In the same way, examine your transactions and relationships with low return. These are the ones you will want to improve or strategize around. Ask yourself why it’s not moving the needle. Is the process inefficient? Do you need more resources to make it a success? Is it mutually beneficial?
Just because something is low return does not mean it needs to be written off entirely. Uncover why it’s low return and brainstorm ways you can turn it around. Maybe it’s something as simple as finding an activity that can be automated or delegated. Other areas of your business, or even other industries, may have examples of how they have solved similar problems. Use your resources and explore your options.
While the first reaction may be to cut out everything that is inefficient, the goal should be to look for opportunities to improve efficiency and boost ROI in the long run.
Once you’ve assessed your processes, you’ll have a better understanding of how to best use your time to create meaningful results for your business.
The right processes generate the most revenue, especially with regard to how much work was put in. Look at information like the percentage of loans that are withdrawn, rejected, and closed or what percentage of loans require a counter offer or have numerous items needed in order to be clear to close.
Are the majority of rejections the same loan type or from the same referral source? Understanding the reason for the loan denial is critical. You may need to improve your product and guideline knowledge. Why are some applications suspended? Is the cause an incomplete application? You may need to conduct a thorough review of the borrower data to avoid process delays. Missing data and documents with inaccurate information can cause a process bottleneck and negatively impact all transactions. The data will be clear as to which processes are working and which need improvement. Remember the experience of the borrower dictates the likelihood of a referral or repeat customer.
Assessing your practical processes is just as important as assessing your impractical processes. What types of transactions have the fastest pipeline clearance and/or approval rate? Are there transaction types that you know will be profitable, but you are not going after? If this is the case, you are letting business walk out the door. Ask yourself what is holding you back from spending your time on improving or changing a processes that will result in referrals and returns down the road. It may be that you need to go back to assessing your processes to find out why you are not yet capitalizing on a certain transaction type.
After the past nearly two years, there has been so much change. Be sure you are changing with the times and customer needs. There is no reason to hang on to inefficient or impractical processes if they are no longer meeting customer demands. Success is a moving target – move with it.