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Thursday, April 17, 2008

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Feedback.

We all want it, we all need it, but we dont always know what to do with it and we dont always know how to give it.

There is much good advice and wise counsel that can be shared about how to give feedback more effectively; however, in this article I want to focus on providing balanced feedback as one way to make it more useful, accepted and effective. But before we get too far into making feedback balanced, we must define the four

types of feedback:

Negative feedback, or corrective comments about past behavior. These are things that didnt go well.

Positive feedback, or affirming comments about past behavior. These are things that went well and need to be repeated.

Negative feedforward, or corrective comments about future behavior. These are things that dont need to be repeated next time.

Positive feedforward, or affirming comments about future behavior. These are things that would improve performance in the future.

In sharing these four types of feedback with many people and groups, most people feel that they seldom get all four types of feedback. In fact, for many people when they think of feedback, they can only think of negative feedback often this is the lions share of what they have received in their life.

When you think about the types of feedback this way, it isnt hard to see that each type can be valuable, which leads to the point that balanced feedback is very desirable. However it is hard to expect ourselves or others to give balanced feedback if we unfortunately have never (or rarely) received it.

Think about yourself for a minute. When you really want to improve your performance and reflect what you have done as a way to critique and improve yourself you very likely look at all four types of feedback. You start by asking yourself what you did well and what you need to change. Then you look forward and think about what you want to do the next time (and what you dont want to do).

If it works for you, it will work for others. I encourage you to think about all of these perspectives before you give someone else feedback and then share more than one perspective with them. You will give advice the other person is much more likely to hear, not be defensive about, and most importantly, decide to apply. Once you have observed a wider view of someonesperformance, and determined that you want to give them both positive and negative comments, then you must decide how to deliver that message.

Delivery of Balanced Feedback

Many articles and books on feedback suggest the following approach:

Positive feedback / negative feedback / positive feedback.This sandwich approach makes sense conceptually by putting the negative feedback in the middle, others will likely be more open to it. Mainly because they have heard something positive first and last, the relationship should be maintained, even if the negative comments in the middle are pretty hard to hear.This approach can work extremely well, unfortunately most people botch it up so badly, that the approach itself is often considered ineffective.

Why?

Too often the intent of the sandwiched feedback wasnt to make balanced comments at all, but only to make the negative feedback more palatable.

And why is this?

Not because positive/negative/positive doesnt work, but because people have very specific negative comments to share, but the positive bread in the sandwich is too general or vague so it is deemed insincere and unhelpful.

The Solution

The sandwich approach to feedback can be very effective if the intent is to truly give balanced feedback. When the positive comments are as specific and genuine as the negative feedback, it will be a much more useful and positive experience for the receiver.

The next time you have to give feedback, think balanced both positive and negative and past and future and then deliver that balanced perspective in a balanced way. When you do this you will help the other person succeed more quickly and more easily, and you will have truly made a positive impact on that person and his or her results.

Kevin Eikenberry is a leadership expert and the Chief Potential Officer of The Kevin Eikenberry Group, a learning consulting company that helps Clients reach their potential through a variety of training, consulting and speaking services. You can learn more about him and a special offer on his newest book, Remarkable Leadership: Unleashing Your Leadership Potential One Skill at http://RemarkableLeadershipBook.com/bonuses.asp

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With the tsunami of foreclosures closing in on lending institutions, there is a growing need for workout specialists. The need is so apparent that in some parts of the country, workout specialists have coined their own title as elite members of "The Mod Squad".

These individuals have a singular purpose:

Their objective is to minimize bank losses.

However, the cost for this process of minimizing the bank's losses is not inexpensive.

There is an exhaustive process of recruiting and training employees that must be able to analyze financial statements, tax returns, appraisals, audit reports, and other legal documents that may not be familiar to the average person.

