One of the significant problems in a commercial real estate team today is the lack of goals or the focus of individuals on previously set goals. Goals are commonly set by the team leader for both the team and the individuals on a yearly or quarterly basis. In many cases the personal goals are simply a ‘wish list’ that never really gets activated. At the end of 12 months, the goals have simply not been achieved and the salesperson has not changed their personal performance. So everyone heads ‘back to the drawing board’ to set new targets.
The reasons salespeople should be setting their personal goals is to give some firm targets to aim at and strive towards. Goals should never be a ‘wish list’ that is relegated to the bottom drawer of the desk and only to be taken out when questions are asked.
Commercial real estate sales and leasing is a result driven industry and career for those that are prepared to work hard. It is certainly not and industry for the feint hearted. Constant focus and continual action are critical parts of personal improvement and results.
Most salespeople and agents will understand the focus on listings and commissions; they will not however change their habits to generate more listings and commissions. That is the reason why so many salespeople struggle in difficult markets and move from agency to agency looking for the ‘pot of gold’ at the end of the rainbow. The answer ‘lies within’ as they say.
The real purpose of establishing goals is to set some clear perspective on where the salesperson can head if they take consistent and relevant action. Goal setting and goal management really does work providing you give it the due regard and focus that it requires.
Here are some rules to the process of goal setting in commercial real estate today:
- Understand your local property market and the possibilities that it provides. There is no point focusing in a market segment that has no future or opportunity. There should be plenty of listing opportunity available for your choice of property and choice of market. Get this information sorted and defined before you continue.
- Define your market geographically on a map. Set the boundaries that you want to work within based on the major highways and any of the main roads. Inside the relevant area you should have sufficient listing stock that is easily identifiable.
- After you have defined your market geographically, look at the history of the area relevant to the property type. Research the sales and leasing activity that has occurred over the last 5 to 10 years. That research will show you trends and opportunities for the future; it will also show you the players or property owners that are active at various times.
- Having satisfied the previous three points, it is now time to decide exactly what advantages you bring to the market in and with your property specialty. Why are you different? What can you do for your client that is relevant and important? Are you better than the other agents in the area, and if so why?
- Providing all of the above points are ‘in balance’ and suitably positive, you can now set some clear goals and targets. With due regard to the history of the area, you can set some targets around quality listing stock, exclusive listings, time on market, and commissions. Have a serious look at the quality of property that you can work with. Quality listings bring in better enquiry in any market; for this reason you need quality properties that are controlled by you or your agency on an exclusive listing.
- All of your goals should be quantifiable and easily tracked. Each few days and certainly at the end of each week you should be revisiting your goals to identify how you are progressing. In most cases many salespeople need to adjust as they proceed in their goal management plan. The road to success requires effort and change. Be flexible and be open to adjustment.
The process of goal management and goal targeting is one of the best ways to get salespeople on track. Expect the entire process to take personal effort and real focus. After approximately three or four weeks of hard work, the whole thing gets a lot easier and results start to come in. From that point onwards you know where you are heading and how it’s occurring.