Category: Compliance
Head of Compliance, Stephen Adams, discusses what the mortgage and protection adviser industry has learnt following the Carey Pensions court case.
The Royal Court in London heard claims from an investor in late March that a self-invested personal pension (SIPP) provider, Carey Pensions, had colluded with an unregulated introducer to push retirement savers into high-risk unsuitable investments, where they lost as much as £3m. Carey Pensions denied the claims. But The Financial Conduct Authority has reiterated to providers and advisers the weight of regulation is on them when accepting business from unregulated individuals and companies.
A large amount of fraudulent activity comes from business that originated via unregulated introducers. This doesn’t mean everyone trying to introduce mortgage business to your firm is a fraudster. But, it is imperative that all appointed representatives and directly authorised firms pay close attention to individuals approaching them to introduce business.
Some ex-advisers that have either been terminated by the FCA or removed from lender panels are still trying to make money in the mortgage market. They may approach unsuspecting advisers seeking to exploit any weaknesses in their due diligence checks. To protect your business you must make sure that the individuals you deal with don’t put your career at risk. The FCA takes a rigid stance in terms of responsibility:
“The onus is on the authorised firm which accepts business from an introducer to meet its regulatory requirements”.
But, if it is your responsibility and if after your checks you are happy to proceed with an introducer agreement then the relationship should be made professional. An agreement should be drawn up that outlines your relative responsibilities. This should be signed by both parties and is a good way of setting up the business relationship.
Any agreement you make should set out the terms of the arrangement, such as: what product types will be referred, how the client is informed that an introduction has been made, how information is passed to you, how the agreed remuneration will work and how the agreement can be terminated. If your introducer is reluctant to sign such an agreement, you should ask yourself why this is could be. Appointed Representatives of Mortgage Intelligence must use our Introducer Agreement and Introducer Checklist documents.
We believe carrying out in depth, robust checks as part of your standard procedure when taking on introducers will reduce your chances of working with fraudulent clients. However, regardless of how careful you may be you can still be targeted, so be sure to adopt a common sense check. And ultimately, if you don’t feel comfortable do not proceed – it isn’t worth the risk.
If you would like to join our award-winning Mortgage Network as an appointed representative or become a member of our Mortgage Club, contact our Broker Support Team on 0345 130 7446.
Head of Sales and Marketing Sharon Mawby rounds up another fantastic year of award-winning support and services for appointed representatives
What a year 2017 was! We have made plenty of great changes and expanded our services across all our departments. We have put a big focus on making things simple and useful, and adviser satisfaction and success has been our reward. We listen to the feedback of appointed representatives and respond to their needs, which means we always deliver the most useful and relevant services.
So what have we been doing for appointed representatives in 2017?
The Sales Team
The phones on the desk are always ringing with advisers looking for guidance and time-saving support. The Broker Support Team keep up to date on criteria, to help answer complicated questions regarding industry changes.
With many big industry moves and lenders added to panel in 2017, our experts on the desk have been receiving lender training all year round, and sit with lender representatives to work through criteria and USPs.
The Protection Helpdesk has been a big part of the protection success for advisers in 2017. Many appointed representatives find the time-saving initiatives provided by the desk simply invaluable. They call the underwriters to find the most accurate indication of terms, to save appointed representatives crucial time to spend with their clients.
Relationship Development Consultant Nicole Smith has been on hand to work with appointed representatives on building business and dealing with issues. Nicole troubleshoots problems, points advisers towards suitable services and supports recruitment and business development.
The Marketing Team
We launched a new suite of promotional materials at the start of 2017, and so many appointed representatives have embraced the new range. We have worked on bringing modern and relevant marketing options to advisers, such as posters and sales aids to use with clients. It’s so satisfying to see our new designs used everywhere from office windows to social media pages.
Plenty of appointed representatives have also been taking advantage of the fantastic free client newsletter service, which sends out three relevant stories directly to clients once a month. This now goes out to over 20,000 clients and appointed representatives often receive leads as a result.
Our free adviser magazine Insight has also been developed in 2017, to bring even more stories, interviews and adviser tips. After listening to appointed representative feedback, we also now offer the magazine as a digital download.
Commissions Team
The Commissions Team have been developing automation and processes to help deliver faster payments, whilst maintaining the highest level of accuracy. We know how important cash flow is for appointed representatives, and our express payment service is an essential part of that. We therefore ensure the entire team is well trained in processing all the different types of payments.
