BCREA LEADERSHIP DAYSJOURNEY OF DISCOVERYUPDATE29 MAY 2014

DESIRED RESULTS

1. Confirm key assumptions 2. Understand how JOD research has been

adapted based on your feedback3. Clarity on current state and next steps for JOD4. Understand the theme and identify the

significance of Consumer Autonomy5. Open feedback channels on JOD6. Draw link between research & strategic planning 7. Prep for BCREA Strategic Planning and how

JOD research will be used

AGENDA

• Test assumptions

AGENDA

• Test assumptions• Confirm outputs of Sept strategic planning • JOD: What we have done, where we are, where

we are going, changes to the research plan• Dialogue and input• Theme #1: Consumer Autonomy• Dialogue and input• Strategic Planning – focus and next steps• Lunch

FACEBOOK MOMENT 1 AGENT RESPONSIVENESS STUDY

HELLO?!?WAV Group:

48% of buyer inquiries were NEVER responded to

Average response time was 917 minutes (15.29 hours)

“This epic failure to serve the consumer actually represents the greatest outstanding opportunity for real estate professionals.”

Source: WAV Group, Agent Responsiveness Study 2013Image Credit: Talking by Alv Jørgen Bovolden from The Noun Project

ASSUMPTIONS (ROLE OF ORE)

The role of ORE in BC is to ensure the long term health of the profession and value of the REALTOR®

ASSUMPTIONS (ROLE OF ORE)

Table ConversationWhat is one thing ORE needs to do to support the long term health of the profession?

Why?

ASSUMPTIONS (CHANGE)

• ORE has adapted to significant change in the past –to better serve REALTORS®

• Change is occurring faster than any time in history• Effective leadership is critical to shaping the

future• How (you as) leaders, respond, react, manage,

deal with change will have a significant impact on the future of the profession

FOUR ROOMS OF CHANGE

Claes Janssen, in Weisbord, Productive Workplaces

ASSUMPTIONS (JOD)

• There are some who question the value of the JOD (i.e. ROI)

• Communications on the research process and findings has not been smooth

• The process for engaging member boards in the research has not been effective

• JOD research on the changing needs of consumers and practice of the REALTOR® will be integral to structuring the BCREA strategic planning process

ASSUMPTIONS (COLLABORATION)

• Thoughtful collaboration between boards and the association is a good thing

• There are examples of collaboration between boards/the Association that benefit REALTORS®

• BC ORE does not have a common/agreed upon approach to collaboration or strategic planning

Strategic planning is often neither!

STRATEGIC PLANNING IS ABOUT 3 THINGS

1. Options Informed by data, research and experience

2. Decisions What we will do and not do

3. Commitment/Promises

BCREA SEPTEMBER STRATEGIC PLANNING

Goals • Confirm the most important issues ORE needs

to address to shape the future health of the profession in the province

• Agree on BCREAs roles in shaping the future of the profession in BC – informed by what we agree are the most important themes to focus on

• Ensure commitment to support key agreements and next steps

FACEBOOK MOMENT 2 NEW TAKE ON INNOVATION

Do your clients perceive you as innovative?

If customers perceive their provider to be innovative, they are less likely to switch to another provider

Perception of being innovative is equally as important as the perception of the service quality delivered by the provider

Exploring switching behavior of US mobile service customers

Image Credit: Divorce by Luis Prado from The Noun Project

REVIEW OF JOD: WHERE WE HAVE BEEN

JOURNEY OF DISCOVERY SECONDARY RESEARCHSYNTHESIS REPORT

Version 519 February 2014

Prepared by:CE Holmes Consulting & Solvable

JOURNEY OF DISCOVERY INDUSTRY 360°: EXPERT INTERVIEW REPORT

Version 5April 2014

Prepared by:CE Holmes Consulting, Monique Morden and Solvable

JOURNEY OF DISCOVERY: REAL ESTATE TRANSACTION VIEW REPORT

May 2014 Prepared by:

REVIEW OF JOD

What We Have Heard • Summarize• Ensure relevance• Improve communications• Build rationale for change/burning platform• Connect to Strategic Planning

SUMMARIZE

BCREA Journey of Discovery

The first stage of the Journey of Discovery--called Industry 360°--was composed of two reports: Expert In-Depth Interviews and Secondary Research Synthe-sis. Together, the reports provided a window on the changing practice of the REALTOR®, and the associ-ated needs and opportunities that could be provided by BC organized real estate.

