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Spectrum’s focus on specialized niche markets requires a distinctive organizational structure and a unique operations approach in order to enable the delivery of these unconventional services. The nature of our products and services requires a flexibility and responsiveness greater than that needed for traditional field service work. Thus, our organization and approach differ from other national field service vendors. These differences affect several aspects of our business:
- Spectrum has developed an extraordinary ability to customize solutions for both REO property preservation and specialty inspections.
- Our proprietary technology has been developed specifically to support the markets we service—both in communicating with our clients, and in managing the work orders and inspections we perform. Our IT Group must be nimble enough to respond immediately to newly developed products and services, as quickly as these products are conceived.
- Staffing and training of our home office staff become a paramount requirement in being able to deliver specialized services. Specialized services almost always require higher staffing levels than traditional services, because these kinds of services do not benefit from the economies of scale of managing bulk orders of homogeneous work. The general competency level of our staff must be higher, and their training is more intense than would be required for traditional field services.
- Likewise the selection and management of the independent field representatives that we rely on to perform property preservation and inspection services for our clients is also impacted because of the specialized nature of those services. Accordingly, Spectrum has developed a unique approach for its inspectors and contractors in the field.
- The unique organization required to accomplish these specialized services must also have an underlying requirement of long-term stability on the part of the company itself. For example, when considering the added home office staffing and training requirements caused by the nature of our services, it is obvious that long-term stability in that staff is a necessity. Longevity and experience are also important for contractors and inspectors to be able to successfully perform the types of services provided by Spectrum.
Ability to Customize
Spectrum’s forte is in creating packages of services that are highly tailored to the unique needs of its clients. We do not follow the typical “one-size-fits-all” model. Rather, the development of new services is essentially client-driven and is different for every client. Sometimes the services requested by clients involve tasks never previously attempted.
A primary strength of Spectrum is the ability to develop solutions to non-traditional or unusual service requirements. We believe this strength is a necessity when dealing with REO preservation assignments or in performing specialty inspections, field calls and site surveys. Often these types of services involve special training and highly detailed instructions to the field that govern the data being gathered and preservation work being performed.
The processes required to manage a multitude of non-traditional services affects every aspect of our business: the design of our technology, how we staff projects, how we interact with our contractors and inspectors in the field, and how we communicate with our clients.
Technology
Spectrum’s web-based Work Order Management and Inspection Control Systems have been specifically structured so we can address the differences in dealing with specialty products.
For example, when performing property preservation work in the typical pre-foreclosure environment, most P&P specifications are fairly standard. However, performing property preservation work in an REO environment is different. Every REO client has their own individual set of specifications and requirements that are almost always significantly different from their competitors. In response to this, Spectrum’s Work Order Management System allows for unusual flexibility in instructing contractors and in controlling the specific P&P tasks to be performed (which differ greatly from client to client). The traditional “cookie-cutter” approach to work order management would fail in the REO environment.
Similar challenges arise in the specialty inspections business---where most inspections or field calls are specially tailored to individual client needs. The technology to control inspections in this environment must be geared to handling multiple products and be able to monitor inspections at an individual inspection level, when needed. This is much different than that required for traditional mortgage inspections, where the inspections are homogeneous in content, and the inspections are ordered and managed in bulk.
Since Spectrum’s products and services are not the typical field service industry services, this means that the usual field service support technology has no application in supporting these services. However, this lack of traditional support technology does not mean that Spectrum’s clients are left without technological support. In fact, it is very much the opposite. Spectrum has the capability to communicate orders and results through customized electronic links with individual clients, or through third party providers such as NewInvoice and iClear. We routinely create software to support specific client-proscribed communication requirements, and have experience in sending and receiving client data through the use of all protocols currently available.
One other factor that is especially evident in the performance of specialty inspections and REO property preservation is the need for speed in obtaining and reporting results and the ability to communicate electronically with photos and other supporting documentation. Spectrum’s client-viewable web site is specifically designed to accommodate these needs.
Staffing and Training
In both its Asset Management and Specialty Inspections Departments, Spectrum maintains staffing levels that would be considered high by normal field service company standards. Because of the unusual nature of our services, considerably more time must be spent with contractors and inspectors after work order and inspection assignments have been accepted. Often, orders involving specialized products will require supplemental written or verbal instructions so that the contractors and inspectors in the field fully understand the work to be performed. This additional care and follow up means that Spectrum’s Region Coordinators will each manage a smaller than normal portfolio of work orders or inspections. Thus, higher staffing levels overall are necessary.
Because of the unusual nature or the complexity of many of our products and services, and because of the number of different products we provide, training of our in-office staff is critical. Spectrum maintains a Training Department whose purpose is to 1) conduct the formal initial training of new staff members, and 2) conduct continuing training to update and freshen up the knowledge of more seasoned staff members. We also move staff members to new positions on a routine basis to provide for cross-training and to introduce employees to new products and services that we offer.
Independent Field Representatives
Spectrum performs its property preservation and maintenance services and inspection services through the use of independent local field representatives. This network includes more than 800 contractors and 3,000 inspectors nationwide. Our approach to the assembly of this network is different than most national field service companies.
Spectrum’s preferred contractor and inspector “profile” is to utilize local representatives who are relatively small in size—e.g., a small company with only 2–3 crews in the field. Often these local contractors will be a husband and wife team, with one person managing the office and the other overseeing the crews in the field. The reasons why we like this profile are several: 1) Performing quality work is usually paramount for these types of contractors and inspectors; 2) Smaller companies cover a smaller geographic area, and thus they are well versed in the intricacies and nuances of their area; 3) Turnaround times are shortened both because of the smaller geographic area covered, and because Spectrum is working directly with the service provider (not through multiple levels of subcontractors); 4) Multiple “overheads” are avoided, thus keeping the pricing for services in line; and 5) Resolution of issues of responsibility and liability is simplified when Spectrum is working directly with the service provider.
This approach to inspector and contractor assignments is consistent with the unique and specialized services that we provide. An example will illustrate why: If we have an inspection product, for instance, that requires special instruction and training, it is important for us to be working directly with the inspector actually performing the work in the field. Going through multiple levels of subcontractors would make it very difficult to make certain that the training and instructions for the inspection were fully understood.
Spectrum enjoys a good working relationship with its contractors and inspectors, many of whom have worked with us for many years. In most cases these long-term associations translate into a relationship of mutual respect and loyalty. These relationships are important when Spectrum is sometimes asking our field representatives to perform unusual or more difficult tasks, and when are often required to provide supplemental instructions on the work to be done.
Company Stability
Stability of an organization can be measured in several different ways:
· Longevity: Spectrum has been in the field service business for nearly 20 years.
· Low turnover and experienced staff: Spectrum’s management group aggregates more than 60 years of experience in the field service industry. All but one of our key managers have been with Spectrum for more than a decade. Two-thirds of our staff have been with Spectrum at least 2 years, and 35% of our staff are veterans with more than 5 years of experience. This means when you are talking with a member of our staff on the phone, the odds are that you will be speaking with an experienced field service provider.
Because of Spectrum’s focus on unique and specialized services, the strength and experience of our in-office staff becomes even more critical. Less experienced staff members would find the variety of field service products very difficult to manage.
· Strong relationships with contractors and inspectors in the field: A high percentage of local field representatives have worked with Spectrum continuously for 5 years or longer. This means that Spectrum is satisfied with the quality of work being performed, and that we enjoy a good working relationship with these contractors and inspectors. It also means that many of these local representatives appreciate the long-term relationship, are loyal to Spectrum, and when necessary will be willing to accept special request assignments.
Spectrum’s focus on unique and specialized services also requires a more experienced and loyal cadre of local field representatives.
· Respected position and “standing” in the field service industry: An important part of Spectrum’s culture is active participation in the field service industry. Spectrum is a long-time member of the field service industry trade association—the National Association of Mortgage Field Services (NAMFS). Our CEO has been a member of the NAMFS Board of Governors for many years, and is a past president of that association. Members of Spectrum’s management group have chaired several industry-related committees that were charged with the development of standards & procedures, and technology advances for the industry. Our CEO periodically contributes articles to industry publications. Members of our staff have served as chair or as a participant for numerous industry conference panels.
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