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The Art And Science Of How To Keep Talented People Around

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(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)

The number one reason talented people leave their jobs is because of the failure of their direct managers. Businesses are defined by the strength of their people. Even in the most successful company (think Google, Amazon, etc.), a bad manager can drive talented employees out the door. So what is the true art and science of keeping talented people around?

SITUATIONAL LEADERSHIP

Successful managers apply targeted, dynamic coaching to each individual team member. There is not one management style that works for everyone or every situation. Managers need to adapt their approach to every situation and every team member. This is called situational leadership. This situational leadership model has been used across 70 percent of Fortune 500 companies and has received numerous accolades from training experts.

The model details how we learn new skills and the four stages of mastering new tasks. For every stage and task, managers need to adapt their approach to managing their report.

STAGE 1

When your team member approaches a new and unfamiliar task with a determination to master it, they see opportunity. They are complete beginners in execution, but they possess high motivation and low skill. In this step, the manager needs to take a highly directive approach, where they demonstrate how the task should be done, setting concrete goals and closely reviewing the report’s progress as well. You are not being a micromanager by supporting the growth and training of your team. Sometimes your team needs to use your expertise as training wheels.

STAGE 2

This stage is full of frustration. Why? Because it generally takes people more time to master a skill than they’d like. Discouragement will set it and their confidence will lower. While they have built up more skills, their confidence is at its lowest in this stage. In this stage, the manager needs to serve as a cheerleader and remind their team member of why they were chosen to do this task and remind them of how far they have already come.

STAGE 3

In the third stage, people have gained enough skill to complete the task but still maintain a mentality of imposter syndrome in which they are more skilled than their confidence allows them to believe. They may even still be discouraged. In this stage, managers need to do less guiding and allow their team member to perform while self-directly more consistently. These acts of trust can boost the team member’s confidence and their dependence on the manager will fade while their confidence increases.

STAGE 4

People reach stage four when their confidence is at the same level as their skill. They become veterans and will continue to boost their confidence and skill set. This is the stage in which the manager steps back and gives the employee the space to continue fostering growth. Check in every now and then and help as needed. Also be sure to recognize the team member for all of their accomplishments along the way.

Keeping talented people around is not hard. Managers just need to apply situational leadership and remember that every team member works and learns differently and need an environment in which they can thrive in. As the leader, you are building this environment, so make sure it is a healthy one.

Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here

Business

5 Things You Need To Know About WeWork’s New (Real Estate) CEO

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WeWork just hired a very well-known real estate executive to run its ship, even more indication that “the world’s most hyped startup” is done pretending to be a tech operation.

Hiring Sandeep Mathrani, a long-time real estate veteran with billions of dollars under management, is a clear indication of that.

Ever since the failed IPO that led to the departure of founder Adam Neumann, the constant verbiage—internally, externally, publicly—is that WeWork is “focusing on their core business.”

In other words, doubling down on their real estate strategy, meaning the monetization of square footage, whether through lease arbitrage or simply leasing out buildings they’ve bought through their $3B fund.

On a different, but related note, this vehicle was led by Wendy Silverstein—another well-known real estate executive-who’s since left on the heels of the failed IPO.

OK, back to the new CEO. Mathrani.

Who is he? Why did WeWork hire him? And what does it all mean? Hard to know for sure. But here are five things we DO know—and five things you should know, too.

1) He was just Vice Chairman of Brookfield Properties, a $17B REIT.

Mathrani spent the last 1.5 years as the CEO of Chicago-based Brookfield Properties’ retail group and vice chairman of Brookfield Properties.

2) Before that, he was CEO of General Growth Properties, a Chicago-based mall giant.

Mathrani spent eight years as CEO of GGP, one of the largest mall operators in the US. That is until Brookfield acquired it for $15B in 2018, $9.25B of it in cool cash.

3) He took GGP from bankruptcy in 2010 to a $15B sale.

When Mathrani landed at GGP, the mall operator was just recovering from a brutal bankruptcy. Less than a decade later, he’d turned the business around, eventually leading it to a $15B exit.

4) And before THAT, he was Executive Vice President at Vornado—a $12.5B REIT.

Before his eight-year GGP run, Mathrani spent eight years as executive vice president with Vornado Realty Trust, a public REIT with a $12.5B market cap.

5) He will be reporting to SoftBank’s COO…

Even though he’s CEO, Mathrani will be reporting to SoftBank Marcelo Claure, the SoftBank COO, who was appointed executive chairman of WeWork in October. That move was done to help salvage SoftBank’s $18.5B bet on WeWork.

 

Money, Profit, Finance, Business, Return, Yield

What’s next?

