CREATING THE VALUE

Creating The Value Driven Organization

Focus on the investments that give you the greatest return.

By Larry Kendall, author of Ninja Selling and chairman of The Group, Inc.

“Our true worth is determined by how much more we give in value than we receive in payment.” This is the Law of Value from Bob Burg and John David Mann’s book The Go-Giver, and it serves us well whether we are an owner, manager or sales associate.

Owners – As an owner, adopt the mindset of what we call Ninjanomics. There are four rules:

  1. There are no expenses.
  2. There are only investments.
  3. Every investment must have a return on investment.
  4. Focus on the investments that give the greatest return on investment.

Don’t look at your employees, marketing or facilities as expenses. Instead, look at them as investments and expect a return on those investments. Invest in them and expect a return. If you aren’t getting a return, they are expenses, and there should be no expenses, only investments.

Managers – As a manager, adopt the Ninjanomics mindset, as well. Your owner is investing in you, and you need to provide a return on that investment. It is how you make yourself valuable to the organization.

Are you generating more gross commission income (GCI) in the form of referrals, builder accounts or relocation accounts than your salary? How about recruiting? Are you recruiting more GCI each year than your salary? How about coaching your sales associates to higher levels of productivity? Your true worth is determined by how much more you create in value than you receive in payment.

In recruiting, sales associates are attached by value. Can you articulate your value proposition? Typically, they value and are willing to pay money for two things: to solve a problem (pain); and to feel good (pleasure). Two great questions to discover their pain and pleasure are:

  1. “What is your greatest challenge in your business right now?” (Solve their pain).
  2. “If you could wave a magic wand and have your business just they way you want it, what would that look like?” (Help them achieve their goal – pleasure).

Sales Associates – Unfortunately, there’s a group of customers who do not care about value. About 15 percent if the U.S. population make all buying decisions based on lowest price – period! They don’t care about value. As a sales associate, we recommend you let this group work with someone else. These customers tend to be grinders and will steal your time and energy as they try to squeeze every drop of money out of you and the transaction.

Instead, focus your attention and marketing on the other 85 percent who value what you bring to the game. Learn to articulate your value proposition in just a few words. How do you create more in value for your customers than they are paying you?

In my experience, most sales associates need help in this area. You bring tremendous value, but you may not necessarily know how to articulate your value to a customer – specifically to a seller who asks you to discount your fee.

When everyone (owners, managers, sales associates, and staff) have the value creation mindset and actions, your organization will attract and keep the best talent, the best customers, and be highly profitable as well. You have created a value driven organization.^

This article originally appeared in the September 2016 issue of eth REAL Trends Newsletter is reprinted with permission of REAL Trends, Inc. Copyright 2016

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

 

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