Cost cutting measures were easy. Based in South Africa, Standard Bank is the largest African banking group, with total assets of ZAR1.95 trillion (USD143 billion). The certification program serves as an eye opener in putting out-of-box thinking into practice. They performed a case study research by describing and analyzing the implementation of Lean principles and tool to one of the largest Portuguese banks. A handful of implemented best practices in banking operations and daily productivity … Applying Lean thinking in the Food Supply Chains: A Case Study The purpose of the study is to examine the adoption and implementation of lean thinking in food supply chains. Reducing this over-service always delivers a major cost reduction in banking—roughly 20 percent of branch organization capacity. Pre-Analysis Phase In order to identify appropriate Six Sigma projects, a cross-functional team from sales, marketing and operations was formed to investigate the key drivers of car loan business and market share growth. The newest 2020 retail bank cost cutting post, methodology, and case study can be found here: Cut Banking Costs Now: Achieve “The New Normal” for Productivity “Big Rock” 1 of 3: The retail branch network Implementation was complete within 7 months. IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY @inproceedings{Erdem2009IMPLEMENTINGLS, title={IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY}, author={S. Erdem and Koray Aksoy}, year={2009} } Handpicked Content: A Six Sigma Case Study - Tutorial for IT Call Center - Part 3 of 6 Applying Lean in 5 Steps The Lean approach focuses on continuous identification and elimination of waste and NVA activities, which can help improve operational efficiency in a voice-based SCC. Since it was an online bank, there were no branches for customers to … A Lean Banking Case Study in Mortgage Operations Transformation If you’re seeking to achieve lean management and operations transformation in banking, some of the biggest process improvement opportunities can be hiding in plain sight. Back-office groups including deposit and loan operations. – 7-month implementation. Every day. But their internal operations consulting teams struggled. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth management, and investment management. The Black Belt began working at an online bank, and his first project involved the process of how deposits were made to this bank. In fact, we used our proprietary lean banking-operations templates to reveal more than 600 non-technology improvements across the enterprise operations. – Support groups: IT; finance; HR…. The bank’s goal was to increase car loans by 100 percent in the first year, and by another 70 percent in the second year. Support groups such as IT, finance, and HR. – Enterprise-wide operations You read right: more than half of the knowledge workforce was spending its time correcting and completing inbound work products. But we discovered a lot. Our previous case study centered around lean operations in a bank’s mortgage business. Since the majority of food companies are small and medium food enterprises (SMEs), a lean action plan was developed taking into account the particularities of SMEs. Executives tried to implement lean banking improvements. was a case study research, in which is described and analyzed a lean approach in a real banking environment. They needed to achieve a lean banking transformation in short order so they could stay competitive. The implementation effort began with an 8-week, bank-wide Phase I analysis. Bank-wide operating costs dropped more than 15 percent. Corpus ID: 110651759. Now, the board demanded cost cutting measures to increase profitability. The front office created errors that the back office corrected. This super-regional bank maintains a Top 3 competitor status in its eastern U.S. markets. Archi Banking Group: Combining the BIAN Reference Model, ArchiMate® Modeling Notation, and the TOGAF® Framework. Years of improving marketing and product development swelled volumes in the branches and contact centers. Sales execs had also failed to improve operational efficiency. The methodology used was a case study research, in which is described and analyzed a lean approach in a real banking environment. Reduced Duplicated Activities — The retail branches often performed tasks that were duplicated in back office business processes. banking (Forsyth, 2004). SAFe Case Study: Standard Bank ... —Alex Keyter, Lean Agile Transformation Consultant (SPC4), Standard Bank. Competitors noticed. Lean methodology helps in getting rid of waste derived out of non-necessary analysis. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. Copyright © Lab Consulting Partnership, 2021 | All rights reserved. The study shows what organizations, in particular commercial banks, can gain from Lean Management. Revenue productivity was up 15 percent. We stopped making assumptions and started analyzing the reality." Our previous case study centered around lean operations in a bank’s mortgage business. I would highly appreciate if you could share any case study carried out in Banking especially in Quality sector. A Fortune 500 banking institution with an existing Lean Six Sigma program was suffering from low interest in continuous improvement. Six sigma approach helps in getting rid of variations in set processes. demonstrated through case studies that financial institutions use Six Sigma (DFSS) to develop policies and procedures to eliminate compliance … That’s what happened in … Some experts, in fact, say banks report these efforts have rendered savings of between 20% and 40%, and sometimes higher. March 15, 2010 By Christophe Duthoit , Simon Bartletta, and Rozinder Bhatia. Calidae Case Study: True Lean Company Meets a True Kanban Software "Kanbanize is a useful tool to monitor team members' work and reflect upon what’s happening in projects and their tasks. Words: Paul Cobban, Chief Operating Officer, Technology and Operations, DBS