Change In Finance Industry Essay

1547 words - 7 pages

* BA 472
* Change During Crisis
* Every company across industries has had to make changes in the past few years. In some industries the changes are substantial and some they are not, but change is the one constant in most cases. With the economy being so volatile and technology moving at such a fast pace, companies have to have leaders and employees that can adapt and collaborate to achieve continued growth and success. Making Sense of Change Management by Esther Cameron and Mike Green, goes into great detail on how these changes are implemented and the effects they have on employees. I have only been in the work force for six years and have worked for three different ...view middle of the document...

The owners of the company I worked for were not those types of leaders. Rather, they are extremely optimistic and hard working, which enabled them to be adaptable to change. By the time I started at the company it was 2010 and they were back down to just the two of them. Even though this was a couple years after the crash things were not loosening up and changes were still coming in on a regular basis causing us to have to be ready to switch things up completely and with no notice. I was a loan processor and the two owners were loan officers. We would have regular meetings where we would talk about updates and exchange ideas. The culture was that of a close group of friends. A source states, “They [corporate cultures] evolve as companies cope with recurring stresses in their competitive environments (Steiner & Steiner, 2012).” The environment that we had to work in caused us to become tight knit in order to overcome the daily stresses (changing regulations). The two owners were very positive people that would help each other and me out in all circumstances. Our relationships were built on trust and communication.
* External Forces
* Many external factors affect how a mortgage company runs. The economy is extremely crucial for many reasons. If the economy is on the up usually more real estate is selling and that increases the demand for mortgages. On the flip side, if the economy is in recession then people are much less likely to buy a home, especially if the prices of homes are in decline, there is less of an incentive because they will immediately be losing equity in the house. From a technological side, many changes have happened recently and some of them are mandatory for mortgage firms to follow. Many things have to be disclosed and submitted via email and this is a fairly new idea in this industry relative to the industry as a whole. Some companies have even moved to electronic document signing which deletes the face-to-face interaction at the close of the loan. Personally, I would like my mortgage advisor to explain each page to me face to face, but some people might not get that opportunity and it could reflect negatively on the loan officer. Political- legal might have been the biggest external factor affecting the mortgage industry since the crash. Now, there are many more disclosures that have to be drawn up and signed prior to the loan process. Credit analysis is EXTREMELY stringent and documentation for borrower’s funds and income is not just required, but it is scrutinized down to the penny.
* Action Taken and Change Management Concepts
* The actions that were taken to deal with these forces were not necessarily strategic, but they had to be system wide. Meaning, they were never long term plans because the changes were so frequent. “Strategic management emphasizes long-term performance. Many companies can manage short-term bursts of high performance, but only a few can sustain it over a...

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