Gary Keller, entrepreneur who transformed his business through behavioral assessment and strategic hiring, discusses his challenges in expanding his realty business beyond Austin, Texas. He explores the importance of relationships, the discovery of the secret to success, the role of independent observers in identifying unconscious actions, understanding individual behaviors through personality assessments, and finding the right people through creating a safe environment for growth.
Gary Keller realized the importance of systems and processes in his success and created manuals and franchise documents based on his strategies.
By hiring the right leaders and establishing a growth-oriented approach, Keller Williams experienced significant growth with an average annual growth rate of 40% for nearly a decade.
Deep dives
Expanding Kallowiams Realty Beyond Austin, Texas
Gary Keller discusses the challenges he faced while expanding Kallowiams Realty beyond Austin, Texas. When people expressed interest in doing business the way they were doing it, Gary agreed to explore the possibility. He set up a meeting in San Antonio, where a few individuals showed up, and one of them turned out to be a great candidate. Gary signed a license agreement with them, and one year later, they won the Pride and Progress award for being the fastest-growing business in the San Antonio Chamber. This success prompted Gary to expand to Corpus Christi, Houston, and Dallas, using the same method of meeting with potential candidates and awarding licenses. However, not all the subsequent offices were successful.
Learning from Ray Kroc's Franchise Approach
Gary Keller shares how reading about Ray Kroc's approach to franchising McDonald's in the book 'Behind the Golden Arches' changed his perspective. Gary realized that his success wasn't solely based on his ideas, but also the systems and processes he had stumbled upon. Inspired by this, he hired someone to observe and document his strategies and used that to create manuals and franchise documents for Keller Williams. He developed a system that could be repeated, focusing on the patterns of success rather than just his personal ideas.
Hiring a CEO and Focusing on Right Relationships
After experiencing challenges with the wrong people and realizing the need for a better match, Gary Keller hired Mo Anderson as the CEO of Keller Williams. He stepped into the role of chairman and focused on creating a foundation for growth. This involved determining the right leadership at the regional level, setting performance criteria, and establishing a growth-oriented approach. By attracting the right leaders, Keller Williams experienced significant growth with an average annual growth rate of 40% for nearly a decade. This foundation allowed the company to scale and expand rapidly.
Letting Go and Self-Selection
Gary Keller learned the importance of self-selection and letting go of individuals who weren't a good match for Keller Williams. Instead of trying to change people, he created an environment where individuals could decide whether or not they wanted to stay in the company. This involved setting performance expectations and supporting individuals to meet them. Those who consistently failed to meet expectations would ultimately choose to leave or be released. This process allowed Keller Williams to maintain a high-performance culture and focus on attracting individuals who aligned with the company's values and goals.
Gary Keller was expanding his business by living life on the road, until a simple behavioral assessment changed everything. It led him to identify the right processes, hire the right people, and eventually fire himself from the CEO role.
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