It is old news that the classic real estate brokerage business model is no longer functional. Its financial and ROI performance over the last several years of record residential sales production has forever sealed its fate especially in the eyes of potential investors. Surely it is just a matter of time before the weight of its dysfunction causes it to expire like yesterday's SUV in the face of four dollar per gallon gasoline.

The fact that the industry is still trying to ring success out of it is, more than anything, a tribute to the great civic generation broker owners who have the financial power to continue its operation despite overwhelming evidence to the contrary. In classic Civic style they are protecting those who got them there.

The pending peril of this American classic has not gone unnoticed. The literature and media almost weekly feature stories about new challengers who are spending millions to create business models that can exploit the weaknesses of the old way. It is almost poetic that these stories, heralding the rise of the new, are so often placed next to the latest media attack that have been so influential in promoting the demise of the old.

However, it will take more than counter investments and negative public relations to conquer the real estate industry. From an economic view this is simply not how things happen in American business. Given the choice between new and unfamiliar service offerings or enhanced and improved versions of familiar service options the American consumer almost always looks for the "best of breed" and most improved from the existing choices. Accordingly, if there is to be an Olympics for the real estate services space (and there surely will be) and if there is to be a gold metal (perhaps measured by profitability) for the service model that wins the hearts of the new consumer the winner will likely be drawn from a somewhat familiar player.

So what is keeping this award winning business model from emerging from the confusion and financial distress of the current market? In all probability it is the "geezer factor." There is evidence to suggest that the vast majority of the owners, executives and managers in today's industry are way over that point in their lives and careers where they are willing to risk even limited futures and fortunes on creating the "killer service application" for the consumer real estate experience.

What the solution?

In many industries this dilemma has been solved from the top (sometimes through the biggest companies, government or universities) by creating a competition that seeks to reward creativity and innovation in the form of a contest or competition. The successful design would be the one that addresses a number of specific industry issues or conditions. Consider similar competitions that have contributed to today's crop of high mileage and hybrid automobiles.

Developing criteria for judging the winner should present no problem. Profitability, value propositions, consumer experiences, integration of technology, management systems and attractiveness to investors all have to be reflected in the winning design.

This is an amazing industry filled with creative, innovative and brilliant people many of whom unfortunately are not in positions of power and influence within their firms. Why are we not taking advantage of these synergies? Why are we gambling that this may be an industry that is in fact destroyed by an outside player? Why on a landscape that is cluttered with dysfunction among even the best players are we pretending that the magic solution will be developed as a proprietary and competitive advantage?

This is a challenge that deserves an open and competitive process. This is a destination and an opportunity that could benefit everyone now, and more importantly, in the future as we seek to motivate a generation to pick up the reins and continue the greatness of those who have so successfully guided the American dream over the past fifty years.