According to the WSJ, SoftBank has a five-year plan that expects Mathrani to bring the company to profitability inside that period. And allow it to be cash-flow positive by some time next year.
In real estate, the business model is simple: revenue comes from rent. Profits comes from savings. And part of that five-year plan included mass layoffs.
WeWork cut 2,400 employees in late November, shortly before the Thanksgiving holiday. Silverstein resigned. In addition, they’ve been selling off “non-core assets” acquired under Neumann.

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Business

This Mogul Became America’s 1st Black Billion-Dollar Businesswoman

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Sheila Johnson.

Where to start?

She’s the first black billion-dollar businesswoman. Before Oprah Winfrey.

She started as a TV executive, founding Black Entertainment Television (BET), the first TV network targeting African Americans. She then became a real estate mogul.

Oh, she also owns a stake in three major sports franchises, the NBA Wizards, NHL Capitals and the WNBA Mystics, the African American, period, to boast that claim.

In honor of Black History Month, let’s dive into her remarkable career.

FAST FACTS:

  • Born Sheila Crump in McKeesport, Pennsylvania, Johnson co-founded BET in 1979 with then-husband Robert Johnson. The couple sold it to Viacom in 2000 for $2.9B
  • Sheila Crump Johnson became the first African American woman on the Forbes’ Billionaire list in 2000—beating Oprah Winfrey to the distinction.
  • Per Forbes, Johnson has an $820M net worth as of 2019

 GIPHY

Foray into real estate…

After closing the sale to Viacom, Robert and Sheila pocketed around $1.5B each. Johnson used that windfall as seed money to build a hospitality real estate empire in 2005.

“There’s a disparity in paychecks between whites and blacks,” she told the Wall Street Journal. “I will never forget that.”

As CEO of Salamander Hotels and Resorts, Sheila controls a spectacular portfolio of six luxury hotels in Florida, Virginia and South Carolina. And she’s built it from the ground up—literally—in her own spirit.

“I’ve been to many hotels, not only in the US, but all over the world,” she told Forbes last year. “And I wanted to find something that was going to really make Salamander stand out beyond all of these hotels.”

So what does that mean?

“You have to understand, there are a lot of people, investment companies, with very deep pockets,” she says. “They can do it, but they don’t have the experiences that we’re able to bring. I am constantly trying to find a way to help Salamander Resort & Spa stand out head over heels above any other hotel — not only in the area, but in the nation.

“I want them to leave that resort wanting to come back and not just say, ‘I’ll be back in six months.’ I want them to come back all the time.”

And so far it’s worked. In fact, on Forbes Travel Guide’s 61st list of Star-Rated hotels, Johnson’s Salamander Resort & Spa outside of Washington, DC earned a Five-Star distinction.

Image Credit: Salamander Resort & Spa

Forbes: “Everything [she] touches turns to gold.”

That’s a real quote. From Forbes. Last year. It’s also true.

BET? Billion-dollar exit. Washington Capitals? Stanley Cup.

And Roma. Won 10 Oscars. Who showed it before a single soul started caring? Johnson’s Middleburg Film Festival. (Which, by the way, has 32 films and counting in Academy Award contention.)

Remember her golf resort at Innisbrook? Oh, yeah. Hosts the Valspar Championship, one of the PGA calendar’s most-anticipated tournaments.

Becoming a billionaire comes with a new level of clout as well. “When you don’t have money, you’re not invited to special events; you really don’t matter,” she told WSJ. “It’s a society thing.”

So instead, she’s turned to giving back. Her Sheila Johnson Fellowship’s paid for more then 40 scholarships at Harvard University for students who otherwise wouldn’t afford to attend.

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Breaking glass ceilings. 

There’s an alarming statistic in business and diversity—especially as it pertains to women. According to research by investor Richard Kerby, 18% of all VCs are women—and only 3% are black. In addition, less than 50 black women ever have raised $1M in funding.

“When I got started,” Johnson says, “I couldn’t get a loan. I had to use my own money to get Salamander Resort and Spa.”

She explained to WSJ last year that men can go to any bank with a bank proposal. And no matter how “wacky” the idea is, she said, “they’re going to get the financing. Women do not have that ability.”

Johnson’s taken it upon herself to do something about that, becoming one of the founding partners of WE Capital, an investment firm that invests in female entrepreneurs.

“I started out in a very unique position where I had my own capital to be able to get started,” she says. “But there have got to be banks and investors that believe in helping women who want to be entrepreneurs in the hospitality business.

“And it’s just really, really important that they really take a look at this.”

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Business

Bloomberg: Inside The Epic Rise And Fall Of WeWork

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The darling of the venture capital world, they were called the most hyped startup in the world , with a $45B valuation, along with an impending, historic IPO.

Except…it was never to be.

In less than a year, the ambitious co-working giant went from $45B to needing a $8B bail-out from backer Softbank to avoid running out of money.

Here’s Bloomberg’s breakdown on founder Adam Neuman, the WeWork gamble, Softbank’s risky investment, culminating in a failed IPO.

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