Never Waste a Good Recession: The Best Is Yet to Come.
As I have discussed before in my blog, the US economy is going through a period of significant change. What had worked for us in a good economy, good stock market, good housing market are exactly the trends that are detrimental in a bad market. People are now re-adjusting. Businesses are re-assessing and the government is re-tooling too. What happens over the next 18 months is going to be life changing for us and our children.
At NWJ/Signature, we have taken the opportunity to reinvent, re-tool, reposition and reinvest in ourselves. We have re-positioned our brand, to that of a value proposition for residents that are no longer interested in paying top dollar for amenities they never used or apartments they can no longer afford. As for our team we have reorganized to make our organization a lean one. We no longer have 4 steps of bureaucracy to make something happen. Instead of getting monthly updates on problems we get daily updates with solutions shared by the entire team, not just directives from above.
On the reinvents front we are now presented with opportunities to grow the brand that haven't been available in more than a decade. We currently have offers out on more than 60,000 apartments units. We are not going to do every one of these deals but even if we hit on 10% of these that will represent a 150% growth rate for our company. Again that is an opportunity we haven't seen available since the late '90s.Politicians can argue back and forth about the jobless rates and economists can keep predicting. As for us we need to take advantage of this opportunity and reinvent, re-position and reap future rewards. With times like these it is very easy to make one prediction "The best is yet to come."
Thanks for making it happen.
Nick
Monday, June 8, 2009
Monday, June 1, 2009
Champions
I hope you all had a chance to listen to Jim Fannin on last Wednesday's Signature Call. If you didn't please check out the Signature Customer Service Blog for a link to the recording. For those of you that did listen, I am sure you will agree with me that Fannin builds champions. His job is to bring out the best in people to make them champions.
His methods are pretty simple and something I have tried in my own life. I check my S.C.O.R.E level fairly often during the day to make sure I am performing at my best.
SCORE is his method of keeping your head in the game or operating in the zone.
Self discipline;
Concentration;
Optimism;
Relaxation,
Enjoyment
SELF DISCIPLINE:
Self discipline is the ability to properly allocate 2000 thoughts into the arenas of life that matter. If you focus 2000 thoughts on work alone you will not be a champion.
All arenas of concern must be allocated thoughts in order to perform at a champion level. Use Jim's daily thought allocation method to check yourself on this.
Take out a piece of paper and draw circles to represent your major life arenas. Now take the paper and stand about 3 feet above it. Look into the circles and mentally assess how much thought time you are giving to each arena. Now think how much thought you should be giving and reallocate going forward. Note that these allocations will change from day to day.
The other key exercise Jim emphasized was visualizing success and more importantly doing it at the end of the night (30 minutes before sleep). Fannin as well as many others are now showing through science that our subconscious is a powerful force that can be utilized if we visualize success in our life's arenas just before falling asleep. Try this it will change your life.
CONCENTRATION:
The cheetah - picks the best prey in the pack and then attacks. Passes many weaker prey on the way but doesn't stop until he gets his target. Laser like concentration.
Framing - start strong, continue and end strong. Say hello like a champion, look him in the eye until you know his eye color, state his name, say goodbye with energy.
Concentration is focusing all of your mental and physical energy.
90 seconds - the first 90 seconds is undivided attention when doing anything. Check out Jim's video on this -- www.90secondrule.com.
Get in the now.
OPTIMISM
The true champion wins first in his mind then walks into the arena.
Never drop your head. You can't keep a bad thought in your head if it is raised high.
Self talk - change is made by affirmations. Try this 5 second rule - within 5 seconds after mistake visualize and verbalize a positive affirmation.
Another thing I learned from Jim is that every time I have talked to him his greeting is always the same - when asked how are you his response - AWESOME. Try this.
Quote - "I was number one and my ranking just hadn't caught up to me yet"
John McEnroe, pro tennis player
RELAXATION:
Its hard for me to push this one but it is important. You need to learn to do what makes you relax. For some peoples its fishing, golf, movies for others its sky diving, mountain climbing, running marathons. Find your relaxation and try to incorporate that feeling into your daily life. When things get tough visualize being back that in that river fishing or on the mountain climbing. Calm down and then focus back to the job at hand.
