Blog / Leadership

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What are the big issues affecting the real estate industry right now? Are virtual agents going to change the property game? Is social media here to stay? Real Estate Hot Topics asked a selection of the industry’s top CEOs the tough questions to see where they thought the industry was headed.

Bradley Brown, Fletchers

What is your position description?

I am responsible ultimately for the creation of strategy, which is approved by a board, and then the implementation of that strategy. I’m constantly looking at where we need to be going and then how do we get there.

Biggest challenge?

I think for any leader it’s staying relevant; it’s staying on top of what’s happening. Picking and choosing what are the right things to focus on and what aren’t is a challenge.

What effect has social media had on your business?

At this stage it’s still quite minimal. It’s clearly a direction that society is going, and those directions tend to affect all aspects of business eventually. Social media is something you have to get into, but it’s still a small part of what we do.

Can you see a future in virtual agents?

We have our people working from all sorts of places and I see that’s a growing aspect of the business, particularly when you look at the costs of infrastructure. So, as long as people are effective and the systems that they operate with are meeting their needs, then there’s no reason why people can’t do that.

What are you focusing on now?

We’re working very hard on all our internal systems to make sure they’re as streamlined as they can be in helping to achieve the goals for our business, which includes what the line practitioners and sales/property management need, but also what drives our business in the bigger picture.

Doug Driscoll, Starr Partners

What is your position description?

I deal with many assets of the business, whether it be technology, marketing, public relations or office support, so I’m always kept on my toes.

Biggest challenge?

To keep all the plates spinning. I’m a very disciplined time manager, but it’s about cramming the right workload into the right day, not necessarily getting distracted by things that really don’t have that much of a positive impact on the business.

What effect has social media had on your business?

Like most groups and companies, we’re struggling to come to terms with it. It is a social environment and, as an industry, we should be able to adapt like a duck to water, but for some reason it seems to be oil and water. We do use it, but not necessarily to great effect.

Can you see a future in virtual agents?

We do have a virtual agent in the office, and they’re already doing great things. If you’re clever with your marketing and you create the right perception, you can definitely make it work.

What are you focusing on now?

Offering a professional service across all platforms, like marketing, brand and training. I make sure every last aspect is being considered and covered because, ultimately, these people are public facing and the public are really the judge and jury on these things. We constantly look to improve and evolve in an everchanging landscape.

Mike Green, Harcourts International

What is your position description?

I have overall responsibility for the operation of Harcourts Group to ensure that it continues to operate.

Biggest challenge?

The day-to-day challenge dealing in the market that we’ve got. We’ve had a pretty tumultuous three years with a GFC and share markets all over the place, so I think the first challenge for a leader right now is keeping the faith, making sure the people are getting what they need in tools, resources, support to survive, but certainly to thrive, in a marketplace.

What effect has social media had on your business?

We’ve got iPad and iPhone apps and you can very quickly see the impact. I’m not sure the impact has been felt yet, but there’s no doubt in my mind that it’s going to be a huge part of what we do in the next 3-5 years.

What are you focusing on now?

From a business perspective, I’m focused on how we can continue to develop and deliver a culture and a set of resources, systems and tools that make it easier for our people to deliver a great experience to the client.

Darren Barlow, Stockdale and Leggo Real Estate

What is your position description?

One of my roles is to integrate with the offices as an overall perspective of the group and lead the group effectively.

Biggest challenge?

Your resourcing and your people, ensuring that they are looked after at a suitable level, and also recruitment to get the right person and ensure that you have the right people who are going to move through your organisation.

What effect has social media had on your business?

I certainly believe there is a place in real estate and I believe it has benefit from a profile-building point of view. I honestly don’t believe Facebook is for promotion of property, but it’s useful from a profile perspective, keeping your followers up to date and adding a bit of a human aspect. In order to continue to move forward, it’s a very vital component of what we are doing.

Can you see a future in virtual agents?

It depends on the model and how it’s structured. One of my immediate concerns is, are we offering the full gamut of customer service? We have to experience their turmoil because it’s probably one of the biggest decisions in their life. Is a virtual agent actually going to be in a position to be able to service that client? I have my doubts.

What are you focusing on now?

We’re working on a number of different models in human resource management to ensure we can embrace the people coming through our business. At the end of the day, we can have a fantastic brand and fantastic systems, but if our people aren’t right we’re not going to move to the next level.

John Runko, Independant Property Group

What is your position description?

I drive delivery of the organisation’s key goals and objectives. There're three main areas I look after - I drive strategy within the organisation and I’m responsible for people and the brand.

What effect has social media had on your business?

I think a lot of people are doing it because they just think they need to be there; some of them think they’re going to help them sell more properties and that’s not what social media is all about. Social media is there to help you build relationships with clients and potential clients so you can become a trusted property real estate adviser. It allows you to engage with them and, ultimately, if they know you and trust you, they’re more likely to want to do business with you.

Can you see a future in virtual agents?

I think virtual agents will exist, but I don’t believe they will revolutionise the industry.

What are you focusing on now?

