opinions are:
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Dues are ridiculously low in most associations
Board should focus on core services (Cost analyze
them—Pro Standards, RPAC, dues collection, Code of
Ethics Enforcement).
Some affinity programs drain the association -- stick to
the business of the association (NAR’s affinity
programs—example of affinity program management
through stated expectations)
Financial Management:
Internal Controls and Audits
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Create a system of financial checks and
balances
Be sure the audit and finance committees
are composed of different members to avoid
potential conflicts
Provide the financial committee with clear,
consistent and easy-to-digest information
and remind them that their role is to ask
questions. Think graphs!
FINANCIAL MANAGEMENT
CHECKLIST
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www.judithlindenau.com/associationresources
Financial Management:
Internal Controls and Audits
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Provide the audit committee with the
ability to both hire and fire auditors and to
review the association’s financial records
Hold a closed-door executive session with
the association’s auditor, allowing board
members to ask candid questions in a
confidential setting
Bid out the audit process every few years
Financial Management:
Reporting to Members
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Provide members with regular summary
reports of the association’s financial
performance
Present financial data graphically when
possible
At dues billing time, use financial data to
show members the benefits of their dues
dollars (create a benefits letter)
TIME MANAGEMENT
JOB EFFICIENCY
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1. DON’T REINVENT THE WHEEL
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P olicy manuals
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Personnel
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Leadership
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holidays, work hours, dress
Job descriptions
spokesperson
stationary use
Financial
General Operations
Job Efficiency: Don’t Reinvent
the Wheel, part 2
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Internal Use Forms
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Project Analysis (pre and post)
Staff Evaluation
Purchase Requests
Recurring Event folders, including suggestions.
Regular staff meetings
Use resources already available (ie,
Realtor.com)
Subcontract some jobs that need doing
Organizational Efficiency
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Leadership Planning: goals, year’s work
plan, strategies, time frame
Annual Calendar by January. All
association events (local, state national)
Your staff/volunteer work calendar dates,
indicating when work on a project begins
(such as the Christmas Party, or
elections)
Organizational Efficiency
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Count Time as a
Resource
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Add it into project
planning and into final
project cost analysis
Add a dollar amount,
when necessary
Make this an
association mind set!
Personal Efficiency
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Get to work early: spend an hour ‘off stage’
Make lists: Don’t be victimized by events
Create systems for recurring events
Use technology for efficiency and quick
response
Take time off
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Work at home
Vacations
hobbies
thanks for the opportunity!
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Judith Lindenau, CAE, RCE
Traverse Area Association of Realtors
852 S. Garfield Ave.
Traverse City, MI 49684
231-947-2050
[email protected]
www.judithlindenau.com