How can leaders in the mortgage space step up for their teams during difficult times?
Leaders in the real estate and mortgage industry are faced with the task of being a beacon of light to their team. How leaders conduct themselves and act while navigating through the impacts of COVID-19, will leave a lasting impression on clients and employees.
“This is the reference point for the rest of our lives. People will either get stronger, more resilient and more expansive in terms of what they can do, or they will contract. Most leaders don’t wither, but they constrict, and their character becomes very obvious,” said Dr. Nancy Koehn, historian and the James E. Robison chair of business administration at Harvard Business School.
The speed and resilience of the recovery depends significantly on national government action, Koehn said, and she expects to see more federal action soon on the fiscal side as to what steps need to be taken to get us out of an economic trench.
Koehn, who is also the author of Forged in Crisis: The Power of Courageous Leadership in Turbulent Times, has studied great leaders, past and present, and their crisis management. In a webcast hosted by Walker & Dunlop, she shared insights and advice for leaders who want to come out of this crisis stronger than before.
Be flexible
With data changing constantly and modeling based on assumptions, it’s difficult to make predictions that are really dependable. Koehn says leaders need to be flexible and comfortable with uncertainty.
“When we get new information or realize something isn't working, being able to learn and pivot quickly to the next point is incredibly important,” she said.
Communicate
Leaders across all industries need to figure out a method and medium of communication for your team and clients and stick with it.
“Communicate about where we are headed next and do so regularly through an expected channel. It’s incredibly important in keeping people in your organization grounded and working as well as they can,” said Koehn.
She referenced past U.S. President Franklin Roosevelt’s fireside chats in 1933, during a massive liquidity crisis in the United States. He addressed the American public over radio at scheduled times to calm the economic fears of the country by helping people understand the progress that was being made in a measured way.
“All great crisis leadership is a combination of brutal honesty and credible hope,” she added.
In every communication, Koehn says leaders should acknowledge the challenges, discuss what’s being done in response, share any possible timelines, but most importantly, share your missions. For example, a popular mission in our current crisis is for everyone to stay at home as much as possible. Repeatedly pointing out how we will get through this as a team is especially important when delivering difficult facts, she added.
Address the emotional aspect
It’s not possible to take away sadness and fear surrounding uncertainty, but Koehn says leaders have a responsibility to try and prevent these emotions from turning to panic, which can be destructive or inhibiting to solutions that the company needs to enact for clients and for the organization.
“Address the fear and talk about it, even though we can’t make it go away,” she said. Suggesting simple solutions like calling a friend or taking daily walks and displaying interest in the wellbeing of your team can also help.
Take time to reflect
As a leader, self-care and taking time to recover from turbulent and exhausting events must be a priority.
“If you falter for your company, employees, clients, family or friends, then your mission becomes seriously compromised,” said Koehn.
In her studies of leaders in crisis, Koehn says they always find a way to lead themselves and maintain a level of self discipline and self respect. Taking time away from devices and other people to reflect and process the massive amounts of information is something she recommends as well.
“Effective leaders and thinkers like Abraham Lincoln, Steve Jobs and Charles Darwin made time every day to meet with themselves, without a gadget and without an aide or advisor,” said Koehn.
The COVID-19 crisis
As a final piece of advice, Koehn says leaders need to show up for their team, even on the days when you feel pessimistic, tired or have to deliver bad news.
With news on the spread of coronavirus expected to worsen over the next few weeks, she said leaders need to stay focused and not obsess on worst-case scenarios. Being a leader in a crisis can be lonely, but Koehn encourages leaders to lean into it rather than push it away.
“If you feel alone, you are in good company, because many others feel the same,” she said. “In those dark moments, that’s where you tone your resilience and determination muscles, and where some really important work gets done.”
Koehn left the webcast with a quote from Nelson Mandela: “Courage is not the absence of fear but the triumph over it.”
