What Can Today’s Real Estate Broker Learn From Steve Jobs’ Legacy?

By Jeremy Conaway
April 27, 2012 – 9:44 AM

Earlier this year Walter Isaacson, the CEO of the Aspen Institute,published Steve Jobs, a bookthat has become the definitive history of one of America’s most admired business executives. The book became an immediate best seller. However, interestingly enough, based upon reviews, blogs, and columns about the book, it quickly became clear that few readers had captured the correct message of the book. In this social media focused world, more readers found value in criticizing the book (not Steve Jobs) than in learning from it.

Enter, The Harvard Business Review (HBR). The HBR, recognizing that Mr. Jobs was obviously going to make his mark on American business history, decided that some clarity was appropriate. Therefore, they requested that Mr. Isaacson draft an article that specifically set forth the exact lessons that the American culture could learn from Mr. Jobs. The result was excellent and every American business executive and leader should spend 30 minutes studying the wisdom offered through the article.

The idea behind this column came together after one such review, when that wisdom was applied to the current real estate industry. Despite the fact that Jobs fought his battles in an industry that some might think could not be more different than real estate, the fact is that many of the challenges were exactly the same. The relevance of Steve Jobs story becomes even greater when one realizes that much of his success occurred in a business environment not that much different than the one that real estate brokers find themselves in today.

A couple of cautionary comments are in order. The purpose of this article is not to suggest that Steve Jobs was the world’s greatest executive, nor that everything he did was great, nor that everyone should strive to be a Steve Jobs.

The message here is to suggest that (A) Steve Jobs was a very successful man who built what has almost universally become recognized as a “great” as opposed to “good” company in a world very similar to today’s business environment, (B) that real estate brokers are or should be seeking out business strategies that can succeed in the new market environment that is even now creating a new real estate marketplace, and that (C) while some elements of the Jobs’ “wisdom” may represent new ideas and concepts, others may simply reflect the famous “basics” that everyone wants to return to. In the case of the latter, reading about them may do nothing other than validate the fact that some good practices never change. It is a “win-win” either way.

Mr. Isaacson’s article raises 15 specific lessons to be learned. This discussion suggests that six might have an immediate application to contemporary real estate brokerages.

1. Focus.

When Jobs returned to Apple, it was offering over 20 distinct products. When his revolution was completed it was offering four. Industries from food service to airlines to automobiles have discovered that learning to do just a few things really well enhances overall business success across the board. A compelling argument can be made that many of today’s top brokerages are attempting to do way to many things and as a result aren’t really distinguishing themselves regarding any specific task. The prioritization of tasks is the critical first step here. Be it profitability, the consumer experience or universal accountability, pick something and become famous for it.

2. Simplicity

Complexity will go down in history as one of the legacies of the boomer generation. Much of this phenomenon was driven by the fact that the Boomers were the world’s first nearly universally college educated generation. From that experience came an obsessive need for validation by making everything as complicated as possible. The folly of that approach is even now obvious given the fact that one of the first things that technology has undertaken to do is to simplify formally complex processes through software applications such as WebMD, Legal Zoom, Quicken and TurboTax. Simplicity will go down in history as one of the things that the modern consumer finally won in their efforts to dismantle the convoluted world of the “me” centered Boomer business world. Nowhere is this complexity/simplicity conflict more clearly demonstrated than in the real estate industry’s current rejection of transaction management. The traditional industry clings to the complication and non-transparency of its “service provider centric” legacy as if life itself was at stake.

3. Take Responsibility End to End

The lives of Steve Jobs and Harry Truman had a number of things in common but one of the most glaring was their allegiance to the concept that the “buck stops here!” In a world that had an excuse for every failure and a scapegoat for every misstep Jobs chose to adopt a classic position that excuses are no substitute for performance. A review of the current real estate industry literature discloses that one of its most common themes is the need for brokerages to take control of their businesses. The demographic model inspired by the post 1975 rise of provider centrism simply didn’t work. Someone has to be in charge.

4. When Behind Leapfrog

One of the most difficult aspects of today’s business world is understanding the competitive environment. The traditional wisdom demanded that executives and business leaders focus on the competition within their industry. But in Steve Jobs’ world and, increasingly in American business, competition comes from entities outside an industry and from changing consumer expectations and demands. The i-Pad isn’t a response to competitive pressures; it is a realization of what consumers ended up wanting and demanding. The entire line of Apple products represents what Jobs thought would fit the consumer’s emerging lifestyle. Whatever creativity or innovation is coming out of the real estate industry today seems to be more focused on what the competitors are doing rather than what consumer might want. It isn’t clear that history will award the founders of Zillow “Jobs status” but it is clear that this is their focus and the league they are playing in.

5. Don’t Be a Slave to Focus Groups

Henry Ford beat Jobs to the punch on this one when he said, “if I would have ask American’s what they wanted they would have said a faster horse.” Part of Jobs’ ability to take responsibility for his actions was his willingness to the take responsibility for what direction Apple products should take. The real estate industry is on notice that its traditional experience is no longer resonating with today’s consumer. Perhaps its journey to its new destination might be easier if consumers rather than providers populated the focus group.

6. Tolerate Only “A” Players

Jobs was relentless in his goal of having the Apple team be the “best of the best.” More than anything else he has been criticized for being way too demanding and judgmental of his players. He never failed to put mission and product before popularity and peace. Today’s real estate brokers might consider following this lead. Loyalty is a fine thing but only when it is directed to real objectives and goals like profit and accountability. Being popular with one’s provider panel and management team is no excuse for tolerating “B” players. It all goes back to Jim Collins’ 2001 admonition in From Good to Great, “get the right people on the bus.”

Take a few moments to track down the April edition of the Harvard Business Review. It will be well worth your time.

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Will Your Association Achieve Pinnacle Performance?

By Jeremy Conaway
April 9, 2012 – 8:30 AM

The following article continues this column’s ongoing series about our transitioning industry, marketplace and transaction.  Last month readers were encouraged to recognize the benefits that their REALTOR® membership provides and the potential of REALTOR® organizations to represent their interests moving forward.

This month’s article will focus upon a new program designed to provide participating state andlocal REALTOR® associations with advanced training in key areas that have been identified as essential to their new roles. NAR CEO Dale Stinton recently announced the program during NAR’s Association Executive’s Institute (AEI).

