Information and Context

1. Information and Context “Text without context is pretext” Information out of context paralyzes Information in context empowers

2. Information • Doubles every 18 months Gordon Moore • Sources of Power • Violence • Wealth • Knowledge (information in context) Alvin Toffler - Powershift • What business is your association in?

3. 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.

4. 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.

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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”

12. 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...?

13. 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?

14. The REALTOR as Consumer • Speed • Convenience • Choice • Value added • Discounts • Quality • Service • Technology

15. 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!

16. 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

17. 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

18. 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

19. 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

20. 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?

21. 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

22. 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

23. Current Programs • Resources • Staff • Volunteer • Capital • Revenues • Expenses • Allocated expenses What’s Missing? What Works

24. 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

25. 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

26. 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?

27. Competitor Survival in a “board of choice environment” requires you know: • Who • What • Where • When • How

28. Marketing • Elected leadership in a redefined role • Seminars • Orientation • First impression • CE credits • On line • Managing data base - targets • Staff must be customer oriented

29. 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.

30. 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

31. 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

32. Projects • Stability 1 in: 1+ out Results are now tangible Break even or better • Break through Discontinuous result • Apple • Microsoft

33. 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?

34. 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

35. 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

36. 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

37. 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”

38. 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

39. 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.