MORTGAGE BROKING
Principles of Professional Management
BY PETER ANDREWS, MBA, CPA, B.ECONOMICS, B.ARTS
Former lecturer at Macquarie University
Peter Andrews is a specialist trainer in
Financial Planning.
After an early career in corporate finance
and banking, Peter became a lecturer at
Macquarie University.
He has also taught in the Graduate School
of Management at the University of
Sydney and the School of Banking and
Finance at the University of New South
Wales.
Peter has a Bachelor of Arts and a
Bachelor of Economics from the
University of Sydney and a Master of
Business Administraty of Florida. He is
also a Certified Practicing Accountant.
Copyright 2015 © Mentor Education Group Pty Ltd
MB7 - Principles of Professional Management PA 5072016.
T he word “professional” is sometimes used loosely. Many people, for
example, provide themselves on being professional, but what do they
mean by that?
The way to find out what being professional means is to look at what
traditional professions do, and in particular how they manage their client
relationships. Some of the findings may be surprising. They don’t, for
instance, set out to impress with their technical competence at the
beginning of a client relationship. Nor do they demonstrate efficiency of
service at the beginning. Instead, they concentrate on demonstrating that
they understand the client and their needs.
In other words, they begin a client relationship by demonstrating empathy
for the client. It is only once empathy has been established that the right to
advise the client has been earned. Quality of service is extremely important,
but it only reaches re-eminence once the client relationship has been
established.
A point to remember at all times in a professional relationship is that the
professional is appealing to people’s needs. This may be en emotional
response rather than a rational once, but if a client doesn’t feel that their
needs are being met they will go somewhere else.
CONTENTS
DEFINITION OF PROFESSIONALISM ................................................... 2
DEVELOPING AND MAINTAINING CLIENT RELATIONSHIPS................ 2
IDEAL CLIENTS .................................................................................... 2
ESTABLISHING A CLIENT RELATIONSHIP .................................................... 2
COMMUNICATION IN WRITING .............................................................. 6
OFFER A VARIETY OF COMMUNICATION CHANNELS ........................ 8
MAINTAIN CLIENT SUPPORT .............................................................. 8
REVIEW SERVICE PERFORMANCE ...................................................... 9
THE CUSTOMER STANDARDS INSTITUTE OF AUSTRALIA ................. 11
INTERNATIONAL CUSTOMER SERVICE STANDARD.................................... 11
 2 7. MORTGAGE BROKING
DEFINITION OF PROFESSIONALISM
2 David Maister, a former Harvard Business School
professor and now a global consultant on professional
service firms, has defined professionalism as:
2 concentrating on ideal clients, professionals are more
“… an unqualified dedication to excellence in serving
clients and their needs.” 1
There are two elements to this definition:
1. The first element is the notion of serving clients and
their needs, which is seen as the basic characteristic
of a professional relationship. Another writer on
professionalism describes the same quality as a
“deeply caring attitude”.2
It is said of David Maister that one of his favourite
questions is to ask professionals “Why do you do
what you do?” The answer he always listens for is “I
like helping people.” If it is missing, he believes he is
dealing with a professional who is in trouble.3
2. The second element in the definition relates to the
way the service is performed. It is performed with
“an unqualified dedication to excellence”. According
to Maister, this shows itself in enthusiasm in client
service, which in turn lead to having “fun”.4 For him,
a successful professional relationship is an enjoyable
one.
DEVELOPING AND MAINTAINING
CLIENT RELATIONSHIPS
Maister’s definition of professionalism has important
implications for the way client relationships are
developed.
In particular, instead of talking about themselves and
their capabilities when they meet prospects, mortgage
brokers should look for ways of finding out what their
prospects want. They should then be prepared to listen
and offer help.
1 Maister, D, (1997), True Professionalism, Free Press, New York,
page 19.
2 McCallum, C., “Professionalism: It’s no jokeI, Business Law Today
(January/February 2007).
3 McCallum (2007)
4 Maister (1997), True Professionalism, page 29.
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MBMB7 - Principles of Professional Management PA 5072016.
IDEAL CLIENTS
If a professional person is going to show enthusiasm in
their dealings with clients, they must first like them.
David Maister refers to the ideal clients of a professional
as “I like these people” clients. He believes that by
likely to have a sincere interest in serving clients and
their needs. At the same time they can move towards
working on “fun stuff” rather than being forced to take
on work and clients they “don’t truly enjoy”.5
So, a good question for someone contemplating
becoming a mortgage broker to ask themselves at the
outset is what types of clients they would prefer working
with. A person who prefers to work with individual