The American real estate industry consists of four elements.  The first is the service provider segment populated by direct service providers who function as brokers, agents or support personnel.  The second element is the affiliate group that provides the industry with direct services such as information, technology, MLS, title, Internet, financial (mortgage related” and various transactional services.  The third element is what is commonly referred to as “organized real estate,” and is comprised of REALTOR® associations at the local, state and national levels.  The fourth group consists of consumers who, at any given time, might be buyers, sellers or homeowners.

Over the past several decades the relative power and influence of these segments has fluctuated and continues to do so today.  At the current time individuals and entities within all four segments are engaged in a competitive effort to exercise control and/or influence over the future direction of the real estate marketplace and transaction.

Organized real estate is very much engaged in this process.  Lead by the Second Centuryinitiatives, designed, developed and supported by the National Association of REALTORS® (NAR), organized real estate at all three levels appears to recognize the importance of its role and viability.  The more pressing question is whether or not organized real estate at all three levels will come together to support and advocate a common position that will be sufficient to protect the interests of its REALTOR® members.

Few experts disagree with the notion that in order to meet this challenge organized real estate will have to coordinate and collaborate its efforts.  This in turn will require fielding a winning team that brings all three levels of the movement together in a manner that is coordinated, collaborative, powerful, focused and “relevant” enough to appropriately respond the many issues that the industry is facing.

During the second and third quarters of 2011 a team working with Stefan Swanepoel, publisher of the 2012 Swanepoel Trends Report, conducted an exhaustive research project that examined every aspect of the current REALTOR® association operation and mindset.  Much of this research was reported in the “Trend One” Chapter of the 2012 Swanepoel Real Estate Industry Trends Report.  This publication has been or will be read by the vast majority of American real estate principals, executives and managers.

The research established that by and large the REALTOR® associations at the state and local levels were not maintaining a pace sufficient to keep them current with industry trends and opportunities.  The conclusion was reached that unless this situation was remedied in the very near future the vitality, usefulness and ultimate relevance of these organizations would be severely limited.  A strong argument can be made for the proposition that the failure of state and local associations to rise to the occasion could ultimately negatively impact organized real estate’s ability to play out the role envisioned by the Second Century Initiatives as well as the efforts being made by agents and brokers to transition themselves into the new marketplace and transaction.

Creating Champions of Change

The new program is referred to as the Pinnacle Group Project.  It seeks to engage at least 100REALTOR® associations into a learning and training experience designed to both bring them together in their advocacy efforts and to either develop or sharpen the skills that will be necessary for their to prevail in these efforts.

The learning and training elements of the Pinnacle Group Project promote a wide range of organizational skills sets through eight modules that range from Promoting Consumer/REALTOR® common interests, setting strategic directions and integrating communications to building leadership excellence, maximizing mobile and social media mindshare and pushing for perfection.

According to Stefan Swanepoel, a member of the innovation team that designed the Pinnacle Project, “every one of these modules will incorporate the current wisdom and teachings of the “best of the best” experts in the field of organizational performance.

Each of the eight modules will include new knowledge, hands-on training, specific assignments, orientation videos, practical tools, and coaching components.  The modules will be delivered in a sequence that builds on the skill sets provided by their predecessors.

In announcing this new project Dale Stinton recalled the audience’s attention to the 2009 Game Changer program and made it clear that “this is my personal game changer.”

As of the writing of this article, registration for the project, which kicks off during the May NAR Mid-Winter Meetings, was brisk with over 400 Association Executives and Chief Elected Leaders representing over 200 associations having signed up.

Jim Sherry, another member of the innovation team, stated, “Through this project, organized real estate will create a powerful group of high performance state and local REALTOR® associations that can come together over the next few years and deliver the competence and passion necessary to support REALTORS® in the new industry environment.

Make sure that your REALTOR® association at both the state and local levels is part of this exciting new initiative.  Together we can do this.

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Searching for a new Strategic Partner? Take Another Look at Your REALTOR® Association

By Jeremy Conaway
March 6, 2012 – 6:27 PM

The American real estate industry is in the midst of a significant reconfiguration of relationships, alliances, arrangements, constituencies and partnerships. Traditional relationships are being dissolved as both firms and agents discover that the realities of today’s online and digital world is increasingly inconsistent and incompatible with the shapes, sizes and nomenclatures of yesterday. Every existing industry relationship is being reconsidered. By way of example:

  • The industry’s relationship with the MLS
  • The Real Estate Professional’s relationship with the REALTOR® organization
  • Rethinking their syndication relationships
  • Rethinking franchise relationships
  • Reevaluating the nature of the Brokerages/Agent relationship
  • Reconsidering relationships consumers
  • Brokerage relationships with third party portals
  • Broker to broker relationships through IDX
  • Everyone’s relationship with technology
  • Everyone’s relationship with information

New innovative, creative and some fairly radical relationships are evolving. New partnerships, consortiums and combinations are forming. It is an exciting time in the industry.

However, it is alarming to note that some of these transitions and new relationships all too clearly reflect the relative panic being felt by some, within the industry, who seem almost desperate to trash the old and adopt new relationships with untested entities with unspoken agendas.

How is this trend impacting the REALTOR® movement?

Record numbers of real estate professionals are electing to discontinue their REALTOR® membership. There is a growing sense that the REALTOR® movement doesn’t understand what is happening in today’s real estate industry. This sense is, to a great extent, based upon a belief that the REALTOR® movement isn’t part of the solution and can’t change. We believe that this is a misnomer of herculean proportions.

This article is not intended to be a defense of local REALTOR® associations. In fact, quite the opposite. As Stefan Swanepoel has pointed out in his excellent 2012 Industry Trends Report, the REALTOR® association is, across a wide range of measurements, “on the brink of irrelevancy.” There is reason to be concerned that many local REALTOR® associations are not even considering, let alone evolving with, industry developments. A quick read of Stefan’s comments would seem to suggest that, from that perspective, the outward migration of REALTORS® is appropriate.

The thrust of this article is (1) To suggest that, for real estate professionals, the process regarding all aspects of future strategic relationship should be treated as business decisions, not emotional choices, (2) That real estate professionals should incorporate into their analysis a number of key factors when making these decisions and (3) That abandoning the REALTOR® movement without some effort of rehabilitation violates the most basic rules of survival, logic and common sense.

