My professional career was marked by a relentless pursuit of solutions to complex business problems. I thrived in an environment where knowledge and expertise were valued, and my fearlessness in the face of challenges
By Isaac Megbolugbe
Introduction
My professional career was marked by a relentless pursuit of solutions to complex business problems. I thrived in an environment where knowledge and expertise were valued, and my fearlessness in the face of challenges drove me to achieve remarkable success. However, I soon discovered that fear of change, fueled by politics and self-interest, can be a formidable obstacle to progress.
During my tenure at Fannie Mae, I successfully found solutions that were ultimately successfully implemented at Fannie Mae. The three initiatives were the following: (1) Fannie Mae Reverse Mortgage program that provided market leadership for scaling and sustainable market-driven reserve mortgage business in the US. (2) Fannie Mae’e industry and market leadership in taking responsibility for addressing mortgage market racial discrimination. (3) Fannie Mae Mortgage Scoring Scorecard Initiative. My approach was rooted in a deep understanding of the problems, rigorous research, and collaboration with industry experts. I networked extensively, seeking feedback and insights from diverse perspectives. This comprehensive methodology enabled me to find innovative solutions that benefited Fannie Mae, the mortgage industry and the mortgage marketplace.
However, my experience at the Fannie Mae Foundation revealed a different reality. Despite the Chairman’s challenge to develop a bankable business model for its activities and services so that they could benefit from leveraging Fannie Mae’s enormous balance sheet, I was prevented from utilizing my proven solution development methodology. This failure ultimately had far-reaching consequences, contributing to the Global Financial Crisis of 2007 and 2008, and the permanent conservatorship of Fannie Mae and Freddie Mac. The fear of change and loss of power, influence, and authority can lead to sabotage and destructive consequences. My story serves as a cautionary tale, highlighting the importance of embracing innovation and progress over self-interest and politics. By fostering a culture of fearlessness and collaboration, we can unlock true potential and drive meaningful change.
The Consequences of Fear
The failure at the Fannie Mae Foundation had severe consequences, not only for the organization but also for the entire financial industry. The inability to develop innovative business models to guide expansion of mortgage business into new markets as the mortgage market leader, Fannie Mae followed the market that was using existing models to expand into new markets with poor knowledge of the embedded risk structures. The decision of Fannie Mae to follow the market rather than lead it led to a crisis of confidence, culminating in the Global Financial Crisis of 2007 and 2008. Moreover, the conservatorship of Fannie Mae and Freddie Mac has had a lasting impact on the mortgage industry, limiting innovation and progress. The fear of change and the desire to maintain power and influence led to a missed opportunity for growth and development.
Lessons Learned: My experience has taught me valuable lessons about the importance of embracing change and innovation. Fearlessness and a willingness to take risks are essential for driving progress and finding solutions to complex problems. Furthermore, the need for collaboration and diverse perspectives cannot be overstated. By working together and sharing knowledge, we can overcome even the most daunting challenges. In conclusion, fear of change can have devastating consequences, hindering innovation and progress. My story serves as a reminder of the importance of embracing change, collaboration, and fearlessness in driving meaningful growth and development. By learning from our mistakes and embracing a culture of innovation, we can unlock true potential and create a brighter future.
Embracing Change: So, how can we overcome the fear of change and embrace innovation? Here are a few key takeaways from my experience: (1) Encourage a culture of fearlessness: Create an environment where people feel comfortable taking risks and exploring new ideas. (2) Foster collaboration: Bring together diverse perspectives and expertise to drive innovation and progress. (3) Stay curious: Continuously seek knowledge and understanding and be open to new ideas and approaches. (4) Lead by example: Demonstrate a willingness to take risks and embrace change and encourage others to do the same. (5) Learn from failure: View failure as an opportunity for growth and learning, rather than as a setback. By embracing these principles, we can overcome the fear of change and unlock our full potential. We can drive innovation, progress, and growth, and create a brighter future for ourselves and for generations to come.
The Power of Innovation: Innovation has the power to transform industries, economies, and societies. It can solve complex problems, improve lives, and create new opportunities. By embracing change and driving innovation, we can: (1) Develop new solutions to complex problems. (2) Improve efficiency and productivity. (3) Create new markets and opportunities (4) Enhance customer experiences. (5) Drive economic growth and development. In conclusion, fear of change can hold us back from achieving our full potential. By embracing change, collaboration, and fearlessness, we can drive innovation and progress. We can solve complex problems, improve lives, and create a brighter future. Let us work together to unlock the power of innovation and create a better world for all.
The Future of Innovation
As we look to the future, it’s clear that innovation will play an increasingly important role in shaping our world. With the rapid pace of technological change, we must be prepared to adapt and evolve to stay ahead of the curve. Here are a few key trends that will shape the future of innovation: (1) Artificial Intelligence: AI will continue to transform industries and revolutionize the way we work and live. (2) Sustainability: As concern for the environment grows, innovation will focus on sustainable solutions and reducing carbon footprints. (3) Healthcare: Advances in medical technology and genomics will lead to personalized medicine and improved health outcomes. (4. Virtual and Augmented Reality: Immersive technologies will change the way we interact, work, and play. (5) Blockchain: Secure and transparent data management will enable new business models and applications. In conclusion, innovation is the key to unlocking a brighter future. By embracing change, collaboration, and fearlessness, we can drive progress and solve complex problems. As we look to the future, it’s clear that innovation will play an increasingly important role in shaping our world. Let us work together to harness the power of innovation and create a better world for all.
Call to Action: So, what can you do to drive innovation and progress? Here are a few key takeaways: (1) Stay curious and keep learning. (2) Encourage a culture of fearlessness and experimentation. (3) Collaborate with others to drive innovation. (4) Embrace change and be open to new ideas. (5) Support and invest in innovation initiatives
Isaac Megbolugbe, PhD, FRICS, Former Vice President at Fannie Mae, Former Practice Leader at PricewaterhouseCoopers,Retired Professor at Carey Business School, Johns Hopkins University, Senior Advisor and Managing Principal at GIVA Internation, Fellow at Royal Institution of Chartered Surveyors, Resident in the United States of America