clients and their housing requirements, is likely to be
suited to mortgage broking. Without that orientation,
they should either consider another orientation career
or another career.
David Reed, an American writer on mortgage broking,
describes his enthusiasm for mortgage broking in the
following terms:
“If you do your job right, you will get a sense of
accomplishment found in few other careers. Helping
people get into their first homes or being the person
responsible for helping someone repair his or her
damaged credit in order to buy a home is a feeling hard
to find elsewhere.” 6
ESTABLISHING A CLIENT RELATIONSHIP
Have a Caring Attitude
Along with enthusiasm, there must be a caring attitude
that leads to quality of service. When people are
discussing financial matters, they are likely to be
discussing something that is a concern to them. The
matter may be a high value matter with long-term
consequences. They therefore feel vulnerable and, as
Maister points out, “almost by definition in a state of
anxiety and nervousness”, so “they need to be confident
they are in good hands”.7 They need, in other words, to
be assured that the broker is concerned about them.
It is too early to demonstrate quality of service at the
beginning of the client relationship.
5 Maister (2007), True Professionalism, page 24.
6 David Reed, Your Successful Career as a Mortgage Broker,
American Management Association, New York, 2007, page 4.
7 Maister, D. (1997), Managing the Professional Service Firm , Free
Press, New York, page 73.
 3 7. MORTGAGE BROKING
What a representative needs to demonstrate is a caring
attitude. This begins with simple courtesies, such as the
way telephones are answered. It then extends to the way
3 the prospect is treated when a meeting takes place. In
particular, a sincere interest in clients and their concerns
must be demonstrated.
3  What’s on your mind
Ask Questions
Asking questions has an important place in
demonstrating a caring attitude. Asking questions is a
requirement of the client relationship anyway because
information about a client is required for any credit
decision. It is important, however, how the questions are
asked.
It may come as a surprise, but caring for clients and
successful selling are not incompatible. This is because
selling can also be characterised by a dedication to being
of service and helping other people. For example, Zig
Ziglar, author of a popular textbook for sales
professionals, stresses that “today’s successful
salesperson is customer-driven and needs-oriented”.8
The client’s needs are discovered by asking suitable
questions. For Ziglar, this requires returning to the habit
we had as children of asking as many questions as
possible.9 Ziglar also provides advice on the types of
questions that should be asked. He begins the
questioning process with open-ended questions, that is
questions that invite a multiple of responses rather than
a single response or “yes” or “no” answers.
One strong preference Ziglar also has is to begin open-
ended questions with the word “feel” rather than “think”
or “believe”, as in “How do you feel about …?”. His
argument for this approach is that it is more likely to
provide a fuller response because, although most people
believe they make logical decisions, their decisions are
primarily emotional.10 This is consistent with the findings
of cognitive psychologists.
Example- Open-ended questions
Successful sales people have a repetoir of open-ended
questions that can be used at all stages in their interview.
These stages may be described as building rapport
(greeting), qualifying, offering, and closing a sale,
regardless of the type of business. Examples are:
8 Ziglar, Z. (2003), Ziglar on Selling, Thomas Nelson, Nashville,
Tennessee, page 77.
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Opening
 How’s business?
 What have you been up to?
 What are you doing for the rest of the day?
Qualifying
 What did you want to talk about today?
 What don’t you like about your current lender?
 What outcome are you looking for today?
 What will make this a successful meeting for you?
Offering
 Does this sound like what you have in mind? (repeat
back to them what they’ve told you)?
 What are your concerns?
 What other factors have we not discussed? Or are
there any other questions i should be asking you?
Closing
 Can any of our additional services assist you, besides
what we talked about today?
 Would you like Option A or Option B?
 When would you like to meet again?
 Have i answered all of your questions today?
These are all generic sales open-ended questions.
Successful mortgage brokers develop their open repetoir
of suitable open ended questions.
Successful client interviews also require closed-ended
questions. These are questions concerning such matters
as amount, time frame and cost. This, however, is likely
to come later in the interview.
Questions provide information about needs and wants,
and this is information that any mortgage broker must
have. However, they have a very important secondary
value. This is because they demonstrate concern for the
client as well as insight into the client’s needs. The
questioning session should lead to the client believing
that the representative is truly interested in providing
help.
The importance of a proper questioning approach is that
it demonstrates empathy for the client. It is only when
9 Ziglar (2003), page 83.
10 Ziglar (2003), page 95.
 4 7. MORTGAGE BROKING

