CASE STUDY ONE

Behind the Eight Ball

David Milne is the volunteer President of the Wentforth Real Estate Association, an association of 1100 members and 10 full time staff. Over the years, members have been happy with the service that has been provided by the Association. Wentforth has enjoyed a solid reputation with its peer organizations but, like many in organized real estate, is currently facing a number of serious challenges. Members are anxious about the impact that varied legislative changes may have on their businesses and livelihood and ongoing issues with the Competition Bureau have increased the level of unease. Furthermore, many members have been angry in voicing complaints related to the costs and implementation of electronic lock boxes. Privately, David himself is not confident that the Associations technology choices will adequately support an updated MLS system in the years ahead. Wentforth did undertake a strategic planning process 18 months ago that seemed to provide tremendous clarity at the time. Hmmm, he muses, perhaps we should dig that out and take another look at it. I wonder if it might help guide us today. I do remember that we had anticipated some of these industry challenges. David is relieved to be working with a strong Executive Officer, Jack McClennan. Jack has been the Associations chief executive for over 12 years. He is extraordinarily effective and his competence was one of the main factors in David agreeing to take on this leadership role in addition to his busy personal and business commitments. David and Jack work well together: At times Jack has been reluctant to consider new technology and Davids enthusiasm for innovative approaches to the business has challenged Jacks hesitation. It has been a good partnership and a good support to what has, at times, been an exasperating Board. Some directors appear to be simply interested in addressing issues that directly affect their own local real estate practice and have shown no real interest or capacity for longer-term thinking. David is eight months into his one year term as President. It is a beautiful Saturday morning in September. David pours himself a fresh cup of coffee and settles down to review the package of material related to next months CREA meeting regarding issues with the Competition Bureau. The phone rings. Jack McClennans brother clears his throat and introduces himself. The conversation is a blur but the gist of it being that he shares the startling news that Jack was tragically killed in an automobile accident the night before. David sits back in dismay.

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

4 days later The morning after the funeral, David meets with the Association staff team in the office. As the group gathers around the boardroom table to share their thoughts and memories of Jack, Davids mind wanders to a number of concerns: Who can he rely on to now to be in charge? There doesnt seem to be anyone prepared to step up to do this from the staff team. Is any member of the team adequately prepared to step into this role? Who knows key operational information? What, if any, progress has been made on all of the projects that Jack was managing since the last update was reported to the Board? What is the status of major commitments? Meetings? Negotiations in progress? Reports to be written? Where are the personnel files? Who is authorized to sign cheques? Does anyone know what Jack used as a computer password? David shifts uncomfortably in his chair and wonders, could we have been better prepared? 2 weeks later David and the staff team have settled into a bit of a pattern that seems to be working fairly well. He spends 4-5 hours a day in the office at Jacks old desk and feels that he now has most of the files under control. Suzanne appears to be the most knowledgeable in the office, having performed the role of MLS Manager. She has been with the association in this role for four years and is a delightful young woman with a lovely young family. David wonders whether he should simply ask her to transition into the Executive Officer role, but for now, he is too busy managing the day-to-day operations of the Association to think about it. David is surprised with how often members call the office. Some of the calls have been from colleagues and business associates he has done deals with in the past. Once they get over the awkwardness of realizing who they are speaking to they seem quite prepared to launch right into their concerns and frustrations. While all did attend Jacks funeral, the Board now seems to have gone quiet. David assumes that they are comfortable with the arrangement and his buddy Geoff thanked him for his sense of duty and professionalism in stepping in. David assured him that it was nothing more than he would have done in his shoes, although he is secretly pleased with the recognition. He is also finding the day-to-day business of running the Association an interesting challenge. David has wondered whether he should contact Elaine Huot, Wentforths President-Elect. He reasons that her silence must mean that she is relieved that he has taken on this role. She is a young and successful broker of record and seems to have been extremely busy. She also has a young family and her children are active in a number of community programs outside of school. This is the first Board she has sat on and while she appears to be interested in the work, she is sometimes unable to attend a meeting at the last minute.

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

6 weeks later David is confident that all seems to be on an even keel and that he has successfully advanced a number of big issues facing Wentforth. He is energized by these few early wins and has been enjoying the variety and challenge. Curiously, as the weeks pass, the Board does not seem to share his enthusiasm. There seems to be some grumbling that he is getting too involved. David is hurt by the apparent lack of appreciation. He laments, Well Im finally making some progress on some things that this Board was never going to be prepared to deal with. He realizes that Wentforth will need to consider a long term staffing solution, but for now he seems to be finally getting some things done. He also feels that the Board doesnt seem to fully appreciate how complicated the situation is. Suzanne has already informally indicated that she does not want to take on any additional responsibilities. Just yesterday, as David was tidying up his office at the end of a long day, Suzanne popped her head in to say good evening and casually offered, I dont know how you do it Mr. Milne. The hassles of this EO job would not be worth all the tea in China for me. An off-hand remark no doubt, but disquieting nonetheless. Ironically only days earlier, he had been informally discussing filling the position with a member of the local chamber of commerce. In that conversation he had learned that Wentforths current salary scale is not competitive and worse still Wentforth is way under market in terms of benefits, pensions and vacation policies. For a brief moment David wonders whether he will ever get anyone to take on the job. As he prepares to leave for the evening, he notices a few new emails. A couple of them leave him feeling unsettled.

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

Appendix
Email 1
From: David Milne [mailto:davidmilne@wrea.ca] Sent: October-6-11 12:26 PM To: Elaine Huot Subject: RE: Transition planning

Elaine Sorry but this week is busy. Why don t you call me towards the end of next week? Maybe we can find a few moments to catch up. David

From: Elaine Huot [mailto:elainehuot@gmail.com] Sent: October-6-11 10:10 AM To: David Milne Subject: Transition planning

David Its been a busy few weeks. Any chance you have a moment this week to chat? I wonder whether it might be prudent for us to discuss a forward plan for the Association. Contingencies? Succession? Requirements for the AGM? Etc. Lunch Wednesday works for me as does Friday morning. Elaine

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

Email 2
From: Geoff James [mailto:gpjames@sympatico.ca] Sent: October-17-11 9:26 AM To: David Milne Subject: Heads Up

Dave File this one under heads up . I was in the change room at the club last night and saw John Watson had just finished a squash game with Phil Jakes. I overhead John say to Phil that he is intending to apply for Wentforth s Executive Officer position. He also stated, I sat across from David Milne when he was representing one of his sales reps in a professional standards hearing four years ago. If the Board thinks that someone like that should be our next EO, then they should give their head a shake. Phil scoffed in agreement, They probably won t even post the position. Not fair, but thought you should know. Brenda and the kids well? Geoff

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

Email 3
From: Nadine Wells [mailto:Nadine.wells@neighboringassociation.com] Sent: October-17-11 3:47 PM To: David Milne Subject: We would like to arrange a meeting with you

David, we were so sorry to learn of Jack McClennan s passing. Please accept our deepest condolences to you and the entire Board and staff team. Several months ago, I had lunch with Jack where we informally discussed sharing services, and at the time we were both heartened by the symmetries we discovered and were both going to go back and discuss these with our Boards. Now that you have stepped up and into his position and are also President, this may be the ideal time to continue our conversation at the executive level. Jack bought last time, so we would be happy to host a luncheon between executives to further examine it. I will have my assistant contact yours and I look forward to a fruitful discussion over the next few weeks. Sincerely Nadine

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

Email 4
From: John Thomson [mailto:johnthomson@sympatico.ca] Sent: October-24-11 9:26 AM To: David Milne Subject: I am here to help

David I understand that you have been tremendously busy, working to keep the Association running following Jacks tragic death. Please know that I am here to help in any way you see fit. Best regards John p.s. I was pleased to have been able to attend the CREA Futures meeting as immediate Past President of the Association. The pace of change in the industry is both exciting and worrisome. I have been musing about a few issues and would love to chat over lunch someday soon. Let me know what suits your schedule.

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

Debrief Questions
1. What are the problems highlighted in this case?

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One

2. As a result, what specific action needs to be taken now? By whom? By when?

Leadership 401: Laying the Groundwork for Success in 2012

Case Study One