Right now I’m focused on delivering the bigger picture items such as finishing off our technology platform so we can expand outside of Canberra. In order to do that we need to make sure our offering is 100 per cent right, so when we put it to the market people can come and see what we’re doing, how it’s being done and have confidence that the model works.

Philip Web, Philip Webb R.E.

What is your position description?

My job is to keep everything on track, keep everything on the rails and to make sure we’re pushing through all of the little problems that come up in the day-to-day operation of a real estate company.

Biggest challenge?

Getting people who want to work as hard as is needed today and make a career of real estate; I think that’s becoming harder and harder. Real estate hours aren’t the most popular and I think that is starting to be a difficulty for most real estate businesses.

Can you see a future in virtual agents?

I can see that coming, in a way, but I think for the foreseeable future you’re still going to have bums on seats within your office. You need to have that culture, that communication within the organisation and that ability to check your thoughts with another team member. I don’t see it changing radically in the short term.

What are you focusing on now?

You’ve got to get right back hard and head down doing the things that have made you a successful operator. We’re looking at reinventing ourselves, re-energising every process in the place and just making sure that where it is needed, we are doing the basics.

Mike McCarthy, Barry Plant Real Estate

What is your position description?

The main role I have in the company is to increase shareholder value for the parent company and provide increased opportunities for our franchisees and their staff. It’s about providing a framework for that to happen, looking at ways we can keep improving the business, about how we can stay ahead of our competitors and keep doing things better, particularly in a tougher market like this.

Biggest challenge?

I think the pace of change and looking at relevant innovation, but the topic of recruiting and retaining good people is probably the biggest challenge we face overall. We’re looking at a shrinking workforce and you’ve got to find more innovative ways of recruiting and retaining key people.

What effect has social media had on your business?

We’ve been very proactive in that area. We took a fairly bold step by What are you focusing on now?

We are really keen to progress some interstate discussions. We are not fixated on taking the Barry Plant brand interstate; we’re happy to run one, two or three brands. What we bring to the table is great franchising skills, and what we can do is replicate that with another party who perhaps has a strong brand and doesn’t know how to take it forward.putting in place social media policies and guidelines because we could see that whilst you can’t ever control it, at least if you’ve got some guidelines around it then people can become accountable.

Can you see a future in virtual agents?

I think there’s a place for all sorts of different models out there and I think virtual agency will suit some players in the market. It’s not something that we’ve seriously entertained. We really put a lot of stock in our culture and the camaraderie of the group, and I think it’s one of the things that attracts people to the group. I think we’re about providing good structure, good environment, and massive support to attract people into the business. Having said that, the workplace is changing and people are looking for different ways to work. As an employer, you’ve got to be far more flexible than you were before.

Peter Huang, YONG Real Estate

What is your position description?

My role is to set up Yong to be the largest real estate franchise group in the whole world, and to be one of the largest property developers in this country.

What are you focusing on now?

My primary focus is to reach 300,000 people employed in our network, and also to get into at least 1-2 billion development projects. My target is to have at least 10,000-20,000 properties under my control. We will never float our core business - real estate - but part of the division might go public in the future.

What makes the perfect brand?

I think there’s a big lack of training and support for the franchisors, which has prompted me to make Yong the best real estate franchise in the world. We are a very pro-training orientated company. I spend at least 1000 hours a year training myself; I read all the books, all the newspapers, all the magazines every day. We see our Yong brand for the people. So when the people think about a fixed real estate agency who offers six-star service, and the agents who care, who give more back to the community, who offer the value for money, who really work hard and with great work ethics, they think about Yong Real Estate. That’s our vision, our motto and our company culture.

Paul Davies, One Agency

What is your position description?

I am the founder and managing director of One Agency. Put simply, we empower agents into their own businesses at a fraction of the usual costs of a franchise (we are a licensing arrangement, not a franchise). These agents remain independent, keep 100 per cent of their fees and enjoy all the major advantages associated with being part of a national group network.

Biggest challenge?

We are in difficult times right now and I see an urgent need for agents to change the way they view their future and their security. Everybody is expecting to get better value for money for all products and services and looking for increased efficiency, and that is exactly what we offer.

What effect has social media had on your business?

There are as many successful agents who use social media as agents who don’t. So as I see it, it is not essential right now. However, I would recommend agents keep well abreast of these developing trends as there will come a time when it’s an integral and necessary way to broaden your reach and target certain demographics.

Can you see a future in virtual agents?

Virtual agents are the future of real estate and the future is here now! One Agency has been specifically developed to meet this wave of change. Virtual agents enjoy a huge advantage over traditional agencies by eliminating most of the overheads associated with the typical shopfront business. We call it ‘smart operating costs’.

What are you focusing on now?

My focus is to alert as many agents as possible to the options available to them. I’m keen to drive home the fact that virtual agents enjoy a smarter, less costly and more secure future. I believe this model provides a more sustainable future for agents and presents an advantageous solution for those with the drive to run their own show.

John McGrath, McGrath

What is your position description?

Growing into new regions, developing the best quality management team we can deliver and quality control and innovation.

Biggest challenge?