empathy has been established that a representative has Example – Establishing empathy first
earned the right to advise the client.
Early in his career as an adviser, Maister was asked by a
4 large professional firm to provide an opinion about how
they were conducting their business. He replied in detail
and at length. Although he was technically correct, his
4 contract was terminated.11 He had provided detailed
technical advice too soon in the relationship because he
had not yet demonstrated empathy. The right to provide
advice (and be critical of his client) had not yet been
earned.12

We establish empathy by showing concern for others.

Empathy may be defined as:
“Empathy is the ability to see the world as another
person, to share and understand another person’s
feelings, needs, concerns and/or emotional state.”13

Develop an Active Listening Approach

Effective questioning also requires what psychologists
refer to as an “active listening approach”. Active listening
is a skill that, like other communication skills, must be
developed. It does not come naturally to most of us.

There are three components to active listening:

 ASK QUESTIONS - Find out about needs and wants of
the client.
 Go BACK - Restate what the client has said about his
or her needs to be sure the relevant details have
been heard and understood and to encourage the
speaker to proceed further. The client’s thoughts
and feelings can then be used as a lead-in to further
questions.
 SUMMARISE - to make sure both sides agree on the
facts.

The outcome the representative is seeking is to have the

client say something like: “Yes, that’s what I want” so
they are both clear.

An active listening approach requires the representative

to look and sound interested in the speaker. This
encourages the client to communicate more extensively
and to clarify and expand on thoughts and feelings. Tips
to follow include:
 maintain good eye contact;
 maintain a body position and facial expression that
indicate attentiveness, not boredom;

