It may seem like a cliché, but the rate of change for MLSs is continuing to increase, while numerous MLSs seem to run off the same plan year after year with minor focus changes. Some of the challenges identified in the NAR-commissioned “D.A.N.G.E.R. Report” back in 2015 seem increasingly more likely or are already evident in some markets. Many MLSs are seeing increased hostility in the real estate community, and some are keeping a close eye on the effect of listing agents bringing offers to their first meetings with potential clients and the potential effect on cooperation via the MLS. The increasing pace of MLS consolidation is another challenge – not just for the un-consolidated, but for regional MLSs that were unable to effect culture change and create efficient and effective scalable governance during their formation. The increased rate of change is driving changes to strategic planning best practices.
The changing rate of strategic planning
Clients that used to engage in strategic planning every two years have started planning every year to ensure they are staying on target in the fast changing environment, and those that used to plan every year are starting to augment the larger planning process with continual strategic planning.
Making information-based decisions
The smartest MLSs provide a great deal of information to the group before beginning planning in earnest. A thorough well-designed survey gives the planning group internal benchmarks that should inform discussions. Focus groups can be useful for going beyond statistics to provide a more qualitative understanding. A facilitator capable of providing perspective on external industry trends and on how the MLS is performing relative to others in aggregate is crucial.
Starting with the vision or mission statement
There’s always a desire to promote conversation and engagement, but at the same time it’s important that the conversation be structured and time-blocked so that relevant topics receive the appropriate amount of time. Not every MLS has a vision statement, but all MLSs should at least have a mission and validate that it is current, because without a mission one cannot distinguish between relevant conversation and what is off-mission. A facilitator can bring valuable perspective from other organizations about the “what” and “whys” of how MLS mission statements are evolving. Strategic initiatives should always be relevant to the mission. If the initiatives are prioritized, and limited to a reasonable number, one can be sure one will have enough time to talk about top priorities. While generally one needs to keep the conversation at a higher level, allowing the group to have time to provide tactical recommendations can provide insight as to how they expect initiatives to be carried out.
After the planning meeting the staff can later provide the board of directors with an action plan including task assignments, goals, milestones, and key performance indicators (e.g. awareness and satisfaction targets) that must be tracked month to month in future board meetings.
Having a planning session that is grounded in the vision and/or mission but also provides enough detail sets great expectations with a board of directors. Ideally, with appropriate reporting on progress, the board of directors will not need to have long discussions about operational matters, trusting the MLS executive and staff to execute at that level.
Continual Planning
Groups that want to engage in continual planning need to make sure their planning group is kept up to date regularly about emerging industry trends and facilitating discussions of whether there are risk mitigations or opportunities based on those trends that should be incorporated into the strategic planning process. Sometimes planning is more creative and productive when multiple groups just a few interested people brainstorm, then present back to the larger group. The structure of these groups can vary – from a few people having an informal discussion to a specially planned meeting to a longer-term research group or task force.
Complete the Loop
When members provide survey feedback, they expect their issues to be addressed. It’s important to communicate to the members that their voices were heard and what they can expect to see as a result from their MLS.
Be Fearless
There’s an incredible amount to change happening in our industry, and MLSs have an important role to play. It’s important to make sure that strategic planning is effective and is integrated into the MLS’s ongoing efforts. No topic should seem too big to at least discuss what the MLS’s role could be. And as I often hear about, if the MLS board of directors is bogged down in long tactical discussions rather than receiving short status updates on staff efforts, providing guidance where needed, and considering new strategic challenges, consider taking some steps to address the issue. To quote Stephen Covey, the famous author and educator, “Management works in the system; leadership works on the system.”
If your organization is ready for effective strategic planning, call me at 612-747-5976.