5 systems every real estate agency needs
I don’t subscribe to the notion that the best real estate businesses are the ones breaking sales records.
The most successful agencies are systemised.
Sales industries are notorious for silo teams, a lack of systems, and KPIs that only reward end results. So, agents are incentivised to make a big sale at all costs to get the commission. This is where the sleezy real estate salesperson stereotype comes from – that’s everything we fight against at Nitschke, where we deliver the most authentic real estate experience.
To avoid falling into the trap of prioritising performance over people, you need good systems. I talk more about levelling up your people in my latest column for Elite Agent – read it here.
Make people the centre of your business (whether you’re in real estate or any other industry), and you’ll do just fine.
As a real estate principal or leader, make sure you have these 5 systems in place within the agency.
1. Central operating system
You need a formal operating system (that you either adopt or create yourself) with buy-in across your entire company. We use EOS. Read how it’s transformed our meetings.
This central operating system includes a scorecard for tracking important metrics, an issues list as a shared place for documenting issues/ideas, and a way to assign and audit your biggest goals (we call them Rocks and they’re quarterly projects).
2. KPI system
Get clear on your KPIs. Don’t just plan projected revenue for your agency. Break it down by departments, teams, and individuals. KPIs should feel like a game, not a threat.
You could create a visible scoreboard for activity metrics such as calls, appraisals, listings etc. Introduce team competitions and incentives, and run random prospecting competitions. Prizes could be as small as a coffee voucher.
Operate like a sports coach – more on that here.
3. Offsites
Every quarter, we have a State of the Company off-site, where we celebrate the wins of the last quarter and look ahead to the next. It’s great for team building, strengthening our culture, and setting the tone for the next 90-day sprint.
Create a series of offsites per year. Find a cadence that’s right for you. Make it a day people look forward to.
4. Recruitment process
How do you make hiring decisions? Do you do a gut check or is there a recruitment process you follow? While you shouldn’t ignore instinct, make sure you run every hire through a process. This might include a personality test, a secondary interview with the leadership team, and mock client sales call.
5. Retention process
This one isn’t a tactical system in the traditional sense, but rather long-term plans and pathways for your key people. If you hire a sales agent, what is the career trajectory? If someone joins in an ops role, can they grow into a sales or property management position?
Have answers to these questions and defined career pathways in place for levelling up. You’ll better retain talent and create a stronger team culture. If you can, add a line in your company budget for training days.
As a leader, it’s your job to systemise workflows, create efficiencies, and solve problems. Don’t get trapped in the day-to-day operations. Zoom out, think beyond today, and focus on being better before bigger.
Interested in seeing our systems behind-the-scenes in an upcoming video? Make sure you’re on the Leadership Letters list. I create walkthrough videos about how I run a profitable, independent real estate agency in the Adelaide Hills.