11 Maister, Green & Galford (2000), page 27. 13 From:

12 Maister, Green & Galford (2000), page 41. http://www.skillsyouneed.com/ips/empathy.html#ixzz3C3gxqzlP

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MBMB7 - Principles of Professional Management PA 5072016.
 5 7. MORTGAGE BROKING
 nod encouragingly to show understanding and
interest.
5  avoid distracting behaviour such drawing, playing
with a pen, or other distracting behaviours; and
 use vocalizations such as “uh-huh” and “yes” to
5 encourage the client to continue.
Effective communication of this kind includes respecting
and allowing for cultural differences, including using
different words if required.
Engage In Conversation
A survey of 300 global executives by the Economist
Intelligence Unit of the United Kingdom found that the
most important “best practice” leading to client
engagement was “a two-way dialogue”. 14 David Maister
makes the same point succinctly by insisting that:
“…marketing is conversation”.
Characteristics of a conversation that Maister lists
include:
 “It’s person to person; not role to role. People use
normal language, not “corporate-speak”.
 “Both sides talk, and what one says is dependent
upon what the other has just said.”
 “Both parties are engaged in joint problem solving;
neither is trying to win or prevail.”
 “It’s designed to allow people with different views
to learn from one another.” 15
In our modern electronic age, effective conversation
goes beyond face-to-face contact. For a website can be
designed for interactive conversion, with clients being
treated as indivduals instead of an undifferentiated part
of a mass live audience.
Maistre suggests that the interactive skills required in
successful dialogue with a client are the same as those
displayed by a good conversationalist at a dinner party.
He or she:
 “Has a fresh point of view, but does not try to thrust
it upon everyone else”
 “Speaks politely and respectfully”
 “Tells good stories to illustrate key points”
 “Is good at drawing other people’s views out and
14 The Economist Intelligence Unit, “Beyond loyalty: Meeting the
challenge of customer engagement”, Part II (2007).
15 Maister, D., & Kelly, L. (2005), “Marketing is a Conversation”,
available at http://davidmaister.com/articles/2/89/
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drawing them into the conversation”
 “Speaks intelligently on a variety of subjects, but is
not afraid to admit areas of ignorance”
 “Avoids trotting out well-worn arguments that have
been made time and time again”
 “Listens with genuine interest”
 “Is light-hearted in style, but always respectful of
other’s views”
Listen to Objections
Conversation also involves taking the objections of
clients seriously. A client making an objection should not
be interrupted, or told not to worry. Best of all,
objections should be anticipated and prepared for. That
shows that, as well as taking time to understand the
client’s situation, the advisor has made an effort to see
things from the client’s perspective. Maister
recommends not only predicting objections but also
rehearsing responses as part of the preparation for a
client meeting.16 Since he is opposed to formal
presentations, he believes that rehearsing answers to
client questions is the only rehearsal that should take
place before a client meeting.
Listening to objections and dealing with them is an
important step in earning the right to offer advice
because it demonstrates that the representative not
only understands the client’s situation, but also
understands how the client feels about it.17 In other
words, it demonstrates that the adviser has empathy for
the client.
Possible objections that the broker may prepare
responses for include:
 possible accrued debt;
 price or interest resistance;
 resistance to organisation or broker;
 risk;
 timing issues; and
 uncertainty about the product.
16 Maister, D. (1997), Managing the Professional Service Firm, page
119.
17 Maister, D., Green, C & Galford, R. (2000), The Trusted Adviser,
page 43.
 6 7. MORTGAGE BROKING
Have a Narrative
You may remember from the earlier discussion about
6 asking questions, Zig Ziglar uses words such as “feel”
rather than “think” and “believe” when he is
approaching clients, and that he does so in the belief that
6 we are primarily emotional beings. Psychologists are
currently making the same point about the way
information should be presented to clients. They are
opposed to “data dumps” such as long lists of facts,
either on sheets of paper or PowePoint slides. They
suggest instead that we should construct a narrative. In
other words, we should have a story.
The reason for this is a growing belief that a narrative is
more effective at changing beliefs than writing that is
specifically designed to persuade through argument and
evidence. Because we are emotional beings we are more
likely to be moved by emotion than facts, and a narrative
appeals to our emotions. We are also likely to be less
critical of information if we receive it in the form of a
story.
The best way for a mortgage broker to provide a
narrative is to tell stories (i.e. give examples) about how
existing clients have been helped. This makes far more
progress in demonstrating value to a client than
discussing facts such as interest rates.
Allowing for Different Cultures
Clients can come from different cultures. This may
involve communicating with a person who has a
different background, different values and perhaps a
different language. This could be a challenging situation
for both of you.
There are simple rules to follow:
1. Speak clearly and concisely
2. Speaking clearly doesn’t mean speaking slowly
(which can seem patronising). Use your natural pace
but sound words out properly. Also, break down
information into manageable chunks and, if
required, use supplementary nonverbal information
such as maps and drawings.
3. Check for understanding If you’re having difficulty
understanding a message, ask the person to repeat
or clarify it. Similarly, if you don’t think your message
has been understood, check for understanding.
4. Be aware of non-verbal communication.
Up to two-thirds of the meaning of a message can come
from non-verbal communication such as facial
expressions, gestures, posture, tone of voice, etc. Always
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MBMB7 - Principles of Professional Management PA 5072016.
be sensitive to non-verbal communication and how it’s
interpreted by other cultures.
Obtain Assistance as Required
A point to remember is that a single person cannot be a
source of all knowledge and experience. Often the
required assistance can be obtained from within your
own business, such as an interpreter. When you seek
assistance is sought in this way, it is important to convey
all relevant information, listen carefully, and also ensure
that all information received is fully understood.
COMMUNICATION IN WRITING
One advantage mortgage brokers have in their favour is
that they are usually “people” people, that is they like-
person-to-person contact. The flow of conversation that
is required for a client interview can therefore come with
relative ease.
Difficulties, however, can arise when brokers move away
from the face-to-face situation – for instance when they
write a letter.
There can be two problems:
(a) Failing to express some of more technical matters in
a manner that properly informs clients.
(b) Writing in a formal, pompous manner in an attempt
to manage a professional style of writing. This is not
effective communication because clients are used to
plainer English.
As a guide, when you are writing it helps to imagine the
client in front of you. Write in much the same English
that you would use in talking to him/her.
With regard to (a) above, the level of the client’s financial
literacy needs to be taken into consideration. In
particular, care needs to be taken to ensure that complex
issues are explained in terms that the client can
understand. This is something banks pay attention to
because in recent years, there have been many legal
cases where bank customers have succeeded in
disputation with their bank on the basis that they failed
to fully understand the complexities of the document
they had signed. Similarly for financial planners, the
explanation of complex issues such as taxation,
reasonable benefits limits, and social security
entitlements should be in terms that the client is able to
understand.
With regard to (b), look at Table 1. Consider the
“professional” expressions in the left-hand side and
compare them to the “plain English” expressions on the
 7 7. MORTGAGE BROKING

