After close to 5 years of working with Business Development Managers and Principals, I have noticed a common theme. Many of my clients consistently beat themselves up over self-appointed, unrealistic expectations. Granted, most clients who work with my team are serious about reaching their full potential and capitalizing on their talent, but they are unaware of how developing unattainable goals is setting them up for failure.
So, what happens when we set unrealistic goals and targets for ourselves? There’s an important difference between a stretch goal and an unrealistic goal, especially when we have the tendency to be our own harshest critic. When we set ourselves unrealistic goals, we are also setting ourselves up to fail as they can distract us from our work while giving energy to negative self-talk.
How do we know that our goals are unrealistic? What’s the difference between a stretch goal and an unrealistic goal? Most of the goals we set for ourselves are perfect. In most cases, what makes a goal unrealistic is the time frame set to achieve it.
I get asked “how many properties do your top performing BDM’s sign in one month?”. Now, this is a great question, however the answer can encourage unrealistic goal expectations. If I look at my personal BDM career, my best month was 30 managements. During that same year I signed 268 properties over a 12 months period. But this was not my first year as a BDM. In fact, I was heading into my 3rd year. If I had of set this type of benchmark for my first year, I know I would have been very disappointed.
Key performance indicators (KPIs) are essential to the success of a BDM and must be aligned with the specific goals and objectives for the agency. For example, a BDM must monitor the number of leads, their origin, listing presentations completed and new managements secured.
A KPI targets must be stated in clear terms and measurable. A time frame must also be established for all KPIs, with key checkpoints along the way to ensure that the BDM is on track. To help get you started in the right direction for 2018, I have included a basic sample which will help track your performance.
- New managements secured (signed agreements)
- New managements secured and leased (generating income for the business)
- Contacts added to your database (keep a record of the contact details you collect)
- Department net growth for the month (total number of managements for the current month vs the total number of managements for the previous month)
- Department income growth for the month (the overall amount the department income has increased for the last month)
- Number of networking events attended in one month
- Number of call connects completed each month
- Number of appraisals from call connects each month
- Number of new managements secured from call connects each month
- Average days on market (vacant properties across PM Department)
- Current vacancy rate for your agency (total number of properties managed vs current vacant properties)
With ambition comes a certain amount of discontent as we try to reach higher goals. Those of us who have ambition strive to move our real estate careers forward, take on more responsibility, don’t take no for an answer and are prepared to do whatever it takes. To succeed, we need the grit and determination to stay focused on achieving certain milestones along the way. By taking this healthy and positive approach, we adjust our desired goals along the way and push ourselves beyond our comfort zone to be successful)
“The victory of success is half won when one gains the habit of setting goals and achieving them. Even the most tedious chore will become endurable as you parade through each day convinced that every task, no matter how menial or boring, brings you closer to fulfilling your dreams.”– Og Mandino
Take the time to look at your career path and the direction you would like to see yourself head in. Make sure you set goals that are challenging yet achievable.