The second stage of JOD--called Real Estate Transaction View--involved in-depth qualitative re-search with consumers and REALTORS® to bet-ter understand the complexity surrounding the REALTOR®/Consumer relationship, revealing the “how’s” and “why’s” behind emerging trends in consumer behaviour throughout the transaction process. The research was not intended to determine the mag-nitude, trajectory or velocity of these trends. Based on the research with consumers and REALTORS®, we consider the following insights to have potential significance on the future practice of the REALTOR®:

Consumer Loyalty is Declining: REALTORS® will be challenged to maintain current levels of loyalty among their customer base. Specialization assists in the selection of a REALTOR® but also contributes to switching, as consumers select experts in their demographic, desired neighbourhood, property type or a combination.

Delayed REALTOR® Selection: Buyers are delay-ing the engagement of a REALTOR®, sometime even to the point of putting in an offer. This delay gives buyers more time to search, research, and evaluate REALTORS® before making a selection and allows them to autonomously search for properties.

REALTORS® Auditions: REALTORS® will increas-ingly find themselves auditioning for listings, neces-sitating differentiation from the competition both in terms the listing price (and rationale) and unique marketing strategies.

Executive Summary: Real Estate Transaction View Report

Referral Process is Evolving: REALTORS® will re-quire a more sophisticated referral network and online presence as consumers supplement word-of-mouth with online research to gather objective data to guide them in their REALTOR® selection.

Professionalism as a Differentiator: REALTORS® will need to market concrete measures of profes-sionalism as consumers seek way to find top tier REALTORS®, and, conversely try to avoid the bottom tier. REALTORS® will require social media expertise and judgement to find the appropriate balance on professional-friendly continuum.

Consumer Autonomy on the Rise: Consumer in-volvement has led to consumer autonomy at many of the early stages of the transaction process threatening the value proposition of the REALTOR®. Buyers are pushing REALTORS® out of the dreaming, searching and evaluation phases, while sellers have taken more control over listing (creatively researching comparables beyond that of MLS listings) and mar-keting (supplementing the efforts of the REALTOR®). REALTORS® will need strategies to reinserting themselves into the process or provide greater value in the latter stages of the process.

Drivers of Disintermediation: Several factors are causing consumers to reduce the role of the REALTOR® or bypass them completely: finding alter-nate ways to access information, demand for greater value for services provided, increased ease of con-necting buyers and sellers, and wanting to avoid the effort involved to prepare a property for sale.

To download the entire report, please visit the JOD site here.

ENSURE RELEVANCE

Evolved the Original Question

FromWhat will the practice of the REALTOR® look like in five years?

ToWhat can BCREA do to advance a more sustainable and thriving industry for BC REALTORS®, brokers and organized real estate?

ENSURE RELEVANCE

Evolved the Research PlanTheme TopicsConsumer Autonomy, REALTOR® Professionalism, BCREA Service Innovation, REALTOR® Match, Changes in Rural/Urban Landscape

Theme FormatsSlide Deck, Executive Summary, Webinar

Final ReportsResearch Summary, Strategic Options Report

IMPROVE COMMUNICATIONS

Scheduled and continue to offer regular meeting opportunities with Boards.

Sought strategic communications advice

BUILD RATIONALE FOR CHANGE

Developing a Disruptor Report!

KEN JENNINGS74 WINNING

APPEARANCES

BRAD RUTTER$3.25 MILLION

IBM WATSON WINS JEOPARDY…

IBM WATSON WINS JEOPARDY…

A computer system that is able to store, digest, analyze, and weigh terabytes upon terabytes of data. It is able to understand natural language queries, run hundreds of parallel algorithms against the database, weigh the possible answers, reach a confidence score, and then provide the answer and the reasons why it believes that answer is correct.

