MLS Best Practices Created by CMLS with a goal of improving professional standards in the entire industry through the development and establishment of MLS best practices. Created with input from the industry Contributing Organizations • Arizona Regional Multiple Listing Service (ARMLS) Austin Board of REALTORS® (ABoR) • • California Regional Multiple Listing Service (CRMLS) Heartland Multiple Listing Service and Kansas City Regional Association of REALTORS® My Florida Regional Multiple Listing Service (MFRMLS) Metropolitan Regional Information Services (MRIS) MLSListings, Inc. Northern Nevada Regional Multiple Listing Service (NNRMLS) Northwest Multiple Listing Service (NWMLS) Multiple Listing Service Property Information Network (MLSPIN) Delaware Valley Real Estate Information Network (TREND) • • • From “How To” to “Good” practices to “Best Practices” Checklists Provided Real Life Examples Who says they’re Best? It is time. It is time for every MLS to take an honest assessment of their organization. Every organization can rise to the next level. Take the challenge and adopt Best Practices. • • • • Your Customers will be happier, Your Employees will improve, Your Volunteers will step up, and the Organization will thrive. Why adopt best practices? Human Resources Technology Finance Legal Marketing Leadership Best Practices Customer Service Leadership & Governance • Came into the MLS world as a listing entry clerk (back in the day before “broker load”. (30something years ago) • Became the MLS Administrator and eventually MLS Director for the Reno/Sparks Association of Realtors. • First CEO for Northern Nevada Regional MLS • Currently CEO for My Florida Regional MLS with 40,000 subscribers and a staff just shy of 50. Merri Jo Cowen CEO, My Florida Regional MLS What does it take to lead? • What is Leadership? • The “ACTION” of leading a group of people or an organization. • Ah….. “ACTION” is involved? • Does that mean Managing? Let’s Start with the Big Picture…….. • Kevin Kruse, Author of “What is Leadership?” an article published online by Forbes Magazine, breaks it down like this: • • • • • • • Leading is not management It’s not just having followers It’s not automatic because you have vision It’s not simply because of personal attributes like charisma It’s not “automatic” because of title or status It’s not only about empowering others It’s not just about influence • And defines it like this: • “Leadership is a process of social influence which maximizes the efforts of others towards the achievement of a goal. And break it down. • Amazon identified • • • • • over 28,000 books on Leadership Over 451 million articles on Leadership Over 26 million Leadership Development courses Over 2 million Leadership Skill instructors …….and we have 20 more minutes And the Expert is…….. • Successful leaders have key traits in common: • Ability to establish vision and translate that to others • Passion for the vision and bringing it forward through collaboration • Listening Skills – truly listening and being willing to adjust • Be a Decision Maker – obtain info needed, involve the right people and be timely – and know that you won’t always be right! • Create the Atmosphere and Culture for Strong Relationships • Strength of Character – look within and identify your strengths and weaknesses – Professional Development is key! The Essentials Vision Passion Listening Decision Making Relationship and Team Building Strength of Character Key Traits for Remarkable Leaders • It’s a fine line to walk, but balancing staff and volunteer leadership is critical to the success of the organization: • • • • • Encourage “big picture” role to avoid micromanagement Beware of the pitfalls of pet projects Keep them informed on industry happenings from all angles Keep the volunteer focus on Policy, Strategy and Fiscal Oversight Build a team with your leadership just as you do with your staff – and expand that further – build team-type relationships with your key staff and volunteers as well! • The relationship with volunteers can be magical or detrimental. The CEO must stick with the “plan” but also recognize that others have great ideas and differing perspectives that can make the MLS even better! Leaders help Volunteer Leaders “Lead” • Start with a Mission and/or a Vision Statement • Keep it Short and Sweet – don’t describe the entire purpose of the organization. • Mission Statements should be clear, memorable and concise. • Vision Statements tend to be more aspirational in nature • Neither is beneficial if not woven into the core values and culture of the organization • Don’t say it if you don’t mean it – or if you cannot possibly achieve it It’s Hard to Lead Without a Plan! • Spell it out so that everyone understands the values and direction of the organization. • Build a belief system by which the company will operate. • A company’s core beliefs and values are the crux of its culture. • Guide decisions • Only impactful if integrated throughout the organization Core Values or Philosophies • No need to change mission and vision every time the Plan is reviewed – that should hold solid • Don’t go too deep into the woods or the plan will just sit on a shelf or will become a micro-managing task-master • Focus instead on strategic thinking and direction with leadership and senior staff working together • Staff can put the ideas from the process and incorporate them into the organizations structure. Key Components of the Plan Planning Best Practices: Substanceoversizzle Missionandvisiondefined Corevaluesembeddedin theorganization Goalsmeasurable Timelessmission, values, goals Planning Best Practices • MLSs are built on many different structures: • Single REALTOR Association owned (committee or separate corporation). • Regional MLS owned by multiple REALTOR Associations • MLSs owned by Brokers (some or all) • Hybrids of all of the above • There is no right or wrong way Governance Structure • Some structures do not allow for effective or nimble decision making. • Shareholder opportunities (or lack of) can create conflict, whether broker owned or association owned. • How revenue is shared can also be contentious. • The Key: remain flexible and encourage review of the process because, “times, they are a changin’.” and we all need to be prepared for various scenarios! Legal Structure Challenges Effective decision making process All stakeholders empowered Efficient Cultivate forwardmomentum Structure that has the best of the best clamoringto be on the Board Allow for reasonable change Governance Best Practices • Is there a perfect sized Board of Directors? Ah, the debate….too few is no representative, too many is too hard to manage….. • How much authority does your Executive Committee have to act in between meetings? • Nimble is they key in today’s changing world – but that also depends on the culture of your organization and the typical decisions made by your Board of Directors. The Board of Directors • In addition to finding the optimal size, other considerations that should be considered: • Business Leaders? (broker owners have seats reserved in some MLSs) • Various areas of size and expertise? • Any special requirements for serving as an Executive Committee member? • Should Shareholder (for regionals) Association Executives have a voting representative? • How about business leaders outside of Real Estate? Can they lend some expertise to the overall vision of the group? • Term limits? • Executive Leadership serving for longer than one-year? Make-Up of the BOD • The MLS Executive/CEO is responsible for the overall operation of the MLS organization. • Building an understanding of the roles of each group (Directors, Executive Committee, Senior Staff, Shareholders, CEO) is critical to success – particularly when it comes to the fiduciary responsibilities of Directors, regardless of who elected/appointed them. • The CEO is also responsible for keeping the organization in sync with its vision, core values, goals and long term strategy. • Communication is key! Understanding the Roles Board of Directors CEO Financial oversight including budget approval. Approves the high level policies governing how employees will be treated. Authorizes contracts above the levels delegated to the CEO for approval. Long term strategic direction of the organization. Operates within the predefined budget of the organization. In charge of all employees including salaries, reviews, and responsibilities. Negotiates and executes contracts. Approves contracts within limits delegated by the board. Brings ideas, information, and thoughts to leadership, with research that enable them to set the best strategic direction. Policies of the organization. Appoints special Taskforces as necessary. Implements the board policies as approved by the board of directors. Creates, monitors, and implements operational and organizational policies. Makes recommendations for changes. Product development. Fiduciary duty is to the MLS. Inspires and leads the organization. Roles: BOD and CEO Refuse to accept mediocrity Craft great relationships Make tough decisions What CEO’s Do Take Risks Trust Extend vision to every employee, customer and stakeholder • Are you watching the Landscape? • Core Standards for Associations – Best Practices for MLSs? • What does the future hold? Are you willing to consider: • • • • Growth/Expansion (politics aside, it’s about relationships) Merger (compromise is the word) Data sharing (short term solution) Wholesaling/Retailing (requiring clearly defined roles) Look to the Future • First and foremost, the biggest challenge in any type of growth or expansion is politics – just that simple! But also: • Control and representation • Resistance to change • Financial considerations Challenges • Are you putting your best leadership foot forward? • Are your volunteer leaders getting what they need to lead? • Mission, Vision, Goals – Oh My! • Is it time for a Governance Review? • Is your Board of Directors properly focused? • How would you characterize the relationships with all