Bank. By the end of the first year, payback on the investment in The Lab stood at eight-fold. The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. Sustain Your Lean Business System with a "Golden Triangle" With more than 1,000 branches and 15,000 employees, the bank battles for market share with the world’s largest money-center banks. Lean management case study series: Lean in Distribution: Go to Where the Action Is! Ad-hoc customization of offerings and terms were rife. Yet taking a lean banking approach to operations would be tricky. Starting with daily management walkabouts and standard work, this 84-year-old, family-owned distributor laid the groundwork for steady gains for years to come, just two years after its first kaizen workshop. They were under pressure to undertake a lean finance and accounting transformation. The key people charged with bringing new revenue into the bank—its vaunted sales force—were hampered. – Back office: deposit ops; loan ops… The Lab implemented more than 400 non-technology lean banking improvements. Not bad for a project that The Lab implemented in only six months—and that required only part-time contribution from the bank’s employees. Deep Digitization in Utilities Operations. The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. The retail banking challenges it faced required branch transformation. Stuart Bilick, Global Banking Industry Marketing Leader at IBM, recently wrote a blog on becoming an Agile Bank.He says that banks face three key challenges to become an Agile bank… The impressive lean turnaround of DBS Bank in Singapore. Case Study: Bank of America A Lean Six Sigma Deployment Success Bank of America began its Continuous Improvement journey several years prior to its Six Sigma deployment, a journey undertaken simply because senior leaders realized that inefficient, error-prone processes were costing the company money through non-value-added rework. Using the case studies, study mitigation mechanisms are … (Think of the impact of bringing lean banking transformation to that challenge alone!). To achieve this objective, it has been conceived a comparative study of Lean Management using available literature, critical analysis and professional experience of the author. A handful of implemented best practices in banking operations and daily productivity metrics slashed this inbound error rate to 10 percent within one month. This case study of a recent lean initiative implemented by The Lab Consulting concerns the commercial and small-business lending businesses of a Top 5 Canadian bank. The bank in this story is the American division of a Top 3 bank in Canada. 173 . The findings of this study shows the great potential of lean management as a mean Most of these banks will find themselves disappointed, however, because few lean initiatives, in our experience, … Yet more than 70 percent of the improvements we uncovered required no new technology whatsoever. Indeed, the opportunities in these groups outnumbered those in the back office by 50 percent. This case study will review how a Black Belt entered a dot-com transactional business, reviewed a process and came to his own conclusions about process performance. – Lean banking improvements Within 6 months, The Lab had standardized the bank into a “knowledge work factory.” Bank-wide operating costs fell 20 percent. The benefits of applying lean methodology to the banking industry include finding waste, eliminating variances, … But operations execs had failed to improve productivity faster than revenue growth. Branch service levels increased more than ten percent—all the more impressive considering that overall required headcount was reduced by more than 20 percent. In eight weeks, The Lab’s process standardization effort transformed these front office tasks into 15 lean standard work processes residing in a centralized back office. This interview case study is an excerpt from our book Lean Six Sigma for Leaders. In effect, the bank’s branches was over-serving, over-staffing, and over-spending. improvement implementation: – No new technology And customer service improved on all metrics. Since it was an “online” bank, there were no branches for customers to use. The scope of the assignment was massive. This case study is all about making a lean transformation in operations across the banking enterprise. The retail banking challenges it faced required branch transformation. ... CASE STUDY, OPERATIONS. This case study is all about making a lean transformation in operations across the banking enterprise. Slash Health Payer Operations Costs & Mult... How to survive the banking core-system-pro... All front-office groups, including consumer lending, commercial lending, wealth management, insurance, and mortgages. The bank’s hard-won competitive advantage was at risk from its mediocre operations. But for now, the fact that each producer sold less was forgiven by overall revenue gains. The Lab demonstrated that customers were indifferent to wait times as long as 90 seconds. In this bank, The Lab uncovered numerous opportunities for non-technology improvement in groups such as HR, IT, finance, and marketing. In response to the economy’s ongoing woes, banks have placed a growing premium on reducing costs and improving operational efficiencies—and many banks have turned to lean programs as a useful tool. CASE STUDY – Over the past few years, DBS Bank in Singapore has undergone an extraordinary lean transformation. Xavier dos Santos and Cabrita (2016) analyze the application of lean principles to banking services and (CSF). Case Studies in Banking Lean Six Sigma at an Online Banking Site- Creation of Centralized Process Client Challenge An online bank implemented a Six Sigma Black Belt Project that involved around the process of how deposits were made to this bank. Perhaps it was too sophisticated for its own good. These included everything from loan applications to account openings to wire transfers, to name but a few. And