Magic Sponge Interview 16 - Henry Ruiz, REA Group. Strategic thinker & digital real estate guru.

Today's Magic Sponge interview takes us to Australia, to meet Henry Ruiz.

Henry is the CEO of REA Group – Asia, and also serves as the the company's Chief Strategy Officer. It was a privilege to interview Henry at REA's headquarters in Melbourne.

REA and its various companies -- which include realestate.com.au, realcommercial.com.au, Flatmates.com.au and Spacely -- have become a digital real estate advertising powerhouse. Listed on the Australian Stock Exchange, REA has expanded internationally in recent years through significant acquisition. The group now operates property websites in 10 countries, with 19000 agents using the sites. Each month, the sites attract c. 9 million unique visitors.

I've interviewed 40 leaders from around the world for our book, and I can safely say that Henry stands out as one of life's good guys; smart, humble, strategic and thoughtful. He's also a deeply experienced digital operator, who has been at the centre of digital commerce in Australia for over twenty years.

In my interview with Henry, his passion for digital technology comes across keenly, as does his interest in consumer behaviour. It comes as no surprise to discover that he studied Psychology before pursuing a career in business.  Alas, I don't cover Henry's passion for cycling in this interview, but the photo says it all!

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What initially attracted you to the digital sector? 

I was naturally curious when the internet started. I was just finishing my professional training as a psychologist and found myself messing around on this thing called ‘the world-wide-web’. I received a phone call from a high school friend out of the blue. She asked me about human-computer interaction and wondered if I might be able to help out in an ‘internet company’. Being the adventurous person that I am I said, “I probably can’t …. but I’m happy to come over and have a chat!” And that’s how I started my digital career. I learnt on the job about how to conduct usability testing on very early-stage websites.

You’ve been at REA for some time. What attracted you in the first place?

Yes, I have! It’s been more that 10 years now. I think I had an inherent interest because REA was a digital pure play business and I saw a lot of opportunity for where the business was at the time, but also for what it could be. I deeply respected the CEO and I thought I could have meaningful input, not just in business strategy, but in developing future leaders. 

How would you describe your personal and professional journey? And what’s kept you at REA? 

The ride has been amazing, I’m really thankful for the opportunities I’ve had. There are a couple of reasons I’ve loved being part of the REA journey for so long.

Firstly, what we do impacts people in such a meaningful way. Digital skills are in high demand. You can work for lots of different types of companies; some sectors add to people’s lives, whilst others are less productive. Our space … it’s a very meaningful part of life. The ‘home’ can be a place where people feel safe and nurtured.  

Secondly, I am in awe of the teams we’ve built over time. You spend a lot of time at work. Having the ability to somewhat shape who you spend time with and learn from, inspires you and gives you energy. I believe this makes you a better human being.

There’s a great working environment here – is attrition relatively low at REA as a result? Do people tend to stay and grow with the business? 

Yes, we’ve had a lot of people who have not only stayed; they’ve grown with the business, which is really amazing. Every company has its own “magic”, but I think one of the unique things at REA is people’s openness and transparency. If you want to learn about any part of the business, to make you better in the context of your role, there isn’t a person who wouldn’t sit down and spend time with you to explain how their role or function works. Learning on the job is a reality here.

So that’s the DNA of this organisation, a very open culture? 

Yes, it is. An open learning culture.

When leading a digital organisation like this, how do you ensure that your work remains agile and innovative across different regions? 

The psychological jargon would be to ‘have a growth mindset’, but this is something that is very important to us. If you consider the digital landscape, the reality is that I don’t think anybody can 100% accurately predict where it’s going to end up. An openness to seeing different opportunities from where you are today is something that people aren’t naturally wired to be comfortable with; it’s not for everyone. What has held us in good stead is (1) being open and curious, (2) not assuming that we always know what the answer is, and (3) really focusing on who our customers and consumers are, and what their preferences and drivers are in relation to the property sector.

How do you see the market in Asia changing over the next few years? 

Culturally the markets are very different, macro-economically they’re different, and they’re at a different phase in almost every dimension as it relates to property. Fundamentally, people want to find a property that matches their needs and use a trustworthy source of information that gives them a comprehensive and accurate view of the marketplace; this is a clear opportunity for us and it’s the path that we’re on. That said – transparency of property information is a challenge in some markets across SE Asia; so the credibility and reliability of real estate professionals is key to how those markets work.

How does the digital journey in Asia compare to Australia? Is it more or less advanced? 

I would say it’s both. It’s more advanced in the sense that you have clearly got some major players coming out of China and SE Asia that are, on key metrics -- whether it be audience or revenue -- very sophisticated digital businesses. However, when you think about the property sector, it certainly hasn’t progressed as much as some other marketplaces and that is where we are having a real impact.

If I contrast the REA journey 10 years ago, which was largely orientated around a large screen experience, mobile has certainly taken over since then. Our plans in Asia centre on small screen experiences and extend into large screen opportunities in the context of property.

Has your background in psychology helped you and the business? 

In so many unforeseen ways! My advice to people going through university and thinking about postgraduate study is to do at least a semester of psychology, sociology or anthropology; anything that gets you to think about people. At the end of the day, business is about two people connecting and having a value exchange. I think it’s very tempting to get all academic or ‘ivory tower’ about business but, ultimately, if you treat people well and value is created, monetisation and revenue can fall off the back of that. Anything that encourages people to understand others more deeply is a good thing to my mind.

You talk about two people connecting …. that’s deeply personalised. Is that a core philosophy for your business?

Yes. I think our focus on not thinking about our consumers or customers as a large collective group of people, but as individuals with differences in preferences, has made us more personalised in how we approach our overall strategy. This also helps us continuously guide the direction of the business to our true north and directly impacts the products that we build. 

REA is a modern, digital business. Based on your experiences here, and what you see in other digital businesses, what are the traits of a successful “21st century” organisation?

I think it’s the notion that everybody inside the business should be as informed as anyone else. Unless there are highly confidential matters that are market sensitive, we fundamentally believe in sharing as much context as possible. I think that’s what gives us a competitive advantage. One of the biggest barriers for a 21st century business is the age-old issue of silos that happen inside companies. Therefore, your ability to build trust and a sense of community inside a business, while it can sound soft and fluffy, can truly give you a competitive edge. 

In terms of silos and hierarchy, a lot of people talk about ‘holacracy’ being a mode that is important to 21st century organisations – is that the case here? 

We certainly have levels of reporting lines and teams, but the word hierarchy feels foreign within the context of REA. There’s a lot of meritocracy that we use, and ideas should come from anywhere. You could talk to our CEO or a developer and, if you didn’t ask them what they do, you wouldn’t know what their role is. I think there is a ‘human-ness’ and keeping it real in how we want people to act and lead in the company.

Being market-orientated means, we are more focused on the outside world than the inside. You have some companies that talk about being product or tech-led. I don’t believe it’s one or the other. We do all we can to be market-led. We use the analogy of the three-legged stool. You need to get the right technology, product and people working well to ultimately achieve a better outcome for your business.

What are the attributes and traits required of a 21st century CEO?

Humility, I think, more than anything else – but genuine humility, not fake humility like a humble-brag approach. When talking about authentic leadership, you can use all the buzz words like ‘servant leadership’ and ‘the shadow of a leader’, which are all important, but more than anything else you need someone who connects with their teams. When you’ve got real connection amongst your leadership team as well as other people you interact with in the business, people will follow you because you’re bringing out the best in them as well as providing a safe space for people to grow and develop. Part of learning is making mistakes and people need to feel safe in doing this. Having a forgiving spirit and showing grace isn’t something that’s talked about much in business literature; and I think that’s a missed opportunity. Businesses re-imagining marketplaces won’t necessarily get everything right; and building the muscle of courage in your people is, in part, a reflection of leaders demonstrating humility and grace.

Who would you say have been the biggest influences on your career to date and what have you learnt from them?

I’d say my father was the biggest influence on me. He was a highly educated individual, a very accomplished chess player and had the typical immigration story to Australia. He was originally from Cuba. He ended his career working as a high school teacher. One of the things that he instilled in me is that there isn’t anything you can’t learn. This has really guided my life in many ways. As a student, it gave me confidence to learn new things, like the Internet, even though that wasn’t my initial training. On the flip side, once I had my first leadership role, he’d remind me that “there are no bad students, just bad teachers”. If my team doesn’t understand me it’s actually my responsibility to change my approach. It’s my job to create the environment and the culture that allows them to flourish.

Did you ever beat your father at chess? 

Ha. I thought I had. When I was about 10, my Uncle visited. He was also accomplished at chess having won some championships back in the US. He and my dad played a match he managed to win. Later that day, I challenged my uncle to a match and won! I thought, “Right, I’ve got my dad covered.” It went to my head a bit, for about 24 hours to exact; until he sat me down and demolished me. I was genuinely shocked. Little did I realise that my dad had also let my Uncle win. 

Is there anyone professionally that has influenced you? 

There are too many people to single people out – anyone I’ve worked closely with over my career has influenced me. I’ve taken so many things from them, whether it’s back in my counselling days as a psychologist, my early internet years, or my experience working for and seeing 4 amazing & diverse CEOs in action. I’ve also learnt a lot from exposure to the REA board over the last decade and the executive teams I have worked with over that time. Everyone brings different things to the table. They’ve helped, shaped and refined me, hopefully for the better.

What are you most proud of?

Without question, my family and particularly my children. I’m proud of the fact they are doing the best they can to honour the opportunity that my parents gave me in migrating to Australia. Clearly showing some bias here, I think our kids are turning into good human beings with good hearts.

What advice would you give to a Generation Z-er starting out in business today? 

I’d say a couple of things. Always keep checking that you have an open mindset to learning new things. Make the most of every opportunity, wherever you are. Don’t be in a rush – play the long game. Wherever you are; be present. And, more than anything else, develop your belief in yourself and how you lead others. Feelings of doubt, fear, apathy come to everyone at different times – successful leaders continue to strive and overcome no matter what they feel. I believe the power of being someone of character and who can self-regulate their emotions will increasingly become a differentiating factor for future leaders. 

(c) Q5 Magic Sponge 2020