stakeholders in your organization? • Are you committed to becoming an extraordinary leader and an extraordinary organization? The Checklist • Regardless of size, there are relationships that can be built to strengthen the organization. • Outside facilitators can be a huge help – whether local or national. Perhaps an MBA student at your local college if funds don’t allow for more, an on-line leadership course, your local, state or National Leadership academy…. – an outside perspective is priceless and neutral enough to ask the tough questions. • How about a peer review? • An exercise in reviewing all of the CMLS Best Practices Checklists with your Board of Directors? • A mentor or fellow MLS Exec makes a great sounding board. • It’s true that we don’t know what we don’t know – let’s be willing to be objective and see what we can do to move towards and maintain excellence! How do We Know? Contact Info: Merri Jo Cowen, RCE, ePRO, CMLX2 CEO, My Florida Regional MLS ceo@mfrmls.com 407-960-5301 For more information go to www.CMLS.org Questions & Discussion Human Resources • • • • 20+ years supervisory and managerial experience Worked in organizations large and small Managed multiple groups of various sizes 8+ years Association and MLS management Wes Wiggins CEO, Jupiter-Tequesta-Hobe Sound Multiple Listing Service • Keep the organization in line with its culture, vison and goals • Foster the productivity and success of the organization by creating workforce plans • Ensure the organization is compliant with local, state and federal regulations Why Human Resources? • At least one designated individual • May be outsourced, HR professional, or even the CEO • Access to an attorney with HR and employment law is recommended Who Is Human Resources? • Work with management to create and foster the culture, vision, and goals of the organization • Acquire the right people at the right time • Ensure knowledge of and adherence to legal requirements • Maintain employee records, create job descriptions What Do They Do? • • • • • Should be accurate Need to be updated Correctly identified as exempt or non-exempt Clearly define duties and responsibilities Based upon an formal analysis of the job Job Descriptions • • • • Crucial to the success of the organization Incorporate clear and measurable selection criteria Require employment application from every candidate Do not ask questions that violate state or federal laws (Birthday, marital status, number of children, etc.) • Asses internal candidates • Targeted marketing • Creative recruiting Hiring • Determine if the candidate will fit the organization’s culture • Will they raise the level of knowledge and experience within the organization? • Do they meet the qualifications? • Has a background check been performed? • Check references The Interview Process • Provide a new employee orientation to introduce the employee to the organization • Review policies and procedures • Assign a mentor if possible • Provide job specific training, emphasizing importance of their role • Offer fair compensation • Ensure all documents have been completed (W-4, Citizenship, etc.) New Employees • • • • Goals need to be S.M.A.R.T. At minimum, evaluations are performed annually Identify training needs Provide employee with evaluation process and criteria in advance • No surprises • Provide method for employee feedback Goal Setting and Performance Evaluations • • • • • • • • • • Communicate and document Consider consequences Take action Be fair Effective dispute resolution policies Whistleblower policy Workplace safety, health and security Handle terminations in a professional manner, comply with regulations Conduct exit interview Maintain Confidentiality Excellent Employee Relations • Create and maintain a written handbook that describes policies, procedures, benefits, etc. • Ongoing anti-harassment training • Workers compensation and statutory information clearly posted • Know how ADA affects your organization • Retain documentation of compliance with state and federal regulations Regulatory and Documentation Contact Info: Wes Wiggins, CMLX2 CEO, Jupiter-Tequesta-Hobe Sounds Assoc. of REATORS® wwiggins@jthsrealtors.com 561-746-2707 For more information go to www.CMLS.org Questions & Discussion Finance • • • • Finance Degree – Real Estate Banking 5+ years Lending 10+ years Non-profit 3+ years Denee Evans CEO, Council of MLS Purpose: Describe and document financial management activities In order to accomplish this, every financial policy needs to address several areas: • Formal budgeting process. • Defined authority to spend funds including approval, check signing, and payroll. • Specific assignment of authority to enter into contracts. • Assignment of responsibility for maintaining accurate financial records. • Defined process to negotiate and approve contracts, services, loans, credit terms with outside financial agencies such as banks, financial or trade institutions, insurance companies, etc. Financial Management Documented and implemented processes and