Working closely with the IT Team, the Commissions Team have transformed the way that statements are processed, to ensure an even more water-tight system. The Commissions Team never stop looking for innovative ways to ensure appointed representatives get their fees quickly, without deviating from our very high service standards.
Product Development Team
One of the busiest departments in 2017, the Product Development Team have been adding even more lenders and providers to panel. This includes mainstream and specialist lenders, to give appointed representatives plenty of options with which to help clients. The team has also developed a number of exclusives designed for the needs of appointed representatives and their clients.
With so many new additions to panel and industry changes, we knew how important this year’s events were going to be. That’s why the team have delivered plenty of webinars and workshops, as well as a brand new Specialist Lending Event, to ensure engaging and insightful support for appointed representatives.
After listening to appointed representative feedback and analysing the market, the protection panel proposition has also been refreshed. This includes the development and expansion of two new panels, and the implementation of protection portal software SolutionBuilder.
The IT Team
Working behind the scenes to bring the best technological solutions to appointed representatives, the IT Team have been developing several in-house systems and integrated a range of new software. The Team also work to help appointed representatives in their day to day business, by developing the adviser website Broker Zone, helping it run smoothly and work for appointed representatives at all times.
SolutionBuilder has also been developed to support client protection conversations. This new addition means that appointed representatives now have the ability to research, quote and compare protection needs. This has now been integrated with our point of sale system, and supports single and multi-benefited products.
The Business Assurance Team and Authorisations
The Business Assurance Team have continued to focus on case quality in 2017, by educating appointed representatives on systems and processes. Many appointed representatives were invited in to visit the office in 2017 and spend time with the team, to give them the opportunity to see a case being assessed from our perspective.
To continue to support case quality in 2017, the Business Assurance Team have launched a useful catalogue of videos, which show appointed representatives exactly what a case checker reviews on each section of an assessment.
The Business Assurance Team and Managers have been working closely to ensure a consistent message is delivered to appointed representatives. The Business Assurance Team are there to both protect and support advisers, and the team regularly consult with advisers on presenting cases and documentation requirements.
Authorisations has been moved back in-house, allowing more control on timescales and developing relationships with new appointed representatives coming on board. This has enabled them to work on the smooth transition from application to authorised adviser, and be the first port of call for appointed representatives when they join the Network.
The Compliance Team
The Compliance Team have been providing more than just telephone-based support for appointed representatives. They also write policies, processes and create material to promote positive consumer outcomes to further protect appointed representatives. The team also produce and control risk logs, implement FCA rule changes and deal with consumer complaints.
The team’s regular bulletins are a really important way to get messages through to advisers, as well as the Compliance Resources page on Broker Zone, which is always being updated to support appointed representatives on a daily basis. With many industry changes and new rules in 2017, the team have ensured they are getting the messages out to appointed representatives and keeping them updated.
Join our award-winning Mortgage Network as an appointed representative, or become a member of our Mortgage Club, to start benefiting from our fantastic range of comprehensive services and support. Call the Broker Support Team on 0845 130 7446 (opt 1) to find out more.
Head of Compliance Steve Adams highlights how Mortgage Intelligence are preparing Appointed Representative advisers early for the 2018 General Data Protection Regulation
GDPR (General Data Protection Regulation) is a piece of EU legislation that will replace the existing Data Protection Act. This legislation, regardless of any Brexit negotiations, will come into effect on the 25th May 2018. Whilst this may seem a long time away, Mortgage Intelligence has already commenced work on this large scale project and we are currently reminding all advisers to start considering their requirements and obligations in regards to the new legislation.
The new legislation applies to Data Controllers and Data Processors and this means that all Appointed Representative firms, their advisers and staff will have increased responsibilities in relation to their customer’s data.
It is important to understand how the law is changing and the impact this will have. The changes are wide-ranging and detailed but it should be noted that many of the fundamental principles already exist under the Data Protection Act. In terms of changes that could impact Appointed Representatives, the following are some of the key ones:
- New timescales for Subject Access Requests
- Changes to consent required from customers to take and process their data
- Rights for individuals to withdraw consent for use of data and to request it is erased
- Personal data definitions expanded
- Changes to the rights for children and enhancements to individual’s rights
As a network, we will ensure that the necessary changes that are required under GDPR are made to the sales process. This includes amendments to our point of sale system and looking at how data is held and stored. Advisers will be responsible for how they look after their own data, from hand-written notes from a client meeting, through to complex management systems.
