Home Real Estate Coaching Continuous improvement inside the real estate sector.

Continuous improvement inside the real estate sector.

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A continuous improvement is actually an organizational model applied in order to optimize and improve the quality of a product or service.

Inside the real estate sector, a continuous improvement is linked to the processes of internal management which are targeting an improvement on the level of efficiency and the increase of the productivity level.

Inside the real estate sector in Spain, this concept and the application of the improvement model is not really known yet.

A real estate in Spain understands that this model can be applicable to other areas. Although it can be applied to other models of the business, this does not mean that a real estate cannot improve its management system with the help of this model.

The massive production companies (products or services) apply a model of continuous improvement as a means of maximizing the economic costs and increase the level of performance inside the organization.

However, although the real estate in Spain is not targeting the massive consumption, the former must count with an organizational structure in order to work as a company.

This is the argument in order to evaluate the application of the improvement model in a real estate.

Such as any other type of company, a company inside the real estate sector needs to manage a series of variables which will definitely affect the whole productivity.

Continuous improvement model for a real estate in Spain.

No matter the business area or the type of organizational structure, we can find some common characteristics when implementing a continuous improvement model.

For the particular case of a real estate in Spain, we can distinguish that some characteristics, common to other companies are converted into featured characteristics for a real estate sector.

In other words, those characteristics are also valid and must be taken into consideration inside the organizational and business structure of a real estate.

  • The system of continuous improvement must be archived, so all members of the real estate that are part of it might know it and apply these guidelines in a simple way.
  • The system of continuous improvement must be measured. A real estate CRM is the effective tool for the measuring of the results for a real estate in Spain. A real estate must supervise and control the development of the implemented system and the results obtained and apply the changes in order to maximize its resources and so get the best results.
  • Set organizational roles. A real estate must assign leaders for the supervision of this system. The members that implement, supervise and control the used system must be set by the real estate structure.

Inside the real estate sector in Spain, the most used roles for this task are: the owner of the real estate, the real estate manager, the responsible of human resources, or the organizational figure that can also be external to the company.

The implementation of the system of continuous improvement.

One of the advantages of implementing a system of real estate continuous improvement consists of achieving that all members of the company are taking part in an active way.

Once the system of continuous improvement is implemented, the rest of the members of the agency can take part to the model, too.

There are many options to define the roles linked straight to the system and the real estate agents will become the key factors in strengthening the model.

Let´s suppose the organizational role of the responsible person of the system is external to the company. In other words, the planning, the implementation and the control of the system of continuous improvement used by the real estate is assigned to a person or company from outside the office.

In this way, from a hierarchal point of view, all members of the real estate are converted into active elements of the implemented model.

Each member of the real estate is transformed in a source of info which attend to the specific necessities of the real estate, both from the organizational and business point of views and from different internal roles.

Any member of the real estate must bring his ideas and opinions on the model of continuous improvement starting from the internal competences set by the company.

The weekly meeting of the real estate might convert into a proper moment in order to interchange ideas on a subject. Normally, during the weekly meeting all members of the real estate are present and they can make important suggestions in order to strengthen the system of continuous improvement.

In the same time, it is more effective to make all members of the real estate to take part of the process. That is why the proactive attitude of each member is so essential.

In this way, the responsible person to implement and supervise the system of continuous improvement inside the real estate achieves to improve the model through the feedback of the members of the company.

Systems of continuous improvement for a real estate.

There are different models and methods to implement a system of continuous improvement. However, no matter the business sector in which the system is implemented, Deming Circle is the most used process.

During the 50s, Edwards Deming was proposed as a model of analysis for the internal processes of a company. It is based on the identification of the variable linked and how they can be improved.

In the same time, Deming underlines the importance of the feedback inside companies and how feedbacks of the info ease the achievement of better levels of productivity.

Feedback Loop allows a constant traffic of the info between the members of the company (director, manager and the members of the company) and it strengthens the positive synergies.

The Deming Circle applied as a model for the implementation of this system of continuous improvement allows us to visualize the different phases in a simple way.

That scheme simplifies and formalizes the way in which the members must work.

Plan how to optimize everything, how to implement each phase of the strategy, check if the results have been marked and act on the data obtained.

  • The real estate must focus on:
  • Plan the strategy required for the optimization of a specific factor.
  • Implement each part of the planned strategy.
  • Checking by measuring everything through management indexes and taking into consideration the variables.
  • Act according to the data obtained in order to make changes.

The Deming Circle can be used individually by each member of the real estate and also collectively by the entire company.

This model is not targeting only the effectiveness of the implementation of a system, it is also highly efficient to the increase of the personal and collective productivity of a real estate in Spain.

Inside the professional sector, Deming Circle is also known as the Shewhart Circle. There are different variants, but they are all based on the theories created by Shewhart at the end of the 1920s.

Shewhart was the scientist of Bell Laboratories, friend and mentor of Deming. Gabor presents different variants of the model set by Shewhart or the later adjustments made by several authors.

Implementing a system of continuous improvement for a real estate in Spain can be an important factor which could bring better levels of productivity. This is a tool that eases any internal process of the real estate and it brings the possibility to optimize the real estate offered services.

A continuous improvement system helps the real estate to get better levels of personal productivity and it optimizes the factors that help the business performance in a meaningful way.

Once the system of continuous improvement defines the variables with the most impact for a real estate, all the linked processes are isolated and the real estate services offered might improve a lot.

These are the areas of an organizational structure of a real estate and the roles linked that can be strengthened through a continuous improvement system:

  • Basic services (customer service, airport shuttles, etc.).
  • Real estate team (sales agents, collaborators, secretary of the real estate, etc.).
  • Management (organizational leader, real estate manager, etc.).
  • Legal advice department (contracts, powers of attorney, clients´ paperwork, etc.).
  • Rental management (divided between the offer and the demand).
  • Translations of documents (suitability and rapidity).
  • Online activity (real estate blog, webpage, types of hosting, etc).
  • Human resources management (recruitment, selection, training, etc.).
  • Property recruitment (quantity and quality).
  • Online Marketing (social media strategy, brand development, Community Manager, etc.).
  • Real estate CRM (implementation, training on its use, etc.).
  • Office maintenance (cleaning, waste recycling, etc.).

All the structural areas of the real estate can be more effective when applying a system of continuous improvement.

All the organizational roles improve the levels of productivity and so the real estate gets major benefits.

In conclusion, no matter the model or method implemented, a system of continuous improvement is a tool that increases the level of productivity of the real estate in Spain.

Positive synergies produced between the improvement of the efficiency of the organizational figures and the effectiveness on the resource management are translated into an increase on the commercial benefits of the real estate.

Sources:

  • ARVESON, P (1998): The Deming Cycle (Balanced Scorecard Institute).
  • GABOR, A (1990): The Man Who Discovered Quality (Penguin Books).
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