procedures Accurate and timely financial statements Compliance with generally accepted accounting principles Compliance with applicable laws Fund operations from operating revenue, not reserves or financing MLS should budget to fund all operations from operational revenue Financial Management A good budgeting process engages those responsible for adhering to the budget, and implementing the objectives in creating the budget. Options: • Staff prepares draft budget and submits to BOD • Staff works with treasurer and jointly submits budget to BOD • Staff works with treasurer and audit, or finance committee and submits to BOD Budget Process Budgeting Best Practices Realistic, timely, achievable budget Limit fixed costs to minimum subscription levels Use variable cost services to allow for rapid expansion/contraction Billing in advance for services is preferred Excellent communication between staff and the board of directors Budgeting To stakeholders, a budget provides a measure of accountability, transparency, and good faith. • Must meet all goals and objectives of the organization • Budget plan should be flexible • Two types of costs – fixed and variable Fixed = “Overhead” (rent, salaries and depreciation) Variable = labor and materials Budgeting A cash flow statement is one of the most important financial statements for a business. • • • • Working capital is an important part of a cash flow analysis Timing of cash flows Cash flow budget Advance billing Cash Flow Purpose: Tools used to educate the board of directors. Financial Reporting Best Practices Full and Fair Reporting of all business transactions, assets and liabilities Balance Sheet Income Statement Cash Flow Statement Financial Reporting Budget vs. Actual Variances • Balance Sheet = Moment in time • Statement of financial position • Assets vs. Liabilities • Net assets Unrestricted, temporarily restricted and permanently restricted • Income Statement = Period in time • Statement of activities • How net assets have changed • General Ledger = History • Complete record of financial transactions • Used to prepare financial statements Chart of accounts BS, IS and GL… CEO Best Practices Must understand how budget, operating statement, balance sheet and cash flow statement work together Ultimate responsibility for the financial soundness of the organization Proper checks and balance Learn about finance Hire a CPA…? Management Responsibility The Board of Directors has a fiduciary duty to oversee the financial soundness of the organization. • Finance committee and/or Audit Committee • Board approves budget • Board members must always act for the good of the organization • Objective, unselfish, responsible, honest, trustworthy, and efficient Don’t know….Ask • Audits Best Expensive Painful • Reviews Better Less expensive • Compilations Hired CPA Audits Audit Best Practices MLSs with an annual budget of $1 million or more should have an independent annual audit Less than $1 million to promote financial transparency, accuracy and monitoring to plan Purpose: Set standards and guidelines governing the investment and management of the MLS’s investable assets. Objective: preservation of principal, allow liquidity to meet operating expense cash flow and ROI with minimal risk Preserve Capital Provide for liquidity Regular reporting Manage asset allocation Finance committee or investment committee Employ an external investment manager Investment Policy 1. Operating Reserve 2. Capital Expenditure Reserves 3. Legal Reserves Should we borrow money?? Why? Reserve Policy • • • • Billing and Collection Banking Policy Expense Policy Petty Cash Internal Controls Checklist Accrual accounting method Avoid cash Accounting Credit strategy in place Line of credit or preapproved lending available Contact Info: Denee Evans, CEO Denee.evans@councilofmls.org www.CouncilofMLS.org 919.459.2167 office 919.674.4185 direct Questions & Discussion Lunch Break MLS Best Practices Created by CMLS with a goal of improving professional standards in the entire industry through the development and establishment of MLS best practices. Marketing & Communication • • • • • 1994 First big job out of college REALTORS Real Estate Directory VP Sales and Marketing CEO (who can’t keep her nose out of the creative stuff) Shelley Specchio CEO, Northern NV Regional MLS Why do we need a Marketing and Communication Best Practice? REALTORS Don’t READ Items 3,352 We all prioritize based on Unread 3,185 need and value REALTORS Don’t READ • Effective Marketing ensure Focus on Value to the Customer • Does your product fulfill your Customers Needs? • Marketing has less to do with getting customers to pay for your product, more to do with developing DEMAND for that product. Creating Value Discover, Create, Arouse, & Satisfy Customer Needs Where you develop your strategy for putting • The Right Product in the Where you create the • Right Place at the • Action Programs • Right Price at the • Projecting Income • Right Time • Anticipated Expense The Marketing plan is always