Case Study 3

Transform Operations of Mission Insurance Trust  in Liquidation

The California Conservation and Liquidation Office retained AIM to reengineer Mission’s operations. Mission, then with over 600 employees, would process over 165,000 claims.

AIM’s evaluation found claim backlogs in excess of six months and increasing, staff turnover exceeding 30% and escalating expenses. Mission’s organizational structure, work processes and systems were ill suited for present and future needs.

In resolution, AIM devised an organizational structure of self-contained, comprehensive processing work-teams, staffed with cross-trained team members. With this new organizational plan, we worked with managers and staff to create new workflows, controls, and system upgrades tailored as needed. To further achieve target goals, AIM devised a successful incentive plan to motivate work-teams. Also critical was establishing a human resource function to address morale, turnover, training, and employment practices compliance.

Within six months after implementation, operating expenses declined upon a 35% staff reduction; morale and work ethics began to rebound; and absenteeism, turnover and error ratios surpassed targets. Claim backlogs were cleared within this period and handled subsequently on a current basis. Having incorporated management and staff in the restructuring effort, continuous improvement was achieved post engagement. In conclusion, AIM surpassed all engagement objectives within project time expectations.

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