From fast appraisals to better ones.
When the housing downturn hit, lenders cared more about the quality of an appraisal than how fast it arrived. A residential appraisal management company had to rebuild its operating model around quality. Digineer and the executive team designed the new model, and early changes cut field reviews 60% and added $1.4–1.8M in annual profit.
At a glance
- Client
- A residential appraisal management company
- Program
- Operating model redesign
- Scale
- Company-wide: strategy, core processes, roles, structure and staffing
- Engagement
- Operating model assessment and design, with executive leadership
- Capability
- Transformation & Value Management
The situation
A market that stopped rewarding speed
The company’s business depends on the economy and on the housing market in particular. In the downturn, lenders became much more focused on the quality of the collateral behind a loan than on how quickly it could be valued.
The operating model had been built to produce a decent appraisal as fast as possible. It now had to produce a higher quality appraisal, and be able to shift with the market.
Warning signs
- Customers valuing quality over speed
- A model built for turnaround time
- Too many costly field reviews
- Overtime from higher-priced full-time staff
- Departments overstaffed at times
What we did
Redesign the model with the people who run it
Digineer assessed the current operating model, then worked with executive leadership to design a new one that could shift with the market, strategically and operationally.
Strategy and future state
Strategic planning set a defined future state, a plan for the first phase and a view of what later phases would require.
Processes, roles and structure
Improved and new core business processes and roles, staff evaluations and changes to the organizational structure.
Metrics and staffing
New cultural elements focused on accountability and the use of metrics, and a predictive staffing model to time the hiring and release of temporary resources.
The outcome
Early wins while the plan took shape
60% fewer field reviews
Completing the low-hanging fruit items reduced field reviews by 60%.
$1.4–1.8M in annual profit
Shifting the appraisal assignment logic produced a $1.4–1.8M increase in annual profit.
Staffing that follows demand
The predictive staffing model reduced overtime for higher-priced full-time staff and the time departments were overstaffed.
A plan for what comes next
The company finished with a defined future state, a plan for the first phase and an understanding of what later phases require.
Operating model design
Has your market changed what customers value?
Digineer works with your leadership to redesign strategy, processes, roles and metrics so the business can shift when the market does.
Rebuild around what customers value
Client name withheld for confidentiality.