We have defined success for tenant reps through our previous post on “How to be a Succesful Tenant Rep” as happy clients, more referrals, enhanced reputation, bigger pipeline, increased revenue streams and greater profitability.
In this post we will discuss in more detail the 2nd P – Productivity, which we have defined as;-
Productivity for Tenant Reps is about Time and Efficiency
More fees and commissions relate to greater income. The ability to do more deals with more clients all at the same time is absolutely critical and therefore efficiency and productivity are keys for increasing income.
The Merriam-Webster Dictionary definitions of efficiency and productivity are as follows:
Efficiency – the ability to do something or produce something without wasting materials, time, or energy.
Productivity – the rate at which goods are produced or work is completed.
Increasing efficiency means doing more with less, whereas increasing productivity means producing more with the same, i.e. the same amount of staff, space, time or materials. An increase in efficiency will, in most instances, translate to an increase in productivity, but not always.
For example, if your best tenant rep increased his commissions from $12,000 to $14,000 from one month to the next, then it would be fair to say that his productivity has increased. If, however, the time (and therefore opportunity cost) spent to close these deals increased from 160 hours (40 hour work week) spent during the month to 200 hours for the month, it would also be fair to say that his efficiency has decreased (25% more hours but only 17% more revenue). If, in the same example, the tenant rep was able to produce $10,000 worth of commissions and the time spent in closing the deals was 100hrs, it would be fair to say that his efficiency increased (25% less hours for similar revenue), but his productivity decreased.
Both measures are important for businesses and they cannot be viewed on their own. In the above example, our tenant rep would have a potentially easier and less stressful life by selling less, but doing so more efficiently. Business nirvana however is to find ways to increase productivity whilst maintaining or increasing efficiency. For our example above, it would relate to our tenant rep producing $16,000 of commissions in a standard 160hr month or $20,000 for a 200hr month.
Is Productivity the “Silver Bullet” for Tenant Rep Success?
This above example suggests that increasing productivity and efficiency would have the effect of giving the power back to our tenant reps, by ensuring that more fees can be generated in the same working week, whilst also guarranteeing that extra time spent will convert to higher fees. Combine this with more time for prospecting and it isn’t difficult to see the relationship that increasing productivity will have in assisting tenant reps with building greater pipeline.
Products that can help tenant reps with time management and consistent quality, with quick repeatability, should translate into enablers for a more successful business.
Next up? Our last P and the true enabler for tenant rep success – PROFIT
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