right-hand side. Which look better? A simple pointer to we should be pleased if you please
better expression is that fewer words are better if they would
convey the same meaning. This is indicated in Table 4 we would only be too pleased we would be pleased to (or we
7 (over page). to would like to)

with a view to to
Table 1: Plain English equivalents
7 with respect to regarding
Professional Jargon Plain English
with the exception of except
aged less than younger than

aged more than older than

You cannot, of course, carry a list like this in your head,
as a consequence of because of and in any case, the list is not exhaustive. What is needed
a person someone is a simple guide to good expression.
appear(s) to be appear(s)
The grammar check in most word processing software is
as a consequence of because of a good stating point, but mechanical checks of this kind
at this point in time now are fallible. They can “correct” when correction is not
required while other matters that should be corrected
by way of through (or as)
are allowed, but they are still a very good starting point.
first of all first

for the purpose of to Otherwise, supplementing the use of a grammar check,

you can allow yourself to be guided by the advice of
in all probability probably
experts in English expression.
in association with with
The most authoritative work on the subject is a
in case of if paperback that has not been out or print since it was first
in consideration of concerning published in 1948. It is:
in excess of more than (or over) Ernest Gowers, Plain Words (formerly Complete Plain
in the case of for Words)
in order to to This book can be bought for around US$16 from
in relation to concerning
Amazon.com.

in the event of if A much shorter guide was provided more than 60 years
ago by the English writer, George Orwell (author of
in view of because of
Animal Farm). He summed up his approach to good
it has been our experience we have found (or expression in a list of six simple rules.18
that experienced) that
I. “Never use a metaphor, simile or other figure of
it is our understanding that we understand that you want
you wish to to (or wish to) speech which you are used to seeing in print.

length of time period

II. Never use a long word where a short one will do.
III. If it is possible to cut out a word, always cut it out.
made on the basis of based on
IV. Never use the passive where you can use the
on the grounds of because of
active.
our rooms are located at our address is
V. Never use a foreign phrase, a scientific word or a
per year a year (or annually) jargon word if you can think of an everyday
prior to before
English equivalent.
VI. Break any of these rules sooner than say anything
subsequent to after
outright barbarous.”
we await your further we look forward to your reply
instructions

