Mortgage service providers often have multiple business units, each responsible for specific functions such as marketing, sales, research and development, and customer service. These units operate semi-independently, focusing on their respective tasks and objectives. While this structure can be effective in promoting specialisation and efficiency within individual units, it can also lead to a lack of alignment and communication between them.

The problem with these siloed business units is that they can inadvertently work against the overall goals of the organisation. When units operate independently without collaboration, they may duplicate efforts, miss opportunities for cross-selling or cross-promotion, and fail to leverage collective knowledge and resources. This lack of synergy can result in inefficiencies, missed revenue opportunities, and even conflicts among units.

The implications of uncoordinated business units can be significant. Companies may face missed revenue targets, increased operational costs, reduced customer satisfaction, and a fragmented corporate culture. Additionally, the competition in the market is fierce, and organisations that do not leverage their full potential by coordinating their business units risk falling behind and losing market share.

What can be done?

At Novus, to address these challenges and unlock the power of strategic synergy, we say that businesses need to prioritise business unit collaboration, a key area on our Novus Digital Index used to assess mortgage service providers’ digital capability.

Here are several compelling reasons why:

1) Optimised Resource Allocation:
By coordinating business units, financial organsations can better allocate resources across functions. This ensures that critical projects receive the necessary attention and resources while avoiding overinvestment in non-essential areas.

2) Enhanced Customer Experience:
Coordinated units can deliver a more seamless and integrated customer experience. When marketing, sales, and customer service collaborate effectively, customers receive consistent messaging and support, leading to increased satisfaction and loyalty.

3) Innovation and Collaboration:
Encouraging collaboration among units fosters innovation. Cross-functional teams can generate creative solutions, share best practices, and drive continuous improvement throughout the organisation at all levels.

4) Efficiency and Cost Savings:
Redundancies and inefficiencies are minimised when units work together. This can result in significant cost savings and streamlined operations.

5) Competitive Advantage:
Organisations that effectively coordinate their business units gain a competitive advantage. They are more agile to innovation, responsive to market changes, and better positioned to seize emerging opportunities.

6) Unified Culture:
A culture of collaboration and synergy promotes a sense of unity and purpose among employees, enhancing employee morale and engagement.

Conclusion

The power of business unit coordination cannot be understated in today's complex business environment. It is not merely a matter of improving efficiency but a strategic imperative for long-term success. Mortgage services that embrace coordination among their business units at all levels are better equipped to adapt, innovate, and thrive in an increasingly competitive landscape. By recognising the situation, identifying the problem, understanding the implications, and acknowledging the need for change, businesses can pave the way for strategic synergy and unlock their full potential.

Many financial institutions took their first steps towards strategic synergy by viewing our Novus Digital Index. Why not take yours today?