Strategic Planning

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Strategic Planning

• NAR Leadership Conference
• Chicago, Illinois
• August 18, 2005

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Why Do REALTOR Associations Need a Strategic
Planning Process?
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Six Qualities that Mark Successful Non-profit
Associations

• A clear mission statement
• An honest and competent CEO
• Dynamic Leadership and Board of Directors
• The Ability to provide the services members need
  in order to conduct business
• The Ability to position members as serving and
  safeguarding the public
• The Ability to become the spokesperson for the
  industry

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Strategic planning helps your association develop
these qualities.
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Fourteen Ways the Strategic Planning Process will
Accomplish This
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1.

• Through the Creation of Goals and Strategies a
  Strategic Plan Produces a Road Map for the
  Association to Follow.

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2.

• A Strategic Plan Documents AE and Leadership
  Responsibility.

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3.

• A Strategic Plan Serves as a Reminder to the
  Board of Directors of Why the Board Exists.

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4.

• A Strategic Plan Tells Members What to Expect.

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5.

• A Strategic Plan Creates a Basis for Evaluation

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6.

• A Strategic Plan Prioritizes Multiple Issues

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7.

• The Process Followed in Developing a Strategic
  Plan Leads to the Creation of a Shared Vision for
  the Association.

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8.

• Employing a Strategic Planning Process Encourages
  Associations to Look Ahead.

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9.

• When Employed in Conjunction with Focus Groups
  and Surveys a Strategic Plan Documents Member
  Needs

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10.

• Creating a Strategic Plan Helps Associations
  Create Programs Members Value.

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11.

• The Planning Process Provides Leadership with the
  Opportunity to Air and Resolve Conflict within
  the Association.

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12.

• The Strategic Planning Process will Show You How
  to Eliminate Sacred Cows

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13.

• Knowing Who You Are and Where You are Going Makes
  it Easier to Form Alliances with Other Groups.

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14.

• Planning Replaces Reactivity with Proactivity.

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Before undertaking the task of developing a
strategic plan it is critically important to find
a facilitator who has a thorough understanding of
past, present and future real estate industry
issues and trends affecting the day-to-day
business of both the members and the association.
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Top 10 Industry Issues Discussion

• 10. Consumer Controlled Process
• 9. Declining Commissions
• 8. Banks in Real Estate
• 7. Declining New Home Sales by REALTORS
• 6. New Business Models
• 5. Consolidation
• 4. Ability to Qualify for Mortgage
• 3. Transaction Platforms
• 2. Future of MLS
• 1. Retirement of 82 Million Baby Boomers

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Comments from the People Who Facilitate Strategic
Plans
Represent the Many Styles Facilitators Offer.
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The future is a mystery. It can be frightening
as well as exciting. In order to be successful in
the future you must develop an effective plan
today.

• Jerry Matthews
• Jerry_at_JerryMatthews.com

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"Business plans and strategic plans are real
world road maps providing tangible objectives for
committee activities. Without a 2-3 year
business plan and a strategic direction, your
association's future is at the mercy of the whim
and fancy of each member that happens to
volunteer"

• Adorna Carroll
• Dynamic Directions, Inc
• Adorna_at_Adorna.com

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The strategic planning process is more important
than the planning document your Strategic
Planning Committee creates.

• Saul Klein
• Internet Crusade
• saul_at_realtown.com

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To take charge of the future you need to embrace
CHANGE and this is best accomplished by the
involvement of leadership and staff in an
effective strategic planning process.

• Jim Peters
• hamishpeters_at_yahoo.com

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The most valuable programs I do for NAR are the
strategic planning sessions. I come away from
every meeting knowing the heart and soul of the
association.

• Anonymous

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Limitations of Strategic Plans
And How to Handle Them
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1. Some Planners Try to Micromanage

• Hire an experienced facilitator capable of
  managing the planners you appoint to the
  committee.
• Ask your facilitator to prepare the group to
  discuss the bigger picture issues and keep the
  group focused on these.
• Meet far away from the reminders an office
  setting brings.

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2. It May be Difficult for the Planners to See
Far Enough Ahead

• Begin the session with a segment on where the
  real estate industry is headed.
• Ask your facilitator to explain concepts such as
  paradigm shifts and use concrete real estate
  industry examples to drive this point home.

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3. The Strategic Planning Process Will Expose
Association Weaknesses

• Get weaknesses on the table early in the process.
• Without identifying association weaknesses one
  cannot hope to strengthen the association.
• Remember, the weaknesses are what needs to be
  addressed in the goals.

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4. Expectations May be Created that Exceed
Association Resources

• Make certain the Treasurer is appointed to the
  planning group.
• But, dont get too hung-up on what programs will
  cost early on in the process.
• The prioritization of goals will dictate the
  allocation of resources.
• The strategic plan, if used properly, will become
  the foundation upon which the budget is built.

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5. Some Plans May be Done in a Vacuum and Not
Reflect True Member Needs.

• Make certain the planning group is both
  representative of and in touch with the general
  membership.
• Where possible begin the planning process with
  either a member survey or a series of focus
  groups conducted by the planners.

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6. Some Plans After they are Written are Never
Integrated with the Budget Process or End up
Sitting on the Shelf.

• It is helpful to go into the planning process
  with a general agreement as to the process to be
  followed once the plan has been written. Your
  facilitator should be able to help you with this.

