A SPLASH OF COLD WATER … THE OTHER SIDE

Surprise … the splash of cold water … my wake up call came this past week.  We had our second KWCP video demonstration on the customer relationship management (‘CRM’) platform through KnewVantage and SalesForce.com.  A few of us are trying to move KWCP into the 21^st century and build a bridge between the antiquated realtor model into the ‘new’ economic model which for most other industries is just standard operating procedure.  Unfortunately, the current realtor model is at least a decade behind the technology and business systems curve regardless of whether you consider C21, Prudential, Keller Williams, Remax, Coldwell Banker or another real estate brokerage company.  Recent prominent blog posts have the audacity to argue that the current realtor models can’t survive the Internet onslaught (see The Notorious R.O.B. or BuzzMachine).  For those who know me, guess what … I agree … it is just a matter of time … these models are headed to the graveyard (or will morph into a different model) along side with travel agents, newspapers (as we know them), book publishing, music stores, etc. 

Are you a middleman in your business … if you are … beware ... it is only a matter of time when the efficiencies of the Internet and Google will expose your underbelly.  No time better than today to ask yourself … what business am I in?  Who is my real customer?  And, what is my value proposition (or alternatively, what is my unique sales proposition)?  For a more complete discussion of these questions see previous Monday Mojos (September 7^th post).  

Those are but a few of the questions we are asking at KWCP.  And, we have come up with some interesting answers, along with a few incredible systemic strategies.  Strategies that overtime, with the proper resources and mindset shifts will modify the existing realtor axis.  Ah, that is both their strength and weakness … because they represent fundamental change … and for most of us we resist change at our core.  Ergo the splash of cold water!

So as I engaged with those who participated in the webinar demonstration, they greeted me with cordial pleasantries.  But when questioned, I was quickly confronted with the resistance we will need to over come, if we are ultimately successful in our quest.  The questions and opinions that persisted included:

• Who is going to pay for this transition?  How much will it cost?  Even though these questions were answered several times, which leads me to ask myself, what is the real objection?
• How is this CRM application any different that other contact management systems available? 
• How does cloud computing benefit me?
• Why should I join the company CRM platform or its cloud when there are free resources out there through the local MLS?
• I just want things to remain as they are today?
• Collaboration sounds great, but really, I am not going to expose my business to other realtors in the office.  But if they want to share their systems, contacts and marketing strategies then great.
• The broker is not really going to change and dedicate the resources necessary to make this paradigm shift successful.
• This is all good, but all we need to do is increase our agent count by eight new agents a month.
• We tried other systems and applications previously and they bombed, so how is this going to be any different?

These were just a few of the comments and questions hanging like the ‘elephant in the room’ following the presentation.  Significant enough that I had to gather myself and avoid the obvious judgments that … really they didn’t grasp the quantum potential in the solutions being outlined.  That this CRM solution and the proposed ‘cloud’ is nothing they have encountered before in its depth, scalability and potential.  The technology platform outlined will provide the backbone for individual agents and KWCP to provide a level of service to their customers that no other brokerage company will be able compete against on a consistent basis – at least until other brokerage companies get on board.  Clearly the old paradigm continues to be at the heart of the issue or fear – the agent as an independent contractor model. 

After a few moments of reflection, I summarized that it was not a problem with the agents and attendees at the webinar … but really I failed!!  We will need to do a better job as we move forward with this initiative.  Servant leadership, consensus management and collaboration (interesting leadership styles) are powerful models that ultimately out perform other management styles; however, it takes more effort to build than other autocratic decision-making models.  Oh well, these bumps in the road just means that we need to make a few tactical modifications, and articulate the ‘value proposition’ in a way that is clearer for every agent and the Company – the ‘value proposition’ must be so overwhelming to build consensus, and phased in to minimize natural resistance points.  Even then, we must prepare ourselves that not everyone will jump on board.

The question that continues to gnaw at me though is … When is a ‘value proposition’ for an organization and its customers enough to motivate comprehensive buy-in and adoption?  Is that enough to achieve the lofty goals and vision outlined?  The only answer I have been able to muster through the doubts is ‘I hope so’ …  What do you think?  When does a ‘value proposition’ become so complete that the target audience is moved, even at the risk of change and in light of its alter ego – fear?  Let me know your thoughts.  I am interested in how these hurdles exist in your business or in your company?

I hope you enjoyed the reflection, and take the time to consider how these questions and evolving business models present significant opportunity for all of us.  Most importantly, I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know or visit us at http://www.coastalcommunityhomes.com.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys