Mike Hardwick of Churchill Mortgage: Five Things I Wish Someone Told Me Before I Became A CEO
An Interview with Doug Noll
Build significant cash reserves for the inevitable “rainy days” that always come, usually when you least expect them.
As a part of our series called ‘Five Things I Wish Someone Told Me Before I Became A CEO’ we had the pleasure of interviewing Mike Hardwick.
Mike Hardwick is the founder of Churchill Mortgage Corporation, which began operating in 1992 in Brentwood, Tennessee. He holds a BA in Theology and Music from Gateway College in St. Louis, and also earned a BBA in Finance from Belmont University in Nashville, where he played for the baseball team.
Hardwick has served on numerous boards and committees throughout his career, including Friends of the Arts Board at Belmont University and the Finance & Endowment Committee for Christ Church Nashville. He is also a founder and board member of Real Estate Services of America, Escrow Services of Tennessee, Churchill Agency, and Equity Express.
Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your “backstory”? What led you to this particular career path?
I’ve been blessed to have a long career in the finance industry, with the first half focused in the commercial and investment banking sector. While I enjoyed my time working with some of “the big guys” in the early part of my run, I’ve always had an entrepreneurial spirit, so I started my first company in the early 1980’s, which specialized in condo conversions and became one of the largest in the nation. When new legislation forced that company into bankruptcy, I battled through clinical depression and emerged on the other side with a new mission to build businesses without debt, which led me to found two commercial banks and, ultimately, Churchill Mortgage.
Can you share the most interesting story that happened to you since you began leading your company? And what did you learn from that experience?
The turning point of both my life and career came as the result of the Tax Reform Act of 1986, which is what led to my company’s bankruptcy. This was a catastrophic event that left me unemployed for two years and saddled with over $4 million in personal debt, causing a bout with clinical depression that put a tremendous strain on me and my family. In addition to outright perseverance, the lesson I truly learned from that experience was the danger of debt, so when I began building new businesses after that calamity, I made being debt-free a core tenet and “north star” to follow.
None of us are able to achieve success without some help along the way. Is there a particular person you are grateful to who helped get you to where you are?
While many people have helped me along the way, the two most significant mentors in my life have been my father and Dick Freeman. They both taught me critical lessons about faith, family, and business, and I wouldn’t be where I am today without their guidance and support.
Leadership often entails making difficult decisions or hard choices between two divergent paths. Can you share a story with us about a hard decision or choice you had to make as a leader?
Approximately 18 years ago, I had to make a very difficult decision to lay off a large number of Churchill Mortgage employees. Prior to that, I had never laid off a single member of our organization, but we went through an incredibly difficult business season that lasted much longer than any I had ever experienced. This caused us to run through so much of our liquidity, it got to the point that if I didn’t act quickly, I was putting the entire company at risk. It ultimately allowed us to stay solvent and survive the storm, but it was a gut punch that I still think about to this day.
Most people think they have a pretty good idea of what a CEO or executive does. But in just a few words, can you explain what an executive does that is different from the responsibilities of the other leaders?
I believe a CEO is the “spiritual leader of the company,” meaning the CEO sets the tone for the company’s culture. Because I spend most of my time investing in my senior leaders and depending on them to be the “face” of leadership on a daily basis, I invest a lot of time and emotional capital building solid relationships with them. This ensures they understand the culture I value and expect them to uphold.
What are the myths you would like to dispel about being a CEO or executive? Can you explain what you mean?
In the past, the type of leadership displayed by executives was mostly through a “do as I say” approach, essentially like a military commander. The CEO was in charge and viewed as the one who knew what to do and when to do it, with the senior leaders expected to execute the “orders” of the CEO. Today, I believe CEOs who demonstrate solid leadership are those who are much more collaborative, meaning they seek wise counsel from several individuals on their team, then move forward and lead. I’ve seen the value in employing senior leaders who have more experience and knowledge than I might have in particular areas, then allowing them to lead, trusting I have recruited people who fit our culture and understand how to help it grow.
What is the most striking difference between your actual job and how you thought the job would be?
To be honest, it has mostly matched my expectations, and I’ve thoroughly enjoyed working with the team I’ve been blessed to assemble. Have I made some hiring mistakes over 30 years running the company? Of course,
but I’ve also been able to quickly move on from those mistakes by hiring better replacements, and Churchill Mortgage has thrived as a result. There are always times in this business when unexpected events happen, especially things caused by forces outside our control, such as the Tax Act of 1986, and more recently, the bank failures. Navigating these challenges requires significant thought/effort and can take an emotional toll, but over the years, I have learned to not panic and seek wise counsel (Proverbs 11:14). In most cases, I follow the consensus of that counsel, but in the back of my mind, I recognize there are times as a leader where you must make difficult decisions from your gut.
Do you think everyone is cut out to be an executive? In your opinion, which specific traits increase the likelihood that a person will be a successful executive and what type of person should avoid aspiring to be an executive? Can you explain what you mean?
I don’t believe everyone is cut out to be an executive. Some are just not ready due to educational deficiencies, outdated military-type leadership beliefs, and the inability to seek wise counsel and follow it. I think a good leader has people skills, loves and cares for their employees, and fundamentally trusts their people. That’s why I strongly believe in our Churchill Mortgage concept of “putting people over profits.” At the end of the day, we still need to make a profit — or there wouldn’t be a Churchill Mortgage today — but we put a significant emphasis on valuing our employees and making every attempt to treat them well, then expecting them to treat our customers well, then believing our customers will treat Churchill Mortgage well! It all starts with asking the question, “are we treating our employees well?” That is the key to maintaining our cycle of positivity and success.
What advice would you give to other business leaders to help create a fantastic work culture? Can you share a story or an example? Recognize that you simply are not always right!
It’s important to “keep your reverse gear in working order,” or more plainly, be willing to own your mistakes, admit you may have done something incorrectly, and then be ready to go in a different direction. A good example for me would be when we decided to transition from being a mortgage broker to a mortgage bank. I resisted it for years, but ultimately decided to move forward with that change, which proved to absolutely be the right decision.
What are your “Five Things I Wish Someone Told Me Before I Became A CEO” and why?
1 . You don’t have to be the smartest or most educated person in the room.
2 . Put people first.
3 . Hire people who are smarter than you in the job/task you are employing them for.
4 . Minimize, if not stay completely out of, debt.
5 . Build significant cash reserves for the inevitable “rainy days” that always come, usually when you least expect them.
Can you please share a quote that is meaningful to you and how it has been relevant in your life?
“Never quit, never give up,” or as I like to say, “keep chopping wood!” That quote is so important to me, I made it the title of my first book. It’s what helped me get through bankruptcy and depression, because it just speaks to the fact you are going to have setbacks, but you simply must forge ahead and battle through whatever challenges life throws your way.
If you could have lunch with any individual (living or deceased), who would it be and why?
Two people immediately come to mind: President Ronald Reagan and Sir Winston Churchill. Both men were great leaders who overcame significant difficulties and failures in their early lives, only to become aspirational leaders in modern history. I have no doubt I could learn new leadership skills and tendencies from these men if they were still alive.
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.
