15.1: Part I- Leadership
- Page ID
- 36419
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)A leader takes people where they want to go. A great leader takes people where they don't necessarily want to go, but ought to be.
-Rosalynn Carter Goldin, K. (2018)
Leaders play a pivotal role in the complex landscape of real estate. Exceptional leaders can transform individuals, teams, and organizations. They inspire and motivate others by creating a vision for success, guiding others to achieve objectives, and fostering innovation and growth. In this module, we will explore leadership and legacy as they apply to real estate professionals.
What Makes a Leader?
Are leaders born or do they acquire leadership skills over time? Leadership skills are not always innate; they can be developed through training, education, mentorship and coaching. Think of one of the world's finest leaders who has influenced millions of people in positive ways over the years. Who comes to mind? Again, when you think of a very powerful leader whose influence was so strong that he was able to start a world war and was responsible for the deaths of millions of innocent people, who comes to mind? Both of these people are outstanding leaders; but the difference is that one used his power and influence for good, while the other used his power and influence for evil. While some leaders may be excellent for good or bad, what are the characteristics of a great leader?
A 2014 Harvard Business Review study by Zenger and Folkman found that six of the top eight leadership skills relate to emotional intelligence (EQ) (see Module 9). The leadership competencies outlined in the study included motivating and inspiring others, being honest and ethical, solving problems, analyzing issues, communicating effectively, collaborating, and promoting teamwork. Psychologist Daniel Goleman, author of Emotional Intelligence, identifies five key contributors to emotional intelligence. Goleman highlights self-awareness, self-regulation, motivation, empathy, and social skills as essential building blocks for navigating relationships. These combined characteristics contribute great and effective leadership.
Who is a Leader?
Effective leaders motivate people to follow them and inspire followers to achieve a common goal. A leader's role is to make strategic decisions and move people to take action. Leadership is not confined to those in formal leadership roles; people who do not serve in a formal leadership position can serve as role models and lead by example. While leadership is accessible to all, effective leaders typically exhibit specific qualities and skills, as discussed below.
Empathy, a cornerstone of emotional intelligence (EQ), allows leaders to build solid relationships. Empathy is part of the emotional intelligence (EQ) that people use to understand and feel the experience of others. Having empathy enables leaders to connect with others on a deeper level. Psychologists Daniel Goleman and Paul Ekman have defined three components of empathy: cognitive, emotional, and compassionate empathy.
Someone who exhibits the cognitive component of empathy sees things from another person's perspective, which demonstrates a desire to understand. Emotional empathy is a desire to feel connected to the experience of another person. And, compassionate empathy is the ability to be aware of someone’s feelings and willingness to help when possible. Leaders who serve others with compassionate empathy make the well-being of their followers a top priority.
Innovative leaders use their creativity to provide unique problem-solving skills to lead. These leaders have a strategic vision that incorporates past experiences, research, and education. They ensure that the workplace and other situations are psychologically sound through open communication, collaborative sharing of ideas, and displayed optimism.
In real estate, examples of leadership roles include a real estate brokerage owner who employs agents, a president, board member, or committee chair of a professional real estate association, a chair of a college real estate department, or the executives of corporate, public, and non-profit organizations with real estate holdings. Leadership roles are available to everyone, regardless of educational attainment, age, or cultural background.
Five Styles of Leadership
Leadership styles vary depending on the type of organization, the goals, and the individual manager’s values and training. Five classic styles of leadership are authoritarian, participative, delegative (laissez-faire), transactional, and transformational. The table below shows the definitions of these five styles and gives examples. Read the table carefully and note the differences among the styles.
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Five Classic Styles of Leadership |
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Style |
Definition |
Examples |
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Authoritarian |
leaders have total decision making control and authority |
leader makes all the decisions regarding marketing strategies, client interactions, property listings, and even dictates how agents should conduct their daily tasks |
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Participative |
leaders involve team members in the decision making process |
broker actively involves agents in decision-making processes related to marketing strategies, client interactions, and operational policies |
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Delegative (Laissez-faire) |
leaders give team members autonomy and authority to make decisions and take responsibility for their work |
broker provides agents with access to resources such as marketing materials, administrative support, and industry insights but allows them significant freedom in how they approach their work |
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Transactional |
leaders offer rewards or punishments to motivate followers to achieve specific goals or objectives |
broker offers a commission structure where agents receive bonuses or incentives for reaching certain milestones, such as closing a certain number of deals within a set timeframe or meeting sales volume goals |
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Transformational |
leaders focus on inspiring and motivating followers to achieve higher levels of performance by appealing to their values, emotions, and aspirations |
broker sets a visionary goal of becoming the leading provider of sustainable housing solutions in the community |
Practice Zone
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Label each statement as representing one of the five leadership styles
"The supervisor rewards employees for achieving specific goals and enforces consequences for failing to meet expectations." (Answer - #4) "The team leader encourages input from all members and makes decisions based on consensus." (Answer - #2) "The manager dictates tasks and expects immediate compliance without input from team members." (Answer - #1) "The department head inspires and motivates employees by setting a compelling vision and empowering them to innovate and grow." (Answer - #5) "The CEO provides minimal guidance and allows employees to make their own decisions and manage their tasks independently." (Answer - #3) |
Label each statement as representing one of the five leadership styles
The Porter Model of Leadership
The Diamond Model distinguishes four interdependent leadership imperatives, or “orientations”: Ethics, Vision, Courage and Reality. These orientations are personal inner resources, always available to help you if you access them.