Real Estate Professionals should to take the following factors into consideration when evaluating future strategic relationships:

  • Does the proposed strategic partner truly appreciate the history and challenges of today’s real estate industry?
  • What is the true nature of a long-term relationship that will promote, support and sustain a professional “hands on” business and/or career? “Strategic” means something different than personal, social and cultural. These might be a benefit, but the focus of the selection process must be upon tools and benefits that convert into productivity and profitability.
  • A significant number of real estate professionals seem to be enamored with the idea of going it alone. The “I don’t need a stinking strategic partner” theory reflects a total lack of understanding relative to where the industry is headed and deserves no attention whatsoever.
  • How long has the potential strategic partner been in the industry? How many market cycles has it survived? How many of the experiences you have had has the proposed partner survived?
  • What are the proposed partner’s core values? The absence of stated core values is, for all intents and purposes, the absence of values.
  • How committed is the proposed strategic partner to the human factor? Keep in mind that a number of major players within the current real estate space are focused on eliminating the human factor (or at least its highly compensated elements) from the service delivery formula.
  • How much does the proposed partner’s leadership/management team really know about your business? Enough to be your partner in a long-term strategic relationship? What input would you have into their strategic or tactical direction? Perhaps a seat on their BOD.
  • What is the financial structure of the proposed partner and how are they funded? How vulnerable or conducive is the proposed partner to a buy out and/or take over. Who will be your strategic partner in two years?
  • Consider the ramifications of being a permanent vendee. Think over the last argument you made in favor of ownership versus rental and apply the same argument to your proposed new partnership.
  • What are the long-term objectives of the proposed strategic partner? Keep in mind that, during the fervor of the immediate situation, things will be said and agreements reached that will not survive the long-term.

The benefits of selecting the REALTOR® organization as your new strategic partner.

  • The national REALTOR® organization (NAR) is today, and has been, for the past 4 generations, one of the most powerful entities in our industry. Surveys have demonstrated that it is one of the most powerful institutions in the country, from any industry.
  • NAR holds title to an amazingly powerful array of political, organizational, financial and member support resources. It has, in place, a volunteer structure that incorporates the energies of thousands of educated, trained and sophisticated volunteers who work on projects impacting virtually every aspect of the real estate industry and marketplace.
  • NAR has a powerful influence over every aspect of land use and real estate marketing in the United States today.
  •  Through programs such as House Logic and Real Estate Today radio NAR has the potential of establishing influential relationships with millions of American consumers.
  • Through its 21st Century Initiatives, NAR has the potential to support real estate professionals moving forward in transactions and activities that only now are being developed.
  • At the local level, the REALTOR® movement is also impressive. Over 1300 local associations provide member services, over the entirety of the nation. Each is a freestanding unit with a complete organizational structure. Everyone involved is a working member of the local real estate community. Each makes definite contributions to the greater community.
  • The fact that any of these units haven’t felt the need to embrace the new industry and take advantages of its opportunities does not speak to the value or solidity of the organization; only to how it is being directed.

Is everything NAR does perfect? Certainly not! Is everything NAR is currently doing supportive of everyone in the real estate space? Certainly not! However:

  • For those who perceive a threat in the present situation, NAR is a suburb lifeboat.
  • For those who perceive the opportunity begging to be discovered in the present situation, NAR is one of the most powerful battleships afloat.
  • For those who deny any situation exists, NAR is a great insurance policy.
  • Most importantly, NAR and its local association system are a magnificent action resource that can, with a little effort, be ready, willing and available today with tools that can affect the best result.

There is no question that the REALTOR® organization must adapt, especially at the local level. But neither should there be a question that such a movement is possible. As always it is a matter of innovative leadership and communication.

If you are considering a new strategic relationship, take a moment to consider the above points regarding your proposed new partner. Consider the energy that will be required to make that relationship work and the chances of its success. Consider how many years that new relationship will take to mature and to serve.

Then consider what might happen if you invested the same level of energy and passion into the REALTOR® movement. You already own it. It already understands the human element. It already has a powerful infrastructure in place. Hands down this is your best strategic partner, some assembly required.

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What Should Brokers Be Doing in 2012?

By Jeremy Conaway
February 11, 2012 – 6:16 PM

It is not too late you know. Remember that the first draft of your 2012 “To Do” list was created in the hustle and bustle of the year-end business cycle and the chaos of the holiday season. Before we slip out of the first quarter there is still time to take another look at the reality of the day and make a few adjustments. This piece has been created to give you some ideas.

First of all, remember that 2012 is a presidential election year. Regardless of your politics and philosophical perspective the fact is that somehow, magically, economies tend to get better around this event. There have been no small number of positive turns over the past sixty days. Unemployment rates are down and the Dow Jones really, really wants to blow past 13,000. The real estate marketplace is showing excellent growth and, for the first time in years, the media is beginning to report the “top ten places where housing values are going up.” Consumer spending is up (albeit on credit) and overall attitudes are looking quite positive.

No one is suggesting that Americans should declare Friday to be a national party day but, overall, there is clearly a positive feeling in the air. For an industry that has been peering out of bunker slots for the past few years this must be taken as a positive sign and that, in turn, calls for a positive response.

As a starting point revisit your “surf’s up” action plan. Most of the brokers we work with have been creating a list of changes that they are going to make in their businesses when the signal is received that normalcy has returned. Many of these lists were started back in 2009 when survival was clearly a question and brokers said to themselves; “If I survive this downturn I am never going to make this or that mistake again.”

The single most popular item on the North American real estate broker’s reform list seems to be the adoption of universal accountability. Brokers declared that if they survived the downturn they would never again operate a business in which they are the only accountable participants. Universal accountability exists when everyone working with the brokerage accepts full responsibility for the success and yes, the profitability, of the firm.

The second most popular item on the list sounds like a New Year’s resolution and goes something like this. “I promise I will take charge of my business. I promise I will be an effective leader with a clear vision and a dynamic action plan.”

The fact is that our industry sort of lost its way in the leadership department during the last twenty-five years. It was during that period that the boomer generation agents popularized the mantra “I don’t need no stinking boss.” Today both X and Y generation agents understand the need to have someone on the team that can glean a vision from the big picture and who can manage human and financial resources into the realization of that vision for the benefit of all concerned. They may not want a “boss” but they very much want a leader with a vision, a plan and the passion to make them happen. They understand the benefits of today’s technology and the opportunities created by the new consumer. They just need someone to help them bring it all together. The awesome role of the now common “team leader” reflects these developments.

Another popular “To Do List” item traces its roots back to those firms who waited too long to get on the short sale land rush and missed the distressed property ground floor. Now these folks are lining up to not make that same mistake relative to the rental play.

