Now, four years later, those same organizations realize that they need a more comprehensive and strategic plan to cope with the business reality which has developed since that crisis. So How Will Acclino’s Lean Training Model Work for the Financial Services Sector? In today’s competitive world, banks and financial institutions must now follow the same rule as industrial corporations: produce services … “The organization needs to share a common goal and set of expectations of value that the lean program will deliver, and have the executive commitment and appropriate governance to enable its success. It includes an opportunity to thoroughly inspect processes, make processes leaner and more efficient, cancelling and reducing steps that do not add value for the customer, standardizing the performance of the process and preventing repeat actions, reducing/cancelling controls, etc. Managers may see this as slowing down the lean effort, but ultimately it can simplify their task and improve the eventual outcome. In addition to operating importance, this plan clarifies and presents the bank management’s commitment to the wider process. “Lean isn’t simply about cost cutting, but about changing the way you work,” says Duthoit. While it might be tempting to simply issue an edict and try to order a lean program, Bartletta says that what works best is to engage workers early on. It’s a marathon.”, But analysis and implementation are extremely different. “But the execution — getting to success — is complex.” One reason: “It’s a people process, and it requires a big change in the culture and in the way you manage activities.”. This will need to be backed up with all the required resources and support to ensure its successful completion. Core process Lean Manufacturing Six Sigma Increasing process efficiency 50% 90% 95% In our experience this is the role of Lean Manufacturing. A lean audit of one North American asset manager uncovered ways to make product pricing 12%-20% more efficient by carefully identifying and eliminating non-value added activities. In particular, automatic systems must be watched closely to ensure that they don’t exacerbate a difficult market by, say, withdrawing credit at the wrong time. In reality, customer satisfaction is measured in those “moments of truth” when the customer needs bank services. In detail, this schedule defines the pace of terminating branch processes and moving employees to the centers. “The perfect lean team might get its processes right and do everything consistently, but suppose a customer wants to talk for 30 minutes before booking a flight?” The process may not allow for such lengthy conversations. “With lean, you can standardize, you can homogenize, you can roll up uniform processes and significantly cut exposure,” says Goyal. For example: technologically oriented as too personal relations / VIP etc. According to Johan Reunis, Competence Center Manager Controlling & Reporting at TriFinance, the lean methodology is perfectly applicable in finance, and it should be much broader implemented. People exposed to lean thinking are trained to see and remove these wasteful practices, he says. However, you also want to heavily involve front-line workers and encourage them to share their ideas. We will walk you through the science, step by step, in a highly interactive, learning-by-doing workshop. Financial services businesses can improve by elevating their quality of service, reducing cycle times, improving productivity, reducing waste and eliminating rework. Add to this the banker’s satisfaction and the message the customer receives from that banker. Lean middle-market banks … In a system with no slack, a single defect in one item can easily snowball into a much larger problem. “People are revisiting those partially integrated units, looking for next-generation synergies in operating models and work processes,” says Bartletta. For process-oriented industries such as financial services, lean holds enormous potential. “But you don’t eat it. Think more like a race-car pit crew, and process speed can improve dramatically. For success stories in other industries, please visit our Lean Six Sigma Success Stories page. One of the leading approaches employed by Tefen is based on “lean“ principles. Although implementing lean begins as an operations issue, it quickly becomes a change management exercise that requires companies to deal with workers in new, unfamiliar ways. Nevertheless, to reap rewards from the process, even at the early stages, specific work packages for short term realization should be defined. This lack of coordination can be costly, particularly when allowed to continue long-term. In some cases, process inspection can lead to the entire process being removed. “I see absolutely no reason why lean tools shouldn’t be applied to more knowledge-intensive processes.”. Standardization can also reduce errors. The business component includes logical formation of the approach and the operating model. “You need to focus first on some pragmatic, easily implemented and meaningful applications of change,” Duthoit adds. But old habits often die hard, and slowly. 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