we feel that it is important you should consider

that you consider

18 From “Politics and the English Language” (1946), reprinted in “The

Style Guide” on the web site of The Economist, October 1999

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MBMB7 - Principles of Professional Management PA 5072016.
 8 7. MORTGAGE BROKING
He last point may seem surprising, but it never pays to
be too rigid in grammatical rules. The most important
requirement is always to communicate well.
8 One of the “best practice” requirements the Economist
OFFER A VARIETY OF
8
COMMUNICATION CHANNELS
Modern forms of communication provide new
opportunities to create and maintain dialogue.
Although physical locations and face-to-face contact still
matter, the internet is spreading the horizon of
possibilities through means such as blogs, chat rooms
and forums.
The internet has two significant advantages. The first is
that it is cheaper. The second is that it provides a way of
making interaction more continuous, with conversation
not being limited to those times when a face-to-face
interview cant be arranged.
The possibilities of the internet for providing some forms
of advice is supported by a study conducted by ASIC in
2009. It found that there was strong consumer demand
for internet-delivered advice, particularly in areas such
as insurance where simpler advice was required. The
same should apply to mortgage broking.
MAINTAIN CLIENT SUPPORT
Once the client relationship has been established, the
quality of service becomes paramount. This is far more
than the quality of technical work. For example, in a
survey on the reasons for referrals conducted by David
Maister, only 10% were due to the quality of technical
work. The remaining 90% of referrals were due to the
quality of service.19
Obtaining referrals is the best way of expanding the
business. A business’s reputation grows by word of
mouth.
Provide Outstanding Service
Note carefully that quality of service exists apart from
technical competence. Instead, it covers the client’s
whole experience with the firm. A basic requirement for
excellence in quality of service is that the client’s
expectations must be exceeded. Beyond that, also, the
representative must demonstrate a willingness to
19 Maister (1997), Managing the Professional Service Firm, page 81.
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provide a continuing benefit if the relationship is to be
maintained.
Intelligence Unit referred to earlier was “be available
24/7”.20 This entails providing clients with ways to obtain
the information and service they want at any time they
want it. This may mean, for instance, having a 24-hour
call centre. At the very least, it involves responding to
emails and telephone calls whenever they are received.
Another finding of the study was that replies to even the
most routine correspondence should be personalised.
Clients are unlikely to engage with companies that send
them routine replies to their most important requests or
deepest concerns.
According to Small Business Victoria, provision of
outstanding service requires a close knowledge of clients
and their needs:
 ”Get to know your clients, and pamper them –
everyone loves to feel special. Getting to know your
clients well will allow you to provide a truly
personalised experience.
 Remember the little things – the smallest detail can
be the difference between a good or a great
customer experience. Don’t overlook the little
gestures; your client will be surprised by the
attention to detail.”
Excellence in quality of service assists in retaining
existing clients as well as the extension of existing client
business. It also leads to referrals.
Deal With Client Expectations
Providing excellence in quality of service, however, does
not mean that all client expectations will be met. This is
becauses things can go wrong that are outside the
control of the mortgage broker. One of the problems
financial planners face is that clients who approach them
often do so believing that they will receive a superior
return to the financial markets.
Seaoned financial planners know that this is unlikely,
because, if for nothing else, the operating costs of
superannuation funds and managed funds. They also
know that, if their clients concentrate on the returns
being earned from their investments, they will be
concerned from time to time because of market
downturns. To prepare them for these inevitable
disappointments, they shift their clients’ and prepare
20 The Economist Intelligence Unit, “Beyond loyalty: Meeting the
challenge of customer engagement”, Part II (2007).
 9 7. MORTGAGE BROKING
their clients for their inevitability and shift their focus to
the longer term outcome that their goals will be met.
9 It is the same with mortgage broking. It is quite possible,
even likely, that not everything will go to plan. Just as
financial planners cannot control the markets, mortgage
9 brokers cannot control lenders. Like financial planners
focussing on client goals being met, mortgage brokers
need to provide their clients with an assurance that their
borrowing needs will be met. They should explain that
they cannot guarantee that the service will be perfect
and there will be no mistakes, hiccups, etc. Clients should
be told that mistakes can happen and that there are only
two things the business can do about that. Firstly, they
can choose a lender that, in their experience, has a
history of making fewer mistakes. Secondly, if a mistake
happens, they will do their best to correct it promply.
Handling hiccups is part of the “outstanding service” that
helps a mortgage broking business retain existing clients
and obtain new ones.
A well-established mortgage broker has expressed it this
way:
“Mortgage brokers can offer fantastic, personalised
service which is highly valued by many people. Mortgage
brokers however cannot guarantee a perfect experience
with every lender. So beware of this incorrect client
expectation and don’t be shy to educate the client. Better
they expect mistakes and don’t get them than the
reverse.”21
Dealing with Clients with Special Needs
Special needs clients are just clients. You may require a
little extra help and patience when serving them, but,
like any other client, they want assistance, and it is your
job to help them.
Sometimes it is not apparent that they have special
needs client as they might not like to draw attention to
their disability, and in some cases they might not
consider themselves to have any special needs.
Therefore, when communicating with a person with
special needs, take care to treat them as a person and
not a condition. If the person is escorted by a carer speak
to the client rather than the carer. The carer will
intervene if appropriate.
Clients with special needs may require more time and
patience than would be given to a person without any
special needs. Use a normal vocal tone and, if the client
21 Blog by Stuart Weymyss, 11 June 2014.
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has a hearing disability don’t shout. Keep sentences
short and simple but do not be patronising to the
customer. As with all clients, clarify the client’s
information with further questioning if unsure of the
exact details that the client is attempting to
communicate.
REVIEW SERVICE PERFORMANCE
What ultimately counts is the service quality of the
mortgage broker, including their ability to correct any
mistakes that happen in a process that is largely beyond
their control when the loan submission has been handed
to the lender.
What is required to ensure that service quality does
happen is some form of monitoring system that draws
attention areas where shortfalls in service quality occur,
with sufficient pressure than being applied for corrective
actions to be taken. Ideally, it should also happen
through a more formal system of monitoring carried out
by the firm.
Developing Review Questions
Maister introduces the subject of reviewing service
quality by asking readers to consider their own recent
experience with a professional such as an accountant or
– more likely in everyday life – a medical practitioner or
a dentist. He then offers a list of questions that might be
used to evaluate the quality of service provided.22
Did the professional:
 “Listen carefully to what you had to say and what
you wanted, rather than substitute their own
judgment for yours on what needed to be done and
how it should be done?”
 “Give good explanations of what they were doing
and why?”
 “Let you know in advance what they were going to
do?”
 “Help you understand what was going on and help
you reach your own conclusion, rather than tell you
their conclusion?”
 “Keep you sufficiently informed on progress?”
 “Document their work activities well?”
 “Avoid confusing jargon?”
 “Make sure they were accessible and available when
22 Maister, D. (1997), Managing the Professional Service Firm, page
80.
 10 7. MORTGAGE BROKING

