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Diversity Report Marks Important Step For Real Estate Industry
Diversity Report Marks Important Step For Real Estate Industry
Published 07-28-05
Submitted by FPL
The report, the first of its kind for the industry, was sponsored by several of the nation's leading real estate companies, including Cushman & Wakefield, Inc.; MacFarlane Partners; and Pulte Homes, Inc. It reveals both a pronounced insufficiency of opportunities for minorities in real estate as well as some encouraging details on successful diversity initiatives at a few forward-thinking real estate companies.
"We are committed to improving diversity in the real estate industry not only because it's the right thing to do socially, but also because it's the right way to run a business," said Bill Ferguson, Co-Chairman of FPL. "Corporate America is undergoing rapid, fundamental changes in the demographics of its employees and customers. As workplace diversity increases and minority buying power grows, it's clear that success in tomorrow's real estate industry requires the successful implementation of diversity initiatives today."
FPL's study provides both current perspectives and quantitative measurements of diversity in the real estate industry. "Our goal," said Ferguson "is to create awareness of the status quo and define a path towards effectively driving new workplace initiatives."
Ron Whitley, Managing Director, Human Resources at Cushman & Wakefield, commended FPL's Diversity Study and said he hopes this year's report is the first of many. "We should embrace this opportunity to start a dialogue about best practices," said Whitley. "The more we can show how diversity improves business performance, the more traction our initiatives will get."
Another survey sponsor underscored the importance of diversity initiatives in light of changing demographics. "As the industry faces a more diverse America in the coming years, real estate companies - nationally and globally - must be more aggressive in their diversity initiatives, which are critical to a company's competitive advantage," said Victor MacFarlane, founder and managing principal of MacFarlane Partners, a real estate investment manager specializing in urban development/ redevelopment projects. "Today, minority groups as a whole are the majority in several of the largest metropolitan area in the U.S. and the wage gap between women and men is narrowing rapidly. As business leaders, we must address these and other demographic shifts to ensure the success of our companies."
For the study, FPL examined formal diversity practices, initiatives and studies across corporate America in order to understand successful efforts in other industries. The firm then compiled information collected by other researchers through interviews with professionals in a broad range of industries and conducted additional interviews with leaders in real estate. Finally, FPL conducted the first-ever survey of the largest real estate firms across several sectors. Some key findings of the Diversity Study include:
Pamela Puryear, an expert in organizational effectiveness and diversity and contributing author to the FPL Diversity Report, believes that organizations should view diversity as one of many organizational dynamics that must be managed in order to achieve optimal organizational performance. "If an organization wants diversity to translate into improved organizational performance, it must develop a diversity management strategy that embraces diversity and incorporates diverse perspectives. I hope that this report will serve as a catalyst for leaders in the real estate industry to integrate diversity management with other operational practices such as compensation. Furthermore, I hope that industry leaders think strategically about aligning diversity goals with desired business outcomes," said Puryear.
While the statistics regarding the status quo in the industry are somewhat unsettling, there are some bright spots. FPL uncovered several stories of successful diversity initiatives across the spectrum of sectors examined in the study. These initiatives include increased focus on communication, recruiting (at all levels), mentoring, and leadership development.
"Last year, over half the mandates we received for Board searches were for candidates with diverse backgrounds," said Ferguson. "I believe this will be our greatest contribution to the industry: the Board members and senior executives we recruit become catalysts for change throughout their organizations."
For more information contact Stacey Schulte, Vice President, FPL Advisory Group, at (312) 368-0569.
About FPL
FPL Advisory Group ("FPL") is a family of companies focused on providing corporate and managerial advisory services to the real estate, financial services and related industries. FPL works with clients to ensure they have the right talent, leadership, structure and strategies necessary for success in today's intensely competitive marketplace.
FPL is comprised of two groups: Ferguson Partners Ltd., which provides executive and director recruiting, CEO succession planning and Board assessments; and FPL Associates L.P., which provides compensation consulting, management consulting and financial advisory services. FPL primarily serves clients in the commercial real estate ownership and brokerage, homebuilding, commercial mortgage finance (CMBS), residential mortgage finance, hospitality, and senior housing sectors. The company is headquartered in Chicago and maintains regional offices in Dallas, New York, Los Angeles and San Francisco. FPL is also affiliated with Richmond & Co. in London to provide services in Europe. For more information, please visit www.fpladvisorygroup.com.
About Pamela Puryear, Contributing Author
Pamela Puryear is Founder and Lead Consultant of Pamela Puryear Consulting (PPC), providing organizational development and management consulting services to corporations, non-profit-organizations and foundations. PPC assists organizations in designing, implementing, and integrating sustainable solutions and systems that maximize the value and effectiveness of human capital. Two areas of focus include developing leaders through assessment, training, and coaching; and managing diversity. Ms. Puryear spent ten years in the real estate investment advisory industry prior to launching her consulting practice, most recently as Vice President-Portfolio Manager at AMB Institutional Realty Advisors. Please contact PPC at 510-482-2468 or pspuryear@aol.com. For more information please visit www.puryearconsulting.com .
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