Watson-related business are growing rapidly enough that IBM revised its 2015 goal of revenue from “business analytics” from $16 billion to $20 billion.

WATSON ADVISOR...

NAR ON WATSON

“If a thinking machine can answer a consumer question like ‘Which neighborhood is best for me?’ or ‘Which property will appreciate more?’ the role of the agent or broker would be impacted. It would certainly create a different landscape for customer acquisition and other real estate staples.”

National Association of REALTORS®

PRIVACY AND DATA

What if the consumer owns their data….

“Agents need to stop thinking that the data is ‘theirs’. It’s the sellers who provide us the right to post their data in the interest of finding buyers, not generating leads.”

NAR REthink participant, Northern Virginia

SNAP PHOTO. ANSWER Q’S. FILE RETURN. 10 MINUTES.

FICTIONAL PRODUCT...FOR NOW!

AND WHAT ABOUT FACEBANK?!

DISRUPTOR REPORT

Reached out to leading industry experts• Rob Hahn• Garth Turner• Stefan Swanepoel• Jeremy Conaway• David Eaves• Doug Devitre• Lawrence Dale

… to generate a list of Top 5 Disruptors in the past and Top 5 future disruptors….

EXAMPLES OF DISRUPTORS

Agent Teams Go MainstreamI don’t mean husband & wife “team”... I mean the “brokerage-in-a-brokerage” model laid out on paper by Gary Keller in The Millionaire Real Estate Agent, and honed to perfection over the years. The Agent Team, empowered by technology… changes the relationship between brokers and agents in truly fundamental ways, and utterly disrupts the competitive balance between brokerages. We have yet to see all of the disruption that will emerge from this phenomenon, but it is the most important disruption of the past five years.

EXAMPLES OF DISRUPTORS

Competition Bureau Clamps DownRegardless of whether the competition bureau’s investigation and case yields any outcome the very fact that the bureau chose to investigate the real estate industry is illustrative. It sums up a larger trend which is, I suspect, that Canadians don’t trust realtors as a “group” like they once may have. Various discussion groups I’ve lead on the subject always yield the same outcome. Fees have gone up, and yet Canadians are not sure what they are getting, other than access to a market and some process advice.

AND MR. TURNER...

Greaterfool.ca: 268 Comments in 48 Hours

AND MR. TURNER...

AND MR. TURNER...

AND MR. TURNER...

CONNECT TO THE BCREA STRATEGIC PLAN

Task Force met following AGM and again in April

Advised changes to the research plan – to help support BCREA strategic planning!

THE REFINED PLAN

Theme Slide Decks & Executive SummariesConsumer Autonomy: May 24REALTOR® Professionalism: June 6BCREA Service Innovation: June 20REALTOR® Match: July 3Changes in Rural/Urban Landscape: July 17

THE REFINED PLAN

Theme WebinarsConsumer Autonomy: May 29REALTOR® Professionalism: June 19REALTOR® Match: July 10

THE REFINED PLAN

Final ReportsResearch Summary: July 25Strategic Options Report: August 18

YOUR FEEDBACK

Have we missed anything?

WEBINAR

STRATEGIC PLANNING: THE QUESTIONS

Shaping the future health of the profession in BC• What are the most important themes ORE in BC

needs to pay attention to – thinking longer term? Why?

• What are the themes we need to be responding to – more immediate? Why?

• What specifically is BCREAs role in shaping the future of the profession in BC?

• What agreements and commitments are we prepared to make?

STRATEGIC PLANNING PREPARATION

• Research Summary: July 25• Task Force & BCREA Officers: July 29• BCREA BoD: August 6th• Strategic Options Report & Agenda distributed to

Member Boards: August 18• September Strategic Planning: September 3 & 4

STRATEGIC PLANNING PREPARATION

• Strategic Options Report & reflection questions: August 18th

• Review the options in what ever way makes most sense for you/your board

• Come to Strategic Plan with reflections and/or questions about strategic options and additional themes or issues that should be considered

Any further questions, comments or requests?