"If I had 4 hrs to chop down a tree I would spend 2 sharpening my ax.". - Abraham Lincoln, US President
One visualization I use for this is Michael Jordan running down the court with his tongue hanging out. He is relaxed and in the zone.
ENJOYMENT
I have spoken about this one many times in the past. If you don't like what you are doing stop and do something else. It is impossible to be a champion without enjoying it.
One thing I have done since meeting Jim is I started checking my SCORE before any event ( phone call, meeting, seeing my kids, etc). I ask myself. 1 am I self disciplined, yes/no?, concentrating on the task at hand, yes/no?, Optimistic - do I believe I can make it happen, yes/no?, Relaxed- how is my heart rate low/high?, Enjoying this, yes/no? I use my fingers to click through these five questions. 5 yeses and I am ready to go. If I hit a NO than I mentally work on a solution to turn it to a yes. Try this and please share your results with us.
All great accomplishments have a price. Its the price of thinking differently then everyone else.
Thanks for Making It Happen.
Nick Jekogian.
His methods are pretty simple and something I have tried in my own life. I check my S.C.O.R.E level fairly often during the day to make sure I am performing at my best.
SCORE is his method of keeping your head in the game or operating in the zone.
Self discipline;
Concentration;
Optimism;
Relaxation,
Enjoyment
SELF DISCIPLINE:
Self discipline is the ability to properly allocate 2000 thoughts into the arenas of life that matter. If you focus 2000 thoughts on work alone you will not be a champion.
All arenas of concern must be allocated thoughts in order to perform at a champion level. Use Jim's daily thought allocation method to check yourself on this.
Take out a piece of paper and draw circles to represent your major life arenas. Now take the paper and stand about 3 feet above it. Look into the circles and mentally assess how much thought time you are giving to each arena. Now think how much thought you should be giving and reallocate going forward. Note that these allocations will change from day to day.
The other key exercise Jim emphasized was visualizing success and more importantly doing it at the end of the night (30 minutes before sleep). Fannin as well as many others are now showing through science that our subconscious is a powerful force that can be utilized if we visualize success in our life's arenas just before falling asleep. Try this it will change your life.
CONCENTRATION:
The cheetah - picks the best prey in the pack and then attacks. Passes many weaker prey on the way but doesn't stop until he gets his target. Laser like concentration.
Framing - start strong, continue and end strong. Say hello like a champion, look him in the eye until you know his eye color, state his name, say goodbye with energy.
Concentration is focusing all of your mental and physical energy.
90 seconds - the first 90 seconds is undivided attention when doing anything. Check out Jim's video on this -- www.90secondrule.com.
Get in the now.
OPTIMISM
The true champion wins first in his mind then walks into the arena.
Never drop your head. You can't keep a bad thought in your head if it is raised high.
Self talk - change is made by affirmations. Try this 5 second rule - within 5 seconds after mistake visualize and verbalize a positive affirmation.
Another thing I learned from Jim is that every time I have talked to him his greeting is always the same - when asked how are you his response - AWESOME. Try this.
Quote - "I was number one and my ranking just hadn't caught up to me yet"
John McEnroe, pro tennis player
RELAXATION:
Its hard for me to push this one but it is important. You need to learn to do what makes you relax. For some peoples its fishing, golf, movies for others its sky diving, mountain climbing, running marathons. Find your relaxation and try to incorporate that feeling into your daily life. When things get tough visualize being back that in that river fishing or on the mountain climbing. Calm down and then focus back to the job at hand.
"If I had 4 hrs to chop down a tree I would spend 2 sharpening my ax.". - Abraham Lincoln, US President
One visualization I use for this is Michael Jordan running down the court with his tongue hanging out. He is relaxed and in the zone.
ENJOYMENT
I have spoken about this one many times in the past. If you don't like what you are doing stop and do something else. It is impossible to be a champion without enjoying it.
One thing I have done since meeting Jim is I started checking my SCORE before any event ( phone call, meeting, seeing my kids, etc). I ask myself. 1 am I self disciplined, yes/no?, concentrating on the task at hand, yes/no?, Optimistic - do I believe I can make it happen, yes/no?, Relaxed- how is my heart rate low/high?, Enjoying this, yes/no? I use my fingers to click through these five questions. 5 yeses and I am ready to go. If I hit a NO than I mentally work on a solution to turn it to a yes. Try this and please share your results with us.
All great accomplishments have a price. Its the price of thinking differently then everyone else.
Thanks for Making It Happen.
Nick Jekogian.
Tuesday, May 26, 2009
Daily Huddle
Earlier this year the acquisitions group started doing an all hands on call at 6pm every day. The call was to update the team on individual accomplishments, goals, missing systems and then a wrap up by me on what it all means. We have now been doing this huddle for more than 5 months and the results have been amazing. What once took us a week or even a month to address is now talked about and brainstormed on a daily basis. Problems are discussed and solved 10 times faster than under the previous once a week or once a month schedule. Problems that would not have been raised on a weekly meeting now find their way into the conversation and are solved by the group.
The format of the Acquisitions huddle is simple:
GOOD NEWS - (anyone can start by putting something out there)
NUMBERS - (each individual shares a significant number from their day- example - 100 calls made today, or 2 purchase agreements signed)
GOALS - (individuals will update everyone on where they stand in relations to weekly or monthly goals) examples - 1 deal signed this week with a goal of 2 more.
WHAT'S IT ALL MEAN - This is my chance to piece it all together. - This is where I talk about what I am seeing in the real estate market based on the information being shared by the acquisitions group. This is real time information processing at its best.
HURDLES/MISSING OPPORTUNITIES - Individuals share problems they are having in their markets or with potential sellers. Examples - I have an owner who keeps saying my partner doesn't want to sell but he won't let me talk to his partner. What do I do? - the group then shares their stories of dealing with this situation.
CHEER - Group picks a good cheer for the day and counts down - three, two , one ...
The calls last no more than 10 mins every day and are the best way we have found to communicate in real time.
Recently I was at a business conference and they asked participants for ideas on how their companies are dealing with the changing economic and business environment. I offered my story of the daily huddles and it led into some great discussions of companies that do and do not have meetings like this. Turns out that Goldman Sacks does two a day 6am and 6pm, Merrill Lynch (now defunct) did not do one, Rockefeller and Andrew Carnegie started these in the early 1900s. Every Walmart store does this every morning. We all know of the results that Walmart has shown.
We started doing these calls at the operational level a few months ago and again we have seen great and immediate results. What was taking months to hear about and act on is now taking just a day.
In this ever changing economic business environment we as a company need to be nimble. Information needs to be shared and acted on a daily basis not a weekly or monthly basis. Some of the topics that should be discussed on a daily basis are rental rates, resident satisfactions, the competitions, major maintenance items or statistics, property curb appeal and other market strategies. What this call is not is a chance to talk about the stopped up toilet in 2F, or Ms. Smith's late payment. This needs to be a quick moving high level meeting that should address the major items you are seeing in your markets. My suggestion would be that the calls take place first thing in the morning when everyone is ready to get their day started.
I will not be able to make everyone of these calls, but I will be on a schedule so I can join each call once a week.
I look forward to hearing in real time what is happening at the ground level of the properties. If anyone has any ideas on how to structure these calls better please share them with me. Otherwise please be involved in the calls, we need your involvement, ideas and problem solving skills to help solve others problems and let others share ideas with you.
Thanks for making it happen.
Nick Jekogian
Monday, May 18, 2009
Walking in Other peoples' shoes, or bare feet.
Walking in Other peoples' shoes, or bare feet.
I watched "Slum dog Millionaire" with my 6yr old daughter last night. My daughter has spent her entire life living in the world of the upper east side of Manhattan, she goes to the schools depicted in Gossip Girls, central park is her backyard. In summary she has it easy. One of my biggest fears is that my family and I, will lose touch with reality. The average income in my zip code is almost 10x the US average. Home prices start at $2M for a 2 bedroom apartment.
So how do you keep a child grounded and cognizant that life is more than private tennis lessons at the club? I don't have an answer. I hope that my daughter took in a little of the reality from the movie. I think it opened her mind and that Pinkberry gourmet yogurt isn't the norm after every meal.
Not unlike myself and my daughter, I think everyone should watch Slum Dog and face the reality that all the sacrifices we need to make in this new economy are do able. A few less Starbucks a week, no more vacation homes, a little less luxury and a little more savings.
The next decade in the US will be very different than the last one. Some people are making the adjustments, while others are expecting this to just blow over. What this country and its people have to go through over the next decade is going to be life changing and people can accept it or have it forced on them.
I hope that people watch Slum Dog and realize no matter how bad it gets in the US, we still live better than 99% of the world's population.
NWJ/Signature Communities started an initiative earlier this month to help house families facing homelessness. We are reaching out to neighboring churches, social organizations and other groups to offer assistance to families in need. Families cannot live on the streets and we are doing our part to make sure that they don't. We are also looking for local partners that could help get these families lives back on track so if you know any businesses or service providers that can help please let us know.
My goal is that in one years time 90% of the families that we offer this assistance to will be converted to good rent paying residents.
Let's make this happen!
Nick
--
I watched "Slum dog Millionaire" with my 6yr old daughter last night. My daughter has spent her entire life living in the world of the upper east side of Manhattan, she goes to the schools depicted in Gossip Girls, central park is her backyard. In summary she has it easy. One of my biggest fears is that my family and I, will lose touch with reality. The average income in my zip code is almost 10x the US average. Home prices start at $2M for a 2 bedroom apartment.
So how do you keep a child grounded and cognizant that life is more than private tennis lessons at the club? I don't have an answer. I hope that my daughter took in a little of the reality from the movie. I think it opened her mind and that Pinkberry gourmet yogurt isn't the norm after every meal.
Not unlike myself and my daughter, I think everyone should watch Slum Dog and face the reality that all the sacrifices we need to make in this new economy are do able. A few less Starbucks a week, no more vacation homes, a little less luxury and a little more savings.
The next decade in the US will be very different than the last one. Some people are making the adjustments, while others are expecting this to just blow over. What this country and its people have to go through over the next decade is going to be life changing and people can accept it or have it forced on them.
I hope that people watch Slum Dog and realize no matter how bad it gets in the US, we still live better than 99% of the world's population.
NWJ/Signature Communities started an initiative earlier this month to help house families facing homelessness. We are reaching out to neighboring churches, social organizations and other groups to offer assistance to families in need. Families cannot live on the streets and we are doing our part to make sure that they don't. We are also looking for local partners that could help get these families lives back on track so if you know any businesses or service providers that can help please let us know.
My goal is that in one years time 90% of the families that we offer this assistance to will be converted to good rent paying residents.
Let's make this happen!
Nick
--
Monday, May 11, 2009
The Times They Are A Changing
Over the last year, we have witnessed major economic and political upheaval. Last year we had a republican in the White House and business was the main driver of the economy. Today we have Democrats controlling the White House, Senate and the House of Representatives. We have industry taking a back seat to government initiatives. Wow what a year. Real estate values have fallen by 30% across the nation and many project more pain to come. Unemployment is now 8.7% and rising. Currently, things are bad to lousy in real estate.
When I started NWJ cos the economy was bad, very bad. High unemployment, real estate values down 50% from their late 80s high and credit was almost impossible to come by. During those years we focused on buying distressed properties that offered immediate cash flow ( we had no choice if it didn't cash flow we would have gone broke). The people and banks that we bought property from didn't want anything to do with the assets. They wanted out badly. Interestingly enough, the governments tax law changes are what almost overnight changed the real estate industry. Because of tax law changes no one wanted to be in the real estate business any longer.
"You buy when the blood is in the street. That little formula has worked miracles. It's just the opposite of what the average guy does. You want to buy [when there is] 'panic' and sell [when there is] 'euphoria.' It's all market psychology. It's all fear and greed." - J.P Morgan
We find ourselves in times like those again. Just ask anyone that invested in real estate between 2002-2007, whose deals are not turning out to be nearly what they had expected.
Now is the time for us to focus on the things that our competition is not able to.
1. Growth - the next 5 years will be unbelievable, opportune times for growing this portfolio.
2. Hire - there a lot of great people out there and we will soon need them.
3. Customer Service - companies are cutting back on what they should be doing most. Although we may not be in a financial position to offer all the bells and whistles (cable, internet, papers, gyms, etc) we can help our residents by just being there for them. Answering questions, helping with financial needs, just offering simple Wow experiences.
4. Staff support - help your co-workers. In these stressful times everyone needs something. Maybe its filling in for a day off, or just a kind word of recognition.
