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  • IBM 2004 total revenue is $96.2B
  • Transcript

    • 1. Integrating Six Sigma with an Enterprise-Wide Process Improvement Strategy Global Lean, Six Sigma and Business Improvement Summit October 15, 2008 Presented by: Enterprise Business Process Services Jerry L. Calvert, SVP Lean Six Sigma Master black Belt
    • 2. You Really Do Need Six Sigma!
    • 3. Contents
      • SunTrust Corporate Overview
      • Enterprise Business Process Services Overview
      • EBPS Process Improvement Methodology
      • Project Overview
      • Current State Assessment
      • Future State Design
      • Business Case
      Overview
    • 4. Primary Market Areas Lines of Business:
      • Five Business Lines
        • Retail
        • Commercial
        • Mortgage
        • Corporate and Investment Banking
        • Wealth and Investment Management
      (1) Source: SNL Financial. Growth projections are based on the weighted average of MSAs and counties not in any MSA in which the bank is located. Based on current footprint. SunTrust enjoys a strong market position in some of the highest-growth markets in the United States. Overview
      • Total Assets $177 Billion
      • Total Deposits $119 Billion
      • Banking Locations 1699
      • ATMs 2506
      • Employees 31,602
      2006-2011 Projected Weighted Average Population Growth (1)
    • 5. Five Major Lines of Business
      • Retail Banking
      • SunTrust’s retail line of business provides financial solutions to five million client households as well as businesses with annual sales of up to $5 million.
      • Commercial Banking
      • SunTrust’s commercial banking line of business serves companies, government, and nonprofit entities with
      • annual sales or budgets from $5 million to $250 million, delivering financing, treasury management, and access to the capital markets to more than 50,000 clients
      • Corporate and Investment Banking
      • SunTrust’s Corporate and Investment Banking line of business (CIB) provides capital raising, treasury management, and other tailored financial solutions.
      • Mortgage
      • January 2007, SunTrust’s mortgage servicing portfolio was $130 billion. SunTrust Mortgage, Inc. originates loans at more than 180 locations in SunTrust markets and adjacent states, maintains correspondent and broker relationships in 48 states.
      • Wealth and Investment Management
      • As of Jan 2007, SunTrust had total assets under advisement of approximately $245.8 billion, including approximately $207.1 billion in trust assets, and approximately $38.7 billion in retail brokerage assets
      Overview
    • 6. Contents
      • SunTrust Corporate Overview
      • Enterprise Business Process Services Overview
        • Mission
        • Organization
        • Objectives
      • EBPS Process Improvement Methodology
      • Project Overview
      • Current State Assessment
      • Future State Design
      • Business Case
      Overview
    • 7. Enterprise Business Process Services Mission SunTrust Mission Help people and institutions prosper Enterprise Business Process Services Mission Help SunTrust and our clients prosper by improving business processes to create a more efficient enterprise and make it easier for clients to do business with us Overview
    • 8. Build EBPS Organization
      • 2008 staffing plan
        • 39 FTE to be reached by year-end
        • Mix of more senior seasoned consultants with low to entry-level consultants
      • Recruiting focus
        • Remains on building strength across skill-sets.
        • Continue to target mix of consulting/IE/financial services experience
      • Consulting support
        • 2008 plan assumes no use of external consultants to augment EBPS staff
        • Any consulting funding would have to come from sponsoring LOB/Function
      • Training & Development
        • 95% Certified in Six Sigma (70% Green Belts, 25% Black Belts or MBB. Goal is to move to 100% BB by year-end.
        • 95% Certified as Lean Practitioners
      SVP Senior Mgr GVP Senior Mgr GVP Senior Mgr
        • Project Managers
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Project Managers
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Project Managers
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Consultant TBD
        • Core Bank Delivery Efficiency
        • HR Process Transformation
        • Deposit Account Opening
        • W&IM/STIS Account Opening
        • Line Renewal
        • Treasury Mgt Implementations Process Improvement
        • Commercial Loan Originations
        • Georgia Oglethorpe
      SVP EBPS Manager Overview
    • 9. Key EBPS Objectives
      • Finalize SunTrusts Process-Improvement Methodology
        • Complete all training (GB, BB, Lean, BPI and Champion) by year end
        • Roll out elements of process improvement methodologies into pockets within LOBs and Functions
        • Integrate Lean and Six Sigma methodologies into all projects going forward
      • Identify and assess process improvement opportunities and drive measurable value
        • Improved client experience (measured by revenue lift and non-financial metrics)
        • Increased efficiency (measured by cost savings and non-financial metrics)
        • Fully support and enable corporate-wide efficiency improvement initiative
      • Drive transition to a paperless and more automated bank (non-check)
        • Define enterprise non-check image capture strategy and work with Content Management COE to support execution
        • Identify and evaluate potential applications of FileNet imaging and workflow (+ other potential BPM solutions)
      Overview
    • 10. EBPS Service Offerings
      • Process Assessment and Improvement
        • Current State Analysis & Issue Identification
        • Future State Design
        • Implementation Roadmap
        • Project Management for Execution (as needed)
      • Rapid Improvement Process (RIP)
        • Fast-paced approach to drive process improvements
      • Facilitation
        • Root Cause Analysis
        • Requirements Identification
        • Strategy Development
      EBPS partners with LOBS and Functions on a wide variety of opportunities ranging from large scale transformational initiatives to small-scale process problem resolution. Roles Services
      • Metrics Development
        • Metrics Identification
        • Metrics Development and Deployment
      • Process Improvement Training
        • Business Process Improvement
        • Lean
        • Six Sigma
      • Survey Development
        • Design
        • Implementation
        • Result Summarization
      • Advisor
      • Data Analyst
      • Liaison/Coordinator
      • Project Manager
      • Process Analyst/Consultant
      • Facilitator
      • Process Lead
      EBPS staff can be called upon to play any of these roles. Overview
    • 11. The Current Environment has Forced us to Re-Focus our Approaches
      • The past three years have been unprecedented in the amount of change in the banking industry. The mortgage industry collapse along with the tightening of credit in general has put extreme pressure on banks to become more efficient, expand delivery channels and stem customer attrition.
      • This sense of urgency has forced us to look at projects that are more “quick wins” and that require little to no technology spend. Projects that will increase deposits, reduce losses and measurably increase customer satisfaction are the top priority.
      Overview
    • 12. Contents
      • SunTrust Overview
      • EBPS Overview
      • EBPS Process Improvement Methodology
        • Overview
        • Tools & Techniques
        • Metrics and Balanced Scorecards
        • Training
      • Project Overview
        • Objectives and Scope
        • Team Structure
        • Approach
      • Current State Assessment
      • Future State Design
      • Business Case
      Overview
    • 13. We Utilize a Variety of Improvement Programs
      • The 3 primary improvement
      • Methodologies. But there are more!
      We don’t want to be perceived as just a “One Trick Pony” Tools & Techniques
      • We did not want to limit ourselves to just one
      • approach!
      • Six Sigma
      • Lean
      • TOC
      • Rapid Improvement Process (RIP)
      • Facilitated Workshops
      • BPM
      • Quality Teams and Councils
      • Surveys
      All this includes a heavy dose of Change Management”!
    • 14.
      • Problem Solving Process:
      • Define the problem
      • Analyze for potential causes of problem
      • Identify possible solutions
      • Analyze possible solutions
      • Select the best solution
      • Plan implementation
      • Implement
      • Verify that problem is resolved
      Methodical, Structured Problem Solving – Let the Problem Dictate the Approach Though we frequently need a more radical deconstruct/reconstruct process to identify root-causes using Six Sigma, there are times we just need to refine and make small improvements as with Lean. At times it may be a technological overhaul using imaging and automated workflow as with BPM
      • What is the problem?
      • That’s where the techniques begin...
      • The various process improvement techniques all have the same aim and similarities:
      • They are methodical ways of addressing issues
      • They are used to identify and solve problems
      Tools & Techniques You can have many tools in a tool box, let the project determine which tool you will use.
    • 15. BPI Methodology Built on the DMAIC Framework Tools & Techniques
    • 16. Robust BPI Methodology Built on Share-Point Tools & Techniques
    • 17. Project Approach Key Deliverables EBPS Process Improvement Methodology Key Activities Timing Assess Current State Design Optimized Future State Develop Business Case & Roadmap
      • Understand key account opening processes
      • Document existing practices for resolving problems
      • Interviews with key stakeholders for input and feedback
      • Map current-state processes including tasks, technologies, people, channels, etc.