The industry has been hashing out the rental issue for the past two years. Thankfully it has overcome the initial threats of the naysayers who suggested that home ownership was on the rocks and that rentals would become the rule rather than the exception. The industry now understands that, for a variety of reasons, (higher mortgage eligibility requirements, lower wages and salaries, high student loan debt for instance) more Y generation households, compared to generation X households ten or twenty years ago, will now have to wait a bit longer to be financially strong enough for home ownership.

This “rental delay” is creating another great opportunity for brokerages that understand that the draconian property management of the past has now morphed into the more Marriott-like rental practices of the present. The new objective is to build relationships with tenants that will mature when they are ready to purchase. This new trend also ties nicely into the fact that more and more foreign investors are moving into residential property ownership and will be seeking enlightened management options.

Foreign investors appear high on the broker list. In 2011, foreign investment in American real estate continued to grow in leaps and bounds. In communities like Miami, over 60 percent of residential real estate was purchased for occupancy or rental by foreign investors. This raises two possible additions to the brokerage “To Do List”:

1.  Get fully engaged in the foreign investment segment of today’s marketplace. There is no need to wait for a magic moment in the future. It is here now. An excellent starting point might be to review the results of the October 2011 NAR survey of the Miami marketplace. It offers some excellent insights into the dynamics of how this emerging segment operates. Another must is to get involved with the international market energies of your local REALTOR® association.

2. Identify what your community is doing about putting out the welcome mat for foreign visitors who may be considering investment, relocation or just plain tourism. Check out local quasi-public (Chamber of Commerce, REALTOR® Association and/or Economic Development) and government websites. Do they incorporate appropriate messages relative to foreign participation particularly for Chinese and Brazilian visitors? It appears as though Asia and South America will power this initial flow of capital into local real estate markets, including many markets that have had no prior experience with this opportunity.

These and many other ideas, tools and trends are just waiting to be incorporated into the traditional brokerage as it senses and investigates the next phase of its history. Before the end of the month, take a few moments to review your current vision to ensure that it has considered all of the options and opportunities that this new year brings. We can do this.

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We Need to Talk?

By Jeremy Conaway
January 20, 2012 – 12:11 PM

For many men, certainly those in the Boomer and Civic generations, there are no combination of words that bring so much terror as “we need to talk.” Statistically, almost nothing good ever came from this beginning. Quite the opposite, it generally means that some cherished bad habit or habitual behavior is about to be called on the carpet. Almost certainly apologies and groveling will be involved. If every there ever was a time for a natural disaster to strike, this would be the time after hearing this phrase.

The explanation for the above scenario is simple. The ugly truth behind “we need to talk” is that in genuine relationships the participants regularly interact and communicate (so I have been informed) on a fairly intimate basis. These interactions are not comprised of clever or witty remarks, tired old lines or insincere representations. Such things would be disrespectful in nature. Unfortunately, while many individuals don’t want to be disrespectful, neither do they want to be enveloped by the emotional and intellectual responsibilities of a genuine relationship.

What, you ask, do these ramblings have to do with professional and business interactions within the real estate industry? The fact is that moving forward they will have everything to do with your business success because, as every expert in behavioral psychology can tell you, American businesses and consumers are now entering into the “Relationship era.”

The evidence of this transition is everywhere, but it is most apparent in the amazing shift that has recently occurred in mass media advertising in almost every segment of consumer marketing. Commercials, both print and electronic, for more and more major brands, are featuring interactions and testimony with real or fictitious consumers. Social media and consumer interactivity have become a major force in spreading the message and brand of successful companies and products. In other words your success may no longer be tied to what you have to say about your firm or its services but, rather, what your customers have to say about your services and more specifically, what quality and depth of experience they had while using your services.

As always the difficulty is in the details. What steps does a brokerage or even a team owner have to take to move into the relationship space? Here are six areas to consider:

  1. Honesty: Take the time to sit down and talk about why your firm exists and its value system. If you like the traditional process of pulling the wool over the consumer’s eyes, then you are probably not a good candidate for future success. If, on the other hand, you and your team would like to operate at a higher level, this new era is your golden opportunity.
  1. Sustainability: Businesses now must recognize the haphazard and tenuous nature of success which is measured over the short runs or seasonal terms. In a business environment comprised of evolving and transitioning realities, every business core value must be demonstrated and sustainable regardless of external are environment factors. This is one of the central lessons of the past 60 months.
  1. Accountability: In this new environment, someone must be actively exercising control over every aspect of the business. The essence of a relationship-driven business model is trust and transparency. These elements will only occur when a value driven broker is the supreme commander, the symphony director and the boss. Agents are either part of a successful brokerage team that can generate sustainable profits and dependable incomes, or they are off the bus.
  1. Transparency: Consumer trust cannot be purchased, and it cannot be build upon insincere representations generated in advertising and marketing campaigns. Trust comes from truth and transparency. The age of success through pulling a hood of deception over the eyes of the consumer is essentially over. Today’s consumer starts out every relationship by being cynical and then, almost universally, uses the interactivity and transparency of the Internet and social media to establish trust. Companies who are silent on the subjects of trust and transparency are deemed to be suspect. We are taken back to Eastern Airlines and their suggestion that they had to “earn their wings every day.” Real estate brokerages must not only earn their wings; they must ensure that their customers are willing to articulate the fact that they found trust.
  1. Core Values: Holding the line on trust requires the brokerage to establish and absolutely maintain a sustainable set of core values. Why are we here, why are we doing this? Is it to make money, is it to assist consumers to purchase and sell properties or are we doing this to promote the positive virtues of home ownership? Each of these statements must be supported by a unique set of core values. Every element of the service experience must support the firm’s core values.
  1. Value Proposition: The core values must be delivered within the parameters of a solid and sustainable value proposition. Value proposition is the term applied to the totality of the consumer experience. It is not acceptable to have a transparent website but agents who have not bought into the core values structure. Today’s consumer is focused on trust and integrity and will quickly identify an organization without universally accepted and promoted values. Any defect in the delivery of the promised value proposition will immediately be discovered and reported by consumers.

The concepts discussed above are really not difficult or unduly complex. They are however objectionable to real estate professionals who believe that the basis of every transaction is the power of their personality to force a consumer to act in a manner that is not in their best interests (The People Business theory). Be it price, condition, terms, environmental factors or market factors consumers, when they discover that they have been the victims of such a deal, consumers are now in a position to punish the “perp” in a manner that makes a law suit seem almost preferable.

The good news is that the passion of consumers, who have gone through an experience and transaction that was safe, trustworthy, transparent and that created a positive relationship, will be more than sufficient to carry the reputation of any brokerage into a very successful future. This is the Promised Land.

Brokerages are now facing a split in the road. Take the right turn. It is the only way to go. 

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Will the New Brokerage Business Model Be a Retread of an Old Brokerage Business Model?

By Jeremy Conaway
January 13, 2012 – 4:06 PM

There is an axiom that cautions “Be careful what you wish for”. That advice has never seemed more relevant than today with respect to the continuing transition of the American real estate brokerage business model.

A bit of history. The current business model traces back to 1947, when the dirt peddler of 1939 returned from World War II to discover the post WWII economic boom and the beginning of an entirely new housing market.

Veterans from the farm wanted to live in a different environment and the suburb was created. Veterans whose legacy was without college wanted an education and thousands of apartment buildings were built. Young people, whose siblings had lived down the hall from their parents, moved across town and condominiums and suburbs were created.

The primary driver of this amazing housing experience was a newly redesigned real estate brokerage. The “broker” was passionate, engaged and saw themselves in the opportunity business.

Back then brokers were creating careers for real estate agents and many veterans availed themselves of that great opportunity: low entry costs, quick start, a professional image and best of all, no stinking boss, like that sergeant in the army, to tell you what to do.

The original “broker centric” business model was a miracle to behold. Brokers across the country built strong businesses and in some cases virtual empires around this simple arrangement. Brokers learned to be in charge, even if that didn’t mean being the boss of the agents. It was fair and equitable. Brokers matched their risks with super revenues and agents matched their efforts with great incomes.

The broker centric model remained viable until the mid 1970’s when, for a number of reasons, a Jeffersonian movement swept across the industry. Perhaps driven by the advancing age and prosperity of the first generation of brokerages, or perhaps by the growing strength of the agent force, the relationship between agents and brokers transitioned. In 1974 the REALTOR® movement transitioned to the “All REALTOR®” model, forever banishing a world in which only brokers could be REALTORS®. It was during this period that the super agent and the 80/20 and even 90/10 split began to emerge. During the period of 1975 through 2000 the industry’s entire focus and energy engaged the “Era of the Agent.”

By 2001, another era had begun to emerge. Technology became king and the Internet became the new venue. Third party players extended their influence. Then, even as the market of 2005 shot skyward like a NASA space launch, disaster, in the forms of the housing crash, the mortgage crisis and a recession struck and the real estate dark ages came to be.

The dark ages have been over for a couple of years. In many parts of the country the market is exactly where it should be, given the statistics of the past 30 years. Interestingly, the market returned in a whole different form and substance. The fact that brokerages continue to bleed, and agents continue to bemoan, is not a market issue but rather a brokerage business model issue.

The “broker centric” model, developed to bask in the glow of the post WWII economic boom, and the “agent centric” model, developed to capture the boomer generation’s glory days (including a 13 year heart throbbing boom), were designed and developed for market characteristics that no longer exist.

The good news is that the industry now accepts the fact that there will be a new brokerage business model. As always, the devil will be in the detail.

The bad news is that too many industry experts are suggesting that we return to the “good old days” and create a new broker centric business model.

This line of reasoning could not be more wrong. It is short sighted and fails to take into consideration the most important change characteristic of all.

Throughout the post WWII economic boom the consumer was, by and large, an uneducated and unsophisticated chump. The simple fact was that there were enough resources around that a certain percentage of consumers could get exploited without raising any undo attention. Even the magnificent boomers, with half of their membership being lawyers, took their hits in stride. There was so much raw economic opportunity that the consumer just kept on marching across the landscape.

Today the entire consumer sector is alive and motivated by knowledge, sophistication and power. Witness the recent events regarding Bank of America, the Coke can, Netflix and a dozen other examples of enhanced consumer power. Today’s consumer has the sophistication to discover what’s wrong and the Internet and social media weapons to punish and even destroy the offender. Experts tell us that this is just the beginning of new “Era of the Consumer.”

Given the above history and circumstances, why would anyone suggest that our industry should (or even could) return to a broker centric business model. If all the evidence points to an increasingly powerful consumer, with the knowledge to know the difference and the power to make things right, why would the real estate industry start the next era by posturing for a battle with the consumer?

If it is because there is a sense that consumers won’t allow a profit to be made, that is false. If it is because there is a sense that the consumer doesn’t want to use professional services, that too is false. If it is because we believe we can dominate today’s consumer as we did in the past, think again.

The fact is that we know exactly what today’s consumer wants, because they are us! We want simplicity, innovation, speed, relationships, entertainment, collaboration, transparency, value, integrity, scrutiny, customization and community service. We also know all of these things today’s consumer wants reflect precisely the parameters and performance characteristics of a great business in today’s economy.

Let’s vote for consumer centricity! Then we can get on with a whole new era of brokerage success and profitability.

 

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How Will High Performance Agents Fit Into the New Industry Models ?

By Jeremy Conaway
December 13, 2011 – 4:03 PM

This article is about an interaction that is becoming increasingly more common throughout the industry – a call for consultation from high performance ($12M +) agents, in the most immediate case, three “30 something” high producers. A pre-dinner interaction at a posh bar and a vegetarian dinner with a giant mushroom is today’s equivalent of yesteryear’s rib-eye dinner. These are the blessed moments, wherein participants speak of their hopes and fears.

The conversation starts out slowly, because it would not be cool to suggest that there are any problems in the historic paradise of those agents who are at the very top echelons of marketplace production. We talk about who is living where, the last fabulous vacation, how really good everyone is doing this year, the best place to buy great shirts.

Then, slowly, the conversation begins to find traction in the realities of today’s conflicted marketplace. Shared observations about current practices, recent experiences and new market variables. Casual questions about what is happening in other markets. Thoughts are shared about how things are ‘changing’, and apparent solutions. By the time the second glass of Silver Oak hits home, the real issues begin to hit the table.

For years the upper 10% group has been told, and willingly accepted, that their status, incomes and practices would be immune from any changes sweeping across the market. Now, for the first time, they are becoming aware of the fact that the new convergence-impacted marketplace, with its emphasis on profitability, will render them as irrelevant as are their less productive brothers and sisters. They are coming to grips with the fact that they have more to lose. They have begun to think about what they should be doing to protect their current market position, while at the same time integrating into the new practice model.

The first step that agents must take to protect their future positions is to gain a conversational expertise on exactly what is happening in today’s American real estate industry. After being told, from your early days in the industry, that you are invulnerable, it is a major wakeup call to suddenly realize that your survival isn’t a matter of self-determination. Positioning one’s self to be knowledgeable puts one face-to-face with the industry’s silence regarding current directions. Things are so bad that it is actually possible to attend some of the most important industry meetings without hearing a single thing about current challenges or future directions.