In these extraordinary times we need to find the courage to do the hard things that will propel this company to greatness. I look forward to the next 5 years as times of opportunity and expect great results to come of it.
Thanks for making it happening.
Nick
When I started NWJ cos the economy was bad, very bad. High unemployment, real estate values down 50% from their late 80s high and credit was almost impossible to come by. During those years we focused on buying distressed properties that offered immediate cash flow ( we had no choice if it didn't cash flow we would have gone broke). The people and banks that we bought property from didn't want anything to do with the assets. They wanted out badly. Interestingly enough, the governments tax law changes are what almost overnight changed the real estate industry. Because of tax law changes no one wanted to be in the real estate business any longer.
"You buy when the blood is in the street. That little formula has worked miracles. It's just the opposite of what the average guy does. You want to buy [when there is] 'panic' and sell [when there is] 'euphoria.' It's all market psychology. It's all fear and greed." - J.P Morgan
We find ourselves in times like those again. Just ask anyone that invested in real estate between 2002-2007, whose deals are not turning out to be nearly what they had expected.
Now is the time for us to focus on the things that our competition is not able to.
1. Growth - the next 5 years will be unbelievable, opportune times for growing this portfolio.
2. Hire - there a lot of great people out there and we will soon need them.
3. Customer Service - companies are cutting back on what they should be doing most. Although we may not be in a financial position to offer all the bells and whistles (cable, internet, papers, gyms, etc) we can help our residents by just being there for them. Answering questions, helping with financial needs, just offering simple Wow experiences.
4. Staff support - help your co-workers. In these stressful times everyone needs something. Maybe its filling in for a day off, or just a kind word of recognition.
In these extraordinary times we need to find the courage to do the hard things that will propel this company to greatness. I look forward to the next 5 years as times of opportunity and expect great results to come of it.
Thanks for making it happening.
Nick
Monday, May 4, 2009
Endurance
Endurance is one of the most difficult disciplines, but it's to the one who endures that the final victory comes. - Buddha
Last year I met a man who was in an airplane crash in the Andes mountains. He and his teammates were stuck on a mountain top for 60 days before a team was put together to walk out and get help. The "walk" was one of the most difficult mountain climbs ever attempted with a complete lack of equipment and food which consisted of the remains of friends that had died earlier in the ordeal.
After 7 days of climbing, 4 false summits and two turns that gave them a 50/50 chance of life or death, they made it out. On the last day Nando's climbing partner's body had given up and he was forced to carry him out. When I asked, "how did you find the energy to do this?" His response was, "I had no choice, it just had to be done if the others were going to survive."
Since this accident, Nando Pardo and the other survivors of this ordeal have led very successful lives. The key to his continued success was that he knew that anything could be accomplished, if you try, since very few decisions in our daily lives are life or death.
I don't see our situation as life or death, or anywhere near as serious as being stuck on a mountain without food. However, I due see similarities in our ability to pursue our goals and survive this crazy economic environment. We have no choice but to continue to push through these hard times and reach safety.
Perseverance is the hard work you do after you get tired of doing hard work you already did.
Let's go out and make it happen.
Nick
Last year I met a man who was in an airplane crash in the Andes mountains. He and his teammates were stuck on a mountain top for 60 days before a team was put together to walk out and get help. The "walk" was one of the most difficult mountain climbs ever attempted with a complete lack of equipment and food which consisted of the remains of friends that had died earlier in the ordeal.
After 7 days of climbing, 4 false summits and two turns that gave them a 50/50 chance of life or death, they made it out. On the last day Nando's climbing partner's body had given up and he was forced to carry him out. When I asked, "how did you find the energy to do this?" His response was, "I had no choice, it just had to be done if the others were going to survive."
Since this accident, Nando Pardo and the other survivors of this ordeal have led very successful lives. The key to his continued success was that he knew that anything could be accomplished, if you try, since very few decisions in our daily lives are life or death.
I don't see our situation as life or death, or anywhere near as serious as being stuck on a mountain without food. However, I due see similarities in our ability to pursue our goals and survive this crazy economic environment. We have no choice but to continue to push through these hard times and reach safety.
Perseverance is the hard work you do after you get tired of doing hard work you already did.
Let's go out and make it happen.
Nick
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