Strategic Plan Analysis
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Quicken Loans Has developed a systems of beliefs called ISMs; these ISMs are practiced by all employees in the process to provide the highest quality of service to all customers. Quicken Loans uses autocratic and paternalistic management styles to increase efficiency and effectiveness within the organization. Quicken Loans takes pride in providing high quality services to all customers by focusing on Total Quality Management. Without TQM Quicken Loans would not have the exceptional reputation like they do at this point.
Strategic Plan Analysis
Quicken Loans Is a large mortgage company with over 23+ years experience as a mortgage lender. Quicken Loans, according to National Mortgage News, is America’s largest online lender and is one of few companies in the mortgage industry to practice Total Quality Management. The mission and vision of Quicken Loans are like no other company in the mortgage industry. The Specific Management styles used at Quicken Loans consist of autocratic and paternalistic. The Total Quality Management styles and characteristics are in place to make Quicken Loans more effective and efficient than their competitors. Quicken Loans promises to deliver the best quality mortgage experience by making the process as simple and quick as possible.
Mission, Vision and Objectives
Quicken Loans operates from a belief system that allows their employees to focus on ways to be better at what they do by breaking their mission statement into 22 ISMs. The ISMs are a basic foundation of how an employee is expects to act on a daily basis in and out of work. Quicken Loans promotes the ISMs around their offices and recognizes individuals who participate in living the ISMs with the ability to receive a bonus based on the number of ISMs nominations received. One main ISMs is “Every client. Every time. No exceptions. No excuses (Quicken Loans, 2008).” What this means is that the client needs to be taken care of, calls and emails must be returned the same day and every client receives a fair chance at using Quicken Loans for their financing options.
Quicken Loans is obsessed with finding a better way of doing mortgage loans and making their customers happy. Quicken Loans incorporates their belief system into the vision of the organization because the ISMs are what make them so much different from their competitors. Quicken Loans looks to become their client’s lender for life by providing the highest quality of service possible. Becoming the #1 online lender in the nation is a very difficult task to undergo. Quicken Loans looks to provide the highest quality of service by each employee practicing the ISMs daily. Making the process as simple as possible eliminates confusion on the client’s part and makes the entire process easier for everyone.
Quicken Loans uses both an Autocratic and Paternalistic management style to perform their daily activities at the most effective manner possible. The Autocratic or Authoritarian style occurs when management makes all the decisions and keeps all the information about the decision making to upper management (Grzeskowiak, 2005). The Paternalistic style is a dictatorial style that tends to lean towards the best interest of the employees rather than the business. This style is used to ensure that the employees will want to work and want to provide a good experience to their clients. Happy employees provide happy clients and happy client’s leads to more referral business and higher revenues.
Stonybrook Financial Services uses a Democratic management style where all employees vote and make the decisions together (Grzeskowiak, 2005). Lawson believes that involving the employees in the decision-making and planning process, provide continual training and support and offer praise freely is imperative to the success of the organization (Lawson, 2001). Stonybrook does not practice Total Quality Management and this management style is acceptable and could be utilized at Quicken Loans to an extent to make some minor decisions. The size of the company affects the style of management that can be used. Larger corporations cannot talk to every employee before they make a decision to ensure that everyone agrees with it. This is why large corporations hire upper management with college degrees to make the decisions for them. Quicken Loans is too large of a company to practice any other management style and at this point a complete change in management style would negatively affect the company. These two companies utilize their specific styles to be as effective and efficient as possible within the mortgage industry.
TQM Styles and Characteristics
“Total Quality Management (TQM) is a participative management style that stresses total staff commitment to “customer” satisfaction (Eskimo, 2001).” Quicken Loans utilizes TQM along with the other management styles to provide the high quality of service to their clients. Quicken Loans expresses Total Quality Management in their ISMs. The ISMs Are: Obsessed with finding a better way, Responding with a sense of urgency is the ante to play and Every client. Every time. No exceptions. No excuses (Quicken Loans, 2008). These three ISMs express the care of their clients and illustrate the things that need to be done to ensure that TQM is still effective and efficient within the organization. Quicken Loans focuses on creating a lifelong relationship with every client by making the client come first and guaranteeing their satisfaction. Quicken Loans takes pride in delivering the highest quality of services by responding to every client the same day and by doing everything possible to make the experience a good one for the client.
Stonybrook Financial Services is a small to medium size business who concentrates on the business first then employees and its customers.
Stonybrook believes that without the company there would be no jobs available for the employees and this would lead to not having any customers. Customer satisfaction is a priority for Stonybrook; however, it just is not at the top of the list. The services provided are beneficial to the customer, if they weren’t the loans would never be able to close due to the governmental guidelines in place to protect the consumer against unfair business practices. Stonybrook is in the process of converting over to a TQM style to increase the customer loyalty and generate happier employees.
Employee retention, continuing educating the employee, supportive management that compliments their employees and getting the employees involved in the organization are all attributes of Total Quality Management.
Should TQM be used
Quicken Loans Takes pride in making their clients first priority. Total Quality Management is used to concentrate the efforts of the organization on customer satisfaction. The size and reputation of Quicken Loans will continue to grow by practicing Total Quality Management. The beliefs that Quicken Loans employees live by separate them from other organizations and allow Total Quality Management to be practiced everyday within the organization. “Nothing is more important to us that professional and quality customer/client service (Quicken Loans, Inc, 2008-09).”
Providing high quality service is not only in the hands of management at Quicken Loans, each employee is expected to live by the ISMs. The mission of Quicken Loans is unlike any other corporation because of the way Quicken breaks down the mission into these ISMs. Quicken Loans utilizes the specific management styles to be effective with the decisions that are made to ensure the success of the organization. Total Quality Management is a process which makes the customer come first by integrating a strategy for continues improvement. Organizations like Stonybrook could structure their corporation in a similar concept as Quicken Loans to become as reputable and successful as Dan Gilbert, the owner of Quicken Loans.
Grzeskowiak, Mark (2005). Management Styles. Retrieved November 24, 2008, from Med
Hunters Web site: http://www.medhunters.com/articles/managementStyles.html
Lawson, K. (2001, March). Build your business from the inside out: Four keys to employee empowerment that will help your business grow. _Business Credit,_ 103(3), 8-10. Retrieved November 25, 2008 From: http://proquest.umi.com/pqdweb?did=69560120&sid=26&Fmt=3&clientId=2606&RQT=309&VName=PQD
Quicken Loans, Inc. 2008-2009 Retrieved November 24, 2008 from: https://www.quickenloans.com/about
TQM. (2001) Retrieved November 24, 2008, from Eskimo Web site: