You know, there are a zillion – nay, two zillion – books and articles written on leadership and how to be a great leader.  But don’t worry, this is not (really) one of those articles.  It is just an interesting thought that came to me – multiple times now – and I thought I would share the thinking, as I think it might be quite useful to you if you are trying to build a Lasting Institution in your real estate enterprise.
 
I will start with Jim Collins, whose groundbreaking books – Built to Last and Good to Great – are probably now taught in every business school.  As you will know if you read these books, Collins examined what he calls “Visionary” companies and sought to assess characteristics of these companies that led them to dramatically outperform over at least a fifty-year period and thereby become what he calls, Lasting Institutions.
 
One thing he talks about is the role of the CEO.  He thinks the great CEO being necessary for success is a myth.  But that is not what I am talking about here.
 
Instead, what I also found interesting is his assessment of the meaning of leadership for a Lasting Institution.  He gives an example of Jack Welch at GE.  Here is an excerpt:
 
          “Companies Need Not Hire Outside CEOs to Stimulate Fundamental Change”
 
Notably, Collins touts Welch (to be sure) but he also touts the leaders before him – and he also touts the institution itself that keeps creating great leaders over time.  His point is that leadership is not the critical element for a Visionary company.  Instead, it is the ability of the institution itself to continuously create great leadership.
 
By the way, as an aside, I know that GE fell apart and Welch was criticized over his leadership after he departed.  And yes, factually that could detract from what I am saying, but I still think Jim Collins’ point is accurate.
 
I noted this recently for one of our long-term clients.  This client had several leadership changes over many years but – somehow – each time one exceptional leader departed, the new leader was even stronger than the prior one.  And when I look at those in the wings at this client, I can easily see that when current leadership changes the future star-quality leaders are already in the room.  No doubt this is one of the lynchpins of this client’s long-term exceptional success.
 
And, I will mention my firm as well.  To the extent I was a good leader, I took the Firm from a startup to a strong franchise.  But my partner Terri Adler, who succeeded me some six years ago, has been taking it even further.  And both Terri and I are already confident in future leadership once Terri’s term is done.
 
I do believe Jim Collins is on to something.  A great leader is a finite person – no one lives and leads forever – but to truly build a Lasting Institution – which is a goal shared by Jim Collins and my firm too – continuity of leadership -- and the ability of the organization to keep creating great leaders -- is critical.
 
So, as you apply this to your own organization, when you look around the room, are the future leaders looking back at you?  If not, maybe you have some work to do.
 
How do you do this?  Well, that would get into a deep dive into leadership, which this article is not about.  However, I will say one thing which is that you are much more likely to succeed in this goal if you focus on it, as opposed to ignoring it. 
 
By the way, sometimes all of this is referred to as Succession Planning.  And that is a lot more important than many think as it sneaks up on you.  As the character Beregond said in Lord of the Rings:
 
          “It is over-late to send for aid when you are already besieged”
 
The last thing you want is to wait until the existing leader is too old to do the job and then make the change.  Long before that – at least five years and maybe longer – those working at the company or dealing with the company start to wonder – and worry – about what will come next.  If there is no succession planning until the leader is clearly past or at the end of his prime, it is often too late for the next act.
 
This leads into the leadership continuity concept for Lasting Institutions, as it would be a tonic if the new CEO were already – obviously to all – in the room ahead of time.  Wouldn’t it?
 
Best to all.
 
Bruce Stachenfeld aka The Real Estate Philosopher®

And here is a poem I wrote.  I wrote this one about 15 or maybe 20 years ago.  I think it was one of the first poems I ever wrote.  I read it again just today and it got me thinking how much changes as you grow...

The “Why” of Work (a poem, by Bruce M. Stachenfeld)