It is a new world out there, and mortgage originators and managers who don’t adjust will find themselves in a new profession.
If the fear of public speaking is the No. 1 dread for Americans, the fear of change might be No. 2.
Author Erica Jong has stated, “I have accepted fear as a part of life—specifically the fear of change...I have gone ahead despite the pounding in the heart that says: turn back.”
And the mortgage industry is right now and for some time to come, beset by tons of changes.
“As much as we all acknowledge how the world has changed over the last two decades, businesses and corporations tend to continue doing things the same way they’ve always done them,” said Rebel Brown, a consultant who has worked with companies as diverse as Silicon Graphics, NeXT and Verity, as well as startups in the U.S. and abroad. “I can’t count the number of times executives have told me, 'Well, that’s the way we’ve always done it.’
“The truth is that most companies talk about change far more than they actually engage in it. That’s because they are afraid of making any change out of fear—of big-bang disruption, of the wrong change or of leaving the safety and comfort of the known. We’re stuck in the way we’ve always done it—and that’s a big reason why our economy is stuck in neutral.”
Brown said that businesses that let go of the status quo would begin to rise above their competition. In order to start that process, executives need to start questioning some of the most common sacred cows of business, including:
• It’s Our Best and Biggest Seller. Sometimes clinging to the cash cow can lead to a complacency that prevents new companies from staying in sync with what the market needs. They ignore the changes in the marketplace, she said.
What’s worse is that your company may end up completely incapable of surviving if that big seller stops selling, because myopia has prevented them from evolving to meet the changing needs of their customers.
• It’s a Huge Opportunity. The big deal, the dream client, the huge order—all things that businesses strive for—may not wind up being that profitable in the long run. We’ll discount, deal, sacrifice strategy, dedicate extra resources and throw out the baby, the bathwater and the tub to get those deals. And once we have them, we celebrate and take our victory lap, but what have we really won? Brown asked. We justify the extra effort by thinking if we can get this big domino to fall, other big ones will follow. But the reality is that those plans aren’t always sure things. Remember, huge opportunities aren’t always inherently opportunities for success. They can be opportunities for failure, as well.
“Let’s face it—two years ago, we never expected the emergence of social media as a way to communicate with and market to our customers and prospects,” Brown added. “And five years ago, many didn’t expect the Web would become the major revenue driver it’s become. So, if the world around us is changing so dramatically, so quickly, why do we cling to the oldest ideas in business? If we truly want to defy gravity, we must first untie the tethers that bind us to old assumptions. We can use our innate human abilities to learn to think differently about our businesses by listening to our markets and shifting our perspectives.”
Meanwhile, Rick Lepsinger, the president of OnPoint Consulting, notes that even if a company wants to let go of the status quo and change, success may elude it because of an execution gap.
“If an organization can’t execute, nothing else matters—not the smartest strategy, not the most innovative business model, not even game-changing technology. And for many companies there’s a clear gap between intent and execution,” he said.
OnPoint studied over 400 companies and found that 49% of leaders surveyed reported a gap between their organization’s ability to formulate and communicate a vision and strategy and its ability to deliver results.
Lepsinger’s found five characteristics and competencies, which he refers to as “The Five Bridges.” They include the ability to manage change, having a structure that supports execution, having employee involvement in decision making, an alignment between the leader’s actions and the company’s values and priorities, and companywide coordination and cooperation.
As for the ability to manage change, he said you can’t run a successful business if you can’t adjust to changes in the marketplace.
“If you’re not flexible enough to bend with the winds of change like a palm tree or a bamboo, you’ll snap in half like a Bradford pear when the first storm comes along,” said Lepsinger.
Companies assume their current structure will support a new business strategy and that is not necessarily true, he said.
A good structure enhances accountability, coordination, and communication. Plus, it ensures that decisions are being made as close to the action as possible.
If leaders want employees to focus on certain priorities like cost containment or innovation, they better do the same.
“A do-as-I-say-not-as-I-do attitude sends mixed messages and breeds resentment,” said Lepsinger.
He added these bridges are not permanent. They are quite fragile. Once you’ve built them, you must keep vigilant watch over them and work hard to maintain them over time.
“It’s quite possible for a company to have a bridge in place one year, only to discover that over time it’s weakened or even crumbled and is no longer able to help your people traverse the gap,” Lepsinger notes.
“Execution is not a single-point event; it’s an ongoing process. But since your ability to execute well and consistently is the very fabric of success, I can think of no better place to focus your time and energy.”
