“If you’re constantly looking in the rearview mirror you’re going to get into an accident sooner or later!” So true!!!! It can be very dangerous if you are constantly worried about past mistake OR celebrating last week’s successes. In business, any business, it is critical that you keep focused only on what lies directly ahead. However, it’s also ok to occasionally glance at the final destination too. Developing a scoreboard with lead indicators are the perfect real estate resources to help you accomplish this.
Furthering that analogy, we all know that every path worth following and every goal worth obtaining can take you through some dark places and have you encounter some significant obstacles. In order to safely negotiate those dark hours your road to success all you need to do is flip on your head lights. Once you do, you can now see those big, bad obstacles coming your way. Business is no different. You simply need to identify what are the head lights in your industry and make sure that they are always shining bright. What we’ve come to find are our “High Beam Head Lights” in the real estate industry are Lead Indicators and the Team Scoreboard.
Through years of experience and A LOT of “trial and error”, The Laughton Team has identified the most important Lead Indicators that help us avoid the pitfalls and cyclical nature of the real estate business. What is a Lead indicator? Lead Indicators are the essential actions which are the most important aspects of DRIVING your business. We’ve broken them down into ten specific categories which allows us to more effectively identify the trouble areas that our agents are facing. When agents aren’t meeting their goals it’s a very simple process of reviewing how they are preforming in each of those ten categories. Once we identify the shortfall, we can then dedicate our time to improving it. These ten indicators are not to be mistaken with Lag Indicators. Lag Indicators are actions that show you what you’ve already accomplished. An example of a Lag Indicator is “Closed Deals”.
Don’t get me wrong, you need to acknowledge your successes (Lag Indicator), but you can’t stay focused on them. The same way when you’re driving you only briefly glance in your rear view mirror for a second and then quickly you refocus yourself back on what lies ahead. The only time it might be beneficial to linger a little longer in that rear view mirror is when you are evaluating the value of new systems.
However, I would argue that your motivation for evaluating the system probably has more to do with those Lead Indicators as opposed to the final Lag Indicator. Identifying and defining these Lead Indicator can be a fairly in-depth process (certainly TOO much for a blog). At some point, I’ll be seeing if I can take a much more detailed look at breaking down each one of these categories for you in an attempt to show why each one is a critical “Lead Indicator” and how they proactively drive business.
The second, and an equally important, “High Beam Head Light” is the creation of an efficient and effective Team Scoreboard. The Scoreboard is the tool we utilize to keep our teams focus on the short term checkpoints. These checkpoints will ultimately allow the team and its members to reach our long term goals. Our team looks to create an environment where each agent is able to achieve 50 deals a year.
The way that you achieve this lofty goal is by keeping our focus on accomplishing a handful of simple daily and weekly tasks (Lead Indicators). We also look to ensure that these task can be shown and a quantitative way to make it easily understood at a glance. A defined Scoreboard that is constantly updated and posted for all to see is another critical piece in our agents continued motivation in reaching those end of year goals. Another added bonus is that everyone loves to know where they stand in relationship to teammates on The Scoreboard; competition.
Standards and Expectations
The second part of an effective scoreboard, is establishing standards and expectation. Standards are the minimum numbers required for an agent to be considered profitable. Whereas expectations are representative of an astronomically difficult number to achieve which would result in someone doing backflips in the parking lot (no me). Having both Standards and Expectations defined on the scoreboard will help continually give agents parameters of the success they are pushing for. For example, a developing agent will be looking to hit that “standard” number initially. However, as they improve they’ll easily pass that first hurdle and will be looking to take on that next challenge. That is where Expectation Goals begins to take over as the motivating force. That “Force” is reason the Expectations needs to be set out far enough that it would be nearly impossible for an agent to continually reach month after month. Yet it needs to be close enough where occasionally it will be achieved.
Of course The Scoreboard is reverse engineered with an end of year goal in mind. For example, look at the Lag Indicator of closings. If you would like to have 50 deals close in the year, you’ll need to close 1 deal a week to obtain that end of year goal. Those short term weekly goals are more relevant numbers should be reflective in your scoreboard. If you aren’t at the point where you have a team of agents working under you that does not mean the scoreboard is doesn’t have significant benefits for you. Creating The Scoreboard for yourself will help to drive you to achieve your own personal goals. Not only that, but you’ll have it in place when you start building your team…win-win!!!
Clearly, you can see the benefits of both Lead Indicators and The Scoreboard in driving your business. But understand that the two items work hand in hand. You cannot have one without the other because of the way they lean on one another. If you choose not to implement one of these items you will lull yourself into a false sense of security and get blindsided by a deer coming out of the woods on the side that your headlight is out!!!!
I’ve got examples of a Daily Scoreboard and some Weekly Standards that could really get you going…AND it’s FREE!!!