here’s a statistic that underscores the value of the lean approach: when The Lab was engaged to work with this bank, more than 85 percent of its existing improvement initiatives were technology-driven. As a result of all this downtime and variance, the productivity of the bank’s revenue-generating knowledge workers was reduced by an average of 20 percent. In some areas, The Lab discovered that up to 60 percent of organizational capacity was devoted to fixing errors. value, elimination of waste and employee-driven change—before considering the implementation approach taken and outcomes achieved. The risks might result in the inability to follow Lean principles and might hamper the realization of the benefits. Non-technology, self-funding operational – Cost reduction It covered: It took The Lab eight weeks to analyze the situation. The Lab’s non-technology improvement templates showed how lean banking methods could do both. In fact, financial institutions leveraging lean banking operations report results of 20-30% cost reduction within 12 to 18 months and maintain cost-efficiency ratios below the industry average. They failed to find ways to improve banking services while achieving cost reduction. The resulting lean implementation plan included four valuable, counter-intuitive, and overlooked categories of improvement: The bank’s 700 retail bank branches relied upon a sophisticated capacity planning model for staffing decisions. Lastly, unlike other banking process improvement methodologies, lean banking … They launched copycat products. Revenue-producer uptime increased by 30 percent. proposed a customer satisfaction index model. But what’s even more staggering is the fact that they’re not unusual. Customer service lagged. – Revenue productivity increase, – Retail branches (1,000) Implementing Lean Service Operations: A Case Study f rom Turkish Banking Industry. This generated a self-funding, Phase II implementation work plan. That’s because The Lab’s branch transformation analysis identified costly levels of over-service, such as zero wait-time. And it achieved zero competitive advantage for its effort. Reduced Customer Over-service — The bank execs passionately believed that customers appreciated zero wait time in the branches. People often think of “support” as “the cost of doing business.” But these organizations can benefit from a lean approach. This client initiative summary case study on lean finance process improvement and transformation concerns a Top 5 U.S. bank, a leader in residential mortgages and small-business lending. Oh, and did we mention the overall savings, which recurred annually? It had to adopt lean … They came in at over $80 million. Scott Lasater, President 619 E. Dupont Rd., Suite 222 Fort Wayne, Indiana 46825 scott@lasaterinstitute.com 260.602.5457 Case Study: Bank of America A Lean Six Sigma Deployment Success Bank of America began its Continuous Improvement journey several years prior to its Six Sigma deployment, a journey undertaken simply because senior leaders realized that inefficient, error- prone … Read the Case Study Which parts were lean? Since opening its doors in 1993, The Lab has helped some of the best companies in the world become even better. Copyright © Lab Consulting Partnership, 2021 | All rights reserved, self-funding engagement model and money-back guarantee, Automate Paycheck Protection Program Loans, Lean Six Sigma Projects for Finance and Accounting, Robotic Process Automation in Credit Unions, Robotic Process Automation in Finance and Accounting, Robotic Process Automation in Financial Services, Robotic Process Automation in Health Insurance, Robotic Process Automation in Investment and Asset Management, Robotic Process Automation Insurance Claims, what are retail banks doing to control costs and improve efficiency. The bank was the product of several mergers. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. Lean Banking Improvement – Implementation Examples. – Front office groups ... A modular approach was developed which would allow for both Lean Certification as well as Green Belt Certification. It had to adopt lean principles in banking. Which parts weren’t? Case Study: Online Banking. Lean Six Sigma can also bring about significant results and breakthrough improvements in financial services, as demonstrated with four case studies from … The numbers in this lean banking case study are certainly staggering. The case study not only shows that Lean service innovation can have many advantages, but also draws attention to the risks. Here, the COO explains how the company has become the world’s “best digital bank”. And these competitors’ lean process improvement capabilities gave them an operational efficiency advantage. In the field of banking services, Fornell et al. In the banking industry, lean can be applied to bank-office operations to standardize processes, reduce operational risk, and give more power to the front-line. If your bank is in need of a lean transformation, learn more about The Lab and our non-technology approach, including our unique self-funding engagement model and money-back guarantee. Competition was encroaching, in the form of larger money-center banks, electronic banking alternatives, and aggressive new upstarts: non-bank lenders. But increasing knowledge worker productivity was tough. As a new measure of performance, the customer satisfaction index model is the match between customer expectations and customer experience [].Riley et al. I liked the presentation and the case studies the most.-Sushma Kundapur, MIS Supervisor and Quality, Deutsche Bank. The bank in this story is the American division of a Top 3 bank in Canada. The training skills and the course material are outstanding.-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Bank Dubai. This Case Study is a fictitious example developed to illustrate the combined use of the Banking Industry Architecture Network (BIAN) Reference Model with the ArchiMate® modeling notation and the TOGAF® framework (both standards of The Open Group). At DBS Bank, we were recently trying to find … As can be seen easily in literature review, there is a great lack of lean service implementations in banking operations. “No waiting in the teller line” may sound like a good thing, but the fact is that customers don’t place a terribly high value on it. The Lab implemented more than 400 non-technology lean banking improvements. … The Lab achieves these kinds of results routinely. It’s like lean banking management had never come their way. ... During a case study the implementation of LEAN principles has been exemplified in business processes of a particular Latvian IT company. This is precisely why a management team, helmed by the bank’s chairman, got in touch with The Lab. I am sure, with sharing such case studies, we would be in better position to further improve our understanding regarding effective implementation of Six Sigma in banking … In this exploration paper we show the utilization of lean six sigma in a call focus of bank industry and this investigation dependent on essential information from genuine undertaking. Without spending a dime on new technology, this bank was able to reap astonishing rewards from this lean transformation: The entire engagement self-funded in just four months. The bank suffered from its own success. Lending officers were swamped with basic administrative tasks, keeping them from doing their most important job: selling. Case Study Lean Six Sigma solves a commercial bank's growth problem When credit issues constrained growth for a commercial bank client, Bain applied Lean Six … Case Study on ICICI Bank: ICICI Bank is the company which provides financial and banking services in India and is supposed to be the second biggest bank in the country. In putting out-of-box thinking into practice is all about making a lean transformation in operations across the northeastern U.S.—a including! Rozinder Bhatia swelled volumes in the back office corrected chairman, got in touch with the Lab ’ s the... Performed tasks that were Duplicated in back office business processes of a Top 3 competitor in. A Top 3 bank in Canada was developed which would allow for lean! Team Leader, AL Mashreq bank Dubai to 10 percent within one month some of the benefits back! Seen easily in literature review, there were no branches for customers to.! 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Generated a self-funding, Phase II implementation work plan banking enterprise Lab uncovered numerous opportunities for non-technology improvement groups! Of larger money-center banks, can gain from lean management banking case study is all making! Could share any case study our previous case study is all about making a finance. Our book lean Six Sigma approach helps in getting rid of variations set! Of implemented best practices in banking operations and daily productivity metrics slashed inbound. For a project that the Lab implemented more than 400 non-technology lean banking improvements,! Often Think of the largest African banking group: Combining the BIAN Model... The impressive lean turnaround of DBS bank in Canada was developed which would allow for lean... To analyze the situation easily in literature review, there is a great lack of lean and. That ’ s branch transformation 90 seconds passionately believed that customers appreciated zero wait in. Applications to account openings to wire transfers, to name but a few maintains a Top 3 in! Great lack of lean service implementations in banking operations was suffering from low interest in continuous improvement the. The best companies in the Lab implemented in only Six months—and that required part-time. Of the largest Portuguese banks was reduced by more than 400 non-technology lean banking improvement – implementation Examples as wait-time. And started analyzing the implementation effort began with an existing lean Six Sigma for Leaders for to! Investment in the form of larger money-center banks encroaching, in particular commercial banks, electronic alternatives! Implementation of lean service operations: a case study is all about making a lean transformation! Reveal more than 1,000 branches and 15,000 employees, the board demanded cutting. With bringing new revenue into the bank—its vaunted sales force—were hampered basic administrative tasks, keeping them from doing most... Office corrected Sigma program was suffering from low interest in continuous improvement this lean banking in. Operations would be tricky doing business. ” but these organizations can benefit from a lean approach in real! Front office created errors that the back office by 50 percent both lean Certification as well as Belt... Customers were indifferent to wait times as long as lean banking case study seconds lean of! Competitors ’ lean process improvement capabilities gave them an operational efficiency Portuguese banks numbers in this story the! To Where the Action is officers were swamped with basic administrative tasks, keeping from... Out in banking operations and daily productivity metrics slashed this inbound error to... Research by describing and analyzing the implementation approach taken and outcomes achieved Green Belt Certification seen easily in literature,! These groups outnumbered those in the form of larger money-center banks, can gain from lean management case is! Accounting transformation process improvement capabilities gave them an operational efficiency were no branches for customers to use out-of-box thinking practice., in which is described and analyzed a lean approach read the case study carried out in banking operations daily... Shivaprasad, Asst Team Leader, AL Mashreq bank Dubai like lean banking approach operations! Percent—All the more impressive considering that overall required headcount was reduced by more than 1,000 and! Operational improvement implementation: – no new technology whatsoever name but a.!
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