Growth Initiative Value Tools pres - Amazon Web …kw-sites.s3-us-west-2.amazonaws.com/kw-family-reunion...The Wall of Value 5 The Growth Initiative – Value Tools and the Ultimate

The Growth Initiative –Value Tools and the Ultimate Report Card

Smokey Garrett

Smokey Garrett

2

Arlington, Texas

Regional Director,

Operating Principal of MultipleMarket Centers

The Growth Initiative – Value Tools and the Ultimate Report Card

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3 The Growth Initiative – Value Tools and the Ultimate Report Card

The Four Conversations

The Growth Initiative – Value Tools and the Ultimate Report Card4

The Wall of Value


The Wall of Value works two ways …

The “Wall of Value” works two ways: if you do show value, the wall is like a fortress that protects your net and your profitability.

If you are not showing value, the wall actually works against you—it repels net and repels profit.

The Growth Initiative Tools


Value Tools• Trend Tool – Measures Market Center

performance over time relative to itself, the local market, the Region, and KWRI.

• The Language of Real Estate (LORE) – Attracts Cappers by providing evidence that your Market Center helps associates’ businesses.

• Training and Tracking (T2) – Demonstrates how Market Center training increases associate productivity.


Trend Tool


YOU ARE

HERE

Trend Tool – Overview

• The value the Market Center has provided agents in the last 90 days

• What the next 90 days are going to look like for the agents and the Market Center

• Where the Market Center needs to focus now to improve those results for the agents and the Market Center in the next 90 days


What is the Trend Tool?• The Multi-Year Trend tool tracks monthly

performance for 41 metrics.

• Some are report cards for the past 90 days.

• Some are vision tools for the next 90 days.

• Combine with Cap Management, Gross Goals worksheet, and Pipeline tool to tie recruiting activities to performance.


Trend Categories1. Total Agent Count

2. Recruiting Appointments

3. Gross Agent Gain

4. Net Agents

5. Closed Units

6. Closed Units per Agent

7. Closed Sales Volume

8. Sales Volume per Agent

9. Listings Taken

10. Listings Taken Volume


11. Listings Sold

12. Listings Sold Volume

13. Contracts Written

14. Contracts Written Volume

15. Closed GCI

16. GCI % of Closed Sales Volume

17. GCI per Closed Unit

18. GCI per Agent

19. Average Sale Price

20. Paid on Volume

Trend Categories (cont.)21. POV % of Closed Sales

Volume22. POV per Agent23. Company Dollar (“Co$”)24. Co$ percentage of GCI25. Co$ per Unit26. Co$ per Agent27. Approved Expenses28. Expense % of GCI29. Expense % of Co$30. Expense per Unit


31. Expense per Agent

32. Owner Profits

33. Profit % of GCI

34. Profit % of Co$

35. Profit per Unit

36. Profit per Agent

37. Royalties

38. Royalties % of GCI

39. Royalties per Unit

40. Royalties per Agent

41. Profit Share

Multi-Year Trends Tool (Sample)


How Do We Use the Trend Tool?


1. Compare the numbers

2. Share the numbers

3. Grow the numbers

First Compare …

Compare your Market Center’s numbers to:

• Your Region

• Keller Williams Realty as a whole


… Then Share

Share the results at:

• Staff meetings • Team meetings• ALC meetings• Market Center investor group meetings


Grow the NumbersPoints to consider1. How do our numbers compare to last month? Last year? Why?

2. How do our numbers compare to the Region’s? Keller Williams Realty’s? Why?

3. What are the “report card” metrics for the last 90 days?

4. What are the “vision” metrics for the next 90 days?

5. What does this tell us we need to do differently?

6. How does this match up with our Cap Management, Gross Goals, and Pipeline strategies? Do we need to make adjustments?

7. Which of these numbers are value stories/opportunities we can share?


Truth:It’s units, not volume!


Language of Real Estate


YOU ARE

HERE

LORE – Overview• An appointment setting and

conversion tool that provides evidence

that the Keller Williams value proposition

will help a recruit grow their business.

• A focus tool that points out where the

Market Center should focus its training

efforts.


What Is the LORE?Answer: A monthly report that

shows how your Market Center is doing for eight key numbers in

our industry.


LORE – Eight Key Metrics1. Closed Units

2. Closed Sales Volume

3. Listings Taken

4. Listings Taken Volume

5. Listings Sold

6. Listings Sold Volume

7. Contracts Written

8. Contracts Written Volume


How Do We Use LORE?


1. The Value – the story we can share externally about the successes our agents are experiencing

2. The Opportunity – the story about how we can improve the successes our agents are experiencing

Truth:Top producers speak a different

language from other agents; it’s the language of numbers.


Truth:LORE is about creating curiosity.


LORE Preparation – Four Steps


1. Find the month-over-month change from your MLS or Board of Realtors.

2. Find the month-over-month change from your Multi-Year Trends report.

3. Find the difference between your Board and your Market Center.

4. Develop your talking points.

LORE in Recruiting


1. What are you doing in your Market Center that is leading to such dramatically different results for your agents?

2. How can I be a part of it!

Quality and Quantity• You have to recruit Cappers to

do Cap Management.

• LORE gives you something powerful to say to set appointmentswith Cappers.

