Housing Giants - August 25, 2008 - (Page 28) f e at u r e skill sets in the management team. “Everybody is so hunkered down playing defense on their own goal line that most are not thinking about what can be gained when the offense gets the ball again,” says people management consultant Martin Freedland, chairman of Atlanta-based The Berke Group. “This is the perfect time to recruit young management talent and develop a training program to fast-track those young managers into positions of authority and responsibility.” It’s also a great time to weed out tenured people who no longer have the drive or specialized skills to succeed in the next growth cycle, Freedland adds. “You can’t afford to have people just hanging around.” If you have a ‘C’ player on your team, Freedland advises, replace that person with an ‘A.’ “In today’s market, it won’t cost you a nickel more to make that upgrade,” he says. “There’s a lot you can do without much cost at all that will pay big dividends when the market turns.” SHOckING SAleS SHOrTfAllS Builders and management consultants interviewed for this report were unanimous in their condemnation of the vast majority of sales managers and salespeople working in the housing industry today. They also endorsed sales as the most vital function, one ripe for change in many companies. “Nevermind recovery,” says Houston-based sales management consultant Tom Richey. “A lot of builders will never make it to recovery if they don’t upgrade management and training right now. If your sales team is not selling, you need to make a change. People must be held accountable for results. Potential buyers are out there shopping in every market.” The most glaring deficiency in sales managers, Richey says, is lack of knowledge on mortgage finance and inability to train salespeople in how to communicate to buyers the differences various mortgage finance options make in monthly payments. “It’s not the price of the house that matters,” Richey bellows. “It’s the monthly payment.” Richey says he mystery-shopped one sales agent on a $611,000 house. “She pitched me a monthly payment of $6,000 to carry the house, which was only $2,000 too high. That’s just nonsensical. If you’re going to make it to the recovery, you’d better find someone who can 28 HOUSING GIANTS.8.25.08 www.HOUSINGGIANTS.cOm http://www.richeyresources.com/ http://www.berkegroup.com/ http://www.housinggiants.com
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