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CASE STUDY 2 1

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

MGMT 1115 Leadership

Coach Sally Gorman

Sally Gorman is the manager of the mortgage department of a suburban bank branch. She has six direct

reports, including three mortgage consultants. Although the consultants work full-time at the bank, they

are considered subcontractors who work only on commission—without any salary and benefits. A

consequence of this compensation arrangement is that the mortgage consultants are under considerable

pressure to sell home mortgages to bank customers. Until a mortgage is approved, the consultant receives

zero financial compensation.

Tony Costello, a 28-year-old mortgage consultant, asked for an appointment to speak to Sally about his

recent problems in nailing down mortgages. Sally was eager to meet with Tony because she was also

under pressure for the mortgage department to place more mortgages. A partial transcript of their meeting

follows:

Tony:

Sally, I've come to you for help. For several months, I haven't been closing enough mortgages to make a

living. My wife and I have two children, and we can't make ends meet on her salary alone. Is there any

way the bank can put me on salary? Or maybe give me a few months' advance? I've been a great producer

in the past.

Sally:

Grow up, Tony. When you took this job, you knew it did not include a salary and that the bank does not

allow advances. We need you to produce, but we can't change the bank rules. We are not a mom-and-pop

operation.

Tony:

Do you know how brutal it is out there? Home sales are down 20 percent in our area. I don't have enough

warm leads coming into the bank to shop for a mortgage. Besides that, our approval committee has been

shooting down too many deals on me lately.

Sally:

Wake up, Tony. The mortgage business has changed recently. We can't add any more high-risk loans to

our portfolio. It's very difficult to resell those mortgages to other institutions.

Tony:

Okay, then, what do you propose I do to generate more mortgage applications that the mortgage

committee will approve?

Sally:

Do what you do best. You're a professional. Just bear down harder on good mortgage possibilities who

visit your desk. Be persuasive. Turn up the heat. Do something good or be gone.

Tony:

I am trying. I want my commissions as much as the bank wants its mortgages.

Sally:

Just keep trying harder, and get back to me with results, not excuses.

Tony:

I guess that the bank and I are in the same boat. I'll talk to you later, Sally.

MGMT1115 Leadership CASE STUDY 2 2

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANSWER THE FOLLOWING QUESTIONS:

1. What advice can you offer Sally Gorman to do a better job of coaching Tony Costello?

2. What advice can you offer Tony Costello to get more out of the coaching session?

3. What is the most positive thing Sally did as a coach?

4. What is the most negative thing Sally did as a coach?