Just as important as why companies succeed is the question of why they fail
In my radio show last week we had an intensive discussion on why some companies succeed while others fail. Most of what we talked about was more along the lines of what makes a company succeed. Having effective management, continuously improving, and having a clear vision, for example, are all factors contributing to a company's success. But what causes companies to fail? That's also a question worth looking into.
One answer is quite obvious: not being in compliance. You can be the most compliant company in the world, and still fail. You can do everything right according the latest regulations and still be outcompeted in the market. However, if you are not compliant, you are sure to fail.
Compliance is table stakes. It's the foundation – the minimum requirement that makes you eligible to compete in the game. It won't ensure victory, but it will ensure you a place in the competition. Those companies that fail, as we so often see magnified in the press, are frequently those who fail to keep up with the compliance. They lose before they even get the chance to compete.
David Lykken is 40-year industry veteran who has been an owner operator of three mortgage banking companies and a software company. As co-founder and Managing Partner of Mortgage Banking Solutions, David consults on virtually all aspects of mortgage banking with special emphasis executive leadership development, corporate strategic direction and implementation as well as mergers & acquisitions. A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently he started producing a 1-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across America.
One answer is quite obvious: not being in compliance. You can be the most compliant company in the world, and still fail. You can do everything right according the latest regulations and still be outcompeted in the market. However, if you are not compliant, you are sure to fail.
Compliance is table stakes. It's the foundation – the minimum requirement that makes you eligible to compete in the game. It won't ensure victory, but it will ensure you a place in the competition. Those companies that fail, as we so often see magnified in the press, are frequently those who fail to keep up with the compliance. They lose before they even get the chance to compete.
David Lykken is 40-year industry veteran who has been an owner operator of three mortgage banking companies and a software company. As co-founder and Managing Partner of Mortgage Banking Solutions, David consults on virtually all aspects of mortgage banking with special emphasis executive leadership development, corporate strategic direction and implementation as well as mergers & acquisitions. A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently he started producing a 1-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across America.
