Why Personality Types Matter for Business Profitability

Why the Right People in the Right Roles Matter

They say success in real estate comes down to three things: location, location, and location. While that’s partially true, even the best location can fail miserably if the wrong people are in charge. Personality types, as defined by systems like Socionics, aren’t just abstract psychological concepts—they’re powerful tools that can transform a failing business into a thriving one.

The Tale of a Small Development

Let’s look at a real-life example: a private real estate development consisting of 20 rental homes in Southeast Asia.

• Location: 20 minutes from a bustling tourist city, 30 minutes from an international airport, and nestled at the foot of a national park.
• Market Value: Over $5 million.
• Income Potential: Massive.

But the reality? The property’s owner earns a mere $1,000 per month in net profit. How did this happen?

Breaking Down the Problems

The owner, an IEE (ENFp), inherited the development. She handed over management responsibilities to an IEI (INFp), Mr. B, who has been running the property since the days of her grandmother, an SLE (ESTp).

Here’s what’s gone wrong:

1. No planning: Mr. B avoids any actions that require effort or long-term decision-making.
2. Cost-cutting: Only two people, including Mr. B, are employed to maintain two hectares and 20 homes—a task that’s physically impossible.
3. Chronic maintenance issues: Leaking roofs, unreliable water systems, and unsafe design flaws are standard complaints from tenants.
4. Poor marketing: Half of the homes are perpetually vacant, and the remaining ones rent for a rock-bottom $300 per month.

With monthly operational costs at $2,000 and revenue of $3,000, the owner’s net income is a paltry $1,000—a disastrous outcome for such a high-potential property.

The Role of Personality Types

What we’re seeing here is a clear case of personality type mismatch. The IEE (ENFp) owner prefers to focus on other projects and trusts Mr. B, an IEI (INFp), to manage everything. However, without the strict oversight once provided by the SLE (ESTp) grandmother, the system has crumbled.

A No-Investment Solution

Transforming this situation doesn’t require millions for renovations. The solution is simple: replace the manager with someone whose personality type is better suited to the role.

• ESE (ESFj): Great for building a welcoming atmosphere and improving tenant relationships.
• SLE (ESTp): Strong in operational control and quick decision-making.
• LIE (ENTj): Excellent for strategic and long-term planning.
• LSE (ESTj): Reliable and focused on systems and structure.

Potential Results

Replacing the manager could lead to remarkable improvements:

1. Higher occupancy: A proactive marketing strategy could boost occupancy to 80%, increasing revenue by 30%.
2. Better maintenance: Systematic upkeep would justify a 50% rent increase.

Here’s the math:

Conclusion

Choosing the right personality type for key roles isn’t a luxury—it’s a necessity. While procedural systems may work in large corporations, small businesses rely on adaptability, initiative, and the right people in the right positions.

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