On July, 2017 eXp World Holdings, Inc.’s President, Russ Cofano, stepped down from his position without giving a reason. The move raised some eyebrows among the company’s subsidiary, eXp Realty, and the agents and brokers who hang their licenses with the agent-owned cloud brokerage. However, I can speak for everyone at #TeamEYC (Expand Your Commissions) in saying that we are actually excited by the news and what it could mean for eXp and the holacratic business model.
We’re not going to speculate here as to why Russ Cofano ultimately decided now was the time to part ways with the company. We’ll take him and eXp World Holdings at their word:
However, eXp spokesman Mitch Robinson said, “Glenn has elected to move the company toward a more holocratic organizational structure tied to eXp’s agent-owned business model. In light of this, Russ has elected to move on to other opportunities.”
It makes sense that Cofano came aboard to be the principal decision-maker and, when Glenn Sanford decided to change to a holacratic business model, the two naturally decided it wasn’t the right fit. But, to be honest, all of that stuff is a little above our pay grade and all we really want to know is: “How does the move to holacracy affect our business?”
What is a Holacratic Business Model?
Webster’s Dictionary defines “holacracy” as…
Just joking; I would never actually begin a paragraph that way. The important thing to understand about the holacratic business model is that it is a decentralized structure that empowers individuals to lead the company forward by embracing creativity and passion on a local level. The corporation is then able to adopt and share the strategies and practices that prove to be the most successful.
The role of the corporation is, in essence, to create the environment and structure that allow the individuals the freedom to thrive. It’s a much more flexible model than a traditional corporate structure where all innovation has to be run up to a boss, and then their boss, and then their boss, and so on. That’s the same reason why we love it so much; after all, we came to eXp Realty because of the innovation and industry-disrupting approach.
Why is Holacracy Particularly Important for eXp World Holdings?
There are numerous benefits to this new business structure, but we are going to highlight just a few of the obvious ones:
- One brokerage, 50 states. eXp Realty has completely done away with the franchise model that most other national real estate companies utilize. The brokerage was, therefore, faced with a decision. Either force every national staff member to become experts in the real estate laws for every state or find a way to empower smaller groups to serve as experts within the state/region in which they work. Holacracy was the best answer. State brokers and their real estate professionals now have the freedom to govern themselves according to the laws and best practices in their state. And it’s not just the laws. Think about it this way: if the Midwest is in a hot seller’s market and the Northeast is transitioning to a buyer’s market, would it make sense for one national corporate body to attempt to guide both regions and maximize profits? Of course not!
- Diverse industries and ventures. eXp World Holdings is more than just a real estate company. They have made no secret about the fact they are planning expansion into mortgages and many other disciplines within the real estate industry, so they need to have specialists in each division and region for every one of those undertakings. A holacratic business model is the most efficient way to maintain flexibility and minimize overhead for such a diverse company.
- Agent-owned cloud brokerage. Because of the fact the Realtors and brokers are genuinely shareholders with vested interests in the success of eXp World Holdings and the EXPI stock, they are uniquely motivated to share ideas and best practices with their state brokers and fellow agents. This decentralized structure allows for thousands of people to come up with great ideas, rather than relying on Glenn Sanford and a handful of executives to initiate every forward-thinking idea.
How Do I Participate?
The eXp Cloud makes it extremely easy to share your ideas. All you have to do it login, walk up to someone at agent services, and ask them to point you in the right direction. The executives are surprisingly available, and they even have designated meeting rooms within eXp World where your avatar can schedule a private meeting with his/her avatar without every leaving the comfort of your home or office.
Be prepared to show some proof that what you are pitching is actually working and producing results for you. But, if your idea has some merit, I can assure you Glenn Sanford, Jason Gesing, Vikki Bartholomae and the other executives are happy to discuss it with you. (I am speaking from experience on this, so I can say that with a reasonable level of confidence.)
If you would like to know more about eXp Realty and why we love it so much, please Contact Us today!