Creating Your Culture
In Part 7 of getting your business Robot Ready, we discuss how creating an excellent culture plays a major part in not only generating Clients for your business but improving your profitability as well.
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Brad: Welcome to another edition of Rent Roll Insights, I’m Brad Miller from Real Estate Dynamics where we help Property Management businesses build, buy and sell through our Rent Roll Coaching, Property Management Training and Business Brokerage right across Australia. During this 8-part series we’ve been looking into how technology and profitability in your business will be more important than ever in the changing landscape of Property Management, in the face of artificial intelligence and robots. Today I’m joined as usual by Nathan Brett from our leadership team here at Real Estate Dynamics. Welcome along again Nathan.
Nathan: Thanks Brad, great to be here.
Brad: So, today we’re going to talk a little bit about culture. So, the flip side we’ve been talking about robots, we’ve been talking about technology, now we’re going to start to look at the culture in the business which is, ultimately, largely dependent on the people. Can you from your perspective give us your take on what culture is?
Nathan: Yeah absolutely. So, there’s so much written about culture and quite frankly it can be confusing. There are so many articles that have been written about it. So, the way that we talk about it at Real Estate Dynamics, it really is a living creature. It’s part of every business and it’s a bit like a garden I suppose so therefore, you know when you have a garden, what you need to do is protect it from external forces. Dave Anderson uses a really great analogy of the garden and some of the external forces, obviously when you’re maintaining a garden is making sure it’s watered, fertilized, weeded, pruned, dependent on the weather conditions. And so largely our culture, I guess if you’re taking that garden analogy, is fairly similar to that. Of course we have some different external forces when we’re talking about culture as opposed to protecting a garden.
Brad: So, as far as external forces; what sorts of factors do you feel impact heavily on your Property Management business?
Nathan: Well first of all there’s accountability vs. entitlement and really you can only have a culture of one or the other. So, entitlement exists where team members are given stuff without reward or without an expectation that that will drive performance. So, in that respect what it just becomes is an extra expense on the profit and loss statement. Accountability is driving people using data and using certain mechanisms to help them exceed and then rewarding their efforts for succeeding.
Brad: Okay so…and how is this becoming more and more important in you know a changing landscape that we’re seeing?
Nathan: Well that’s a really great question, but I think our culture in Australia and abroad is becoming one that has more entitlement. So, the new employees that are coming through you know they’re staying at home longer and there are certain expectations you know associated with that, they’ve bought more stuff, given more stuff and so when they get into the workforce, and there’s a highly accountable environment, that can go against the grain of what they’re used to.
Brad: So, it’s something that’s likely going to – I mean one of the things I look at with culture, and we speak with many people about that, is very much as soon as you add something or someone to your environment, your space; it does alter the culture.
Nathan: Without a doubt.
Brad: And some agencies, well regardless of whether you like it or not, you’ve got a culture. It’s either a good one or a bad one or somewhere in between. But the leader can have an impact on that culture, of course firstly leading by a certain example, setting in some hard things within the business that support the cultural goals that the business has and also being able to clearly articulate and clearly define the cultural goals and values in the business to the team, so that they know how to behave.
Nathan: Of course, all of this reflects in the service delivery to the client so it goes without saying that those businesses that have great culture and they’re ‘maintaining the garden’ for want of a better analogy, they’re growing faster, they’re more profitable, they’ve got longer-term happy, engaged team members and longer-term sticky clients.
Brad: And that’ll be more important than ever if we have robots coming through, or when I should say, we have those robots coming in so the lower level tasks are being automated and then it will come down to those individual skills, interpersonal skills, the culture of your business that’s going to have the biggest impact on your clients and your profitability.
Nathan: Yes absolutely.
Brad: All right thanks again Nathan, thanks for joining and thank you guys for tuning in I’m Brad from Real Estate Dynamics we’ll see you soon.