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Hedgehogs and Real Estate Agents
September 1st, 2007 categories: Off-the-Wall, Real Estate News
I’ve been re-reading Jim Collin’s excellent book, Good to Great. In this book Mr. Collins and his associates document a very detailed study they conducted of what makes companies “great”. I made it most of the way through about a year ago, and for various reasons picked it up again because I feel it has some incredibly insightful ideas and conclusions about creating businesses.
Virtually every real estate agent is a one-person show (or a team of people) that while associated with an agency, effectively is a small business. (Small being defined here as the number of “employees”). I read this book partly because this sort of stuff just fascinates the heck out of me, but I’m also interested in seeking whether or not, as an agent – can I be a great company? My first reaction is “…noting to learn here because this book only applies to ‘regular’ companies..not independent contractors..”
So here I am. Certainly not knowing the answer(s). So it’s a little selfish maybe, but I decided to write a post (or what will probably be several posts), as I try to flesh this out primarily for myself. Of course, it would be incredible if along the way, someone were to read this and think “…wow…good stuff here…” and it helped them, too.
In Chapter 5 of the book, Mr. Collins discusses what he calls the “Hedgehog Concept”. Pulling from an old Greek parable that says “the fox knows many things, but the hedgehog knows one big thing…” Developing the analogy a little further, Collins discusses how foxes are cunning, constantly on the move, fast, etc. The hedgehog almost sounds boring in that it sees the world simply and ignores the many distractions coming at it. In fact, when under attack, the hedgehog simply rolls into a perfect ball with spikes extended in all directions, thwarting any advance. Once trouble passes, the hedgehog unwinds and calmly goes about its business.
The point to all this is that according to Collins, great companies, distill everything down to a simple thought or concept that guides all their efforts.
In the book Collins says there is a “…simple, crystalline concept that flows from deep understanding about the intersection of the following three circles:
1. What can you be best in the world at…
2. What drives your economic engine…
3. What are you deeply passionate about… “
If I assume that my one-person-real-estate-company can be a great company, question number 1 above is difficult. Without trying to summarize the book too much, Collins drives home a key point here. The answer to this question is not a goal. It’s easy to say “oh, of course, I want to be the best agent in the world..” He goes even so far to say that a company may have excellent competency in an area, but it’s possible it cannot be the best in the world at that.
I have to say that this is extremely difficult to get my head around. For example, I can do CMAs, write offers, service clients. Can I be the best in the world at that? Do I want to be the best in the world at that? Is it more abstract than that – things like fulfilling people’s dreams? We probably tend to define the “best” agent as the one who produces the most income – the top producer. It seems that the income comes from being on the road to becoming great….
For now, I leave this post here. Any thoughts from anyone else, or is this just the writings of a caffeine-inspired dreamer? Hopefully I can post more on this topic and especially thoughts as they relate to the next two questions.
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September 2nd, 2007 at 9:21 am
I’ll look forward to seeing more on this! I’ve been a fox at times and a hedgehog at others. I’m not letting all the press about our market conditions keep me from continuing to build my business. Being the best in the world is subjective. If my clients think I am doing a good job and they are satisfied with the outcome then I’m ok. Keep the coffee flowing!
September 2nd, 2007 at 10:02 pm
Hey Cindy,
thanks for the encouragement. this whole thing is a hot topic with me right now… hopefully I can supply decent content…
September 4th, 2007 at 7:33 am
I have read the book, perhaps three years ago, and found those same questions very challenging. Perhaps you are to be the “BEST in the world” for a specific service in a specific geography?
Isn’t that the real key to real estate success?
This article was featured on this week’s Carnival of Real Estate too.
September 4th, 2007 at 4:13 pm
[...] ‘Hedgehogs and Real Estate Agents’ by Brian Miller of Real Estate Entropy [...]
September 20th, 2007 at 4:07 pm
My Fiance is currently reading this book…. After reading your blog, I believe I may pick it up also. You have sparked my curiosity.
September 20th, 2007 at 10:13 pm
Actually, this is a small world! I am reading this EXACT book right now, and am specifically at this particular chapter of it! My thanks to my fiance (a real estate agent herself) for showing me this site.
September 24th, 2007 at 2:30 pm
Hey Shawn and Daniele -
thanks for the comments. I’ve really enjoyed this book…it has some amazing insight and really strikes a chord with me..
October 2nd, 2007 at 9:56 pm
Brian - I hadn’t heard of the book but enjoy reading and you’ve sparked my interest - what an insightful post - I’m new to the RET blogs and stopped by the say “HI” - Cyndee Haydon