Power is an elusive concept. Merriam-Webster dictionary defines it as “the ability or right to control people or things.” Of course that raises the question of what is meant by “control.” Control is defined as directing the behavior of, or to cause a person to do something. Power can also exist even though it may not be exercised, simply because having power can discourage others from challenging it.
Over 1,000 people were reviewed this year and in the end 270 are included on 8 different lists – from corporate executives to power brokers, from women to trendsetters, and more. Last year we had many inquires on how this enormous task is undertaken and how those listed are selected.
So here is the approximately 400-hour process that was followed this year.
First Round Criteria – Organization Involvement
To be considered for the SP200, leaders that are chosen usually work for companies that meet the following criteria. (This is neither a non-starter nor a guarantee, but provides a meaningful cutoff).
- Leaders of brokerage companies that had more than: $2.5 billion in sales, or 10,000+ transactions, or more than 500 agents.
- Leaders of technology companies that have at least: 1,000 broker clients, or 50,000 licensed agent users, or $30 million in revenue, or 100 employees, or raised $20 million in funding, or have two or more enterprise client relationships (national franchise, qualifying association).
- Leaders of other organizations that had more than: 100,000 members as a state association, or 20,000 members as a local association, or 40,000 members as a MLS organization.
Second Round Criteria – Present Activities
During this round we review each nomination and, as far as information can be obtained, evaluate the following:
- The individual’s personal power and influence outside his or her organization,
- His/her tenure in the industry.
- The office he or she currently holds and the decision-making power of said office.
- Other industry-wide activities outside his or her organization, such as boards of directors, etc.
- Activities, acquisitions, or other initiatives the individual led or was involved with during the last year.
- The size (revenue, sales volume, offices, agent count, number of clients/students/readers, etc.), or the organization the individual is an executive in.
- The financial resources of the organization the individual commands/leads.
- The organization’s role and significance in the residential real estate brokerage industry.
Third Round Criteria – Future Impact
We now consider future actions that are probable and realistically expected to occur in the foreseeable future, due to activities or initiatives planned or managed by this individual. We try to ascertain the impact and significance these future actions may have.
Not easy, nor straightforward. So you could just imagine the healthy debate we had as to what criteria should be used in creating such as list. We scoured the Web, read hundreds of bios, read hundreds of LinkedIn pages, sent hundreds of requests for additional information, made endless telephone calls to verify or confirm statistics, and cross-referenced data with surveys, reviewed company financials, and annual reports and announcements. In short, we did more homework than anyone else does.
Some people have entrepreneurial power or financial strength, some hold high office and have positional power, while others have political clout and some have personal power. Some are innovators, some executives, some doers, some dealmakers. It doesn’t matter. We have tried to analyze them all.
To all those who were nominated, considered, and to the 270 who were ultimately included on one of the SP200 lists, we salute you! Visit sp200.com for the detailed rankings for 2015/16.