As a very good starting point advisers can visit the Information Commissioner’s Office. Type “GDPR” into the search facility and the Data protection reform information will appear. The “Overview of the GDPR” and also “GDPR: 12 steps to take now” documents are particularly useful.
If you would like to know more about joining our award-winning Mortgage Network and enjoying compliance support as an Appointed Representative, call our Broker Support Team on 0845 130 7446, option 1.
Head of Compliance Steve Adams reveals his highlights of one of our latest MI Online webinars. The event saw Paul Kane, NatWest Corporate Account Manager, explore not just the link between a rising BTL market and the potential for fraud, but what you as an adviser can do to protect yourself
Advisers love our MI Online series, delivering great ideas and useful insights into many areas of the industry. One recent webinar, hosted by NatWest Corporate Account Manager Paul Kane, explored the relationship between a rising BTL market and the potential for fraud. Paul also highlighted exactly what you as an adviser can do to protect yourself. In case you missed it, here are my key highlights from the session:
Potential business means potential fraud
Most of the recent industry debate has been focussed on the future of BTL after the 2016 stamp duty changes and the upcoming changes in tax relief. This is understandable, considering the potential impact and controversy on its benefits.
BTL is also the fastest growing sector, supported by low interest rates and population growth during a shortage of housing that has put increasing demand onto the sector. BTL applications have increased dramatically since 2011, but it is still predominately an amateur sector, with 63% of landlords owning only one property, despite what some media outlets suggest.
But it is exactly this increase in business levels and public focus that both distracts from potential fraud and attracts certain dangers, which is why ensuring that a strong fraud focus is maintained within the industry has never been more important. Potential business can often mean potential for fraudsters as well.
How does fraud tie in to the BTL sector?
It is important to know some key BTL fraud definitions beyond the broad meanings of Mortgage Fraud and Money Laundering. Mortgage Fraud is defined as “a crime in which the intent is to materially misrepresent of omit information on a mortgage application to obtain a (larger) loan than would have otherwise been obtained had the lender or borrower known the truth.” This can be split further into two categories: Fraud for property and Fraud for profit.
Differences in criteria means that BTL fraud is typically classed as Fraud for Property rather than Fraud for Profit, as it is quite normal for interest-only mortgages to be taken out on BTL. Attempting to get a mortgage on an interest-only basis may be a reason why people might be intending to misrepresent themselves and conceal their intentions.
This situation can attract fraud because interest-only is more common and affordability is not as strict on BTL, which may attract those wishing to not pay back capital on their mortgage. This can also attract organised criminals who are not interested in the property itself and simply want access to the lender’s funds.
There are also instances of Fraud for Profit, where professional, organised criminals engage in mortgage fraud simply to abscond with the mortgage proceeds and do not have a preference for a particular mortgage product. In any case, they do not have any intention of making repayments and will typically use false identities, sources of deposit correspondence and bank statements to support the application.
How can advisers protect themselves against fraud?
There are many ways in which advisers can protect themselves against potentially fraudulent activity. Undertaking due diligence is key to this, such as checking documentation and payslips from the applicant. Now that the days of poor quality photos and easily-identifiable obscurities have passed, advisers need to be even more vigilant to ensure they are able to clearly spot potential fraud. Knowing how license numbers are structured can be an example of this, as well as ensuring it matches with the other client details.
Checking the details on bank statements and knowing the expected format can also help confirm validity. There should always be a professional appearance to the statement, with no spelling errors, anomalies or suspect details, as well as showing the correct address as the expected residence.
Ask yourself: Do the credits match those on the payslip? Are they from the correct employer? Are they the right type of payments such as BACS etc? Does the activity on the statement match the current customer profile? Are they recent documents, and if not why can the applicant not provide a more up to date one?
What more can advisers do about fraud?
Working with lenders, networks and each other is a really important step in protecting yourself against fraud. Also, if you have had business introduced to you, ensure that you know as much as you can about them and have asked the right questions to protect yourself. Have you visited their premises? How long have they been in business and what is their reputation? Does anything appear suspicious? In other words, fact find your introducer in the way you would your clients.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephen Adams, Head of Compliance at Mortgage Intelligence, explores some of the potential ways the Mortgage Credit Directive could impact your clients.
