If you have ambitions to be the chief executive of a UK real estate company, you will have to be a little patient. According to a new report from headhunting firm Spencer Stuart, “Real Estate CEO: The Route to the Top”, the tenure of chief executives in publicly listed real estate companies averages 13.5 years, more than double the 5.4 years across the rest of the FTSE 350. The disparity is caused in part by 28% of UK real estate companies being led by their founders. However, even with this stripped out, the average tenure remains high, at nine years.
Patience is a virtue, however, and if your sights are set on being the boss, Spencer Stuart’s research offers tips and advice from some of the industry’s leading chief executives.
Breadth of experience was cited by a large number of respondents as a significant advantage in the quest to become a company leader, with almost 40% of chief executives from 105 of the largest public and private real estate companies being trained in professions other than surveying. Many said that they gained substantial benefits by training or working in different professional environments.
Having a significant understanding of finance and economics is becoming increasingly important for real estate leaders, according to the report. As well as knowing their way around a set of accounts, chief executives must understand macroeconomics and risk and be able to explain their position to an increasingly informed set of stakeholders.
“The trick is to be the type of person who can blend numbers with strong communication,” said one chief executive. “You need to be able to see all the details and advocate compellingly.”
And to understand, you need to learn. Surrounding yourself with successful people was cited by almost all chief executives surveyed as beneficial. Having a mentor to learn from was considered important not just early on in executives’ careers but in their advanced stages too.
Real estate leaders also highlighted the importance of taking career risks, making counter-intuitive career moves, switching between large and small, public and private businesses and across sectors or markets. They said that these moves ultimately enhanced learning and proved advantageous.
The ability to take and manage risks was considered an important leadership trait by respondents – not just in career choices but also in management, along with the ability to deal with adversity. “A chief executive must be resilient and able to cope with pressure,” said one. “The more you can test yourself early on, the better.”
The report outlined a number of character traits shared by the best leaders, including:
• excellent judgment – leading a team requires having the insight to spot value, timing and executing activity flawlessly, and knowing when to gear up and when to scale back;
• strategic thinking – real estate is at the intersection of political, economic and social trends and leaders must understand how these dynamics affect a range of stakeholders. Chief executives must be willing to innovate continually and challenge the norm while maintaining a focus on the medium to long term;
• ability to inspire – real estate is a people business and a good leader will know how to inspire and influence a team, create the right business culture and rally internal and external teams around complex and transformational situations;
• confidence – having conviction and acting decisively is a requirement for any successful leader;
• humility – success is not a solo event. Understanding the importance of working through others and deflecting praise is a key strength in the successful leader.
John Spurling, author of the report, said: “The route to the top is never easy and those who make it to chief executive exhibit a core passion and work ethic that push them ahead. Not only are they able to think strategically about their careers over the long term but they also find opportunities, solutions and support as they advance.
“Those who wish to make the journey to the top must be brave enough to take the path less travelled and be fully determined to succeed.”
• Broaden your skill set at every opportunity
• Read the financial press as well as the property press and expand your knowledge of what’s going on outside the industry
• Gain experience in at least one role outside your area of expertise
• Take on a people management role as early as possible
• Get involved in mission-critical projects outside your functional area
• Learn financial as well as technical skills
• Develop close working relationships with other functions
• Hone your communication skills
• Get yourself noticed – be a challenger
• Learn to make the tough decisions
• Expose yourself to international markets and cultures
• Find a mentor
• Master your current role rather than focusing purely on the next career opportunity
samantha.mcclary@estatesgazette.com
