In the evolving landscape of mortgage banking, senior executives face the daunting challenge of leading their teams through turbulent times. The current market is characterized by a “secular higher” scenario, with unique obstacles: Promoters grapple with lower production, lower housing inventory, and higher interest rates, while operating professionals endure layoffs and work with less Relentless pressure on resources to achieve more. This environment requires not only leadership, but also strategic storytelling—a narrative that inspires and drives positive action.
narrative gap
Mortgage bank executives are tasked with bridging a significant narrative gap. Their role is not only to oversee operations, but also to develop and communicate a compelling vision that inspires and aligns the team. This narrative must acknowledge challenges while highlighting opportunities and fostering a culture of resilience and optimism.
Strategic messaging: The role of the CEO
1. Develop a vision: The CEO must articulate a clear and compelling vision that resonates with all levels of the organization. This vision should be grounded in reality but constructed in a way that inspires hope and confidence. It’s about setting a direction that everyone can believe in and work toward.
2. Consistent communication: Regular, transparent communication is crucial. This means not only sharing the company’s successes, but also candidly addressing setbacks. Consistency builds trust and keeps everyone on the same page, reducing uncertainty and speculation.
3. Highlight opportunities: In a market with high interest rates and low inventory, you must focus on opportunities. This could mean exploring new market segments, leveraging technology to improve efficiency, or emphasizing customer service to stand out in a competitive landscape.
4. Empower the team: The CEO should empower the team by recognizing and celebrating their efforts and successes. This can boost morale and reinforce a positive narrative. Highlight stories of resilience and innovation within your company to create a culture of continuous improvement.
5. Build resilience: Acknowledge the difficulties, but emphasize the company’s ability to overcome them. Use past examples of overcoming adversity to instill confidence and perseverance in your team.
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3P: prediction, preemption, prevention
In addition to strategic messaging, senior executives must adopt a 3P framework (predict, preempt, prevent) to effectively manage the narrative and maintain team morale and productivity.
Forecasting: Anticipating challenges
Effective leaders must have their finger on the pulse of the industry and its organizations, recognizing the signs of potential stressors before they escalate. By staying informed about market trends, regulatory changes and internal team dynamics, CEOs can anticipate negative reactions or stressors that may impact their teams.
Be the first: proactive communication
Once potential challenges are identified, the next step is to preemptively address them through strategic communications. This involves crafting messages that not only acknowledge difficulties but also shift the focus to opportunities and solutions. Through transparent and frequent communication, supervisors can reduce anxiety and foster a sense of control and direction among their teams.
Proactive communication should include:
• Acknowledge: Publicly acknowledge the challenge. This builds trust and shows empathy.
• Reframing: Changing the narrative to highlight opportunities. For example, high rates can be viewed as an opportunity to explore new market segments or improve service quality.
• Engage: Involve team members in conversations and encourage them to share insights and ideas. This inclusion helps build ownership and commitment to the company’s vision.
Prevention: Maintain focus and morale
By anticipating challenges and preemptively communicating, leaders can prevent their teams from being derailed by stress and negative emotions. This includes creating a supportive environment where team members feel valued and understood, and where the focus remains on opportunity and growth.
Prevention strategies include:
• Regular Check-ins: Keep lines of communication open through regular team meetings and one-on-one check-ins to gauge morale and resolve issues promptly.
• Celebrate wins: Recognize and celebrate successes large and small to keep the team motivated and focused on positive outcomes.
• Continuous improvement: A culture that encourages learning and adaptation, viewing challenges as opportunities for growth and innovation.
Lead with inspiration
Leading narrative means more than just managing it. It includes a vision that inspires your team to achieve what’s possible despite the challenges they face. CEOs must be the torchbearers of this narrative, embodying the attitudes and behaviors they want to see in their teams.
To further develop your strategic messaging skills and connect with other industry leaders, we invite you to register to attend AMPCON. This event is designed to give you the tools and insights you need to lead with vision and effectively inspire your team. Don’t miss this opportunity to change your narrative and drive your organization to new heights.
Register for AMPCON now and be part of the conversations shaping the future of mortgage banking.
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Rene Rodriguez is a best-selling author, speaker, and CEO of Volentum.