Experience with credit counseling is also a plus because they will be asked to make modifications to the existing payments and establish a new payment plan. In addition, they must have excellent communication skills. They must first be able to adequately counsel borrowers in hardship situations, appealing to both their emotional and financial distress, and negotiate a mutual agreement, if possible. Their working knowledge of real estate and contract law is essential since they will be coordinating the settlement with attorneys, title companies, realtors, and more.

This is a tall order when the wave of foreclosures is on the horizon

Those Banks that fall victim to the old way of doing things will find themselves scrambling and, most likely, carried away in the chaos that is forthcoming.

In light of the pending onslaught of foreclosures, Banks will need to look at new ways of settling their pending losses from a more proactive approach. Literally, in a tsunami, experts say "take the high road". Go to an elevation that provides safer ground.

Why not do the same?

With the numbers of people that will be effected by this catastrophic event, Banks need to make disaster plans that include advanced warnings and preparatory measures.

  • I believe it is essential to keep the property owners engaged so that they are not paralyzed by the wave of hopelessness.
  • I believe that education is key.
  • I believe that local and regional workshops are essential for a safer, more responsible way of treating those lost and confused.
  • I believe it is essential to let these victims know they are not alone, they should not feel ashamed, that their lives are important and that we, as a community, are going to do everything possible to help them escape the tidal wave that will inevitably effect each and everyone of us, as a community, as a country, as a world.

It is not enough to simply send in an emergency crew to clean up the mess, to salvage what is left, to restore the lives of the hopeless that were caught unexpectedly in the wave of foreclosures. We need to face the reality, communicate the need for readiness, and prepare ourselves with grossly needed channels for communicating viable exit routes... at all times, suggesting that we all take the high road.

So, What Does A Workout Specialist Traditionally Do?

Job Responsibilities:

  • Review incoming packages for accuracy and completeness
  • Review and recommend loans to foreclosure where appropriate and within required timeframe
  • Handle borrower questions pertaining to various workout options

What Do Innovative Workout Specialists Do?

With this tidal wave of foreclosures, the foreclosure workout process needs to change in order for the banks to reap the greatest benefits. In the past, banks would hire their own foreclosure workout specialist, train them, provide them benefits, etc. This of course is an added expense for banks.

However, with todays unique market... the old way of doing things is no longer effective.

Today, banks need to create comprehensive plans to deal with their trouble loans on a Macro basis and need to retain innovative workout specialists who offer more than the job responsibilities noted above.

This new breed of workout specialist will:

  • Review incoming packages for accuracy and completeness
  • Review and recommend loans to foreclosure where appropriate and within required timeframe
  • Handle borrower questions pertaining to various workout options

and...

  • Effectively keep the borrower emotionally involved so they don't "give up" because of the pressure traditional workout specialists often place on the borrower
  • Help to turn the overall foreclosure situation from a negative to a positive by working with the bank to create a comprehensive PR campaign which highlights the way the bank is now helping their client borrowers.
  • Turn previously upset borrowers into raving fans of the bank by creating a truly win-win situation

Of course, there are more added benefits that a new age and innovative workout specialist can offer banks in 2008.

The bottom line... borrowers in default should contact the bank and request a workout specialist to help create a situation where it makes sense for the borrower to stay in their home... and where it turns a non-performing loan into performing loan.

And, banks need to examine their current "macro-plan" for dealing with foreclosures and whether hiring an inside staff is really the way to go. Additionally, banks need to capitalize on this opportunity to create a positive PR campaign which will once again position the bank in a positive light in the minds of the public... and their clients.

Innovative workout specialists services are difficult to find; however, there are very unique companies who offer banks programs tailored to cut their foreclosure related costs and provide benefits far beyond the traditional foreclosure workout services.

Mark Hughes is the President of Virtuosity Unlimited, LLC, a company which offers banks comprehensive and innovative foreclosure workout specialist services which cut foreclosure related costs and help banks capitalize on this unique opportunity to become a thought leader in the industry.

Mr. Hughes has been in the real estate industry for over 30 years and is a national expert in helping banks cut costs through innovative foreclosure workout specialist processes.

For more information, visit http://www.virtuositypro.com

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