be based on the Strategic Plan The Marketing Plan • Result of ALL that Work • Helps You Set Objectives • Develop plans to meet objectives • Positions you to take advantage of opportunities • Contains the Tools, including: • Advertising - Public Relations - Sales Marketing Strategy & Action Plan • Is the Road Map guiding the MLS toward the objectives of the Marketing Plan Communication Plan • • • • • What do you want them to know? What do they already know and value about your MLS? Why do they need to know this? Who (precisely) is your audience? How can you better segment your audience to target your message to only those who need it? • How will they likely react to the message and why? • What are some factors influencing your audience? • Can everyone on staff articulate this message? It all about Asking Questions • Brand is how you build a Relationship with your member • Brand is how you build Trust • Your MLS already has a brand; it’s built on everything the community sees and hears about the MLS • • • • • How your phone is answered How the staff presents itself How MLS materials look How MLS responds to complaints How the MLS system works Branding The Heart of the Marketing Plan is the Execution! All the Planning is about Taking the Time to Get it Right But it requires Action, Management and Follow-up Getting the Job Done • • • • • • • • Don’t overwhelm Include CAN-SPAM compliant features Send on regular schedule so its expected Look at analytics, open rates to see when members open and what types of headlines get attention Ensure mobile optimization Be aware of latest spam themes and avoid them Target email to the subset most interested or affected If possible create opt-in preferences to avoid them opting-out. Delivering your Message Keep Asking the Questions • What is the open rate of messaging? • What is the adoption of products? • How is member satisfaction? Keep fine-tuning your message! Measure Results REALTORS DO READ! In The End, you might find Contact Info: Shelley Specchio, RCE, ePRO, CMLX2 CEO, Northern Nevada Regional MLS shelley@nnrmls.com 775-823-8838 For more information go to www.CMLS.org Questions & Discussion Customer Service Is an attitude, not a department • • • • Started as AE (~60 Members) Recruited into MLS world (~1000 Users) 30+ years (now 5000 Users) I LOVE what I do! (most days) Lauren Hansen CEO, IRESMLS “Use your good judgment in all situations. There will be no additional rules.” Nordstrom’s Rule #1 • • • • Remove barriers & restrictions Rules, policies in the way? Ask about bottlenecks & solutions Ideas to improve customer experience Empower employees • • • • • • • Purpose of organization Toss out unnecessary rules Develop a culture of service CEO can model behavior Treat employees like customers Create environment of cooperation, teamwork Fun, sense of humor can do wonders Company Culture • • • • • • Seamless? Business is motivated by customer focus Communication channels Solicit feedback Identify new opportunities LISTEN !! Consider proportion of 2 ears to 1 mouth Customer Experience • • • • Ask the right questions What is important to them Survey, by any method View policies through the eyes of customer Customer = Best Research Dept • Tracking • Reporting • Emergency messaging – Email, Broadcast, Scrolling. • Waiting back stage? CRM System • • • • • Answering calls Abandonment Rate Average Handle time On hold? First Contact Resolution Rate KPI = Key Performance Indicators Great Traits • • • • • • • 1st Point of Contact, Escalation, Advanced Training Technical vs. Product Support Walk ins Online Help, after hours Handling the Public Conflict (e.g. scripts) Support Facets 1. 2. 3. 4. 5. Understand customer segments Understand customer needs Listen to internal/external customers Anticipate, analyze impact of change Prioritize based on customer need & impact 10 Steps to Customer Focus 6. Set expectations for timing, resolution 7. Transparent & quick response 8. Keep customer in loop 9. Measure: How did you do? 10. Recognize & celebrate putting customers at the center of your business! 10 Steps to Customer Focus Contact Info: Lauren Hansen, CMLX2 CEO, IRES MLS Lauren@IRES-net.com 1-800-596-4901 For more information go to www.CMLS.org Questions & Answers Technology Matt Consalvo CEO, Arizona Regional Multiple Listing Service, Inc. There is no single standard of “Best Practices” for technology that applies to each and every MLS organization. Every organization benefits from recognizing and applying reasonable guidelines for their technology operations. Best Practices An organization today employs many systems to support its business activities. Technical Management • Develop a plan to allocate resources to meet organizational needs • Define clear responsibility for maintenance of internal systems and management of outside service partners Technical Planning • Outstanding relationships and clearly defined roles of staff and outside partners are critical to the overall success of all technical systems • Outside partners should