After the Mortgage Market Review (MMR) in 2014, few expected such a similar piece of legislation to be hot on its heels, let alone affecting the whole European region. But on 21st March 2016 the Mortgage Credit Directive (MCD) will come into effect, in an effort to further protect consumers and create a sole mortgage market in Europe.
Although there is some debate as to whether this further legislation will actually add additional benefits to consumers, it will impact both residential mortgage lending and lending for buy to let. The UK’s regulatory body, the Financial Conduct Authority, with implement the changes here, but what specific areas will be affected?
Buy to Let and Foreign Currency
More specifically consumer buy to let (CBTL), the MCD will cover the minority of buy to lets where the borrower has not taken out the mortgage for business or investment purposes, or as an Investment Property Loan (IPL). From March, certain consumers, or “accidental landlords”, that have had to take out a BTL as a solution to circumstances, such as an inherited home or Let to Buy transaction, will find they fall under the new regulation.
Foreign currency loans will now be subject to further regulation, in some cases restricting the loan size and requiring a warning around possible rate changes. The MCD defines a foreign currency loan as “a mortgage denominated in a currency other than that in which the consumer receives the income”, or if they hold the asset from which the credit is to be repaid”. Because of these changes, there are some lenders that are already withdrawing their lending on foreign currencies.
The Sales Process and the “ESIS“
The European Standardised Information Sheet (ESIS) has been one of the more contentious announcements as part of the MCD. Having to abandon our own Key Facts Illustration (KFI), the UK must now adhere to the new ESIS sheet, or in some cases a KFI Plus prior to application. Many lenders are already adjusting to the new rules, choosing whether to move to the ESIS immediately in March or temporarily to the KFI Plus.
Although the UK’s MMR in 2014 put us in good stead ahead of MCD, the changes are nevertheless conflicting with some of our own regulation that has been tailored towards the UK market. The general sales process, which in each country can vary markedly due to certain differences in mortgage systems and languages, will now be restricted to a standardised, continent-wide law that requires certain steps to be taken before a mortgage is completed.
Protecting the Consumer?
Some experts have criticised the MCD as potentially confusing for consumers, rather than protecting against financial detriment as was the goal of the changes. But either way the MCD is tightening further the rules around financial promotions to be clear and not misleading, which can only help further protect consumers.
The MCD also ensures that lenders are required to now issue binding offers to consumers as well as a seven day reflection period which will start on the issue of the binding mortgage offer. This is designed to deliver peace of mind and further security to consumers.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
In a mortgage industry that seems to change as much as the weather in the UK, we have compiled a short list of key financial dates worth noting for you and your client. From scheduled tax changes and the ending of housing schemes to annual speeches and financial events, these important dates will keep you and your clients ahead of the game in 2016.
16 March 2016: Budget Speech
One of the most important events in the industry calendar will be Chancellor George Osborne’s annual Budget speech. After a cautious pre-election budget in 2015, some experts are preparing themselves for more change as the government tackles the housing crisis head on.
Anticipated announcements are on pension taxation and changes to tax relief, possibly moving from a tiered system to a flat rate. But whether more changes are on the way remain to be seen.
21 March 2016: European Mortgage Credit Directive
One of the biggest, yet scarcely mentioned financial changes in 2016 will be the MCD, or European Mortgage Credit Directive. This will come into play in March, introducing an EU-wide framework of conduct rules for all mortgage firms.
Designed to further protect consumers and create a sole European market, our rules will be set by the UK’s Financial Conduct Authority (FCA). The biggest effect this is likely to have on the industry is on buy-to-let mortgages, foreign currency loans and the introduction of a European Standardised Information Sheet (ESIS).
1 April 2016: Stamp Duty BTL
Changes in Stamp Duty Land Tax (SDLT) come into effect on 1 April 2016. This will mean higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes.
Although designed to disincentivise the financial investment in UK property and increase supply for first-time buyers, some experts have questioned the tax increases and feel landlords are being unfairly targeted. Either way, the rush to complete applications has already started in order to avoid the increase in April.
25 November 2016: Autumn Statement
It may not get the same attention as the annual budget speech, but the government’s autumn statement has historically contained some surprising financial announcements, such as changes to stamp duty in 2014 and changes to tax rates last year.