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The Porter Diamond Model of Leadership |
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Orientations |
Definition |
Examples |
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Ethics |
the moral principles and standards that govern the conduct of professionals in the industry |
Real estate agents are expected to provide truthful and accurate information to clients, including disclosing any known defects or issues with a property. |
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Vision |
clear and inspiring picture of the future that guides the actions and decisions of professionals in the industry |
Agents and brokers should invest in ongoing professional development to enhance their skills and knowledge, ensuring that they can effectively serve the needs of their clients and contribute to the advancement of the industry. |
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Courage |
the willingness to take bold and principled actions, even in the face of challenges or adversity, to uphold ethical standards and serve the best interests of clients and communities |
Real estate professionals should have the courage to adhere to fair housing laws and regulations, ensuring equal access to housing opportunities for all individuals regardless of race, ethnicity, religion, or other protected characteristics.practices. |
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Reality |
assessing the existing conditions, trends, and dynamics of government policies, amenities, location attributes, and economic factors to make informed decisions |
Real estate professionals assist clients in making informed decisions about purchasing a home that align with their preferences, lifestyle, and financial goals |
Practice Zone
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Scenario: You are a real estate agent representing a young couple looking for their first home. They are pre-approved for a specific budget but have fallen in love with a house slightly above their price range. The house also has a few cosmetic issues - peeling wallpaper and outdated appliances. Instructions:
After considering all aspects of the Leadership Diamond Model, prepare a strategy to navigate this situation. How can you help your clients make a sound decision that considers both their budget and their desire for a dream home? |
Leaders or Managers?
A manager supervises or supports the work required by the organization to keep it on track. This role is distinguished from that of a leader, whose focus is on developing the organization and its people. The manager's role includes providing employees with direction and support, ensuring they complete assigned tasks. A manager creates a plan of action to guide people toward their desired outcome.
Managers focus on short-term goals by defining and delegating tasks; they dictate what needs to be done, by whom, and by when. Managers are task-oriented and focus their time and effort on keeping the organization profitable and avoiding risk. Depending on the company and the work environment, a manager may be called a supervisor or boss. Team leaders may also be managers.
There are various leadership and management opportunities and roles available in the real estate industry. In module 1, we learned about the leadership role of a broker/ owner. Real estate brokers provide support to their agents using both leadership and management skills. As a leader, a broker will set the direction and goals for their company. Brokers will also motivate and inspire their team to work towards the future success of the brokerage. As a manager, a broker has managerial responsibilities which include the day-to-day operations of the brokerage, and overseeing administrative tasks. In addition, a broker offers training, mentorship, and resources to help their agents succeed.
Examples of management roles in real estate include working as a team lead/ manager, a sales manager, marketing director, or training manager. Each of these management roles work closely with the broker to help them establish clear goals and objectives. A team lead/ manager typically serves as a mentor, trainer, support, and guidance for agents to navigate through sales techniques, negotiation strategies, monitor and track agent performance. They also provide emotional support and encouragement to help agents stay motivated to achieve their sales goals. As a whole, team leads contribute greatly to the success of a brokerage.
Practice Zone
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Think of someone you admire as an exceptional leader. Now, identify two character traits that best describe this leader. Think about the people who follow this leader. How has this leader influenced their lives for the better? |
Leadership Characteristics to Cultivate
Certain characteristics and qualities need to be cultivated by an aspiring leader. Leaders need to be coachable, flexible, open to change, able to receive and respond to criticism. The best leaders show diligence and persevere until they are successful; they don't quit, give up, or walk away from challenges. Leaders show initiative by recognizing when something needs to be done and taking appropriate action. Leaders are self-directed, using their motivation to accomplish tasks.
Leaders show integrity through their honesty and ethics, living by high moral values, and always doing the right thing. They show passion by having high energy and enthusiasm for their work or career field. Inspiring leaders are service-oriented, have a sense of caring, and treat others with kindness. Although some people may be born with these characteristics, many more learn them through hard work and repetition. By acquiring and applying these characteristics, anyone can grow into an inspirational and effective leader.
Learning Leadership Skills
College courses in areas such as business and communication are very useful in helping people develop leadership skills. Mentors who take time to work with apprentices and interns add personal value to the leadership development process. Importantly, almost everyone can practice leadership skills on the job and in daily life. An individual can lead by example, even with superiors. As mentioned at the beginning of this module, everyone can be a leader; and, in fact, someone is probably looking up to you as an example right now!
The Leadership Diamond emphasizes four different types of skills necessary for success: financial management, relationship building, caring heart, and organized process thinking. If you are weak in any of these four areas, continue working on acquiring skills and experience so you are prepared to step into a leadership role.
Practice Zone
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Take a Leadership Self-Assessment This leadership self-assessment, sourced from Purdue University, includes questions aimed at defining your current leadership competencies. You will be instructed to consider each statement carefully and rate yourself on the degree to which you believe you possess the attribute or perform the leadership skill, with three options provided: "Do not do well," "Do somewhat well," and "Do well." This assessment aims to aid you in identifying your strengths and weaknesses, understanding the reasons behind these assessments, and devising strategies for personal growth. It serves as a tool for setting leadership goals and to help guide you to establish plans for growth in specific skills and attributes, fostering your overall development as a leader. ASSESSMENT LINK |