Workplace Solutions - Quality Control
QUALITY CONTROL... DOES IT REALLY HAVE TO BE JUST A COST OF DOING BUSINESS?
Several years ago, the CEO of a major consumer lending organization
picked up the six inch binder that comprised the quality control report
and in frustration asked /Do I have a problem or don?t I?/. This
frustration has been repeated over and over as companies try to deal
with a process imposed by investors that makes even the most seasoned
mortgage bankers roll their eyes. The perception that quality control is
part of a /volume prevention/ exercise that adds no value to the company
is prevalent within most mortgage operations as well as other consumer
lending areas.
The truth of the matter is that this perception is correct as quality
control is done today. Having a full time staff that does nothing but
look for mistakes in loans with no idea if the issues identified are
representative of a larger problem is a waste of valuable capital
resources. Being required to respond to lists and lists of /mistakes/ on
loans which doesn?t tell you anything about a problem in your
organization is a waste of time. These are resources no financial
institution can afford to waste!
BUT it doesn?t have to be that way. The main purpose of a quality
control program is to test the processes used every day to determine
if in fact, they are producing what you want them to produce. Once
issues are found in the process, you can determine if they create risk
to your organization. If so, take action that you know will address the
problem. However opportunity may lie in those issues that are
identified, but that create no risk. Questions that can be asked of
these issues include Is this a process that can be reduced or deleted?
Is there an opportunity to expand product offerings or the base of
operation?
A sound QUALITY CONTROL PROGRAM can help you answer these questions if
it is done right. Employing basic concepts utilized as part of quality
control programs in successful companies, the rjbWalzak Consulting
methodology establishes a quality control process that works for you,
not against you. You can expect to see a streamlined process that covers
more areas of the organization, identifies real risks and reduces costs.
Furthermore you will have an educated staff that functions as a critical
part of your overall risk management team and assists you in enhancing
your investor relationships.