I was talking with a really smart broker the other day who explained to me how his firm – an operation with over 2,000 agents – had done away entirely with the office manager/managing broker/office VP position.
An admin staffs each office, but only after it reaches a certain size. The functions typically performed by the office manager are handled in a centralized support center.
It’s working great. His company is profitable.
Real estate at arm’s length
We’ve worked with a lot of brokers over the past couple years, helping them re-create their marketing strategy and revive their brands. Office managers – not agents or corporate staff – are frequently the single biggest obstacle to making that happen.
Executives bemoan their salaries, their hidebound adherence to practices that were dated ten years ago, their obstinacy in the face of the merest change.
They respond with ruefully laughs when it is suggested managers might contribute meaningfully to a new initiative.
Sometimes they live in mortal fear of managers that have taken to mumbling trainer scripts, Kurtz-like, in the shadows of offices turned into encampments for agents loyal only to them them, not the company.
If they rock the boat, a manager may walk – and take agents with them.
Game over.
This unfortunate dependency is, like so many things in real estate, the product of what I call real estate at arm’s length – the loosey-goosey management ethos that still dominates too many companies.
It was a viable and economic model for about thirty years, but has the effect of a straightjacket now. The fat middle of an organization struggling for profitability is rendered untouchable.
Time to get serious
So how did the gentleman above make it happen?
It’s no secret.
If you are an aggressive, charismatic leader who can articulate a vision, you don’t worry about fiefdoms.
If your organization has a unique and compelling value proposition, recruiting becomes much easier.
If you invest in real training and refuse to suffer incompetence, you don’t need babysitters.
If you invest in systems rather than quick-hit vendor deals you build value, not vulnerability.
Bring it
Of course, we see plenty of rock star office managers. People with serious operational skills, a hunger for innovation and an agenda wholly consistent with the brand on their business card.
But unfortunately, they are exceptional. And I am not talking about exceptions. I am talking about an increasingly unsustainable norm.
Anyone wanna make the case for that?
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I agree, sorta.
Office “Managers” are doomed.
Office “Leaders”, in these roiling times of change and opportunity are alive, well, having fun and leading their teams to greater market share and profitability.
2,000 agents is an army. An army with bad office management is probably just as well off with no management.
An army of 2,000 with engaged office leadership will defeat a leaderless army. Hands down.
Also, as you’ve pointed out, weak ownership is as sad sack as weak office management.
Talent triumphs as every level.
There may still be a place for office managers, but the qualifications and functions that underlie the role must be updated.
“People with serious operational skills, a hunger for innovation and an agenda wholly consistent with the brand on their business card.”
Yep, these superstars are rare. But firms should take steps to hire people like this, help old-school managers transition into this updated role, or get rid of the ones that refuse or can’t handle the change.
I’ve been hearing these same murmurs of office manager obsolescence in the legal industry.
I am 100% certain that a highly talented, highly motivated, manager that understands the brand as a promise and works with his Realtors to ensure they live, breathe and exude the brand is worth his/her weight in Gold.
Never seen one, though.
I agree with Ken on this one. The old school manager has been doomed for quite some time. Companies are looking for inspiration to lead them through the darkest economic times we have seen.
They are looking for someone that people naturally follow, not a leader that has to force people into line.
They are looking for a leader who is committed to change, committed to innovation, committed to taking the steps necessary to thrive in the market, not just limp along.
Talk is cheap!
Today’s leaders have to blaze a trail, lead by example.
Nice post, and wise comments.
It all starts at the top with great leadership, brand, people and process.
Regardless of how an “office manager” is defined as Brian B notes, there are no secrets.
… an aggressive, charismatic leader who can articulate a vision (leadership)
… a unique and compelling value proposition (brand)
… invest in real training and refuse to suffer incompetence (professional people)
… invest in systems (process)
An exceptionally talented leader of people provides the company owner with an attractive ROI and is ‘highly paid’ based on a percentage of profitability of the team he/she is leading. In reference to Jim Marks’ comment, give a talented leader effective tools and a relevant, consumer-centric brand promise that can be clearly articulated by ALL team members, I’ll give you an opportunity to have a truly great company.
Bob –
I agree with you. In your experience, roughly what percentage of managers fit that profile?
Brian
Brian, I have been very fortunate in my career to have been able to travel extensively across the US and as a result, have met quite a few talented office managers.Out of those, 25% are individuals whom I would interview for team management position in my company (if I had one). A large percentage of those would be happy to leave their current employing broker because they are frustrated at a lack of clarity in where their organization is heading and/or a lack of direction.
Great post, by the way…the topic opens a lot of avenues for thought-provoking discussion.
Great post but I wonder who is watching the troops. No managers – no visable Broker at the office and a lot of agents doing what ever they feel like. Ethics has gone out the window and the profession is suffering. I think you are right about a need for change but I’m not sure a good office manager isn’t still needed.
After 26+ years as a traditional real estate broker owner, I have launch a new company and am in the process of reassessing all of my assumptions.
Aloha,
Keahi
Good managers,in addition to leadership and vision, provide the needed ‘order’ and organization to move the company ahead. Plus, ‘management by walking around’ the office is while maybe the oldest management tool, it is still maybe the best. ‘Without order, there is chaos, and with chaos, there is….yikes!
As we shift into next generation brokerage, the role of the traditional branch manager will evolve, and already has within some companies. I see agents of the future wanting to surround themselves with a team of specialists to help them increase productivity, not a generalist manager who manages by relationship.
I agree with Brian and Ken. While the Office Manger is doomed there needs to be a leader, innovator and that person does need to lead by example.
There will always be leaders paving a new path. And there will always be hand holding. That’s why there are business owners and the people that work for them that service the consumers for that business.