January 2005
By: Nicholas J DelTorto
President- CEO
Amerihome Mortgage Company, LLC

Many in the business world today like to talk about the benefits of having a process to their business. Whether in manufacturing, technology or management, great strides have been made based on the development and execution of a “process” ever since Henry Ford first created the assembly line. Having a “process” has been the foundation of success for almost every business. So why is it that so many mortgage companies struggle with the implementation, adaptation, and execution of a sales process that keeps pace with the changes we are experiencing in the market today?

To be effective long term, a sales process must be repeatable. In the mortgage business where the market changes constantly, how can we develop a consistent repeatable process to our sales? There are the traditional sources to our sales; real estate agents, CPA’s lawyers, previous customers etc., but with the constant rate of change we experience these approaches are changing and often our sales force becomes paralyzed by the changes. These approaches are deeply influenced by refinance markets, and the old sources of referrals constantly in the state of flux. Our selling becomes “hit & miss” by acting purely on our gut instincts.

We tend to take a hands off approach with our sales force, counting on them to find their “own niche” and then, “if it ain’t broke don’t fix it”. This often means that our best and brightest sales people, who have managed to find a reasonably successful strategy, keep doing what has “always” worked in the past. This is fine for the short term, but in a rapidly changing industry, it can leave you with a slow almost imperceptible deflation and stagnation to your book of business. The speed of change in our business and the complexity continue to accelerate. So inevitably, if our sales leadership approach is to remain hands off with our best sales people, and if they stick to the tried and true methods of generating business, then, as sales leaders we are not foreseeing, focusing and reacting to changes in our market. Will success last year or even last quarter be enough to sustain or grow revenue?

For any sales, the objective is simple- revenue and lots of it. Intuitively, the processes to support such a basic objective are also simple- hire and retain producers of revenue. Hiring the best becomes our top priority for sales leaders, seeking out candidates with previous experience, record of accomplishment, methods, and relationships. This is what our clearly defined process becomes by default. This is a critical part of the strategy for success and a life blood of any company long term success, but, it is only part of the formula. The other responsibility and essential part of the success formula is improvement to the “process of sales”, the sales “coach” methodology. How can we truly help our sales team to prepare and challenge them to deal with changes to the market, competitive threats, and technological advances? This is clearly the responsibility and duty of sales leadership and we owe it to our best and brightest.

Tiger Woods, Michael Jordan and all of the best and brightest in any endeavor still have a coach helping them stay on top or advancing their game. The sales leaders’ new responsibility is to their sales team not to mention, the success of the business, not only demands hiring and retaining the best & brightest, but also the effective coaching. Top producers need coaching to help recognize changes in the market and opportunities to expand their business that they will miss by “keeping their head down” and working on the tried and true methods. Many sales leaders do not feel comfortable, especially with the top producers, identifying, developing, practicing, rehearsing and training for a new repeatable sales process. It seems almost counter intuitive to introduce structure into an environment that needs to be fluid or accommodating to the customer and changing market. Joint development of strategies to improve market penetration, new sources of business and recognition of new opportunities becomes the most powerful value you can create for your sales team. These new venues and opportunities also create excitement and energy that experience shows will translate into renewed confidence that contributes to enhanced success even in their traditional book of business. If a new approach or opportunity does not bear fruit right away, it does not represent wasted time or failure. An effective sales process results in gaining information…a source of power for all sales. This requires the effective sales leader to then work jointly with their sales team using this new information to improve tactical approach and value proposition. A development of action steps, joint development of an approach, rehearsal of a salient message, and collateral materials, coupled with a regular process of reviewing progress is essential.
The long-term effect of not doing so puts your business at significant risk in a changing market, but also results in top producers that begin to feel that they are bringing more to the table than they are receiving. Effective recruiting usually focuses on the message that the “new company” or new sales leader will create more value for you and your business than your current situation. Bottom line, if you don’t do it, someone else will or they will make them believe they will.

Moving from one problem to the next, doing the best with what is available, is not a formula for success, but many sales leaders are doing exactly this by promoting and encouraging it within their staff. The sale is more of a unique occurrence than a repeatable process. Especially for new hires, the success becomes more hit & misses. Without accountability for a defined, repeatable activity, it will reduce the capacity for new hires to leverage their talent because of the lack of a sales foundation being supported and worked by the sales leadership.

Sales leadership that adopts and “leads” a sales process that identifies changing market conditions, seeking new opportunities to expand business sources, and facilitates the power found in shared knowledge, is the foundation of a scaleable sales organization. Long term, this is the winning formula versus driving pure sales tactics.