In Part 3 of getting your business Robot Ready, we talk about the stresses in your business and you can get the maximum capacity out of your people.
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Brad: Welcome to another edition of Rent Roll Insights, I’m Brad Miller from Real Estate Dynamics where we helped Property Management businesses build, buy and sell through our Rent Roll coaching, Property Management training and Business Brokerage right across Australia. In this eight-part series we’re covering off on ways that you can protect the value of your Rent Roll and make it robot ready. I’m joined once again by Nathan Brett from the Real Estate Dynamics leadership team and today we’re going to spend a bit of time in this video drilling down on why your people are saying that they’re too busy. Those old sayings “I don’t have time”, “we need more people”, we’re going to take a close look at what’s causing that stress in your business. So, it seems to be a common war cry in a Property Management business that those sorts of things are said, and people are running out of time. What’s your thoughts on this Nathan?
Nathan: Yes, absolutely and what they’re saying is true and it largely comes down to the structure of the business and with the greatest of respect, most businesses aren’t structured well to get the maximum capacity out of their people. So, often what ends up happening is they hire more and more people and the capacity stress don’t actually go away.
Brad: So, what can businesses do to actually reduce sort of capacity stress in their people, get the work done, without employing more people?
Nathan: Well what they need to do is get people ‘swimming in there right lines’ as we say so we’ve been applying what we call “The Four Quadrant Model” successfully in thousands of Real Estate Agencies across Australia and what that actually does is it reduces the capacity stress and allows the business to grow without having to continually hire more people.
Brad: So can we share with our audience what that Four Quadrant model is and how it might look?
Nathan: Yes absolutely so we’ve got the four quadrants we use four colors. The black quadrant is leadership and management that’s where recruitment, performance management, vision sits and a few other jobs. We’ve got the green quadrant which is the sales side of your Property Management business so in that area we would put Rent Roll growth, business development and leasing.
Brad: Revenue generation stuff.
Nathan: Yes. We’ve got the blue quadrant which is Property Management operations in a nutshell in goings, outgoings, routines and repairs and maintenance and then we’ve got the wonderful red quadrant which is administration and support giving the business a huge amount of leverage.
Brad: So, you’re suggesting by splitting the business up this way is actually going to reduce capacity stress for people in the team. How might that look?
Nathan: Absolutely. Well most businesses that we visit and talk with, they’re people of what we call ‘a mile wide and an inch deep’ and they’re trying to manage a huge number, a plethora of micro jobs across multiple quadrants and our research suggests that they’re burning up to 25% of their day, every day, week, month and year because of the incorrect allocation of those micro jobs. Once we bring them from being a mile wide and an inch deep which is a mile wide is the volume of micro jobs, the inch deep is the service delivery and we reduce that back to being more an inch wide and a mile deep what we find is where you have higher skilled, higher engaged people who can quite simply take on more properties.
Brad: Yes that’s very interesting and that would probably align quite well with you know some of those behavioral profile examples such as DISC or Myers-Briggs out there where they do talk about specific work behaviors matching the right people, so you get the salesperson the high extroverted and people focus person into doing the business generation functions is far better than having that introverted task focused person who’s ideal for administration, doing that job. You know you split them up.
Nathan: Absolutely Brad and that’s exactly what we do so we work with leaders to get the right skills in the right quadrants and when that happens you have a business it performs magnificently.
Brad: Well it’s a business unit isn’t it? What would you recommend to leaders out there who might be thinking of putting some sort of structure or the Four Quadrant model into their business?
Nathan: I’d recommend to pick up the phone and have a conversation with us you know and people here would be delighted to help and what we can do is put you in touch with other businesses that we’ve worked with and what you can do is have a talk with them.
Brad: So, I think when we talk about the war cry of “running out of time” or “I’m too busy to do that work”, are we sort of looking at something that’s related directly back to the efficiencies and structure of the business?
Nathan: Without a doubt Brad I mean a lot of Property Management people are like an ‘octopus on roller-skates’ you know and they’re trying to do 40 to 50, 60, 70 tasks in a day and what they do is leave a blur. What we prefer is to drop down to four or five jobs a day and make a difference.
Brad: Yes, and make it a bit more special. So, I think not having a good structure like that are we sort of suggesting that you’re going to sacrifice some service delivery to the clients and you’ll have inefficiencies that cause low profit in the Rent Roll?
Nathan: Without a doubt.
Brad: Thanks again for joining us Nathan today. Next week we’re going to talk about why 99.6% of Property Management people; your staff, have no idea where they are in their business because they’re not getting the correct feedback. It’s going to be a good topic I feel.
Nathan: I’m looking forward to it.
Brad: I’m Brad Miller and thanks for tuning in to Rent Roll Insights.