Strategic Planning – More than “forced family fun”
 
Changing behaviors can be really hard for us. Many of us are pretty self-aware about the areas of our life that need to be improved, but we sometimes have a difficult time of implementing them consistently.
 
The same holds true for businesses. As business leaders we are usually well aware of the areas where our organization needs improvement. Sometimes change is easier said than done. MLS organizations make statements like “We know our MLS should be more focused on the needs of our subscribers.” Brokers say “We know our brokerage should be more committed to creating and enforcing a consistent brand message among all of our agents.” In most cases organizations know what needs to be done, but they don’t always have the tools in place to make permanent improvements.
 
With the softness of the real estate market and some predictions of an impending recession, it is ever more important that organizations become more effective at creating operational excellence.
 
WAV Group engages in strategic planning sessions around the country. In our travels we see many groups that are committed to the process of planning the future of their organizations. With guidance they are usually very good at uncovering the key opportunities for improvement. In my days at Fisher-Price we used to call these kinds of sessions “forced family fun”. Everyone comes together, envisions a better future for the organization. The sessions are usually very positive and upbeat and most people leave the meeting feeling good about the event. The problem is that many of the far-reaching goals and ideas discussed at strategic planning sessions never see the light of day. Many strategic planning initiatives fall short of effective execution.
 
WAV Group has several suggestions on how to make the resolutions you make for your organization STICK.
 
Focus, Focus, Focus
 
We have reviewed several strategic plans which include a myriad of priorities and projects. While they may all be projects of value, they do not consider the time, budget and human resource constraints of an organization. When a board or MLS builds these priorities in a board-driven strategic planning session and then “hands” them to the CEO for execution, they are in effect setting up the CEO. In many cases there is no way to achieve all of the projects on the list. If a CEO’s bonus is based on the outcomes of the strategic plan, they are destined to disappoint which does not serve the needs of the organization or the board of directors.
 
We recommend that an organization take on no more than 5 key objectives in any one year. The staff can manage and report on five key areas monthly and help the board recognize the progress that is being made.
 
Action Plans
 
While just about every organization that we talk to says they have action plans in place to achieve objectives, many of them are static documents. They are built once and then never adhered to or adjusted. True action plans are dynamic. They are adjusted and refined regularly. They become the “bible” of the company, driving priorities for each and every person in the organization. The board is involved with any key revisions in priority which deviate from the agreed to priorities from the strategic plan.
 
Ideally, action plans are detailed with the lead person responsible, start date and completion date, budget required and any interdependencies with other projects.
Progress against the key deliverables is reported weekly to the Executive Committee and monthly to the board of directors. The well-run company demonstrates full transparency to projects being delivered at all times.
 
At monthly board meetings, the same set of objectives are outlined every month and the progress being made against each one is also reported.
 
“Good to Great” Benchmarks
 
There’s a book called Good to Great which was written by Jim Collins several years ago. The book talks about the importance of benchmarking progress against established goals.
 
WAV Group believes strongly that any priority outlined for an organization must have one or more benchmarks identified to help measure progress over time.
For example, we hear from many MLSs that they would like to see more member participation in technology training. Many have not quantified who actually does participate and what their satisfaction levels are. A company may want to set performance benchmarks for how many people they would like to participate. They may also want to measure current satisfaction levels and set goals for satisfaction improvement over time. As the company uncovers idea which may make their training more effective like offering new formats or new topics, they may also want to set performance goals about when the programs will be up and running. Each of these benchmarks will be reported to the board of directors regularly.
 
Here’s another example:
 
A broker is concerned that satisfaction levels with her clients is not as high as she would like. She does not have data to support her belief, just a feeling she’s getting because of a few phone calls and emails she has received. Because agent’s usually “own” the customer relationship brokers do not really know how well their agent’s are serving the needs of their clients.
 
A broker may want to first conduct a survey among current clients and recent buyers polling them on their satisfaction levels with their real estate transaction. Once she has determine the baseline level of satisfaction, then she may employ several strategies which she can also benchmark. She could conduct customer responsiveness training and require each of her agents to attend. She could set a goal for executing the program throughout the company. The broker may also put an ongoing customer satisfaction program in place which could measure client feedback at several brand “touchpoints” like websites, listing presentations, home showings, offers, closing etc. That way she can measure where in the process satisfaction levels may be stronger or weaker.
 
Brokers may also want to engage with programs from companies like QSC, Quality Service Certification (http://www.qualitycertified.org) which automates the process of getting customer feedback while providing training in customer excellence.
 
There are many examples of where benchmarking can be valuable in your business. The concept of benchmarking can be applied to software development, customer satisfaction, help desk performance, financial performance, employee recruiting and retention, educational programs and even marketing performance. Benchmarks can also be used to measure the effectiveness of lead generation and lead conversion programs.
 
When WAV Group conducts strategic planning sessions, we incorporate the disciplines of benchmarks set against a tightly defined set of priorities which are achievable with realistic and measurable action plans.
 
If you are planning an upcoming strategic planning and would like more information on the WAV Group Strategic Planning process, feel free to contact us at marilyn@wavgroup.com