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Transformation from the Top Down

An ECG will grow within an organization two ways: Internally: Agents making the commitment after witnessing others' success; Externally: Recruiting experienced Net-savvy sales associates from competitors.

Properly nurtured and supported, a company's ECG will ultimately comprise most if not all of their agent population. Those agents who fail to get on board will eventually leave through natural attrition and their own lack of success.

When it reaches this point, the organization will have successfully negotiated the transition to full Internet integration.To successfully create, support, and continually grow an Internet ECG that spins off increased profits, innovation, and reduced overhead, requires a shift in the way most management views the Internet and its impact on the business.It also requires an alignment within the entire senior management team. It will not work if the: a) VP of Marketing sees the Net as just another marketing channel; b) Director of Training sees it as another "doomed for failure" attempt to teach technology; c) IS Manager sees it as an infrastructure and support headache; d) CFO sees it as just another excuse to spend money that could be better put elsewhere; e) CEO doesn't see it at all and prefers that others would just "handle it." It is critical that everyone sees the same Internet "big picture" and then works together accordingly.

Management will need to commit to two fairly simple ideas: 1) understand the true nature of the Internet and; 2) create the necessary environment within the organization to support a successful ECG. These are the minimal keys to a successful and competitively well-positioned transition to the 21st century world of residential real estate.

Conclusion

Despite all the changes expected in the residential real estate industry over the next few years, it will unquestionably remain a people business with largely the same players it has today: consumers, agents and organizations. What will change, and dramatically so, is the interaction of those players, the goods and services exchanged, and how everyone is compensated.

For those individuals and organizations that can adjust to this new "realty-reality", opportunities will abound. History teaches that this kind of fundamental shift will always result in an expansion of goods and services, and more jobs--not fewer--to handle them. If this is hard to imagine now, think back to the time when everyone was content using carbon paper to duplicate documents.

Along came a messy, hard to operate machine that broke down a lot, cost thousands of dollars, and did essentially what that 2¢ piece of carbon paper did. It took about 12 years for people back then to see the possibilities of the Xerox machine.

Thanks to the accelerating pace of Internet bred innovation supported by ever increasing computational capacities of the computer industry, we don't have 12 years to think about it. The consumer demands that we set our course now. The next 3 - 5 years promises to be a thrilling ride. Just how profitable (or even survivable) this adventure turns out for you will entirely depend on how well you can adapt to the inevitable high speed pitching and rolling that is the nature of this coming transformation.

Coming Next Week:
INTEL® Architecture

Contributing Author
Michael J. Russer
Michael J. Russer, President of RUSSER Communications, is an internationally recognized speaker, writer, and strategic consultant for the real estate industry about the Internet. His 22 years experience in the real estate field include the development of marketing and software systems as CEO for a high-tech mortgage consulting firm he co-founded. Also an authority on Internet risk management, he recently authored the industry's first comprehensive Internet policies and procedures manual for those companies that have agents active on the Net. He can be reached at (805) 882-1170 or mrusser@russer.com.