6, Case study: Capital City Finance and Mortgage Brokers (CCF & MB)

Overview

Capital City Finance and Mortgage Brokers (CCF & MB) is a family-owned business providing a range of mortgage and finance broking services to the business and private sectors, with experience in all facets of finance and insurance, providing expert advice covering a multitude of products and options existing within the market.

CCF & MB specialises in home loans, commercial lending, business lending, personal and motor vehicle finance and insurance (life and general); and focuses on helping clients find the finance service suited to their individual circumstances.

It provides its services through its association with the following partners:

• Australian Aggregators: a rising company within the aggregation business, with an extensive panel of residential and commercial lenders, and asset finance.
• ABC General Insurance: a boutique insurance company specialising in a full range of general insurances.
• XYZ Life: a small family-owned insurance brokerage specialising in the full range of life insurance products.

Based in the city, CCF & MB has the capacity to provide service to their clients from their office, or anywhere at their clients' convenience through its team of mobile brokers.

CCF & MB does not hold a credit licence but operates as a credit representative of Australian Aggregators.

Since its inception 13 years ago, CCF & MB has built a loan book of almost $1.2 billion and averages over $120 million in new loans annually.

CCF & MB's vision is to be the mortgage and finance broker of choice in the greater metropolitan area.

CCF & MB's mission statement is: 'to operate professionally in accordance with legislation, our licence and professional standards'.

CCF & MB's values are:

• to act with honesty and integrity at all times
• to provide unbiased advice and conduct business, free from any conflict of interest
• to maintain confidentiality in all dealings
• to meet all NCCP regulatory requirements
• to comply with all mortgage industry laws and regulations
• to ensure quality and efficiency in its loan processes.

CCF & MB's people

CCF & MB is owned by husband and wife, George and Mildred Spencer.

With over 35 years' experience in finance and business ownership, George established and built a successful business dedicated to assisting clients with managing their finances effectively. Starting the business with his wife Mildred 13 years ago, George gained immense satisfaction in seeing it expand, to provide service to more and more clients across the city and greater metropolitan area. Although in recent years he has stepped back from dealing directly with clients, he still maintains a small select clientele. He also takes great pride in training and mentoring his team to help them to enhance their performance.

Mildred has over 22 years of lending experience and is qualified, not only to assist her clients with their mortgage requirements, but also to assist them with their commercial finance requirements. She also holds financial planning qualifications. She specialises in asset finance.

The company has a small team of five additional consultants and two administration staff members. Profiles for the team are as follows:

• Jennifer Dee is recognised as one of the top female brokers in Australia. She has been in the broking industry for over 10 years and has a passion and dedication to assist and accommodate all of her clients' needs with their financial dreams. Jennifer is an Accredited Mortgage Consultant with the Mortgage and Finance Association of Australia (MFAA).
• Louise Spencer (George and Mildred's eldest daughter) is an Accredited Mortgage Consultant with the Mortgage and Finance Association of Australia (MFAA) and has been working as a loan consultant for almost two years. Louise started off in the lending industry in the office as an administrator to gain as much experience and knowledge as possible before taking a broking role. Her passion for helping her clients ensures that she is always available to her clients at a time and place convenient for them.
• Michael Spencer is George's younger brother and is CCF & MB's equipment finance specialist. He has over 25 years working in the equipment finance industry. He has developed an in-depth understanding of the transport and agricultural industries, and also provides finance for general equipment, motor vehicles and computer equipment.
• Martin Long has specialised in equipment finance for the last three years, but prior to this he spent five years operating his own retail food business. This practical experience allows him to see things from his client's point of view, including experience with equipment finance. He specialises in plant and equipment in the machinery, woodworking and packaging industries. Examples of some of the equipment he has financed are farm machinery, extrusion lines, plastic injection moulders, commercial catering equipment, woodworking plant, packaging lines, forklifts, office fit-outs and many different motor vehicles.
• Luis Ramirez migrated to Australia as a young boy, 25 years ago with his family. After completing high school he graduated from university with an accounting degree and worked in ANZ in commercial lending. He joined CCF & MB four years ago and specialises in vehicle and capital equipment financing. He provides ITC and general equipment lease funding options for clients. By providing better outcomes, both during and at the end of their equipment leases, Luis' many clients have been able to reduce costs and maximise the value of their available budgets.

CCF & MB is a member of the MFAA, as a broking business dealing directly with the public. Both George and Mildred are fellows of the MFAA. CCF & MB is also a corporate member of the FBAA.

All staff members, including consultants, are paid an annual salary plus superannuation. Consultants also receive a car allowance plus a percentage of trail commissions, which are paid quarterly based on their performance targets.

Martin and Luis are working together on project involving the preparation for a loan application for one of CCF & MB's most influential clients, a property developer. Martin missed a deadline and the whole project is now behind schedule by a week. This is the third time in a month that he has missed a deadline. Martinhas had problems with meeting deadlines in the past and has already had a written warning.

As the general manager you have been monitoring Martin's performance over the past month, providing informal feedback about his role in the project. Although he has made several improvements regarding his performance, his inability to meet deadlines has forced the delay of the client's development a further month. CCF & MB made a commitment to the client that the loan application would be with the prospective lender two weeks ago.

The client is not happy that he does not yet have an approval and is considering cancelling the agreement he has with CCF & MB and going elsewhere.

1. You have arranged to meet with Martin to talk about the project and his input. How would you go about providing constructive feedback to Martin?

2.Following your meeting with Martin you have decided to continue monitoring his performance for the purposes of evaluating where improvements can be made and provide feedback. Outline the process you have adopted to conduct this monitoring exercise.

Reference material is available in Topic 1-3, Managing people's performance.

3.Following your meeting with Martin, use the evaluation criteria listed in the table below. You should also include any additional criteria you think is applicable. Record and document comments regarding Martin's performance in the performance appraisal checklist below.

4.Using the template below, outline a learning and development plan for Martin.

(a) Explain how you will support this team member throughout the learning and development plan.

(b) How will you ensure you obtain their commitment and agreement to the development plan?

5. If Martin's performance continues to be unsatisfactory you will need to counsel and implement theorganisation's performance improvement process. Outline the steps (including the timeline) involved in taking an employee through the process.

A poor performance policy example is located in the Toolbox.

6.Luis is basically the opposite to Martin. He meets deadlines and produces quality work. The project delays are not due to his work. You are considering training him to manage a new office that CCF & MB are considering opening on the other side of the country. He does not have management experience though.

You have also arranged to meet with Luis to talk about the project and his other work. How would you go about providing recognition and positive feedback to Luis?

7.Following your meeting with Luis you have decided to monitor his management capability for the purposes of evaluating where improvements can be made and provide feedback. Outline the process you have adopted to conduct this monitoring exercise.

8.Following your meeting with Luis, create an evaluation document. Use the below evaluation criteria template to record and document comments regarding Luis' performance and capability as a manager inthe performance appraisal checklist below.

9. Using the template below, outline a learning and development plan for Luis.

(a) How will you support this team member throughout the learning and development plan to help him develop his management skills?

(b) How will you ensure you obtain Luis' commitment and agreement to the development plan?