Jeff Hicks, MAI President  Dohring Group RealWired!

As the owner of your commercial appraisal firm, is your management style auspicious, meaning is it conducive to success?  Many owners of appraisal firms I talk to struggle with managing their fee appraisers.  Some lament that their appraisers are like free-range chickens, wandering the fields, haphazard, unorganized with little to no oversight. 

Many firm owners don't feel they can control their own appraisers.  Really?  You provide a customer base that brings in their cash flow, you own the computers, phones, desks and pay for support staff, expensive data sources and office space.  Are you practicing a hobby or running a business? The key may be your management style.

Traditional business management styles generally include:

Autocratic - I call this the Eric Cartman (of South Park) style of management, "I do what I want!"  Typically used by folks like Putin, Castro and Bashar al-Assad.

Chaotic - Modern management style, gives employees total control over many decisions, can be effective in stimulating innovation, think Google.  For appraisers this style would likely result in deer in the headlights confusion.

Consultative - Has essences of the autocratic style though decisions take into account the best interests of the employees and the business.  Not a bad way to go.

Democratic - The employees take part in decision-making, therefore most things are agreed upon by the majority.  This style can be annoying if your appraisers and support staff have little definitive or meaningful opinions.

Laissez-faire - French for "do what you want, I trust you."  Can be effective if you have all "A" Players, but in all likelihood, you would wind up with a big pile of business poo poo.

Persuasive -  is a style where the manager maintains control over the entire decision making process but will spend time working with employees to convince them of the benefits of management's decision.  Not a bad way to go.

Author Daniel Goleman of Primal Leadership coined the term "Emotional Intelligence" which offers up six different styles of leadership. 

Affiliated - This style emphasizes harmony with team work, connecting folks together to increase morale, improve communication in a company.

Coaching - This one-on-one style focuses on developing individuals to improve performance and align their personal goals with the firm.

Commanding - Autocratic with military style leadership that the author feels is the least effective since it's rooted in criticism and avoids praise than can lead to job dissatisfaction.  Great for a crisis, but not for your business every day.

Democratic - Same as the management definition but can lead to pandemonium in times of crisis since quick decisions are often elusive in a group setting.

Pacesetting - The leader sets high standards and can be obsessed about raising the bar.  Just like a running race, this "rabbit" pace can wear out your folks.

Visionary - Helpful for companies that need a new direction, creating a safe place to allow innovation and taking calculated risks.

So how do you manage your commercial appraisers?  Do you say to yourself, "I don't care how they get their work done as long as they get it done." You should care as the owner or fee appraiser since you are likely dropping the ball on productivity, ignoring the sense of urgency for report consistency, reducing review headaches, reduction in report errors, producing great appraisal reports in a shorter time frame.