Consider the following (A checklist format has been incorporated to enhance the ability of this material to support a discussion format):

• The current brokerage environment is a very complicated one.

___ Few have made a market level profit over the past five years

___ Many are near the end of their financial resources and most have been unable to make necessary capital improvements

___ Few if any sales or acquisitions are occurring other than “shotgun marriages”

___ Most have been operating on minimal staff and a very liquid bricks and mortar formula

___ The average age of brokers is over 60

___ There is little or no capital in the sector except that coming from parent company donations and broker asset liquidation

___ Few brokerages have created transition plans and fewer yet are discussing future options with their agents for fear of breakage.

• Brokerage relationships are, and will continue to be, critical to agent careers.

___ Moving forward, much of the business will be controlled by larger entities who either have powerful Internet and consumer positions or relationships with those who do

___ Productivity, accountability, profitability, specialization, standardization and transaction management will be hallmarks of the these entities

___ These entities are not likely to enter into agent relationships that are not capable of generating
market level profitability

___ Without a clear and compelling plan, which includes appropriate synergistic agent relationships, a
brokerage is not likely to succeed in this new environment

• Agents must understand what they can’t control.

___ The economics of free enterprise

• It’s primary function is to drive profitability

• Function will inure to an entity that can integrate it into a profitable package

• A 2 trillion dollar plus industry will not be allowed to drift within the economy

___ The realities of the consumer control

• You will not be allowed to operate out of your car

• Consumers will want the strength and stability of an organizational structure of some kind

• Perhaps your team will morph into a brokerage, but how will that help you?

• Focus on what you can control.

___ In all likelihood you will spend the remainder of your real estate career with some manner of
vision/plan/structure

___ You will want to be situated when the economy settles into its new configuration and consumer centricity
reaches its zenith

___ Over the next eighteen months you have an opportunity to make decisions about what kind of structure
you can accept and support

___ The Agent must know what kind of vision plan structure of which to be a part

___ The Agent must be willing to work to create and contribute to that kind of vision/structure

___ The agent can determine the characteristics of a structure that would be acceptable and compatible,
so long as it meets the ROI requirements.

• Here are some recommendations

___ The broker must be a leader who is willing to be in control

___ That leader must have a documented vision that can be articulated. “Trust me” is no longer acceptable.

___ That leader must be willing to share the vision plan, and the execution.

___ Your leader must be willing to help you navigate an agreed upon career path

___ The Agent must be willing to merge their career with the vision plan.

• The vision/plan must have the following traits:

___ A Detailed succession plan

___ Generate a market level profit and return on investment

___ Be able to grow and prosper within the chaos of extreme competition

___ Be consumer centric

___ Be Internet fused

___ Document acceptable standards of practice

___ Provide the Agent with a comprehensive data package

___ Demand and enforce universal accountability

___ Utilize acceptable financial management procedures

___ Have an enlightened corporate management team

This is an amazing time to be in our industry. However, the practices of the past several years that have contributed to the industry’s current distressed condition will not long prevail. Agent/Brokerage relationships will be critical moving forward, but many Agents will not willingly bare responsibility for their role in that relationship.

There are a great number of practice options for agents who are willing to become part of a profitable, productive and structured brokerage team, but very few options for lone rangers.

Talk to your broker today about the road ahead. Be knowledgeable and demonstrate your understanding of how the new environment will impact your practice. It may be one of the most important conversations of your career.

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What is a Student of Our Industry?

By Jeremy Conaway
October 31, 2011 – 12:25 PM

One of the many joys of my work is being able create and innovate with some of the most intelligent men and women in the country. I was so engaged one afternoon last week with a group of real estate professionals in Tennessee when one of my companions uttered what, in retrospect, seems to me to have been a genius observation. As the group labored its way through a particularly strenuous discussion regarding the current industry environment, one of the participants, Sam Martin of Chattanooga, preceded a comment by saying, “I consider myself a student of our industry, but I fear there are not too many of us.”

The brilliance and validation of Sam’s comment is being reflected in way too many discussions, blogs, presentations and discussions by, and between, individuals associated with today’s real estate industry. There is now a growing sense within our community that something is very wrong and has been very wrong for a long period of time. At first we blamed it on the crash of the market, then it was the recession and then it was the market. Even more recently it was the economy. But as each of these faceless causes has passed, our attention has remained focused on the seemingly undeniable fact that perhaps our problems lie closer to home that these global issues.

An extremely relevant essay by Professor Donald Simanek of Lock Haven University cast light on the subject.

The Merriam Webster Dictionary defines a student as one who studies, an attentive and systematic observer. Dr. Simanek takes the definition of a student a bit further. He suggests that being a student means engaging in what he calls the four As: attitude, academic skills, awareness, and accomplishment.

Simanek goes even further. He adds the following characteristics to his definition of being a student.

  • Self-discipline. The successful student will learn to budget time, and use it efficiently, and will do the things that need to be done, when they must be done, whether or not one feels like it at the time .
  • Initiative. In short: doing things without being told. The student doesn’t wait for assignments to read ahead in the textbook, or to seek out and study related books to gain understanding.
  • Breadth of interests. Great environments provide great opportunities to broaden interests and explore new things. But those who confine themselves to the things they have always done, avoiding anything new and unfamiliar will squander a valuable opportunity.
  • An open mind is a mind receptive to examination of new ideas and facts. Having an open mind does not mean that one jumps on the bandwagon of every new fad. A better characterization of an open mind is one that is willing to dispassionately and rationally analyze new ideas, weighing them objectively against established knowledge and the facts at hand.
  • A critical habit of mind. Life is more than the retention of dated information. It includes the ability to acquire new information, to critically evaluate that information, and to correctly and effectively use it. With so many information sources at our disposal in this computer age we are awash in information, and in danger of information overload. But much of that information is fraudulent, worthless, incomplete, or just plain wrong. It has always been so. One of the benefits of being a good student is the ability to see through false and unfounded claims and outright deceptions.
  • Perceptiveness. The more you learn, the more perceptive you become. One learns to “read between the lines.” The good student no longer needs everything spelled out; but can fill in missing details. They aren’t dependent on being shown; they can puzzle things out for themselves.
  • Objectivity. Non-students take an “egocentric” view, expecting everything to have some relevance to their needs or desires. Non-students impose strict interpretations on things they learn, and avoid learning some things because they don’t seem important at the time. Students learn that mere unsupported personal opinions have no value in a professional discussion. Students learn that the world does not revolve around them.