be utilized when their expertise is beneficial • Staff works effectively with leadership and business partners to determine and direct the ongoing execution of the plan Organizations have different resources and skills available to them. Goals and Planning • Data: customer and business information • Communications: telephones and networks • Hardware and Software: servers, accounting and MLS Mission Critical • Temporary measures for backup operations before disaster occurs • Identify various situations or scenarios that could occur • An “autopsy” of the event should be conducted following restoration Disaster Planning Technology is a moving target. Budget and Expenditures Internal vs. External Activities • Scope • Time • Cost Resource • Consider ongoing capital investments • Clearly identify income and expenses for technical activities • Evaluate financial impact and requirements for internal staff vs. outside contractors/partners Technical Budget Options for training: • Vendor • Web-based • Solid documentation An effective organization will create, develop and implement a variety of training and education programs for the members and staff. Training • Guidelines are necessary to provide a framework for staff to manage systems. • Email systems • Use of software owned or licensed • Hardware including PCs, tablets and smartphones • Guidelines or policies should be developed and coordinated with human resources. Policies • Protect the Brand • Capture your domains • Evaluate and update Websites/Social Media Technical Basic • Lock door • Passwords • Exercise great judgment Security General • Secondary authentication • Single Sign On (SSO) • Enhanced access • Segregated systems Security Systems Security • Firewalls and Filters • Backups • Data Breaches • Have a plan • Credit Cards and Personal Information • The Payment Card Industry (PCI) Data Management • PCI: Payment Card Industry • ISO: International Standards Organization PCI / ISO • Distribution • Publication • Real Estate Standard Organization (RESO) • Real Estate Transaction Standard (RETS) • Application Programming Interface (API) The Business of the MLSs Data Management Software Systems • Association Management and Customer Relationship Management (CRM) • Accounting • Contract Management • Help Desk / Call Centers / Data Integrity • Office Productivity Software Infrastructure Software • Support Software • Patches • Fixes • Programming changes • Services • • VoIP • Webinars • EFax MLS System • Scanned to PDF • email Infrastructure Software • In house software development • Buy • Modify • Build Development • Computers • Desktops • Printers Rapid Change • Note books • Servers • Ultra books • Firewall • Tablets • Switches • Phablets • Routers • Phones • Etc. Hardware Systems • Identify income and expenses • Capital investments • Internal and External resources Budget & Expenditures • Goals and objectives defined and clearly stated in a plan • Mission critical systems identified Technical / IT • Staff equipped with technology required for the job • Staff properly trained on use of the technology • Websites are maintained by the organization Operations • Use of strong passwords and staff policies to insure compliance • Networks are properly configured and maintained • Networks are segregated and secure Security • Business information is properly stored and secured • Credit info and processing is PCI compliant Security • Policies and legal agreements govern data use and reuse • RETS is supported and can be provided on request • IDX, VOW and custom data fields are available Data & Information For more information go to www.CMLS.org Matthew Consalvo, CMLX2 CEO Arizona Regional Multiple Listing Service, Inc. Matt@ARMLS.com 480-303-7222 MLS Best Practices Created by CMLS with a goal of improving professional standards in the entire industry through the development and establishment of MLS best practices. Adopting Best Practices will create an environment where the organization can succeed at its highest level. Elevating the Industry The CMLS Best Practices Resources would not have been possible without: Ann Bailey, Pranix, Inc. Arizona Regional MLS Austin Board of REALTORS® Broker Listing Cooperative & Metropolitan Indianapolis Board of REALTORS ® California Regional MLS Carolina MLS & Charlotte Regional REALTORS ® Association Delaware Valley Real Estate Information Network (TREND) Heartland MLS and Kansas City Regional Association of REALTORS ® Metropolitan Regional Information Services (MRIS) MLSListings, Inc. MOVE, Inc. MLS Property Information Network (MLSPIN-Boston) My Florida Regional MLS National Association of REALTORS® (NAR) Northern Nevada Regional MLS Northstar MLS Northwest MLS Realtor.com Thomas N. Jacobson, Attorney at Law Utah Real Estate Thank You Contributors As a living, breathing, ever-evolving document, MLS Best Practices cannot continue to flourish without… Your Contribution • Please thank the Diamond Sponsors of CMLS whose contribution has helped make the Best Practices possible: The end