Needs Assessment Plan

RE/MAX Advanced Realty

Diane Olsen EME601 Fall 2012 October 29, 2012

Table of Contents
Needs Assessment Plan ........................................................................................1 RE/MAX Advanced Realty .................................................................................1 Overview ................................................................................................................1 Rationale ................................................................................................................3 Current Condition ...............................................................................................3 Ideal Condition ...................................................................................................4 Feasibility ...............................................................................................................4 Resources ..........................................................................................................4 Organizational Culture .......................................................................................4 Cost/Benefit Analysis .........................................................................................5 Project Time Frame ............................................................................................5 The Plan ................................................................................................................6 Objectives ..........................................................................................................6 Target Audience .................................................................................................6 Instruments ........................................................................................................7 Protocols ............................................................................................................7 Sampling and Data Collection Methods .............................................................8 Implementation Procedures .................................................................................12 Conclusion ...........................................................................................................12

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EME601 Fall 2012 October, 29, 2012

Needs Assessment Plan

RE/MAX Advanced Realty

Overview
RE/MAX Advanced Realty is a medium sized real estate brokerage firm headquartered in Columbia, Maryland. Over the past two years, through a merger and an acquisition of two additional brokerage firms, RE/MAX Advanced Realty has expanded from four offices to seven offices -- with a proposed 8th office set to open in the next 6-12 months. Their agent population has grown from 290 agents to 395 agents. They expect to add another 35 agents with the opening of a second Baltimore office. Their goal is to grow the company to 500 agents by the end of 2013. Senior management includes the Chief Executive Officer, Senior Vice President, and the Chief Financial Officer, all of whom hold ownership stakes in the company. In addition, there is a Vice President of Operations and a newly hired Vice President of Technology whose position was created to update the companys current technology infrastructure in order to improve operations. The VP of Technology is also responsible for training all personnel in the use of new technologies. Seven managers and nine fulltime administrative personnel staff the companys offices. However, not all locations are staffed full time. The main office in Columbia has two full-time managers and three full-time administrative staff. The remaining offices have either one full-time or part-time manager. The remaining administrative personnel are located in the Westminster, Fulton, Severna Park, and Baltimore offices. Although managers and staff are assigned to offices, managers and staff work under a team management concept meaning agents may consult with any company manager or staff member regardless of office location. All accounting functions are located at a remote site and are not to be included in this assessment.

Needs Assessment Plan Diane Olsen

The agents are all licensed real estate agents in the state of Maryland and work with RE/MAX Advanced Realty under an Independent Contractor Agreement. As such, each agent operates his or her business independently. Each agent pays a monthly management fee of approximately $1200 per month to the brokerage. In general, management treats agents as customers rather than as employees. However, under Maryland law it is the brokers responsibility to supervise, train, and oversee each agent.

Chief Financial Officer Chief Operations Officer

Accounting Department VP Technology

Columbia Office Headquarters 2 Managers 175 Agents

CEO/Owner
Westminster Office

1 Manager (shared) 47 Agents

Eldersburg Office

1 Manager (shared) 23 Agents

Severna Park Office

Senior Vice President

Annapolis Office

I Manager (shared) 30 Agents

1 Manager 23 Agents

Fulton Office

1 Manager 45 Agents

Baltimore Office

1 Manager 52 Agents

Baltimore Office II (proposed)

1 Manager 35 Agents (estimate)

Needs Assessment Plan Diane Olsen

Rationale
Current Condition
In the past 12 months the management team has noticed two troubling trends: higher than normal turnover in administrative support staff and higher than expected numbers of agents leaving the company. Management noted several issues that came up in exit interviews with staff and agents who had resigned: 1. Agents are unclear on company policies and procedures particularly regarding submission and processing of their contracts and case files. 2. Agents complained of inconsistencies between different managers and office staff regarding standards and procedures for contracts. Forms and checklists vary between offices. 3. Agents noted a lack of training and continuing education opportunities as one of their reasons for going to a competing broker. 4. Several agents complained of inconsistency in communications. Sometimes they would get emails; sometimes an important notice or paper memo was stuffed in a mail slot. 5. Staff members from the recently acquired companies who resigned felt that the policies of the new company were too strict and rigid and the new company was asking them to learn and use new technologies and software that werent necessary for their jobs. Staff members received little or no formal training on the new systems. Currently each office and manager handles the review and processing of contracts differently. Contracts are reviewed by either administrative staff or managers depending on the office. After review a Missing Documents Notice is sent to the agent, sometimes via email, sometimes as a paper notice in the agents mail slot. In offices where administrative staff reviews contracts the manager does a second review just prior to the final settlement of the contract. Use of technology varies greatly between offices and staff. Some offices are able to communicate and process contracts via email. Other office requires agents to drop off hard copies of all contracts and rely completely on paper memoranda for communication.

Needs Assessment Plan Diane Olsen

Management believes that lack of training for both the staff and agents could be a primary cause of the high turnover rates. This problem only multiplied with recent company mergers. Management is considering whether a dedicated training department is now needed in order for the company to realize the growth and expansion they hope for in the next several years.

Ideal Condition
1. All offices and staff operate under the same standards and procedures. 2. The contract submission process and compliance review is consistent companywide. 3. All intracompany communications are handled electronically. 4. All forms and documents are up-to-date and available and accessible to all agents online. 5. Staff and management are adequately trained on company procedures and technology. 6. Agents are properly trained on company policies and procedures 7. A comprehensive continuing education program is offered which not only helps to retain agents, but also serves as a recruiting tool for attracting high quality agents.

Feasibility
Resources
Managers weekly written reports should provide a valuable resource for beginning to discover what is happening at the various locations throughout the organization. Personnel and training records are also available to help identify the organizations current situation.

Organizational Culture
Senior Management is very supportive of the needs assessment viewing it as a vital step in the companys growth plans. There may be some hesitation among the office management and administrative staff, as management believes that some of the
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performance gap may be due to staffs resistance to change. Senior managements addressing the benefits of the assessment with the office managers and staff will be key. The agent population, since they are viewed as managements customers, should be agreeable to participating in the needs assessment realizing the potential exists for improved services for their benefit.

Cost/Benefit Analysis
The benefits of the needs assessment far outweigh its cost. In the past 12 months the company has grown the number of fee paying agents by 75 due to both mergers and recruiting efforts. However with those mergers came the additional overhead of running two additional offices. During the same twelve-month period 32 agents have left the company accounting for a loss of approximately $460,800 in monthly agent fees. The projected cost of the assessment is $18,000. The breakdown is as follows: Instructional Designer $50 per hour x 240 hours = $12,000 Assistant $20 per hour x 240 hours = $4800 Mileage, postage, and supplies = $1200

This budget includes development and deployment of questionnaires through the company website, data collection and analysis, preparation and presentation of final report, and a description of instructional materials to be developed (if needed per assessment). In the current competitive market, a brokerage offering technologically advanced and well run offices coupled with a comprehensive training and continuing education program stands the best chance of attracting and retaining the best agents.

Project Time Frame

It is estimated that the needs assessment will take three months to complete including the time needed to collect and analyze the data and to prepare the final report.

Needs Assessment Plan Diane Olsen

The Plan
Objectives
The objectives of this needs assessment plan are: To clarify the companys goals and the needs associated with those goals To assess the companys current situation To identify performance gaps at each level of the organization To clarify whether performance gaps should be addressed through management solutions or instructional solutions To identify any skills or knowledge deficiency in the administrative staff that may have resulted in the performance gap To identify any skills or knowledge deficiency in the supervisory staff, i.e. branch managers To identify any skills or knowledge deficiency among the agent population that may be affecting adherence to company policies and procedures

Target Audience
Decision makers: o Chief Executive Officer (CEO) This person is the majority owner and primary decision maker in the company. Understanding his vision and gaining his support for the assessment is key. He will have the biggest impact on how the organization will respond to the assessment o Chief Financial Officer (CFO) This person has little day-to-day interaction with staff and personnel outside of the accounting department at a location remote from the rest of the company. However she will be a key decision maker in regards to the cost-benefit analysis of the assessment and any future policies or programs the company considers implementing. o Chief Operating Officer (COO); Senior Vice President (SR VP); Vice President of Technology (VP Tech) They all have direct oversight and interaction with managers, staff, and agents. The VP Tech currently handles most of the company training. The SR VP, with the assistance of the managers, coordinates all continuing education for the agents. All managers provide weekly reports to the SR VP regarding staff and agent performance
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Needs Assessment Plan Diane Olsen

and issues. These reports are reviewed weekly at a senior management meeting and are reviewed monthly at managers meetings. Performers: o Office Managers They are the direct supervisors of the administrative staff and the agents. o Administrative Staff They provide direct support to the agents and handle all clerical administrative office functions. This groups performance is one of managements key concerns. Agents: o The agents are in an unusual position in that they are the primary customers of the brokerage while also being employed by the brokerage. The broker is responsible for supervising agents and ensuring that they are conducting their business according to state law and the brokers regulations. However, since the agents pay the broker a monthly fee, the broker must provide a level of service to the agents to induce them to remain affiliated with the brokerage.

Instruments
Questionnaires: These will be uploaded to the companys intranet. Several emails will be sent to all agents requesting their input. Interview Guides: Interview guides will need to be established for senior management interviews, manager phone interviews (2 rounds), and administrative staff interviews. Observation Guides: These guides will ensure that we are evaluating the various locations systematically and not getting sidetracked during site visits. Focus Group Guide: Topics and questions will be developed for the agent focus group.

Protocols
The senior management team will preview all instruments. All office managers will be notified via email by the assessment team before contacting administrative staff or agents. Site visits will be coordinated through the office manager for that site. The assessment team will provide weekly status reports for the senior management team meetings.

Needs Assessment Plan Diane Olsen

Sampling and Data Collection Methods

Target Audience Decision Makers: CEO, CFO, COO, Sr. VP, VP of Technology
Information Needed Sample Data Collection Strategy Company goals and direction; Roles and responsibilities of all levels of responsibility; Current situation; Current training practices; Desired standards and outcomes

100% - All five decision makers Documents for Review

1. Personnel and training records for managers and staff including job descriptions and responsibilities 2. Current training materials 3. Weekly managers reports for the past 12 months 4. Policies and procedures manual

Face-to-Face interviews
Sample Questions: 1. What do you think might be the cause of the problems? 2. Describe the areas of responsibility for each senior manager and office manager. 3. Describe the companys current training processes. 4. What kinds of performance improvements do you want to see? Rationale Document review will provide an overview of how the organization functions currently. Face-to-face interviews are most effective for obtaining an overall perspective of what is happening in the company. It will also help to build rapport and to get them to understand the importance of the needs assessment. Building this relationship will help get them to support the needs assessment process with the rest of the staff.

Needs Assessment Plan Diane Olsen

Target Audience
Information Needed

Agents
Knowledge of company policies and procedures; Perceptions of effectiveness of training; Perceptions of current continuing education opportunities; Suggestions for improving training and continuing education; Suggestions for improving office procedures

Sample

Questionnaire = 395 agents (100%) Focus Group = 30 agents (7.5%)

Stratified Sample of agents from each office including highest and lowest performing agents, recent hires, and veteran agents (with the company for 5+ years)

Data Collection Strategy

Questionnaire sample questions:

What type of training did you receive on company policies and procedures? Was the training sufficient? Was it effective? Are you comfortable working with the current office procedures? If not, why not? What improvements would you like to see in the way your office functions? What type of ongoing sales training and education does the company offer? How satisfied are you with the training and education offered by the company?

Focus Group sample topics:

Rationale Company training in policies and procedures Improving company communications Continuing education and sales and technology training

Questionnaires will be utilized to obtain input from a large sample of the agent population. As the ultimate consumers of the companys training and staffs efforts, the agents are a key stakeholder in the needs assessment and possible outcomes. The focus group will allow the assessment to get more in depth data from a cross section of the agent population based on the initial survey data.

Needs Assessment Plan Diane Olsen

Target Audience Administrative Staff

Information Needed Sample Roles and responsibilities of admin staff; Perceptions of policies and procedures; Perceptions of training availability, quality, and effectiveness

55% - 5 of the 9 administrative staff

Judgmental sample to include 3 staff members located at Columbia Headquarters and 2 other staff members one key employee from each of the two merged companies

Data Collection Strategy

Direct Observation
Direct observation of 5 staff members in 3 offices

Face-to-face interviews sample questions:

Rationale Describe your workflow. Describe how you were trained for your current position. What kind of additional training have you received? How effective do you think the training is? How does management communicate with you? How do you communicate with management? With agents? What improvements would make the office run more smoothly? How comfortable are you with the technology the company is currently using? How effective is the companys technology training?

Management views the Columbia office as closest to the ideal situation. We will observe and discuss performance and training issues with the highest performing staff members. We will then observe and interview two performers from other offices that were part of the merger to compare their practices and perceptions to those of the headquarters staff.

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Target Audience Office Managers

Information Needed Sample Data Collection Strategy Office practices and procedures; Staff roles and responsibilities; Perceptions of strengths and weaknesses of operations and training

100% - All 7 mangers Phone Interviews

An initial call will be made to each manager explaining the assessment and building rapport. Information requested in this call will be about the general office procedures and how their office functions in terms of procedures and roles and responsibilities. They will also be asked for their primary concerns and suggestions for areas of improvement. Sample Questions: 1. Describe the workflow in your office. 2. Describe how management, staff, and agents communicate. 3. Explain the roles and responsibilities of staff in your office. A second phone interview will be scheduled with the managers after collecting initial data from senior management and administrative staff interviews. Questions for subsequent phone calls will be devised based on initial findings.

Rationale

Phone Interviews will be utilized here because it is the most cost effective way to reach all managers, and will facilitate the ability to have multiple follow up calls with managers as needed.

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Implementation Procedures
1. Obtain and review all relevant documents from management 2. Create questionnaire and other data collection instruments 3. Conduct face-to-face interviews with each member of senior management to begin to understand the current situation, current training materials and methods, the perceived performance gaps, and the companys goals and ideals 4. Conduct initial phone interviews with office managers to introduce assessment process and obtain initial information about each office 5. Deploy online questionnaire to agents 6. Conduct site visits including direct observation and face-to-face interviews with administrative staff 7. Conduct focus group with agents 8. Conduct follow up interviews with office managers to clarify any conflicting or unclear observations from office visits 9. Verify and analyze data and interpret findings of performance gaps 10. Complete and present final assessment report to senior management team along with recommendations for solutions

Conclusion
RE/MAX Advanced Realty should take immediate action to address the management and instructional deficiencies that are contributing to high rates of staff turnover and agent attrition. The needs assessment will help to identify and clarify performance gaps in the organization that can then be addressed with focused management and training solutions. The assessment will also assist the organization in understanding how to best integrate possible management and instructional solutions in order to properly position the company for further acquisitions and future growth.

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