IJCRE Leadership: Self-Awareness Over Strategy – The Fearless Foundation (Inspired by The 50th Law)

Welcome back to the Iconic Journey in CRE (IJCRE) blog series, "A Year of Fearless Ethical Leadership.” As IJCRE is dedicated to empowering early-career commercial and multifamily real estate professionals to accelerate their careers, thrive, excel, and build meaningful connections, this series explores how developing ethical power and fearlessness can shape that journey. This week, we dive into the foundational layer of ethical leadership within our framework: the "Ethos of Ethical Power." The first of these foundational anchors is Self-Awareness Over Strategy.

Bring your perspectives

What Does “Self-Awareness Over Strategy” Mean?

What do we mean by "Self-Awareness Over Strategy"? It's the principle that states you must "Know thyself before knowing the game." While strategic thinking is undeniably valuable in commercial real estate, a deep understanding of your own strengths, weaknesses, values, and motivations must come first. Without this inner clarity, even the most brilliant strategies can be undermined by blind spots, insecurities, or a lack of alignment with your true self.

The Value of Knowing Yourself

Leaders discuss the value of knowing what is important to you, the ability to align one's actions with their values, and the benefit of understanding oneself deeply. Developing this self-awareness helps in clarifying one's 'why' – the driving force behind actions and leadership. While strategy is crucial, understanding your own perspective and values provides a foundational compass.

Lessons from Industry Leaders

Podcast guests on the Icons of DC Area Real Estate podcast shared personal reflections, underscoring the value placed on introspection and legacy. For instance, Ethan Penner aimed to create a "family heirloom" through his book, Matt Pestronk highlighted family, work, and giving back as priorities, Henry Fonvielle's desired billboard message was "spread love," Chris Clemente emphasized family and charitable efforts, and Jeff Zell conveyed his love for Washington and its institutions, reflecting guiding values. Rachel Flynn viewed cities as "precious heirlooms," demonstrating an emotional connection rooted in personal values.

Continuous Introspection and Growth

Understanding yourself is part of leadership, and sometimes, it requires peeling back the onion to figure out what would be a better fit for feeling fulfilled. Re-reading a meaningful book like Herman Hesse's Siddhartha at different stages of life can yield entirely different messages and deeper understanding, much like continuous introspection can reveal new layers of self.

Fearlessness and Intense Realism: Lessons from The 50th Law

Infusing the principles of fearlessness inspired by The 50th Law, self-awareness emerges as a truly fearless foundation. The 50th Law, co-authored by Robert Greene and Curtis Jackson (50 Cent), teaches us how to turn fear into a tool for success by confronting it and embracing reality. A key principle for achieving fearlessness is Intense Realism, which involves seeing circumstances for what they are.

Building The Fearless Foundation

Realism is presented as the ideal we must aspire to, requiring character and fearlessness to look at the harsh circumstances of life. Applying this to oneself means fearlessly looking inward, acknowledging who you are without delusion or avoidance. This leads to The Fearless Foundation, exploring how developing courage and fearlessness is essential for navigating the real estate industry. Podcast guests highlight the importance of being bold and taking risks in life and business.

Overcoming Challenges and Embracing Change

This includes being comfortable with rejection and understanding that sometimes, even if an effort doesn't work out, you can always pivot or "go get a job". Bruce Kirsch shared how being laid off, while unexpected, "open[ed] up some doors at the same time," illustrating how embracing unexpected challenges can lead to new opportunities. He also noted the significant role serendipity has played in his career, contrasting it with rigid, long-term career planning, which he described as "a fiction". Overcoming challenges and pushing one's boundaries, even grappling with and moving past imposter syndrome, is described as an empowering experience that builds confidence. Undertaking difficult projects, such as redeveloping a public memorial, can be a "heavy lift," but completing them builds resilience and provides valuable lessons learned. Daniel Klein found himself "forced into a position" to pursue deals requiring external capital, rather than relying on family money, due to unforeseen circumstances regarding his grandfather's health, demonstrating how necessity can drive strategic shifts and the courage to pursue new avenues. Chris Clemente also faced a significant challenge when a Tysons project was at risk of foreclosure in the early 1990s, highlighting the need for resilience in the face of market downturns.

Resilience and Self-Belief

Fear often stems from a lack of control or a distorted perception of reality, including our own capabilities. By cultivating intense realism about ourselves, we dismantle the power of these internal fears. This self-knowledge allows us to develop Self-Reliance, taking ownership of our path with confidence in our own decisions. It builds genuine Self-Belief, enabling us to push beyond perceived limits fearlessly.

