There's a Lesson in There Somewhere

I have followed with interest changes coming for the residential real estate industry. In the aftermath of a significant court ruling and facing the potential for more, the industry’s primary national trade association (and their state and local affiliates) and some major industry organizations reached settlements, the upshot of which will bring a significant change in what brokers and agents offer clients and how and how much they charge.

The Realtor-controlled multiple listing system (MLS) was one of the most innovative and successful marketing tools ever devised. A blanket, unilateral offer of sub-agency, it turned competitors into business partners on a per transaction basis. Because the commission is split between cooperating brokers, the rate needed to be high enough to draw their interest. Over time however, consumers, regulators, and others expressed concern about this practice, citing a lack of real negotiating power for customers. Rather than addressing these issues pro-actively, industry leaders chose to defend the status quo. Now, it looks as though the “solution” has been mandated by the legal system. Whether and how these changes will benefit customers remains to be seen.

Seems to me there is a lesson in here somewhere. Maybe it’s this.

Most any business, and in fact, entire industries, will face changes in the near future. Societal trends, legislative and regulatory scrutiny, customer and competitive pressures and emerging technologies are all in play. As organizational leaders consider their near and long-term strategies and planning, effective “environmental scanning” takes on even greater importance. So, too, accurate and thoughtful planning assumptions.

While no one can predict the future with certainty, taking a clear-eyed look at forces that will impact the business is essential. Scenario planning and “what if” exercises often yield significant breakthrough ideas that drive innovation and ensure well-differentiated value creation.

So, what does your strategy and planning look like? Can the process you use stand some improvement or at least, a refresh? In a time of constant change, standing pat may seem the safest and surest path forward. It doesn’t always work out that way.

In working with business owners, my take is this: Eventually, someone (or something) is going to radically change the way you do business. That someone should be you!

Why not formalize innovation, value creation, strategy formulation and planning in your organization?  Contact me at joe@ajstrategy.com or visit my website, ajstrategy.com to learn more.