Reading a college commencement speech by Mary Barra, the new CEO of General Motors, got me to thinking. Even though she was addressing new college grads from Kettering University going into the workforce; I thought it was relevant to even veteran commercial real estate appraisers and the direction of our industry. 


I think we need a renaissance, a new way to look at our profession. Just like in martial arts, empty your cup and always train as a beginner even if you've been appraising since the earth cooled.  Fauja Singh who at 100 ran a marathon in Toronto (read here) has obliterated anyone's excuse for "I'm too old to do x or y".  Excuses sound lame after a centenarian ran 26.2 miles.

The following are highlights of Ms. Barra's commencement speech.

• Pursue a career with "passion and hard work."  Talent alone is not enough to be a success. Hard work beats talent if talent doesn't work hard. You probably already work hard but now it's time to work differently. 
   
• Address the challenges head-on whether at work or personal life. Bring together those involved immediately to address situations. Consider implementing systems in your office but give your folks time to learn new office procedures and software solutions. Provide an outline of your expectations with a time-line. Don't become a tyrant and shove it down their throats.  At the same time don't accept "C" player attitude and output. Help them become at least "B" players.
  
  
• Change the world with the power to rethink outdated assumptions and make a real difference. She cautioned that not everything needs changing and some things need protecting. The latter sounds like timely advice to our industry.
  
  
• Give something back, find a cause, join a charity or simply help a neighbor. This can extend to your appraisers and support staff or their extended circle.
   
• She also suggests being open to opportunities that will happen to you; the ones you don't see coming. Case in point, the 2014 Scope of Work change in USPAP could have a structural change on the commercial appraisal product we produce. It may take some time to see how it plays out given different markets with varying intended use and users. However, it's a safe bet to assume that the trend towards a leaner appraisal report will be the outcome and I don't think that's a bad thing.  

Writing a phone book-size appraisal is only necessary if it's requested and you get paid for it.  Otherwise don't do it.  Stop with the "kitchen sink" writing style.  Listen to your customers, the credit folks, the reviewers, the government agencies, attorneys and anyone else who gives you money to determine market value opinions.

The reliability of our valuation conclusions shouldn't change with varying reporting formats.  I think the issue is we as appraisers don't particularly like change.  Listening to a commencement speech is for beginners just entering the workforce.  Some of us have been doing our trade for a very long time and don't feel the need or desire to change. Perhaps become the evangelical person in your office (regardless if you're the owner or not) of technology and office systems to take on the "new normal."

As Ms. Barra indicated, not everything needs changing but it's sage advice to address the challenges ahead on, continue to pursue your career with passion and hard work and be open to the opportunities. As the first female CEO of a large automotive firm she certainly listened to her own advice...will we?