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 GMAC Real Estate Regroups With New Leadership
by Blanche Evans
Although he's only been on the job for six months, GMAC's Home Services President and CEO John Bearden is working hard to leverage the corporate strengths behind GMAC Real Estate. The company has a lot going for it. GMAC Home Services Inc. is one of North America's largest real estate organizations, with four operating units: GMAC Real Estate, GHS Mortgage, GMAC Global Relocation Services and the Strategic Alliance Group, all of which can help enterprise sales between divisions. GMAC Real Estate, headquartered in Oak Brook, IL, has a network of 1,350 franchise and company-owned residential real estate offices in the U.S. and Canada, with over 20,000 sales professionals doing over $40 billion in sales volume in 2000. The mortgage brokerage arm of GMAC Home Services is GHS Mortgage, the sixth largest mortgage brokerage services company in the U.S., which enables member brokers to offer GMAC Mortgage products to homebuyers. Providing lead generation support is GMAC Global Relocation Services, ranked third largest in worldwide relocation services. The Strategic Alliance Group is a new business unit charged with forging strong business relationships and network referrals within the GMAC Real Estate broker network, and among other lines of business in the General Motors(GM) and GMAC family. In short, brokers and agents in the network can do everything from buy a GM car at a company discount to receive referrals from the showroom floor - and across the globe. So why isn't GMAC a more formidable force in the real estate industry? Three reasons: brand confusion, failure to properly leverage its global strengths, and the fact that it is the new kid on the block. But all that is about to change, vows Bearden. "We really started this business from a position of strength and see an opportunity to grow our presence significantly," said Bearden. "We are a new company with a lot of history." When GMAC expanded its presence into the real estate and relocation industries, the company did so with strategic acquisitions like Better Homes and Gardens Real Estate. But finding its identity proved difficult as it simultaneously tried to establish the GMAC Real Estate and Home Services brands. "Between 1998 and 2001 was a period of conversion," explained Bearden. "We were asked to put together a business plan and model that would create the premier real estate services organization in North America." Bearden's plan is to accomplish several goals:
With that goal in mind, GMAC is launching Premier Service(sm). "This will be characterized by the phrase, Service You Deserve, People You Trust," said Bearden. "this will distinguish them from the marketplace. The Premiers Service concept will be prominent in all GMAC Real Estate collateral and advertising. "All brand building efforts will be centered on the consumer," said Bearden. "What we really want to do is ask the consumer at end of the process, 'Would you recommend us or use us again?' It enables the consumer to evaluate our agents. It is such a fundamental idea. Do we have to sell the idea to 20,000 agents? They like the fact that a company is going to promote them over the brand!" Bearden says that the company also wants to invest in its broker relationships. "We have developed a significant capital resource for real estate brokers who want to grow their businesses," said Bearden. "Our whole idea is to bring the power of GMAC to benefit the individual broker/entrepreneur, and for those who would like to expand their businesses, we are providing a source of expansion capital. Bearden's plan to provide expansion capital begins with reengineering contractual relationships. "We have new contracts and options so that the brokers can choose the one that best suits the way they want," he said. "It's a new approach, and we have developed the capacity to respond quickly so I think that is a key component to our story going forward." To access GM's impressive resources, Bearden is expanding his management team, including the hiring of Lane Barnett, formerly with Coldwell Banker and Bridgespan, as Executive Vice President, Marketing and Communications, GMAC Home Services. "I wanted to bring in a team of experienced professionals to build this enterprise," said Bearden. "Lane is one of the best known executives in this industry, and has a tremendous track record of building brands and creating synergies. I also brought in some high quality financial people and franchise people." "We have a large affinity group, so this is an opportunity for sales associates to farm within that community. There is the relocation program with which they can position themselves, and they can get tangible benefits like automotive discounts," concludes Bearden. "These are great advantages for independent business people. If we can build a philosophy and atmosphere that creates an attractive economic and emotional connection, they we are offering a competing value proposition." Published: March 1, 2002 Use of this article without permission is a violation of federal copyright laws.
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