Today’s American real estate industry is facing one of the most critical periods in its long history. The current crisis is not the product of a market or an economy, but rather our insistence on viewing these circumstances from the perspective of our individual best interests. We have seemingly lost touch with our legacy of working together and more importantly our ability to combine our mental resources.

We have begun to keep the company of and to pay tribute to an increasing population of pirates, predators, foragers, pillagers, plunderers and more than a few fakes. None of these individuals or their gangs intend to contribute to the common good of our industry but seek to take advantage of the current situation and the confusion that it has created.

The crisis is being exacerbated by many of the very individuals that have been charged with protecting the industry and ensuring its successful future. In today’s hostile and conflicted real estate industry, it is no longer possible to tell friends from enemies by the color of their uniform or the name of their organization.

Protecting ourselves, moving forward, will require us to reenergize our lost skill of thinking and acting like the students of our own destiny. It is time to come together and bring the four “A’s” into our professional lives.

  • Maintain a positive attitude and use the light that it provides to think your way through the current confusion.
  • Drag your academic skills out of yesterday’s trunk and put them to good use. Learn about the amazing dynamics and forces of today’s real estate marketplace.
  • Be aware of what is really happening in the industry and market around you. Be aware of the less than noble agendas of so many of those who would suggest that their mission lies in protecting you.
  • Be a person of accomplishment and achievement. Take your life off of hold and reconnect with the passion and excitement that brought you into the industry in the first place.

Understand that today’s real estate marketplace is generating is a whole new set of opportunities, competencies, rules, and relationships. Don’t be guided by the course and rules of 2004, they will only serve to ground you on the shoals of irrelevancy.

Victory in the battles that lie just ahead will not come from compromising values and ethics under the guise of protecting the status quo. Victories will come from real estate professionals who approach their futures like students, by engaging their minds and potentials into a new marketplace. Defeat will come from those who refuse to be students of their own destiny and cast their lot with others who are confusing protecting the status quo with moving the industry forward.

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Whoops, There Goes Another Rubber Tree Plant

By Jeremy Conaway
October 20, 2011 – 11:15 AM

What does an ant, that is trying to move a “rubber tree plant”, have to do with the contemporary real estate marketplace? For that matter, how does a ram, that wants to topple a “billion watt” dam, figure into our current industry landscape?

Both of these references come from that famous song “High Hopes”, first popularized by Frank Sinatra, with music written by Jimmy Van Heusen and lyrics by Sammy Cahn. It was introduced in the 1959 film A Hole in the Head, which was nominated for a Grammy and won an Oscar for Best Original Song at the 32nd Academy Awards.

The song is about the importance of positive thinking in the face of difficult times; the need to maintain, well, high hopes and about the fact that good things happen to those who keep the faith.

We should all have high hopes about the future of our great industry.

In mid-September Redfin, a Seattle based “new generation” real estate brokerage with operations in a dozen or so real estate markets across the country unveiled its “Redfin Scouting Report”. In its most basic form, this is a web-based search that was attempting to return statistics on the professional activities and success of real estate agents within the markets that Redfin serves. Information such as neighborhoods served, properties listed, properties sold, buyers represented, time on market, and sales price versus listing price. In other arenas these are referred to as Agent Performance Statistics.

From its very beginning the Redfin program was fraught with accuracy, data, licensing and public relations problems. The blogosphere was explosive in its coverage of events, some positive and most negative. Finally, in early October, Redfin announced that, for various reasons, the entire program had been scrapped.

During the short weeks of the program’s existence, pretty much the entire real estate industry reacted as if it had been struck by lightening. As one of the industry’s most articulate observers, many were drawn to the comments of Brian Boero of 1000 Watt Consulting, who blogged that the Redfin product was, “the most disruptive online real estate play in years”? It was, in every way, a classic market game changer.

So why was this such a big deal? What is so important about agent performance statistics? Actually it is quite simple. For the past several years consumers have made it abundantly clear that one of the most critical pieces of information that would make them feel safe in the transaction is knowing something about their agent’s competence, experience and success.

Surely no one can be surprised at this disclosure. We all agree that the purchase/sale of one’s residence is the single most important financial transaction in modern life. In fact our marketing plays on that distinction.

Is there anyone left, within reach of the Internet, who doesn’t attempt to research and learn as much as they can about almost every transaction, interaction or experience they enter? Forget critical things like potential spouses and cardiac surgeons. Think about more common experiences like the best $6.00 hamburgers on Yelp and $4.99 rental movies on Rotten Tomato. We live in a world where would-be diners want to know which chef is cooking before they commit to a reservation. What if it was their son, daughter or grandchild in need of a special medical procedure? Would anyone just accept whoever was on duty at the local “Doc in the Box?”

What makes this lack of disclosure even more interesting is that the industry is risking its reputation, and perhaps its future financial viability, in an effort to protect marginal performers, agents who are new to the industry and individuals who aren’t even agents yet.

As we have discussed multiple times before in this column, these issues are not a matter of blind loyalty to the industry. They are a matter of learning to live with the fact that in today’s real estate marketplace the consumer is the single most powerful entity on the scene, and is gaining more power and influence every day. Unless we align our interests with this consumer, we are paving the way for the entry of new competitors and additional government regulation on one hand, and a continuing deterioration of home ownership as the centerpiece of the American dream on the other hand. This is not about the status quo, it is about a new marketplace that is taking shape around us.

This being the case, and given the fact that agent background information is some of the most sought after information in the marketplace, we should give an award to whatever powers have been successful in denying the consumer this information for this long. Now that was a game changer.

So what lies ahead? The Redfin episode, regardless of their agenda or motivation, represented an attempt to breech a perceived wall of silence. The mere fact that Redfin was willing to risk the public ridicule and abuse they are now experiencing should be sufficient evidence to establish just how important this information is to both the consumer and any inside or outside competitor.

Rather than focusing our attentions on punishing Redfin for, what may well have been, a botched power play, and desperately seeking to raise the walls of non-transparency, we should be interacting on a whole different level. Do we really believe that we will be able to hold the line on denying the real estate consumer the very information they hold most dear, at the same time as we exhaust our resources trying to convince them to re-enter the real estate marketplace so that we can support our careers, build our businesses and feed our families?

Do we understand that every time we lose one of these battles we permanently destroy another part of our already diminished value proposition?

