Successful real estate brokers know that you can’t manage what you don’t measure. But what should you measure? It comes down to preference. From quantitative data points like Per Person Productivity (PPP), Average Sales Price (ASP), and Gross Commission Income (GCI), to qualitative gauges such as agent retention, engagement with company tools, and diversity of leads, you must clearly define your key performance indicators (KPIs) or there’s no way to evaluate success.
As you consider the metrics that will have the most meaning to your brokerage, there are a few things to consider:
Sharpen the focus
Whether you are a small brokerage or a large one, you need to have a strategic plan in place. The foundation of your plan should be defining the KPIs you want to watch and why.
Start by determining at least one overarching company-wide goal and one agent-facing goal. From there, you can then develop at least 2-3 strategies that will help you reach that goal. Remember: the role of any KPI is to add focus to your business needs and goals.
According to Melissa Gomez, Broker/Owner, ERA Top Service Realty, Inc., “The KPIs that I watch are the percents of producing agents, company dollar/profitability, average listings, and average pendings. I also monitor how my agents are performing against other agents in the market.”
Make it measurable
Goals are only as good as your ability to gauge progress and outcomes. Consider how you will monitor and measure your goals, so you can track the activities that are driving the most success. It’s imperative to be consistent in what you are measuring to determine if your strategies are working or where there may be challenges and opportunities.
Spread the word
A goal is meaningless if nobody on your team knows about it. Bring your leadership team into the planning process early on to get everyone on the same page from the start. Rally your agents around your agent-facing goal and show them what it means for their business.
“Beyond the KPIs, we make sure that everyone in the company knows all our goals. I eat, sleep and breathe our goals — which becomes contagious so that we have a high level of engagement, and everyone is invested in our collective success,” states Anna-Marie Ellison, Managing Partner, ERA King Real Estate.
Check in and stay on track
Don’t set it and forget it! Your strategic goals should be at the center of everything you do for your business. Meet monthly with your key stakeholders to look at how you are tracking against your goals. By holding yourself accountable, you’ll have a firmer understanding of why you are meeting or not meeting those goals.
For example, ERA® Real Estate offers affiliates a team of experts to help companies set strategic goals and tactics and make sure they are staying focused on achieving those goals through ongoing performance reviews.
The benefit of consistent measurement is that it allows you to identify what is really moving the needle and where there is room for improvement. If you don’t see the results you wanted, don’t get discouraged. Casey Brown, Owner/Operator, Reliant Realty ERA Powered, shares, “When it comes to growth, it’s almost like sailing. You have your destination, but the wind is always changing, so it may require several tacks to get there.”