      • Identify root causes for most common service problems
      • Meet with Stakeholders and establish scope of project
      • Develop working teams and roles and responsibilities
      • Define key elements of account opening and service issues
      • Identify critical touch points
      • Understand key employee touch points
      • Project team structure and timelines
      • Target customer experience around account opening
      • Defined scope document and revised timeline
      • Project Charter & Project Plan
      • Key employee linkages
      Weeks 1-3
      • Preliminary understanding of current state
      • Baseline of most common issues/problems
      • Process metrics
      • End-to-End process models/SIPOC
      • Process Narratives describing tasks, inputs/outputs, etc.
      • Assess Value vs. Non Value
      Weeks 2-9 Weeks 7-14 Weeks 14-18
      • Gaps and Issues
      • Future-state process flows with “best practices”
      • Service level assessment
      • Future state SLA’s
      • Future-state technology
      • Future-state organization
      • Quick-win opportunities
      • Detailed improvement opportunities
      • Business case summary outlining costs and benefits
      • Additional quick-win opportunities
      • Final improvement results
      • High level roadmap
      • Identify reasons for gaps including, but not limited to: products, technology, processes, training
      • Develop strawman of future-state processes for key functional areas
      • Provide final metrics results showing performance improvement opportunities
      • Assess impact on current service levels.
      • Identify opportunities to create the desired experience, including improvements in service and delivery requirements
      • Evaluate technology improvement opportunities
      • Provide technology solutions for optimizing the Account Opening process
      Plan and Launch the Project Control Improve & Implement Analyze Measure Define Tools & Techniques
    • 18. RIP’s (Kaizens) are Structured Events with Deliverables and Tools Sequenced at each Stage Tools & Techniques
    • 19. Rapid Improvement Process One-Week Schedule Tools & Techniques
    • 20. Facilitated Work Shops Accelerate Speed and Ownership
      • A facilitated workshop is a team-based information gathering and decision making technique to accelerate business planning and problem solving .
      • Benefits are:
      • Speed
      • Ownership
      • Productivity
      • Consensus
      • Quality of Decision Making
      • Enables the rapid exchange of information
      • Involves key individuals
      • This approach has had tremendous success
      Tools & Techniques
    • 21. Metrics are Presented in a Cascading Fashion Based On Appropriate Level of Detail and Need Metrics Cascade Metrics & Measurements 1 2 3 Detail : Data presented in great deal for use by area in question, often shown over time and used after initial review for research, etc. Presented often as large numbers of data points which have to be followed visually to determine trends, etc. Dashboard: Data turned into visual information through use of charts and trend lines presented over time which demonstrate trends, spikes, seasonal movement, etc. Accompanying detail of data in charts is presented if preferred Scorecard: Monthly snapshots presenting high-level performance indicators and ratings along with limited data points Need Fulfilled: Performance Tracking Rankings Need Fulfilled: Information Trends Details Need Fulfilled: Data Details
    • 22. Training is Critical to Sustaining Successful Change Basic BPI, Six Sigma Green Belt and Lean Practitioner Training and Certification have been very Successful! Facilitation Skills and Black Belt Certification Are in development now. Training
    • 23. We are Leveraging Imaging & BPM Technology
      • Benefits
        • Flexible framework that can be leveraged across multiple processes
          • New account opening
          • Exceptions management
          • Case management
          • Business rules engine for front line applications
        • Potential for process-driven methodology to improve service delivery
          • Reengineer before, during, and after development
          • Capture better metrics, enabling cyclical (continuous improvement) reengineering
          • Potential to improve pace of delivery
      • Concerns
        • New and different – generated internal noise
        • Iterative and not waterfall – “breaking the rules”
        • Lack internal skill sets – contractors required for development
        • First implementation can be expensive – success will breed more implementations
      Configuration-driven development and pre-built frameworks promise accelerated deployment and reusability Tools & Techniques
    • 24. Online Account Opening Project: Utilizing BPM Technology
      • Challenges
        • SunTrust, like other financial institutions, focused on deposit growth
        • Cannibalization and acquisition expense have impacted traditional deposit growth strategies
        • SunTrust online channel was not an effective vehicle for driving deposits
      • Opportunities
        • Online marketing potential due to high volume website traffic from potential and existing customers – www.suntrust.com
        • Lots of technology companies touting account opening expertise
        • Quick implementation
        • Lots of process waste and non-value activities – Call center and Online
        • Reduction in cycle times – 15 days to 15 minutes
      Tools & Techniques
    • 25. In Conclusion
      • Research still supports the claim that over 50% of process improvements initiatives are not successful. By understanding the problem and selecting the right approach we will greatly enhance our probability of being successful.