you needed them?” Finally, financial reward for superior service quality
should be built into the firm’s reward structure.
 “Notify you promptly of changes in scope, and seek
10 your approval?”
 ‘Keep their promises on deadlines?”
10  “Involve you at major points in the engagement?”
 “Make you feel as if you were important to them?”
 “Show an interest in you beyond the specifics of
their tasks?”
 “Make an attempt to be helpful to you beyond the
specifics of their project?”

Professionals such as mortgage brokers should develop

their own review questionnaires to hand to clients, and
there are various ways of developing questions.
Considering what is important in a relationship you have
with another professional may be a good starting point.

Questions such as those listed can be put in the form of

a questionnaire which may either be sent out to clients
on a regular basis, or at the end of each client project.
The aim of the questionnaire is to detect opportunities
for improving service quality.

Analysing Performance Data for Improved

Service Efficiency fnd Quality
Questionnaires used in client surveys can be developed
internally, but there is value in having them prepared by
a specialist firm. The same firm can administer the survey
and compile the data, and most importantly, interpret
the data so that areas where service quality can be
improved are detected.

Determining Action Required

Maister suggests that business unit managers should be
held accountable for the performance of their units, with
staff meetings being held every six or twelve months
explicitly comparing group averages between different
parts of the business. The intention of this approach,
which makes the performance of different business units
public, is to create “the right degree of embarrassment”
to motivate changes in behaviour.23
It is also appropriate to discuss the performance of
individual unit managers, but in closed sessions because
in that case it is individual rather than group
performance that is being discussed.

23 Maister, D. (1997), Managing the Professional Service Firm, page

88.

