10 Rules That Helped Walmart Crush The Competition
By JD Esajian on September 4, 2015
How can real estate companies use Walmart’s competition crushing principles to rocket their own success?
Love or hate Walmart, there is no question the retail giant has achieved incredible success. According to the firm’s website, this success comes from 10 rules laid out by founder Sam Walton. So what are they, and how can they be applied to help real estate companies expand and grow?
1. Be Committed: Success in the real estate industry isn’t a sprint, it’s a marathon. If you are going to make it the distance, and not only grow, but hold onto your financial gains, you’ve got to be committed. Not every day or year will be smooth sailing, so you have to decide in advance to stay the course. It’s a lot easier when you determine you are in the game for the long run, no matter what.
2. Share Profits with All Associates: If everyone participates in the proceeds of growth and increased profitability, they will be more motivated to help the company keep blazing through new milestones. It may not be the right fit for every company to be employee owned and operated. It may even be a struggle for new startups to work out company stock options. Still, whether you have a brand new real estate firm or multiple branches, there are ways to share the rewards.
3. Motivate Your Partners: Too often, real estate executives just assume their internal and external partners will remain as passionate and motivated as they are. Everyone has good and bad days; don’t forget that. Some can just as easily fade out of interest as they could love the company. Whether this is one of your most important vendors or a co-founder, it often isn’t a pretty situation. Having said that, work to keep them pumped up, motivated, and in the game. When was the last time you had a strategy session, played a round of golf together, or went out on the town?
4. Communicate Everything Possible to Partners: Even though we are living in the Uber, Airbnb, sharing economy, many real estate CEOs still come from a mindset that they have to keep everything secret, and their cards close to their chests. It seems Sam Walton believed in sharing long before it was trendy, and it has worked out very well for Walmart so far. Transparency builds trust, encourages partners of all kinds to care more, and builds stronger relationships.
5. Appreciate Your Associates: Handing out a little praise and thanks won’t cost you anything, but it will go a long way in building a stronger team, and boosting productivity. Don’t try and fake it. Dig down and really learn to appreciate all that your team members do for you and your real estate company. In reality, executives owe most of their success to their team. Develop gratitude in this area, and your authentic appreciation will lead your team to growing successes.
6. Celebrate Success: Sam Walton said to not only to celebrate every success, but to have fun with it too. Celebrate making the numbers this month. Celebrate hitting annual goals and setting new records. And celebrate surviving and thriving during the dips. This is critical for employee morale, anchors the actions you want them to take and strive for, and can throw the competition off.
7. Listen to Everyone: Often those that real estate CEOs should be listening to the most, are actually those they listen to the least, or not at all. This is what crumbles the largest institutions from the inside out. Executives lose touch with the all-important front line and the consumer. Unless they are down in the trenches, experiencing it first-hand ever day there is a good chance they’ll continue to make worse, and worse decisions. Don’t just say you are listening or want good ideas; prompt them to talk, have conversations, make yourself available, and encourage critical thinking, not just confirmation of your own assumptions from the corner office and reams of metrics.
8. Exceed Customer Expectations: Don’t talk about exceeding expectations. Do it. Plan to do it, and set up the opportunity with the expectations you set for buyers, sellers, renters, investors, vendors, partners, and shareholders. You won’t always get it right, but when you mess up, make it right, and fast.
9. Control Your Expenses: Of all the rules we will focus on, this may be the most important. Walton said to not only control your expenses, but to control your expenses better than your competition. You can’t control the national housing market or interest rates, but you can control your own expenses. This is one area your real estate company can find an advantage in, and it’s a vital one.
10. Swim Upstream: Who knew Walton discovered the power of being a ‘disruptor’ before it became cool to do in Silicon Valley? Go against the current, find opportunity where others aren’t looking.