December 2016: End of Help to Buy 2
December will see the end of the government’s Help to Buy: Mortgage Guarantee Scheme. Otherwise known as Help to Buy 2, it has helped many first-time buyers with only a small deposit onto the property ladder.
Unlike the Help to Buy: Equity Loan, which only covers new-build properties, Help to Buy 2 can be used for both new build and existing homes. The scheme is now being withdrawn as lenders bridge the gap, with many now offering mortgages on deposits of 5% without the assistance of government schemes.
TBC: A Base Rate Rise?
The possibility of a Bank of England Base Rate Rise has been the subject of financial speculation for several years now, ever since it was set to its lowest-ever level of 0.5% in 2009. Although many experts suggest that Mark Carney will announce a move on interest rates in late 2016, there are some that still say this will not happen until 2017.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephen Adams highlights the risks unregulated introducers pose for appointed representatives and directly authorised firms
A large proportion of fraudulent activity stems from business that was originated via unregulated introducers. This is not to say that everybody looking to introduce mortgage business to your firm is a fraudster. However, it is clearly the case that close attention should be paid by all appointed representative and directly authorised firms to individuals approaching them to introduce business.
At present there are a number of ex-advisers who have either been terminated by the FCA or removed from lender panels but still want to make money in the mortgage market. They are regularly approaching unsuspecting advisers and seeking to exploit any weaknesses in their due diligence checks. To protect your business you need to be sure that the individuals that you deal with are genuine, honest and ultimately do not put your career at risk.
If after completing your checks you are happy to proceed with an introducer agreement then it is strongly recommended that the relationship is put on a professional footing. A simple agreement, signed by both parties, to outline your relative responsibilities and limitations is a good way of setting up the business relationship. Any agreement you make should set out the terms of the arrangement, such as what product types will be referred, how the client is informed that an introduction has been made, how information is passed to you, how the agreed remuneration will work and how the agreement can be terminated. If the introducer is not keen to have an agreement of this type in place then you should certainly ask yourself why this would be.
By carrying out robust checks as part of your standard procedures for taking on introducers we believe that you will reduce the chances of dealing with fraudulent clients. Of course you could undertake all of the above and still be targeted by an individual who wants to commit fraud. Be sure to adopt a common sense check when dealing with introducers and customers. If you don’t feel comfortable with what you are being told then ask more questions, if you are still not comfortable after this then do not proceed. It just isn’t worth the risk to your business.
If you would like to join our award-winning Mortgage Network as an appointed representative or become a member of our Mortgage Club, contact our Broker Support Team on 0845 130 7446 opt 1.
At Mortgage Intelligence, we invest in the right people and the right technology for both appointed representatives and directly authorised advisers. Sally Laker highlights the importance of maintaining a balance between embracing new technologies and continuing to support a people-based industry.
I recently changed my TV package online as the lure of the next two series of Homeland got the better of me.
The change was the usual story really – my password didn’t match, my e-mail address didn’t match and so I decided it would be easier to pick up the phone and speak to someone about changing the package. And, it was. It made me think about our industry and the need to deal with people face-to-face and over the telephone. The people factor builds trust and relationships as well as providing a valuable service.
The other essential tool is good technology. To provide a valuable record of the advice given to the customer and all the associated documents loaded onto the system. A good Point of Sale (POS) system is so important but like everything it is only ‘good’ if it is kept up to date.
We recently updated our version of the Key POS system to change the way in which we record data and use it. Even though the system is an up to date system, it was a substantial piece of work bringing in contract developers to deliver the changes we required. There are numerous stages, including the specification, which takes time and requires experienced people who understand the system to map out what is required. This then needs to be formatted – a different skill required, so that the specification can be interpreted into ‘developer speak’ to enable the work to commence.
Frequently, there are choices and processes that need guidance all the way through and it is important to consider the impact of any slight change, or you could be back to square one. Once the work is ready, testing begins. You need people who understand the system and will test it and try to break it. Flaws get picked up and then fixes and changes need to be done. That goes back and forth for some time until the upgraded system is ready to be released achieving the desired result. The cycle needs to continue and we regularly look at what the next enhancements will be.
The recent changes we have released were significant and we now have an enhanced system that incorporates the dynamics of today’s regulatory world.
After going through this process, it becomes less onerous as knowledge of the system improves. It was still a challenge, expensive and time consuming but we allocated a six-month timeline which was a tight timescale to keep the focus on the job and complete it.
