Selling leadership in a changing market Nicholas J. DelTortosales process, market conditions, adaptation
Many in the business world today like to talk about the benefits
of having a "process" to their business. Great strides have been
made based on the development and execution of processes ever since
Henry Ford 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 a
changing marketplace?
To be effective for the long term, a sales process must be
repeatable. In the mortgage industry where the market changes
constantly, how can we develop a consistent, repeatable sales
process? There are the traditional sources of business: real estate
agents, certified public accountants, lawyers, previous customers,
etc. But with the constant rate of change, these sources are also
changing and our sales force can become paralyzed as a result.
These approaches are deeply influenced by refinance markets and an
old supply of referrals that is constantly fluctuating. Our selling
eventually becomes "hit or miss" by acting purely on our gut
instincts. We tend to take a hands-off approach with our sales
force and count on them to find their own niche. This often means
that our best and brightest salespeople who have managed to find a
reasonably successful strategy, keep on doing what has always
worked in the past. This is fine for the short term, but in a
rapidly changing industry, it can leave your business with a slow,
almost imperceptible deflation and stagnation. The speed of change
and complexity of our industry continue to accelerate. So
inevitably, if our sales leadership approach is to remain hands off
with our best salespeople 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 market changes. Will success
last year or even last quarter be enough to sustain revenue?
For any sales team, 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-seeking out candidates with previous
experience, records 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 the lifeblood of
any company's long-term success, but it is only part of the
formula. The other responsibility is to improve the "process of
sales"the sales "coach" methodology. How can we truly help our
sales to prepare and challenge them to deal with changes to the
market, competitive threats and technological advances? This is
clearly the duty of sales leadership.
Tiger Woods, Michael Jordan and all of the best and brightest in
any endeavor still have a coach who helps them stay on top or
advance their game. The sales leaders new responsibility is to
their sales team and the success of the business demands effective
coaching. Top producers need coaching to help recognize changes in
the market and opportunities to expand their business. Those who
keep their heads down and stick with tried-and-true methods miss
these opportunities. Many sales leaders, especially the top
producers, do not feel comfortable identifying, developing,
practicing, rehearsing and training for a new repeatable sales
process. It seems almost counterintuitive to introduce structure
into an environment that needs to be fluid in order to accommodate
market changes. 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 opportunities also create excitement and
energy, a renewed confidence that contributes to success, even in
their traditional book of business. If a new approach does not bear
fruit right away, it does not represent wasted time or failure. An
effective sales process results in gaining informationa 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. The development
of action steps, joint development of an approach, rehearsal of a
salient message and collateral materials, coupled with a regular
progress review, is essential.
Without these steps, your business faces significant risk in a
changing market. In addition, your top producers may begin to feel
that they are bringing more to the table than they are receiving.
Effective recruiting usually has a message that the "new company"
or new sales leader will create more value than your current
situation. The bottom line is that if you don't do it, someone else
will. Or at least theyll make your top producers believe they
will.
Moving from one problem to the next, doing the best with what's
available, is not a formula for success. The sale is more of a
unique occurrence than a repeatable process. Especially for new
hires, success becomes hit and misses. Without accountability for a
defined, repeatable activity, it will reduce the capacity for new
hires to leverage their talent because of there is no sales
foundation being supported by leadership.
A sales process that identifies changing market conditions,
seeks 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.
Nick DelTorto is president and chief executive officer of
Amerihome Mortgage based in Brookfield, Wis. He can be reached at
(262) 821-1200 or e-mail
[email protected].
