The FORT Podcast: Chris Powers on Incentives in Real Estate
On this episode, Chris discusses incentives that drive companies and people, COR – how to incentive your people to make money and watch expenses, and why it all starts with the culture of your company.
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(03:22) – You Should Strive to be Profitable
(04:32) – Culture vs. Incentives
Super Chickens w/ Margaret Heffernan
(08:20) – Social Capital
(09:20) – Incentivizing a Team Environment
The Fort Podcast Episode #65 on COR
(10:45) – Using COR as an Incentive
(20:10) – There is No Perfect Incentive
The Fort Podcast episode #47 w/ Andrew Segal
The Fort Podcast Episode #64 w/ Andrew Segal
Twitter Questions:
(27:20) – How do you incentivize at FC based on Promote?
(30:34) – Rolling Bonuses
(34:20) – How do you incentivize brokers?
(35:50) – How do you incentivize the back office?
(38:08) – Incentives are not only about making money
Episode Summary
Throughout this incisive session, Powers delved into multifaceted topics, seamlessly blending his unparalleled insights with the broader themes of business, investment, and entrepreneurship.
At the outset, Powers mentions Fort. Specifically, our firm’s emphasis on technological integration, coupled with our world-class culture and forward-thinking ethos, was underscored. This commitment, Powers elucidated, bolsters Fort’s prowess in the real estate realm, allowing us to deftly navigate market intricacies with an unwavering focus on Class B industrial assets across major Texas markets.
The podcast’s central discourse revolved around the pivotal role of company incentives. With incisive clarity, Powers articulated how incentives, particularly in the real estate sector, act as catalysts in driving desired outcomes. This perspective was anchored in the belief that effective incentive structures are instrumental in attracting the right talent, facilitating business growth, and achieving profitability. Powers’ profound statement, “show me the incentives and I’ll show you the outcome,” resonated deeply, emphasizing that the results a company reaps are intrinsically tied to what it incentivizes.
Powers’ insights also spanned the realm of social capital, a concept he deems integral for both individuals and corporate entities. Drawing a parallel between the failure of competitive structures and the indispensable need for social capital, he championed the ethos of collaboration. Eschewing the allure of individual superstars, Powers posited that fostering an environment that prioritizes teamwork and collective effort yields far greater dividends.
A particularly enlightening segment of the conversation revolved around the financial nuances of real estate. Powers stressed the importance of continuous training, ensuring that team members comprehend how each real estate project contributes to the company’s profitability. This foundational understanding, he suggested, empowers teams to discern how their actions influence the company’s bottom line, thereby fostering a culture of accountability and shared goals.
Diving deeper into role-specific incentives, Powers highlighted the multifaceted responsibilities borne by asset managers in the real estate sector. He proposed that delineating the specific tasks that predicate success for such roles can lead to superior outcomes. Such a pragmatic approach, rooted in understanding and executing role-specific tasks, ensures that properties are managed profitably.
Incentivizing employees further, Powers introduced the novel idea of granting them a stake in the properties they manage. This aligns their interests with the overarching goals of the company, ensuring that actions at every echelon contribute to enhancing property profitability.
Powers’ closing remarks reverberated with wisdom, emphasizing the symbiotic relationship between profitability and growth. He postulated that profitability isn’t merely a metric of success but a crucial enabler. It provides companies the leverage to invest in people, technology, and product improvement, thereby catalyzing sustainable growth.
The Fort is produced by Johnny Podcasts