Pat’s Blog

“Specialized knowledge by itself produces nothing.” — Peter Drucker

It’s a scenario I’ve observed many times over the years: A testing vendor sells sales assessment tests to a company and promptly vanishes. The reality is, in order for pre-hire assessment testing to be effective, you need more than just a test. After the sale, training and support is essential if managers are going to get the best results.

Sales assessment testing is only one component in a successful hiring program. Reputable vendors will take the time to educate the management staff on how to administer and evaluate the assessment. The right vendor will also have the ability to help managers understand how the assessment results tie in with the company’s “real-world” operations.

Upcoming Event: Headed to San Diego next month for the MBA Annual Conference? Don’t miss my session, “Shaping the Future Mortgage Sales Force,” on October 13, 2009, 2:45 p.m.-4:00 p.m. I will be discussing the sales force of the future and the trend toward a smaller, better sales staff. If you plan to attend, let me know. I look forward to seeing you there!

“Executives owe it to the organization and to their fellow workers not to tolerate nonperforming individuals in important jobs.” — Peter Drucker

At a recent industry event, I was surprised to hear that average production for a particular market segment was one loan per originator per month! I wondered, “Have we lowered our standards to the point where it is nearly impossible to make any money?”

In any business, the 20/80 rule is at work. Essentially, it means that 20% of the sales force is responsible for 80% of the business. One current management strategy is to grow the business by hiring a greater number of average or below average producers vs. focusing on recruiting better sales talent from the start. In my opinion, the more effective way to improve sales is to cull out underperformers and replace with better quality sales people.

Next month at the MBA Annual Conference in San Diego, I will be discussing the sales force of the future and the trend toward a smaller, better sales staff. The session, “Shaping the Future Mortgage Sales Force,” is scheduled October 13, 2009, 2:45 p.m.-4:00 p.m. If you plan to attend, let me know. I look forward to seeing you there!

“The proof of the sincerity and seriousness of management is uncompromising emphasis on integrity of character.” — Peter Drucker

Next month at the MBA Annual Conference in San Diego, I will be discussing what the sales force will look like in the future considering recent changes in the origination market. While there are many factors that will influence future sales development, one thing is certain: Integrity will be a requirement for success at both the individual and company levels.

The bigger question companies need to address is how to accurately determine whether a sales candidate has high integrity or not. Integrity is a personality characteristic formed early in life that may be difficult to evaluate during the interview process.

Stop by my session, “Shaping the Future Mortgage Sales Force,” October 13, 2009, 2:45 p.m.-4:00 p.m., to learn about potential solutions for assessing integrity.

If you plan on attending the conference let me know. I look forward to seeing you there!

“Plans are only good intentions unless they immediately degenerate into hard work.” — Peter Drucker

In preparation for a panel I’m moderating at the MBA Reverse Mortgage Conference in San Diego, I’ve been talking to a number of top managers and producers in this market segment. What I’m hearing across the board is how this segment is so different from other areas in our industry.

While the specifics may indeed be different in terms of target audience, loan requirements etc., what is required to succeed in this — and other market segments — is exactly the same: Originators need to have a consultative selling personality and a self-employed mindset.

Top producers don’t need their supervisors to tell them they need to prospect and generate referrals. The best salespeople are continually prospecting, providing superior customer service and generating referral business.

Upcoming Event: Don’t miss the MBA Reverse Mortgage Conference next week in San Diego. On September 10, I’ll be moderating a panel on the best practices of sales professionals in reverse mortgage lending. Find out what industry leaders have to say about this important growth market.