Ethical Power and Integrity

This fearlessness is built upon a foundation of core values, integrity, and ethical conduct. Maintaining personal integrity is critical, as it takes a lifetime to build a reputation and an instant to lose it. Treating people positively and with integrity in every interaction is linked to long-term rewards.

Equity, Diversity, and Environmental Responsibility

Ethical power also involves making decisions with an equity lens, proactively seeking diverse perspectives. This is presented as being in a business's self-interest, as different perspectives bring valuable knowledge, reveal unseen markets or risks, and contribute to a more complete point of view. Encouraging individuals to speak up and get engaged helps provide the confidence and experience needed. John Ziegenhein spoke about the history of deed restrictions in Chevy Chase that were discriminatory and later deemed unconstitutional, emphasizing the importance for a company to confront and discuss this kind of "dark cloud" history as an opportunity for growth and transparency. Leaders are also focusing on ethical conduct through environmental responsibility; Louis Dubin discussed measuring the carbon impact of construction and aiming for buildings that are net carbon zero not just in operation, but inherently. Tom Burton is conducting research with Johns Hopkins to study the carbon emissions associated with renovating existing buildings versus constructing new ones, highlighting a commitment to understanding and potentially promoting sustainable practices.

Practical Self-Awareness for Early-Career Professionals

For early-career professionals supported by IJCRE, prioritizing self-awareness is not merely a philosophical exercise; it's a practical necessity for career acceleration. Knowing yourself helps you identify roles and opportunities that align with your strengths, communicate authentically in networking settings, make informed decisions, and navigate challenges with resilience. It allows you to engage with the "game" of CRE from a position of inner strength and clarity, rather than reacting from a place of fear or trying to be someone you're not. IJCRE aims to empower you to thrive and excel by building this fundamental self-knowledge.

Continuous Learning and Mentorship

The journey involves continuous learning and intellectual curiosity, drawing lessons from various sources, including challenges and market downturns. Bruce Kirsch, for example, constantly refines his teaching materials based on feedback and experience and learned valuable lessons about complex mixed-use financial modeling while building the model for The Wharf, leading him to develop a detailed questionnaire for future projects. He emphasizes that even after many years in real estate, there are always new specialty areas, niches, and financing structures to learn about. Gary Rappaport similarly noted that writing multiple editions of his book allowed him to incorporate new experiences and become "more sophisticated" over time. Henry Fonvielle highlighted the crucial importance of continuously knowing the market and having all necessary information at hand. Jeff Zell observed that the current market downturn closely resembles that of 1990, a perspective gained from having experienced past cycles. Daniel Klein learned to think differently about his firm's strategy, expanding beyond retail based on new opportunities and financial returns. Ethan Penner's practice of re-reading books to gain fresh insights also underscores the value of returning to foundational knowledge with a new perspective. Leveraging mentorship is also crucial, with experienced professionals interested in seeing young people succeed. Finding mentors who will push you is very important, providing guidance and encouraging engagement to help build confidence. The IJCRE community itself serves as a platform for this development through learning, mentorship, and networking opportunities.

The Role of Technology in CRE

Technology is increasingly influencing the industry. While some leaders like Bruce Pascal admit they are not highly technologically savvy, relying on traditional methods like in-person meetings, others are exploring the potential of AI for tasks like market analysis, cleaning up messy data from property management systems, generating neighborhood maps, and even helping refine communication. However, leaders also stress the need for critical thinking, taking AI outputs "with a grain of salt", and understanding that personal interaction and the human touch remain essential, particularly in navigating approvals and interpersonal relationships. The potential for AI to automate tedious tasks like spreadsheet auditing is exciting, but the user still bears the ultimate responsibility to verify and certify the information. The most valuable AI applications may involve training proprietary systems on a firm's internal data for competitive advantage, akin to a specialized resource like the Bloomberg terminal. The complexity of commercial real estate transactions makes full commoditization, even with AI, less likely compared to residential deals. Technology also plays a role in adapting spaces for hybrid work, requiring more flexible, "plug and play" designs, and influencing urban planning as mobility changes, leading to rethinking streetscapes and public spaces. Adapting effectively to unexpected changes, like the shift to virtual operations during the pandemic, requires intentionality and clear communication strategies.

Conclusion: Building a Fearless Foundation

Last week, we launched the series, setting the stage for a year of exploring these critical themes. This week, we emphasize that building a successful and meaningful career starts internally, with understanding yourself and cultivating the courage to act according to your values, creating a fearless foundation for your professional journey.

Next week, we will explore another Foundational Anchor: Service Over Supremacy.