Pages:5 (1421 words)
Organizational Issues and Solutions: Keller Williams in Ft. Mitchell
Description of the Organization and the Issue to Resolve
The company selected for this study is a Keller Williams Realty in Ft. Mitchell, KY. The international real estate brokerage firm was founded in 1983 by Gary Keller and Joe Williams is headquartered in Austin, TX, and has served the communities all over the U.S. for more than 40 years. KW is known among real estate agents as offering the best rates when it comes to commissions and the best training through their IGNITE and BOLD programs (Larcker & Tayan, 2015). KW Ft. Mitchell is known for its customer service which has allowed the firm to remain competitive with larger brokerages like HUFF in the area, as home buyers know they are getting agents who will work hard for them and help them to make a sale.
The organizational issue the company is having is that there is a high rate of turnover among agents, and that is a problem for the franchisee who is refusing to build a new building for the firm until it can consistently maintain 100 agents at the office for at least a year. While the firm does provide IGNITE training to every new sales rep that comes to work at KW, the training does not actually give the reps realistic experience in the field. Many real estate agents who come to KW come because the firm pays a higher commission than HUFF or other competitors. They also like the motto at KW of “God, family, business,” which they feel reflects wholesome values. However, new sales agents are never actually taken into the field by other sales agents, who could act as mentors—mainly because in spite of all the talk about teamwork, the real estate industrious is competitive and every agent is out there trying to get clients for themselves. This means that new sales agents are basically left on their own to figure what works and what does not work—in spite of the inspiring message given through IGNITE. The company could benefit from having a mentor program that could be useful in the firm’s quest to retain agents (Orpen, 1997). Specifically the problem can be understood in these terms: Inspiring training motivates initially but the lack of substantial know-how for agents first entering the field has caused multiple problems within the company, including: 1) sales agents are leaving after a few months, either giving up or going to HUFF which does not charge office fees (KW does); 2) over the…
…and help them to make a career of selling homes. The company needs to provide mentorship to reduce turnover.
To implement a solution to the turnover problem, the organizational culture at KW has to provide the foundation for success: it has to follow through on the vision it proposes, which will serve as the foundation for growth and development that the workers need (Meyer & Stensaker, 2006). It has to provide a mentorship program and pay its top sellers to head up that program. Otherwise, it will continue to bleed agents to HUFF. Thus, leaders should be appointed (and paid) to mentor new agents and show them the methods that lead to success in closing sales. They should be responsible for promoting a learned approach to messaging with customers, drumming up clients, and making sure that every sales agent is confident in the field and knows what to do in a variety of settings when with clients. Confidence will lead to sales, which will reduce the turnover problem, as many new agents feel discouraged by having to pay office fees when no money is coming in from sales. Overall, this strategy will also help to promote a positive culture within the organization as everyone will be more supportive of and encouraging…
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