Million Dollar Principles #27 – You Need Two Brains to Scale: The Sales Division and the Operations Division
“The mind is composed of two systems: one that is fast, intuitive, and emotional; and one that is slower, more deliberative, and more logical.”
– Daniel Kahneman
As you grow a real estate sales organization, you’ll reach a point where hustle alone isn’t enough. You’ll start dropping balls, burning out, and feeling like every win comes with a fire to put out
That’s the signal you’re ready to divide your company into two powerful divisions: Sales and Operations.
I went to school for Business Management and studied Organizational Management.
Think of your business like the human brain. As Kahneman outlined in Thinking, Fast and Slow, our minds operate through two systems:
- System 1: Fast, automatic, reactive, this is your sales team.
- System 2: Slow, calculated, deliberate, this is your operations team.
Your sales division runs on instinct and speed. They don’t need all the answers; they need momentum. They respond fast, follow up fast, and close fast. They live in chaos.
And truthfully, the more chaos, the better they perform.
But with that chaos comes problems. Salespeople often skip steps, forget to update the CRM, and ignore systems. That’s not a bug, that’s how their brain is wired.
That’s where your operations division comes in.
These are your integrators,your listing coordinators, transaction coordinators, ISAs, and photographers.
They manage structure, timelines, and processes.
They catch the handoff and carry it across the finish line.
Both sides are vital. Both need leadership.
Verne Harnish, author of Scaling Up, teaches that in order to grow, a business must organize around the “functions” that drive performance,Sales, Marketing, Operations, Finance, and People.
In a real estate team doing under 100 units per year, it makes sense for the team leader to hold dual responsibility. But once you’re past 100 units, the complexity and volume require specialization.
That’s when it’s time to promote two directors:
- A Director of Sales, ideally your top-producing agent, who mentors, trains, and rallies the team to hit sales goals.
- A Director of Operations, often your senior listing or transaction coordinator, who owns the systems and ensures the business you generate actually closes.
These two directors report to you,or if you’re larger, to a COO. The synergy between them drives real scale.
One leads the charge.
The other builds the bridge.
You need both.
And here’s the mistake you must avoid:
Do not outsource your closing or listing coordination.
These are the core of your business.
You don’t hand off your reputation to a third party.
You own it. Your brand depends on how well your team executes from contract to close.
You can outsource your training platform, your recruiting funnel, or even your marketing,but not the people who touch your clients and closings every day.
Here’s what I’ve seen work:
- Until 100 transactions: The team leader runs both divisions with a coordinator as support.
- At 100+ units: Promote from within. Your senior coordinator becomes the Director of Operations. Your senior agent becomes the Director of Sales. Both are still in production or execution, but now lead the future team.
Don’t argue with me on this one.
This structure works.
I’ve seen it over and over.
– Nick McLean