We have always promised to invest in technology that provides a system that is up to date with mortgage and insurance industry needs and we will continue to do so. We do know that both appointed representatives and directly authorised advisers are not robots and that’s important to us, because although this is a people-based mortgage and insurance industry, we need to be backed up by good technology and not replaced by it.
If you are interested in switching over to join our award-winning Mortgage Network as an appointed representative, or becoming a member of our Mortgage Club, contact our Broker Support Team on 0845 130 7446 opt 1.
Head of Compliance Stephen Adams explains when and why advisers should talk to their clients about the benefits of placing a life policy into Trusts.
With so many protection challenges facing advisers today, we know how difficult it can be to find time to discuss every possible element of Life Assurance with your clients. But according to one leading provider, only about 10% of life policies are currently written in Trust, which suggests that in some cases consumers are not aware of the potential benefits.
In some situations a Trust is likely to be neither relevant nor advisable. However, there will be times when the best consumer outcome will point towards a Trust and clients must be aware of all the potential benefits or disadvantages relevant to their circumstances.
When should I talk about Trust to my client?
Essentially it will be down to the adviser to recommend what is in the best interest of the client. However, as a very general rule: Joint life policies are less likely to require Trusts , as are Single Life Policies where the client is married (but note this is dependent on the level of cover and the latest intestacy rules). But with a Single Life Policy where the client is not married, Trusts can play a very important part and should therefore necessitate a conversation with your client about writing their policy into Trust and ensuring the correct distribution of pay-out.
How can clients benefit from putting their policy into Trust?
Avoiding probate: A legal process which confirms an executor’s authority to deal with possessions. This lengthy process currently takes, on average, six weeks and for more complicated cases can be many months. Putting a policy into Trust will avoid this and any even lengthier connotations such as intestacy, which can be a stressful time for your client’s family and loved ones. If a Life Assurance plan is in trust, it is no longer part of the settlor’s estate so therefore probate is not required as the funds are paid directly to the trustees to distribute the funds.
Helping to reduce Inheritance Tax (IHT): By putting a policy into Trust, your client may avoid the policy being absorbed into the deceased’s estate and being liable for Inheritance Tax. The Government raised £3.3 billion in IHT revenue in 2013/2014 and admits that this number would be significantly reduced if more polices were written in Trust. Any assets left to a spouse or registered civil partner, provided they’re UK domiciled, are exempt from inheritance tax. But this can be often down to whether the policy is kept in Trust until its next 10th Anniversary.
A note from the Compliance Team…
It is important to remember that the above is a very general guide and specific thought needs to be given to each individual customer circumstances. Advice can also be sought from legal helpdesks of product providers. If in any doubt, then an adviser must guide the customer to seek legal advice and record this in the Reason Why Letter.
If you would like to join our award-winning Mortgage Network as an appointed representative or become a member of our Mortgage Club, contact our Broker Support Team on 0845 130 7446 opt 1.
Even though the General Election took place over a month ago, many people are still talking about how it was such compulsive viewing, with many staying up until the early hours awaiting the result.
The fascination was watching all of the opinion polls and predictions fall by the wayside as the losing political parties accepted their fate graciously. How did these parties get their strategy so wrong, why did it not deliver the clear objective to win the election with an outright majority?
Commentators gasped as the charts changed to a sea of blue and the Labour party were in shock as they saw virtually all their Scottish seats lost to the Scottish National Party in one night. Surely if the Labour party had been close to their customers and understood what they needed to do to get their vote they would have changed their tactics to secure those votes.
What was their strategy and did they have the right culture within the party to question the tactics to deliver that strategy? How would it achieve the end goal?
If people are afraid to speak their mind and go with the majority to keep the peace that is a culture that doesn’t work in either politics or business. If the public didn’t see Ed Miliband as a strong credible leader, why did the Labour party not see that either? If they were in touch with their customers surely someone would have stumbled across it.
It is the same in business – we set a goal, we put together a strategy to achieve it and then look at the tactics required to deliver that strategy. As always it is the team that you build around you that adds the magic required, they need to feel valued and listened to, their views are important to ensure you get the tactics right.
Once the team understands what is required of them and why their role is so important to deliver the overall strategy you have a good chance of achieving your goal. Setting the right culture is in my view essential, and putting the customer at the heart of the business is a culture that works well and leads to success. We have seen what happens when you don’t!