LoBue: Real Resources: Success Story: Finance Company

SUCCESS STORY: FINANCE COMPANY

CLIENT:	Leading Finance Company
DIVISION:	Investment Corporation
CONTACT:	Vice President - Production
MAJOR FUNCTIONS:	Small Business Market Lending

SITUATION
The client needed to develop new methods of operating in order to maintain its leadership position in a rapidly changing market. The company reached the stage where it was necessary to scrutinize the manner in which it conducted business in loan origination, processing and servicing, in order to increase efficiency and reduce costs while improving the quality of customer service. Growth was planned through protection of profit margins and maintenance of a dominant market position in small business lending.

LOBUE RECOMMENDATIONS
Place the client in a strategic position where ongoing success would be better supported by an organization structured to respond to the demands of the marketplace by:

Managing the customer's experience from a centralized position.
Implementing and processing products with high quality and efficient costs.
Having the ability to respond rapidly to changing market conditions to maintain the advantages of market dominance.
Developing the capability to increase business volume by more than 80% without increasing the number of human resources.

REAL RESULTS

Either an increase in loan volume of over 80%, or a savings of approximately US $8,700,000.
Reorganization and establishment of consistent business processes resulted in reduced staffing by 59 FTE or $2,950,000 annually, as well as an additional reduction in staff of 59 FTE within the Sales Force. This would raise the savings to $5,650,000 annually. These staff reductions were accomplished while absorbing a unit volume increase of approximately 49%.
Establishment of a National Sales Department and sales training program to implement a focused sales strategy.
Implementation of formal management process.

The entire business was redesigned, including a realignment of the organization to increase customer service, resulting in dramatically increased financial performance - movement from a $4 million loss to a $23 million profit.