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The Process
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Selection of the Strategic Planning Committee

• Appointed by the President (sometimes with the
  approval of the Board of Directors) and should
  include
• The Leadership Team (including the AE)
• A few respected members of the Board
• Members wanting to be part of the future rather
  than the past
• Innovators and members who think outside the box
• The Treasurer and at least one other member of
  the Finance Committee
• A representative of any force which could impede
  implementation of the plan
• At least one highly regarded Past President.

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Make sure all planers are informed of the service
commitment required and agree to devote the time
needed to fully participate in the process.
This may be easier to accomplish than you think.
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There Are as Many Formats as There are
Facilitators.

• Depending upon the time available the facilitator
  may wish to assign homework to be turned in prior
  to the planning retreat.
• Planners should be informed of the total
  commitment involved.
• As part of their agreement to serve planners
  should pledge to participate fully in all aspects
  of the process.

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Prepare the Planners for the Task at Hand

• Planning requires advanced thought.
• Mission Statements can be submitted prior to the
  meeting to jump-start the session.
• Contributions made to the lists of association
  strengths and weaknesses must remain
  confidential.
• Surveys conducted in advance strengthen the
  planners resolve and help them focus on member
  needs.

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Select an Outside Facilitator with Knowledge of
the Real Estate Industry and its Future.

• Cannot be part of local politics.
• Must understand and be able to discuss where the
  industry is headed.
• Needs the ability to control the group you
  select, to encourage participation from every
  member and to exhibit fairness to all.
• Must be organized.
• Needs to understand the difference between
  planning future goals and micromanaging the
  office.

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Meet in a Retreat Environment

• Do not attempt to accomplish strategic planning
  at the Board office or at the office of one of
  the members.
• Turn off all cell phones except when on break.
• Serve a quality (but light) luncheon with snacks
  in the morning and afternoon.
• Encourage conversation to occur throughout the
  day.
• Dont be afraid to challenge the skills of the
  facilitator by placing his/her back to the most
  beautiful view on Gods earth. Planners need to
  be inspired, your facilitator should come with
  that.

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Mission Statement the associations reason for
existing

• Must be clearly stated.
• Must be a statement of common values.
• Must define the boundaries of the associations
  activities.
• Should be considered by non-profit associations
  as a statement that establishes the legal
  framework of the association.

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What the Plan Should Look Like

• A series of specific, achievable, measurable,
  results-oriented and time targeted GOALS.
• Most goals will include strategies for
  accomplishing them.
• Goals should be placed in prioritized order by
  weighted vote as the last order of business at
  the retreat.
• The President should decide whether the draft
  plan submitted by the facilitator should be
  reviewed by the planners prior to being sent to
  the Board of Directors.
• The final plan should be adopted by the Board and
  distributed to the members.

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Plan Implementation

• Plans must become an essential part of the
  associations budget process.
• A vote by the Board to adopt the plan must
  include a commitment to provide the resources
  needed to support the associations top priority
  goals.
• Implementation of the plan becomes the
  responsibility of staff but requires the full
  support of leadership. The President and the AE
  must not fall into the trap of doing day-to-day
  work and not moving forward on the plans
  prioritized goals.
• Schedule monitoring reports at Board meetings and
  report regularly to the membership.

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What Might You Learn ?
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Weighted Goals Found in at least 13 of 19
Strategic Plans

• Leadership Training Education (2.6)
• Member Participation (3.2)
• Association Structure/ PP (3.3)
• Communication (3.7)
• Public relations (4.1)
• Governmental (5.3)

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Weighted Goals Found in at least 5 of 19
Strategic Plans

• Member Participation (1.2)
• Communication (1.4)
• Leadership Training/Education (1.6)
• Public Relations (1.6)
• Governmental (2.2)
• Structure/PP (2.4)
• Code Enforcement (3.0)
• Finance (3.2)
• Member Services (3.4)
• MLS (3.8)
• Broker Involvement (4.8)
• Website/Technical (5.2)
• Association Building (6.0)

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Goals Identify and Strategies Solve
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Example of a Goal with Vision

• 1. As KARs membership continues to expand, the
  predominance of Generation X and Millennium
  Generation members will also increase. The value
  of the REALTOR membership experience, so clear to
  Civic and Boomer generation members, is
  becoming a matter of discussion and speculation
  among these new membership segments. The
  Association must take steps to improve both the
  KAR membership experience and its ability to
  demonstrate the continuing value of REALTOR
  membership.

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Strategy 1A

• The cornerstone of the membership experience is
  customer satisfaction. KAR will design and
  develop an Internet based customer satisfaction
  system that will allow members to comment on
  their experience with specific KAR staff,
  programs, products and services. The system will
  collect performance data and will provide reports
  to the CEO and leadership on levels of customer
  satisfaction and improvements in customer service.

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Strategy 1B

• Another key element that contributes to member
  value is a higher awareness of association
  achievements and successes. In 2005, the KAR
  communications program will increase its
  effectiveness at sharing with membership,
  specific program accomplishments.

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Strategy 1C

• The association will use the information gained
  pursuant to objective 9 (generation friendly
  programs) to power a generation specific
  communications and marketing plan. The purpose of
  this effort will be to enhance membership value
  by providing programming that meets the needs of
  specific membership segments rather than applying
  the one-size-fits-all approach.

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Thank You!