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MBMB7 - Principles of Professional Management PA 5072016.
 11 7. MORTGAGE BROKING
Making Adjustments
Sometimes it is not a breach of customer standards that
11 is a problem. Instead, it is the customer standards
themselves. If any adjustments to customer standards
are required, they must be communicated to all those
11 involved, within appropriate timeframes
THE CUSTOMER STANDARDS
INSTITUTE OF AUSTRALIA
Customer service standards is now recognised as an area
of expertise, with The Customer Standards Institute of
Australia existing as a professional organisation in its
own right. Its aim is to assist organisations and
individuals ‘to achieve peak levels of performance’. This
is stated as requiring continual improving, with an
outcome of being better than the competition.
To assist members achieve this it runs nationally
accredited diploma and certificate courses, as well as
workshops in complaints management. Topics covered
include:
 Building long-term customer relationships
 Differentiating your product and service
 Identifying the key success factors for customer
service
 Using measurement as a driver for improvement
 Developing an effective process for obtaining
customer feedback
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MBMB7 - Principles of Professional Management PA 5072016.
INTERNATIONAL CUSTOMER SERVICE
STANDARD
Although individuals within an organization may strive to
attain excellence in customer service, the
implementation of customer service standards is a
matter for the business rather than individual
employees. The Customer Service Institute of Australia
puts forward an International Customer Service
Standard, which is divided into four ‘perspectives’:
1. Service
2. Financial
3. Operational
4. Learning and Growth
The full international service standard is set out on the
following page. If you look at it, you will notice that
implementint it in full is likely to involve a great deal of
work.
Organisations achieving the International Customer
Service Standard are entitled to use the distinguishing
logo, subject to an annual verification assessment by the
certifying body that all service attributes have been
integrated into the business. A number of the companies
entitled to use the logo are set out below.
 12 7. MORTGAGE BROKING
INTERNATIONAL CUSTOMER SERVICE STANDARD (ICSS: 2010–14)
12
SERVICE PERSPECTIVE
1 Product or Service Attribute
12 1.1 The organisation involves customers in the design of its
products and/or services.
1.2 The organisation has a formal complaints-handling strategy
and process, and empowers staff to resolve customer issues
and complaints.
2 Image
2.1 The organisation provides evidence that it has defined what
its ‘Signature Service experience’ is, and has resources,
processes, systems and measurement in place to deliver to
this target.
2.2 The organisation has a Customer Service Charter that it
shares with and communicates to its customers. Typically,
this may contain reference to: Relationship, Accessibility,
Privacy, Responsiveness, Compensation and Complaint
Handling.
2.3 The organisation has strategies and processes for managing
customer loyalty and retention.
3 Relationship
3.1 The organisation has formally established a strategy for
developing relationships with customers, suppliers,
stakeholders and business alliance partners.
3.2 The organisation maintains contact with customers through a
regular communication process.
3.3 The organisation has a developed response process for
determining levels of customer satisfaction with its products
and services.
3.4 The organisation maintains a database of customer feedback
(that records compliments, complaints and suggestions), and
shares this information with its staff.
3.5 Dealings with customers are treated not on a transactional
basis, but with a long-term relationship view in mind; the
organisation understands the Lifetime Value of its customers,
across all different segments, and aims to deliver above
expectation
FINANCIAL/GOVERNANCE PERSPECTIVE
4 Revenue / Growth Mix
4.1 The organisation measures how customer service creates
growth opportunities through increasing market penetration,
developing new markets and converting non-users.
5 Cost Reduction / Productivity Improvement
5.1 The organisation identifies how customer service is assisting
in either increasing operating efficiency through cost
reduction or improving its processes, products and services,
and has a methodology to ensure improvements are
implemented.
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MBMB7 - Principles of Professional Management PA 5072016.
6 Asset Utilisation/Investment Strategy/Risk Management
6.1 The organisation identifies how customer service is assisting
in changing the asset base through redeployment of capital
resources, and considers the impact on customers when
making asset utilisation decisions.
6.2 The organisation has strategic, operational and personal risk
management strategies and processes in place to reduce the
impact of identified risks on customers, employees and
stakeholders.
6.3 The organisation”s customer service is consistent with its
approach to corporate social responsibility.
OPERATIONAL PERSPECTIVE
7 Innovation Process
7.1 The organisation identifies and understands the market and
its needs, and creates the service offerings to meet those
needs for both existing and future customers.
8 Operations Process
8.1 The organisation delivers products and services according to
identified customer specifications, and has a process to
guarantee predictability and consistency of delivery.
9 After Sales Service
9.1 The organisation provides service to the customer after the
sale or service offering has been negotiated.
LEARNING & GROWTH PERSPECTIVE
10 Climate for Action / Organisational Alignment
10.1 The organisation provides the climate for action and
organisational alignment in relation to customer service and
the overall business objectives.
10.2 The organisation provides recognition for its people, based on
customer service attributes.
10.3 The organisation clearly articulates the customer service
responsibilities of both staff and the organisation.
11 Staff Competencies
11.1 The organisation ensures that its people have the applicable
competencies to achieve the customer service offerings and
outcomes as stated in the business objectives.
11.2 The organisation has human resources structures, including
health and safety policies and practices, that protect and
support its staff and provide development opportunities.
12 Technology Infrastructure
12.1 The organisation utilises technology to enhance customer
transactions for existing and potential customers, including
ensuring accurate and timely information is maintained about
each customer transaction and relationship through the use
of knowledge and technology assets.
12.2 The organisation safeguards the confidentiality (privacy) of its
customer records, database and other sensitive information.
 13 7. MORTGAGE BROKING

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MBMB7 - Principles of Professional Management PA 5072016.