Where is the leadership that should be gathering us to think our way though this dilemma? Where is the intellect we need to work with to solve this crisis and meet the needs of our consumers in a way that is fair and viable for all concerned? When will we work together, as indeed our trademark branding suggests, to build a better future for all the participants in the real estate transaction?

Agent performance information is just one of a number of issues that we will be facing over the next twenty-four months. Today’s real estate industry is alive with bright, articulate and sophisticated people at the agent, brokerage and organized levels. We can use these issues to both prevail and to create a more powerful, productive and profitable future for ourselves and the REALTOR® of the future.

Lets recall the final verse of High Hopes ….

All problems just a toy balloon

They’ll be bursted soon.

There’re just bound to go pop

Oops there goes another problem kerplop.

We can meet these challenges. We can prevail. We just have to meet them with our heads together.

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Is There A New Ethic Out There?

By Jeremy Conaway
October 12, 2011 – 10:56 AM

Like many boomers I have generally ignored the growing “occupy Wall Street” movement. By virtue of age, gender and entrepreneurial bent I have been unwavering in my support of no holds barred free enterprise as the ultimate American business tool.

The system has been good to my wife Marlene and me.  Despite meager beginnings we have six college degrees and two successful businesses between us and we have enjoyed one heck of a great lifestyle over the past thirty years.  Things aren’t as good as they were five years ago but it is still reasonably good.  We were able to help our son graduate from law school and pass the bar last summer.  He could find a job any day now.  We are big on being thankful.

Over the past several years we have lost tens of thousands of dollars from our retirement and savings accounts.  Sure we had the feeling that what went wrong was more than “the turn of the dice” and “bad luck” and perhaps had we watched our “money guy” more closely our loses might never have occurred.  We know there are no guarantees in the investment world and that eternal vigilance is the cost of success.  Besides there is enough left over to start building again. We weren’t anticipating retirement anyway.  It wasn’t the complete disaster that happened to others.

Last year when Marlene and I finally got the message that it was time to learn from the idiocy of our McMansion (That after all we weren’t forced to build) we were the only seller out of thirty eight in our market price bracket who managed to both sell in 2010 and realize 94% of our asking price.  So there was that luck thing again and how could we complain about that?

We have always been fiercely loyal and thankful to my clients and my wife’s patients who have made our good life possible.  I cannot help but notice that more and more of my client’s assets are being invested in “Global” (Read not USA) markets and I understand that this too is the conventional wisdom.  I try to be philosophical and say to myself, this is just my son’s world in which to survive and after all, at least he is not facing the draft and a trip to Danang like his father.

So with this knowledge and wisdom firmly in hand I have, to this point, chosen to ignore Michael Moore and the Occupy Wall Street movement (Just like I ignored the Vietnam war protest in an earlier life).  These must just be losers who can’t compete.  After all, one of my closest friends, the ultra conservative psychiatrist, assured me that the unions were paying all of the protesters in any event.

Last week I decided to purchase the new iPhone to replace my old iPhone.  I decided to keep my existing carrier but to use a vendor who might have more time so I could avoid standing in line with ten thousand children while I addressed yet another new technology.

To my great surprise I discovered that my carrier had changed plans some fourteen months ago and had failed to inform me that under the new plans I could have saved over three hundred dollars per month.  Four thousand dollars, wow!  Back in the roaring times that would have been chump change but today….. well it might have paid for a number of things that have been taken off the good life list.

So how was I supposed to feel about this finding?   I tried out the, “hey they got me” approach but it didn’t feel so good.  I was left to ask if this is really the rule of American business.  Is its ethic anything you can get away with is just good business?  Opp’s have I just become a protester?

What do those in the Wall Street movement know?

  • They know that millions of Americans have lost their savings and their retirement
  • They know that millions of Americans have lost their homes and their home equities
  • They know that billions of American dollars are being moved overseas and that only chumps invest in the domestic market in amounts greater than are necessary to escape regulatory or political scrutiny.
  • They know that a very small group of money guys, who were wise enough to put themselves in positions of financial trust, have realized profits and wealth far beyond what even the infamous Yuppies aspired to.
  • They know that these end games were not accidents but rather came from techniques developed and deployed by the brightest minds in the American economy.

What do those who are active not know?

  • They don’t know the rules of today’s business world because they aren’t being documented.  Like the Civics’ fraternal lodge of old the current rules are being handed down behind closed doors between the old order and the new
  • They don’t know what role patriotism is playing in today’s scenario
  • They don’t know what role ethics are playing in today’s scenario
  • They don’t understand why business is abandoning America
  • They don’t know what vision the folks in control have for American in five years.

The protestors are currently being criticized because they can’t or refuse to articulate the specifics of their complaints.  But where would you start in the above scenario?  They are caught in the same trap as the women’s movement of the 1960’s.  They know something is wrong but they can’t put their fingers on what it is.

The protestors are not criticizing the rules; they are asking that the rules be clarified. This would be tantamount to the Vietnam protestors asking how we were going to win.

So what (Thank you for your patience) does this have to do with the real estate industry?  We have our own growing protest.  It surfaced again last month with the events surrounding the Redfin Agent Survey Program.  We all know that one of the top two or three pieces of information that consumer would like to have in order to declare real estate a safe activity is information about an agent’s history.  It is a very simple issue.

If our industry’s position is that you get what you get in terms of agents then we need to declare that to be the rule.  If we truly believe that an essential part of our business value proposition is to protect the same new, inexperienced and/or incompetent agents that are bankrupting our brokers rather than the consumers who just wants to be able to trust us then we need to make that declaration.  Is our self-respect and personal ethic really comfortable with turning our heads and acting like we don’t know what the consumer wants?  Doesn’t it make sense for the future of our industry and home ownership in American that we consider acknowledging our society’s growing demand for transparency and openly embrace or reject that concept?

With this step the consumer can then make a decision whether they want to play under these rules or not.  My suspicion is that they will make another election.  But that is exactly what is going to happen if we keep turning away from this very simple expectation.  We can win this battle but the first step is realizing that it is going on.

Oh by the way, I know something about that Michael Moore fellow that he would not want you to know.   Over the past six years he has partnered with a super conservative Rotary Club in Traverse City, Michigan to rebuild a classic 1920’s movie theater, to create a world class film festival and to give birth to an economic renewal of our downtown that is producing new jobs, raising property values and, heaven forbid, giving rise to a whole new sense of community between young and old alike.   There, that ought to ruin his reputation.

 

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