The path to success in the title industry starts with clear,
strategic objectives anchored in specific metrics and monitored through a formal system to track and manage progress. This is absolutely vital for the health and growth of a title business.
At String, we’ve had the opportunity to work with many of the best title companies and agents in the industry to help them accelerate their success. Most title professionals are excellent at sales and client service. But what separates the good from the truly great is the ability to set clear objectives and then measure them over time. Doing so will ensure you stay focused and garner insights into what is working and what needs to be rethought.
With so much cash circulating through the title industry at all times, many can get the impression that they or their company is doing just fine. All that cash sitting in the firm’s bank account can mislead owners into thinking they’re profitable when they really aren’t. Most of that cash does not belong to the business; and if it’s not profitable, none of it does. Trying to address a lack of profitability by hustling for more deals or praying for a boom in refinances is not a sustainable long-term strategy. Moreover, in a handful of cases, the combination of large amounts of cash sloshing through the business -- plus the lack of metrics and goals -- has led to dire consequences for title agents who have skimmed off the top of the firm’s escrow accounts to float costs, such as payroll, thinking they’ll pay it back with their next deal. This is a dangerous game. Defining objectives and building a system to quantify true operational performance will ensure a business is driving momentum and not taking risks with cash flow.
Once objectives are identified, then comes time to measure how the company is actually doing. But what metrics should be tracked? The key is to measure what matters. We suggest focusing on 10 to 20 critical financial, productivity and turn-time metrics that are key to the performance of the agency and then monitor them on a monthly basis. These might include:
- the overall profitability of the business on a monthly accrual basis, taking all costs into account;
- net profit and gross margin on any given order;
- revenue per employee, orders closed per employee, and cost per employee (because title is a very labor-intensive business, and you want to distinguish between high and low performers).
This data drives insight which can inform corrective action, whether it’s cutting expenses that aren’t yielding results; investing in more productive offices and locations; or identifying engagements in which you have underpriced the offering. The key to success is to track your progress religiously month after month. Some title companies will set up a new tracking system but three to six months later it sits unused. If this happens, find an external coach or consultant who can help hold you accountable month after month. We have seen the inner workings of hundreds of title agents over the last 17 years, and every single one of the top performers had a goal management and metric tracking system in place, which they religiously followed with iron discipline month after month.
If you you’d like to learn more about setting objectives and tracking results or would like to connect with us to explore how String can help your title business success, visit our website or connect with us at [email protected].
About Us
String helps build better, more efficient and cost-effective title businesses through industry-leading services, including title search, production and curative, helping lower costs, increase margins and improve operational efficiency. To learn more, visit www.StringInfo.com.