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Carlos Ghosn aptly stated, “The role of leadership is to transform the complex situation into small pieces and prioritize them.”  

Every transaction in real estate involves a myriad of variables, making it one of the most complex exchanges in sales. On top of this, we have new “eyes on everything we do” in the wake of these commission lawsuits, making this business murkier than ever. What we know is that leadership is not merely about making decisions; it’s about dissecting these complex issues and discerning priorities. 

Facing the Fear of a Wrong Decision 

We know that complex issues are…well, complex! Sometimes, it’s hard to look at the whole and make any kind of decision because we fear making the wrong one. Psychologist Michelle P. Maidenberg had this to say, “Rather than thinking about it dichotomously or as a right or wrong decision, consider what the ‘best’ decision is under the circumstances. Thinking about it in absolutes evokes fear and anxiety. Most people experience decision-making as dreaded because they fear the “devastating” consequences attached to a “wrong,” “failed,” and “bad” decision.” To break that down, make the best decision you can with the information you have at that moment. It’s easier to course-correct when you are already in motion than to get moving after delaying making any decision at all. 

Our brains are trained to anticipate terrible consequences if we make the “wrong” choice, but even if the consequences don’t turn out the way you expect, it’s an opportunity to learn from it and grow.  

Related reading: Psychology Today – 6 Tips for Making Difficult Decisions 

Embrace Complexity 

The first step in transforming complexity is acknowledging it. Real estate, with its multitude of stakeholders, legal intricacies, market fluctuations, and constantly changing industry methods and standards can often seem overwhelming. However, successful leaders view this not as a burden but as an opportunity for innovation and strategic thinking.  

The Power of Deconstruction 

Leaders must possess the ability to break down complex situations into manageable components. For example, the National Association of REALTORS® and their antitrust lawsuit is filled to the brim with complex issues and, depending on the final ruling, can have large implications for this industry. By dissecting this into smaller pieces, leaders can effectively address each facet with precision, enabling them to make stronger decisions on each component rather than trying to make a blanket decision on the whole thing. 

If one of your team members has a complex negotiation for a client, helping them break down the terms and the issues makes each one more manageable and is less overwhelming than approaching the situation as a whole. Not only are you breaking down the complexities to help them, but you teach your team how to do it, too.  

Related reading: Leading Through the Storm: Guiding Your Agents Through Times of Change and Controversy 

Prioritization: The Heart of Leadership 

Once the many complexities are unraveled, the next crucial step is prioritization. Not all components are equal in importance, and leaders must discern which aspects demand immediate attention and which can be addressed later. This requires a keen understanding of the overarching goals and a clear vision of what success looks like. It should also be noted that delegating some of these tasks to your team members can help bring the team together with a common goal, balance individual workloads, and give your team members the opportunity to use their unique talents for the betterment of the team. 

Data-Driven Decision Making 

In today’s digital age, data is an invaluable asset for real estate leaders. Leveraging market research, financial projections, and technological trends allows leaders to make informed decisions. Data-driven insights not only guide you in prioritization but also serve as a compass for navigating through complexities.  

Communication is Key 

An essential facet of leadership is effective communication. Leaders must articulate their vision, priorities, and expectations clearly to their team members. Moreover, they should create an environment where open dialogue is encouraged, allowing for the exchange of ideas and perspectives. In the light of facing complex issues, team members may have valuable insights from past experiences that can provide you with greater clarity in prioritizing and managing the components. 

Related reading: Visionary Real Estate Leadership and Inspiring Teams to Yearn for the Vast Horizon 

Adaptability in a Shifting Landscape 

If there has ever been a time when adaptability has been a necessity, it’s now. Adaptability involves cognitive, physical, and emotional regulations, and when managing a complex issue, taking stock of each of these areas of change will help you manage it better and pass along that ability to your team.  

Real estate is an industry that never stops adapting, influenced by economic trends, policy changes, and societal shifts. Leaders must be adaptable and ready to recalibrate priorities as circumstances change. This agility is crucial for maintaining a competitive edge and ensuring long-term success, both for the team as a whole as well as your individual agents. 

The Takeaway 

Effective leadership hinges on the ability to navigate complexity. By breaking down complex situations, prioritizing key components, and leveraging data-driven insights, leaders can steer their teams toward success. Real estate leaders have the potential to not only navigate complexity but to thrive in it, ultimately shaping the industry and laying the groundwork for future leaders. 

For Your Agents… 

Leaders aren’t the only ones who have to use their decision-making skills to unravel complex situations, but it’s your responsibility to help your team when they need to tackle a tough choice.  

That’s why we suggest you share this article with them, which helps agents take a step back when facing a big decision and analyze their core values to help them make their choices.  

How Decisive Decisions Are Empowered by Your Core Values 

Know that agents do NOT have to go it alone in this market. Our goal is to bring the tools, training, and coaching each need to not only survive the shifts – but build solid, dependable foundations they can count on and help them build clients for life. If that sounds like a goal that can help you reach YOUR goals – then join us for our Free Weekly Real Estate Webinar Training Series! Click below to register for the next one! 

Darryl Davis is an award-winning international speaker, real estate and business coach, and best-selling author of three books, all published by McGraw Hill Publishers.   

For more than 35 years, Darryl has spoken to and trained more than 100,000 sales professionals around the globe to more than double their production year after year. His book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for one of the most sold books to real estate agents.   

He was awarded the Certified Speaking Professional (CSP) designation by the National Speaker’s Association which is given to less than 2% of all speakers worldwide.   

Whether from a stage or Zooming into a virtual room, Darryl’s extraordinary humor, relatability, and natural gift for teaching real-world, results-producing skills and mindsets to audiences have made him a client favorite throughout his career.   

Audiences will laugh, learn, and ultimately walk away better prepared for a changing world, with the tools, skills, and training they need to build their businesses with more ease and less stress and to design lives and careers worth smiling about.   

Bring One of Darryl’s W.O.R.K. Topics to Your Organization!  

By providing your agents with the knowledge and insights they need to stay ahead of the game, you can ensure that they are equipped to handle any situation that comes their way! Contact us here to learn more!