Overall productivity increases 35%.
$22 million increase in operating profit puts company back in black.
Strategic Intent
Develop and launch an effective business model that will be profitable, sustainable and create shareholder value
Situation
- Well-established U.S.-based title insurance company
- Over $400 million in annual revenues
- Being spun-off from parent company
- Real estate slump results in two years of losses
- COO sees importance of change to assure profitability
Issues and Barriers
- Business processes are antiquated and inefficient
- Ineffective goal-setting process leads to low targets – and objectives that are not measured
- Inadequate capacity planning and scheduling
- Excessive cost-to-manage with five-to-one spans of control
- Performance expectations and behaviors are misaligned – and executive team lacks consensus on a strategy for change and improvement
Key Implementations
- Redesign core processes to eliminate non value-added activities, reduce cycle time and increase cost effectiveness
- Define customer values, performance goals and priorities
- Develop clear metrics and management systems in all offices
- Reduce cost-to-manage by restructuring the organization, eliminating management layers
Results
- Overall productivity increases by 35%
- Transaction volume increases 31%
- Operating profit increases by $22 million, resulting in quick return to solid profitability
- Company stock price increases by 60% one year following commencement of initiative
Client Perspective
The goal translation allowed people in the field to buy into making our company successful again. This was a complete turnaround in how we manage the company. The things Brooks taught us are going to be sustained. This is no longer a special project … it’s now the way we manage.
—President & COO
