When it comes to decision making, the United States Army implements a seven-step process known as the MDMP, short for
In the past couple of issues, I have written about the first two steps of the MDMP. Step one is to “
Step three in this MDMP process is the “Course of Action Development.” With the U.S. Army, each course of action considered must meet the following criteria:
• Suitability
• Feasibility
• Acceptability
• Distinguishability
• Completeness
Maybe you are thinking, how can this apply to my mortgage practice? Consider that you have identified your mission (step one) as “Building a Purchase Business in the Middle of a Refi Boom.” Step two, you wrote a business vision and business plan along with the details of how you prioritize your actions. Step three is the process of analyzing and comparing the COA’s available to meet the above criteria.
• Suitability is defined as “the quality of having the properties that are right for a specific purpose.” Therefore, on any course of action you take, it is absolutely necessary that any decisions or actions align with your mission and purpose.
The decision making process may come into play when you are presented with a choice to spend your time and money chasing FHA refinance leads rather than staying with your vision of creating relationships with real estate agents. Remembering your mission, vision and business plan helps you to realize that the refinance choice is not suitable with your mission (building a purchase business).
• As for feasibility, I am a big believer in the impossible, and lean toward the thinking that anything is feasible! However, that is not always the best or most strategic course of action. Depending on your market, setting a course of action to originate jumbo loans might not be feasible if jumbo loans make up a very low percentage of the market.
• Acceptability, which is in part defined as “capable of being endured; tolerable; bearable.” In one military document I found which addresses the MDMP, the writer expounded on acceptability as “the tactical or operational advantage gained by executing the COA must justify the costs in resources, especially casualties.”
How could this apply to the mortgage business? Once again, using the example of purchasing FHA refinance leads, you would need to examine the real cost of this course of action if you chose this. Focusing on a refinance business would divert your attention along with the manpower of your processing team from purchase business to FHA refinances.
The gain you would receive, of course, would be the income from refinance transactions. Would the income from refinance transactions justify the “cost” of diverting your processing resources, along with the “casualties” of lost business with real estate agents? I would say this COA is not acceptable.
• Distinguishability, or how can you set yourself apart and be distinct from other loan professionals? While other loan professionals are picking the low hanging fruit of refinances, you can develop a COA and marketing plan which targets real estate agents, financial planners, divorce attorneys, and any number of other referral sources. Now might be the time to join a chapter of BNI (Business Networking International).
• Finally, there is completeness. It is important that you examine all criteria of the decision or course of action. One definition of the word completeness is “undivided, uncompromised, or unmodified: a complete victory.”
If you have gone through steps 1 and 2 and written your mission, your business vision, and business plan, then you must complete the decision making process and measure all of your decisions against the criteria of suitability, feasibility, acceptability, distinguishability and completeness.
The process of the MDMP has many benefits and can give you clarity in reaching a decision. The definition of decision is “the act or process of deciding; determination...the act of or need for making up one’s mind.” Success in any area of your life, whether it be physical, mental, financial, spiritual or emotional, starts with a decision.