The constant challenge is ensuring you’ve the right people to not only run the business, but to grow the business to the next level, because we’re constantly challenging the status quo. For our business to grow our leadership team needs to grow ahead of the business so we have to ensure we have the right people with the right mix of skills to grow the business.

Can you see a future in virtual agents?

We haven’t trialed it, but I think it’s an interesting concept for specific markets, especially boutique regional markets, which I think virtual agents can handle very well. I know there have been some successes, which is great, but I’m not sure yet that the majority of communities that we service are ready to deal with virtual agents. I think most communities like to see a physical presence.

Who do you admire most as a leader?

Steve Jobs was the ultimate business leader. I’ve never seen anyone as focused, innovative and concentrated on customer service as him and, as a result, he took the business to the largest company in the world. I say to my team ‘if we can somewhat resemble the Apple of real estate, I’ll be a very happy CEO’.

What are you focusing on right now?

I’m constantly working on brand and that can be anything from innovative marketing, to the look and feel of our property ads, to the design of our offices. Number two is technology. With mobile technology coming to the fore at the moment we’re working with iPad developers and we’ve just released a mobile site. Three is talent development and recruitment.

Nigel O'Neil, Hocking Stuart

What is your position description?

My job is completely around communication; communicating to the marketplace, communicating to directors, communication to staff around what we’re doing, what we’re about, what the culture is, encouraging the right behaviours. It’s looking for how we’re going to take the next steps as a business going forward.

Biggest challenge?

I think the biggest challenge facing all agencies is the recruitment and retention of good people. How do you find the right people and how do you retain them? And then making the structures of our business such that they can see a career path from where they come in, to where they finish up.

What effect has social media had on your business?

We’re watching and we’re doing small things here and there. We weren’t going to jump into it too quickly and be proactive straight away. That being said, it’s difficult not to want to get involved and I expect the hardest part is to make sure that when you do jump, you jump the right way, and I think the attitude that probably most real estate businesses in Australia are taking is tread with caution. But at the same time, you know that eventually you’re going to have to enter in some shape or form, and that’s where we’re at now.

Can you see a future in virtual agents?

I think perhaps a bit similar to Remax up in Queensland. It’s hard to see what support those agents are going to get because One Agency, as the word implies, means you’re operating as a sole operator and I think it would be challenging to grow as an individual when you are operating as just a home operator, if you like.

What are you focusing on now?

For me, the excitement is around where we go to from here and nurturing that young talent, driving a culture across both sales and property management and a balanced business with a focus on service to achieve great sales and leasing outcomes.

Ray Ellis, First National

What is your position description?

I’m in charge of instigating the board’s strategic plan every year and making sure our network is thriving, but also that our member offices are thriving and prospering in their local markets.

Biggest challenge?

Our industry is undergoing dramatic change and I think this is the hardest message to get across. Of course we deal with the challenges of the market up and down and interest rates and a whole range of issues that people see as important, but they are just the side issues of the main game. To determine the main game, you have to look at other industries. Why is the tourism industry suffering in Queensland? Why is the retail industry changing? Maybe it’s the new industry that they haven’t adapted to, and this is where real estate is. We have to change the way we do business because we are no longer a local cottage industry; we are now a large industry and how we play our part in that place is a challenge.

What effect has social media had on your business?

I don’t see it as a distraction because social media’s in the world now. We of the old world may think, “Oh that’s just a fad, that’s just a craze”. We said that about fax machines; we said that about mobile phones; we said that about 24-hour news networks. You can never beat technology; all you can do is try and catch up with it, simple as that.

Can you see a future in virtual agents?

I think virtual agents are not ready for the Australian marketplace at the moment. The days of control the paper, control the town are gone. The days of control the signboard count are gone as well. My children don’t even read the papers; they don’t even look at the signboards; they just go straight to the web and they want information in a clear, concise manner. And if you provide that information to them, they’ll make a decision that your company knows what it’s talking about: then they will want to contact you, or they’ll be amenable to you contacting them. That’s where I see the virtual agent in Australia at the moment.

Brian White, Ray White

Biggest challenge?

It comes down to strategy and are we relevant in that particular situation. We have a great phrase, ‘maybe we don’t have a need to grow, but we have an obsession to,’ and that radiates through everything we do.

What effect has social media had on your business?

The technology platform assists, but we’re not getting too obsessed that technology is the answer. It’s a driver, and potentially a big distracter, but it’s pretty exciting.

Who do you admire as a leader?

People who’ve taken service industries to the great level and still want to engage with the basic values in their business. Screw Turner’s done an astonishing job with Flight Centre. I love people who remain connected with the thing that’s been so important to them.

What are you focusing on now?

The phrase we use is, ‘we keep chasing our potential and the closer we get to that potential, the further out it keeps ballooning,’ so it’s a bit of a no-end. It’s so tempting to say we’ve got this fixed and, therefore, let’s go and do something else, but take off any focus on leadership and the business would begin to suffer immediately. Driving what we have is something that is a constant thought. How do we make this better? What parts can we improve? What more value can we bring to our members - and that’s neverending.

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