Leading for the Long Term: European Real Estate Executives on Leadership and Management
William J. Ferguson
Urban Land Institute
1025 Thomas Jefferson Street NW, Washington, DC 20007;
http://bookstore.uli.org.
2014. 134 Pages. Softcover: $29.95. E-book: $28.99.
In any industry—especially one as cyclical as real estate—the test of a leader comes not when things are going well, but over the long haul, as the leader perseveres through the inevitable downturns. Recognizing that the good times will not last forever, industry survivors manage their businesses prudently by managing risk proactively.
William J. Ferguson, chairman and chief executive officer of Ferguson Partners and cochairman and co–chief executive officer of FPL Advisory Group, interviewed 13 of Europe’s top real estate industry leaders for a new book, Leading for the Long Term: European Real Estate Executives on Leadership and Management. The book offers insights and lessons learned to help readers understand what makes a successful leader, especially in the European business environment. Although not without their share of scars, the most notable leaders in European real estate are still standing largely because of their leadership principles, the author finds. Chief among those principles: avoid the temptation to chase short-term returns in what is, by nature, a long-term business.
Another theme running through the book is the importance of understanding both the global and local nature of real estate. Many leaders have broad experience, some working across the globe.
But at the same time, they realize that each city has its unique business culture. Several of those interviewed studied in the United States and Europe and gained experience in both. But they are sensitive to cultural differences in each city in which they operate.
French by birth and heritage, Oliver Piani, chief executive officer of Allianz Real Estate, was educated in Paris and the United States, and has worked in Paris, London, and New York City. “So my whole life has been, one way or the other, influenced by diverse cultures, diverse languages, and diverse entities around the world,” Piani says. “That’s an important trait in the sense that I’m not just a Frenchman, but a European citizen with a strong North American influence.”
Mentoring also is an important component of leadership. For a business to succeed over the long term, there must be a plan to groom new leadership. Roger Orf, of Apollo Global Management, comments, “I never would have been as successful as I’ve been if I hadn’t taught people who were half my age how to do business.”
Serge Fautré, chief executive officer of AG Real Estate, understands the importance of mentoring. He counts among his own mentors his stepfather, father-in-law, teachers, and managers. “In each organization, I found somebody who was willing to spend time with me and help me,” he says. His advice to the next generation of leaders is to seek out mentors of all kinds. “Speak with people.
Don’t isolate yourself. Keep your university friends and your high school friends. Listen to your spouse.”
