Making New Rain…In the Coming Drought

By Dale Biron

Lenders can’t develop new business, right? We need born rain-makers, right? Wrong. Actually it’s this very assumption that gets in our way. In fact, this way of thinking is causing scads of lost business and opportunity. It’s a shame too, because what business customers really want in these troubled times, are seasoned lenders who consistently reach out and make things happen. Think about it this way.

Suppose you needed major medical attention. Would you be satisfied talking to the doctor’s surrogate? Would you feel comfortable working with someone with only cursory knowledge of your condition? Of course not! You want to talk directly to the doctor. You want to look that person in the eyes and feel a sense of confidence and credibility.

And Now a Word From Our Imploding Economy
But wait. Is it really time to act? Well, here’s just a taste of some late breaking business news:

• Consumer confidence slumps to 26-year low

• Wachovia's Wall of Worry

• Gas prices could pass $3.50 in weeks

• Report highlights Fannie, Freddie risks

• GE woes another signal of slowing economy

Don’t Waste the Pain…Or the Potential
OK, let’s just say for arguments sake, that we’re entering a rip-snorting, profit-sapping recession. Now what? I would say to begin by bringing your loan officers together to create a kind of community bank “Manhattan Project” where instead of bombs you’re going to create a new business outreach program that will see you through the current tough times and well beyond. After all, the only thing worse than suffering pain, is not learning any thing from it.

Make a Plan for Your Plan
Don’t forget that “insanity is the art of doing the same thing over and over while expecting different results.” So before making a plan to change, make a plan for your plan. In other words, challenge yourself to think differently!

Forget About Selling
“But I can’t sell” the loan officer exclaims! “Good, no one wants you to sell, least of all the customer. Can you ask good questions in the right order?” I ask. “Yes,” they say. “Perfect,” I say. So working as a team, brainstorm a killer set of “best practice” questions that will add so much value, that prospective clients will be blown away. Then all they have to do is start using the questions every chance they get.

Take the Puppies that Come to You 
Start with those lenders who are open to trying some new ways of connecting with prospective customers. Of course, some lenders may want to stay completely in the background, spreading deals, massaging numbers, only doing technical work, that’s OK. Remember the rule of “critical mass” which says you only need a small committed group to get started and make a real difference. Of course lenders who can attract new customers should be appropriately rewarded for doing so.

Don’t Talk About “What” Before “Why”
Want people to actually change their behavior? First there has got to be a compelling reason. Come together as a team to discuss what happens to the bank if the current way of attracting new business continues to be mostly reactive, i.e., sitting behind a desk and just waiting. If that picture is not pretty (or sustainable) and everyone can “see” that picture then the “what to do about it” conversation will go much more smoothly.

A Loan Officer’s Mind is a Terrible Thing to Waste
As a senior executive or director, you can help your bank immediately (and for the long term) by tapping into the full potential of your lenders, to not only manage existing relationships but to consistently attract new ones as well. And if you agree like so many others that a rather nasty recession is likely already upon us, then the time is now. And if you also agree that waiting for a “sales hero” to come and save the day is folly, then it’s definitely true that “we’re the ones we’ve been waiting for!” So if the time is now and we are it, then the only thing left to do is…get started.

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