Last month, a few days before Christmas, my good friend Brian Smith invited me to lunch. He wanted me to attend his annual holiday luncheon with his leadership team. Brian and his wife, Mikelle, own two Keller Williams Real Estate offices in Denver, Colorado. They lead 575 real estate agents, serviced by twelve people on their leadership team. These twelve leaders provide service, support, technology, and marketing to their agents so they can build and run successful real estate businesses.
I arrived at Del Frisco’s Grille twenty minutes late because I had a challenging time finding a parking spot – it seemed everyone and their mother were doing their last-minute Christmas shopping. When I arrived, I was warmly greeted by Brian and his twelve-person leadership team. Everyone kindly went around the table to introduce themselves and then we all dove into the menu to order our steaks.
There was no agenda, no program, and no itinerary for the luncheon, just lots of laughter and fun. I was expecting my friend to break out with an end of the year real estate report, PowerPoint handouts of their 2023 financial summary, or perhaps a pep talk about 2024 goals. None of that happened. At the very end of the lunch, something quite different occurred.
It was then that Brian genuinely thanked the twelve people on his leadership team for their incredible attitude and perseverance during one of the toughest real estate years in recent history. He handed each of his twelve teammates a white bank envelope with these simple instructions: walk across the street to the Cherry Creek Mall and spend the wad of cash on buying something for themselves.
The way Brian’s team responded was so beautiful. I’d never seen anything like it before. They acted like their boss just gave them a million dollars – all so thankful and appreciative. And within seconds there were goodbye hugs, and the shopping spree began.
Brian never told his team how much money was in those white bank envelopes, but my curiosity could not stop me from privately asking. I was shocked with the amount he shared. I could have completed my entire family Christmas present shopping list with all that cash!
Then I asked my friend Brian a question, and his answer is one that I will never forget. “With interest rates creeping up to 9% and an unsettled economy, wasn’t 2023 like one of the worst years ever for the real estate industry?” Brian’s answer not only warmed my heart but taught me a valuable leadership lesson. “Yes, it was an extremely hard year, Tommy. In fact, our closed deals were down 20% this past year. It is easy to be generous during the real estate boom years, but it is more important to be generous (and appreciative) during the tough years.”
I have a friend that works for an east coast retail company that also had a hard year financially – this company was also down 20% of year-end goals. But her experience was completely different than Brian’s holiday luncheon. My friend’s boss informed her team that because of their dismal year financially, there will be no annual bonus, no holiday party, and no annual salary raises. And, to put a cherry on top, her boss also informed her team that he was cutting all staff leadership and personal development for 2024.
I’ve thought about these two different scenarios all holiday break. Two different companies. Both with challenging 2023 financials. But clearly, two different leadership styles.
Five years from now, I would bet my last dollar, that whatever items Brian’s team purchased last month at the Cherry Creek Mall shopping spree…they will completely forget. They will not remember what gifts they purchased with that wad of cash, but they will never forget the generosity of their boss, especially during the tough times. This is heart-led leadership at its finest. One leader tightens the belt and cuts everything. And another leader loosens the generosity belt and blesses his team – even during challenging times. Who would you rather work for? Which of these companies do you think will have more long-term success?
If you study human and institutional behavior around giving and generosity, you will discover three key learnings. Number one, stronger economies support stronger giving cycles. Number two, weaker economies support weaker giving cycles. Third and most importantly, organizations and individuals that are generous during weaker economies are healthier and more successful than those that don’t. Bottom line: generosity should not be seasonal. Investing in your people should not be conditional. And giving should be in the DNA of your organization’s culture, regardless of financial outcomes.
One of my top three mentors in the world is a man named Bill Graebel. Bill is the CEO & President of Graebel Companies – the world’s leading RMC (Relocation Management Company) – helping corporations around the world strategically and seamlessly relocate their employees and teams. For the past twenty-five years, Bill and Graebel Companies has been the largest benefactor for our non-profit youth leadership program, the National Leadership Academy. In fact, our youth development academy is called the Ben Graebel National Leadership Academy, named after Bill’s late brother.
This past year was a hard one for Graebel Companies. With our challenging economy and global unrest, companies and organizations are not relocating their employees internationally – at least not at the level in previous years. I learned in business school years ago that when revenue is down, one must cut expenses. I am sure Bill and his team had to tighten the belt financially this past year, but his investment in his people and his organization’s commitment to supporting local charities, like our National Leadership Academy, did not waver. Not one penny.
Mother Teresa once said, “It’s not how much we give, but how much love we put into giving.” I understand that for many of us, 2023 was a tough year financially. And I understand that 2024 may be another challenging year. If we all can commit to how much love we put into giving, we will not only build stronger and healthier organizations, but we will influence the lives of others in the most powerful way. You don’t need a wad of cash to do that. But you do need a wad of heart!