• LORE gives you a reason to talk with top talent every month.


Tell Everyone• On recruiting calls

• In recruiting appointments

• On social media sites

• On a wall in your Market Center (training room, TL’s office, etc.)

• At Market Center sales meetings

• At Market Center staff meetings

• At Market Center investor meetings


Truth:By focusing on the top agents

and using LORE, you will automatically attract

other Cappers/agents!


LORE in Your Market Center• Gives the Team Leader confidence

• Evidence creates curiosity in the minds of recruits

• Market Center leaders understand their business

• Investors understand financial health and how to help

• Associates become local real estate economists

• Director of First Impressions has a great script

• Indicates where to focus your training calendar

• Increases retention—associates get engaged


Training Tracking


YOU ARE

HERE

Training Tracking – Overview

• A standards and expectations setting tool about the training your agents will attend

• An attendance booster for your training

• A recruiting tool to provide evidence of benefit for our training

• A retention tool for agents who understand the value Keller Williams provides


What Is T2?


1. The Value – the story we can share externally about the successes our agents are experiencing

2. The Opportunity – the story about how we can improve the successes our agents are experiencing

Truth:Everybody wants to be counted!


Step 1: Implement Training (cont.)Each month your training calendar should include:

• One major Keller Williams training event each week

• An Ignite session every single day (follow the course format!)

• Dynamic, eventful team meeting each month with a powerful training moment

• An ALC meeting each month with a training component for top producers (attracts other associates as well)


Step 1: Implement TrainingReasons for low attendance

1. The training being offered doesn’t show value2. Agents don’t see the value

How can we fix this?

1. Market Center leadership, investors, and ALC review training calendar.

2. How is our current training calendar driving (or not) the results we seek?

3. What are we going to do differently?


Truth:It’s not “build it and they will

come,” but rather “provide and prove value, and

they will come.”


Step 2: Take Attendance


• KWRI training (Mega Camp, Family Reunion, etc.)

• KW MAPS Coaching

• Keller Williams Regional KWU training

• Market Center KWU training (including Market Center team meeting and ALC meeting)

Step 3: Convert to a Spreadsheet


1. Create a spreadsheet accounting for each KWU Market Center training and event held.

2. Track each associate’s attendance using sign-up sheets.

Training Tracking Spreadsheet (Sample)


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Step 4: Pull the Numbers


1. MCA creates productivity comparison of GCI and/or closed units for two groups:a. Those who attended at least two

training classes per month

b. Those who didn’t

2. After 90 days, a clear pattern of productivity will emerge.

Step 5: Communicate the Numbers


• Social media

• 33 Touches

• Recruiting calls

• Recruiting appointments

• And any other way you or your agents communicate with other agents!

Truth:It’s a growth process.


Questions to Consider


1. Are classes growing faster than agent count growth?

2. What does our attendance tell us about the effectiveness of our training?

3. Does our messaging around training prove value?

4. Is our training action based?

5. Do we have training for all levels?

6. Does our training highlight the benefit of being with KW?

7. Are our trainers both credible AND great trainers?

8. Do our trainers teach the materials and not “war stories”?

9. Is training focused on opportunities identified by LORE and the Trend tool?

Daily Company Dollar Tool


YOU ARE

HERE

Daily Co.$ – Overview• A vision tool – See how Co.$ is growing

and predict where you might end up at the end of the month.

• Focus on fixing issues with transactions to retain associates and commissions.

• Visibility into what is impacting Co.$ and what adjustments should be made.


Question:When do we as business

owners turn profitable in any given month?


What Is the Daily Co.$?


$14,127.50 TOTAL RECEIVED

$60,939.41 OUTSTANDING PENDING TO CLOSE

$75,066.91 BEST CASE

$62,879.03 FALLOUT EST 20% PROJECTION

$52,333.52 LAST YEAR

$83,072.00 GOAL

DAILY COMPANY $ TOOL

5/6/2014

What Is the Daily Co.$? (cont.)• Total – Transactions closed, entered in system, and

Co.$ deposited

• Outstanding – Co.$ for transactions projected to close in the current month

• Best Case – Total plus 100 percent of Outstanding Co.$

• Fallout – Total plus 80 percent of Outstanding Co.$ to account for transactions that will not close. (You can change the formula to represent your numbers.)

• Last Year – Last year’s Co.$ for the same period

• Goal – Co.$ that was budgeted for the period


Truth:The Daily Co.$ allows you to see

the BIG picture of what’s happening with the revenue, so

you can then drill down and find out why.


How Do We Use the Daily Co.$?• What is our expense need this month?

• What is our goal for Break-even Day? What day are we actually tracking toward right now?

• Is Break-even Day is getting earlier or later from month to month?

• If earlier, what are we doing that is leading to this? How can we improve on that?

• If later, is this a training issue, recruiting issue, or both?

• Is our fallout percentage decreasing or increasing? Why?


Truth:The Growth Initiative tools work

together as one thought process to grow

your Market Center!


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Documents

Growth Initiative Value Tools pres - Amazon Web …kw-sites.s3-us-west-2.amazonaws.com/kw-family-reunion...The Wall of Value 5 The Growth Initiative – Value Tools and the Ultimate