Services & Programs

Process Rationalization

Optimizing business processes is the sweet spot of LoBue and virtually every engagement involves process improvement. Optimizing a process is at the heart of the LoBue "Productivity and Service Improvement" Program (PSI). The LoBue PSI methodology starts with process maps used to identify and rationalize each step and results in the best possible efficiency and service levels. The most complicated and elongated processes can be streamlined and simplified. LoBue believes that a comprehensive review of processes, the basic building blocks of an organization, will ultimately improve the service, information flow, and organization of a business. Process redesign has many positive rippling effects as even the smallest of improvements can result in huge collective gains for greater productivity and better service.

LoBue utilizes a proven methodology to develop the best process for its clients. Each process is categorized according to functions, and groups of functions make up organizational units. This methodology allows a design team to focus on the basic elements of the process and develop real process improvement. Optimized processes combine to develop the best organization.

Analysis of Interdepartmental Process Flow
(Groups of Functions)

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Analysis of Departmental Functions
(Groups of Processes)

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Analysis of process steps

30 years ago, LoBue developed it's "29 Steps to Productivity" as a part of the PSI program which identifies 29 ways to improve a process. This tool is the basis for analyzing processes and is taught to client teams to look closely at process to identify improvements to be made.

Ultimately, LoBue's methodical and detailed approach to process optimization becomes a solid foundation for the implementation of process improvements.

REAL RESULTS

Automobile Finance Company

The client, a $5 billion+ automobile finance company, initiated a company-wide reengineering program aimed at helping their management team achieve their service and profitability goals by increasing revenue, decreasing operating expense and developing an infrastructure to support growth in a cost effective manner. With the help of this rationalization effort, the indirect automobile financing business would be substantially reorganized along functional lines to better support management's business objectives. Also, remaining decentralized servicing/operations functions would be regionalized and/or nationalized.

The key elements of the program included:

  • Rationalizing all processes in Collections, Buying, Loan Processing, Customer Service, Payments and Collateral Control to improve quality, productivity and cost effectiveness, and to establish a firm base from which to grow the business.
  • Developing functional specifications for the redesigned Loan Processing function and identifying "gaps" with the loan system automation.
  • Rationalization of the payments process to improve payment cycle times.
  • Developing a Management Process to insure the monitoring of productivity, service measures and benefits.

Total response time for credit decisions was improved by 30%. In addition to the increased service quality related to standardization and a more-responsive management process, occupancy expenses were reduced by over $5,000,000 annually. The program identified and achieved a reduction of over 400 permanent FTE -- representing annual savings of $14,000,000.

Bank-wide Program

A Middle Eastern Bank, in the midst of a rapid growth, was experiencing pressure on costs and service levels. The Bank needed a way to withstand the growth pressures by reducing the number of staff increases required for expansion while ensuring service levels were met. LoBue conducted a PSI program including:

  • Retail Branch Distribution
  • Retail Credit and Collections
  • Credit Cards
  • Retail and Commercial Operations
  • Corporate Banking
  • Bank Administration

Real Results The Bank's retail products volumes grew by 40% with no increase in Branch or Back Office staff. Significant backlogs in account opening were eliminated through a streamlined back office process and in-branch sales was supported by a new retail sales process. The credit card issuance cycle time was reduced by 50%. Corporate loan processing cycle times improved with streamlined loan documentation and credit approval process.

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