      • The Six Sigma methodology is the foundation of our improvement program but only one of several approaches we take to solve a problem.
      • “ If the only tool you have is a hammer, you tend to see every problem as a nail”.
      • Abraham Maslow
      Six Sigma TOC TOC Lean Lean BPM BPM RIP
    • 26. Contents
      • SunTrust Overview
      • EBPS Overview
      • EBPS Process Improvement Methodology
      • Project Overview
        • Objectives and Scope
        • Team Structure
        • Approach
      • Current State Assessment
      • Future State Design
      • Business Case
      Overview
    • 27. Wealth and Investment Management Group SunTrust Investment Services Client Account Opening Using Lean & Six Sigma to Drive Straight-Through Processing Enterprise Business Process Services Jerry L. Calvert , SVP Lean Six Sigma Master Black Belt
    • 28. Project Focus Focus is the end-to-end SunTrust Investment Services Account Opening Process with emphasis on streamlining the account opening process in order to process a straight-through transaction automatically from beginning to end with minimal manual intervention. We must also improve the client experience by reducing errors and process inefficiencies by eliminating non-value-added steps and therefore making it easier to do business with SunTrust. Overview
    • 29. Project Objectives and Scope
      • Project Objectives
      • Gain a thorough understanding and document the current environment: (People, Processes, Systems, organization, quality)
      • Analyze business processes, policies and procedures, key metrics and enabling systems and data
      • Using Lean and Six Sigma principles, design a future-state that will enable straight-through processing and significantly improve the client experience
      • Reduce unit costs, reduce cycle times, improve quality
      • Benchmark future state against best practices
      • Project Scope
      • In Scope for Evaluation:
        • Client Experience
          • Understanding client needs
        • Organization
          • Front Office, Operations
        • Products/Processes
          • Brokerage/IRAs, Annuities, Cashiering,
          • Stock Cage, Managed Accounts, etc.
        • Technology
          • Imagio, Streetscape, Ncentive, etc.
      • Out of Scope:
        • Desktop Stabilization and Performance
        • Post-Account Opening Activities
          • Trading, Statements, etc.
      Overview
    • 30. Team Structure and Resources Overview
    • 31.
      • Various Lean and Six Sigma improvement approaches were utilized on this initiative to reach it’s strategic goals:
      • VOC and VOB (Customer and Business surveys and interviews)
      • DMAIC (Define-Measure-Analyze-Improve-Control)
      • CPQ (Cost of Poor Quality) We were experiencing >20% error rates on incoming applications
      • Value-Stream mapping, Process mapping, SIPOC
      • Root Cause Analysis (Cause & Effect, Pareto, Brainstorming, 5 Why’s, etc)
      • Benchmarking (what are the best-in-class companies doing)
      • Small Kaizen Events (fix the problem at the source by getting everyone involved)
      • Streamlining via Straight-Through-Processing
      • Poko-Yoke (mistake proofing the application process)
      • Unit Costing (faster, cheaper, better)
      • Cycle Time Analysis (>75% reduction)
      Overview Project Approach
    • 32. Contents
      • SunTrust Corporate Overview
      • Enterprise Business Process Services Overview
      • Project Overview
      • Current State Assessment
        • Initial Findings
        • Gaps and Opportunities
        • Associate Survey Feedback
        • Metrics Analysis
      • The Future State Design
      • Business Case
      Current State
    • 33. Current State - Initial Findings Current State
      • Onsite Assessments
      • Review organization / business models
      • Interview stakeholders
      • Document existing practices
      • End-to-end Process Mapping
      • Conduct work sessions with each functional area
      • Map current state processes
      • Conduct follow-up validation sessions
      • Document Key Findings
      • Baseline gaps and issues
      • Identify root causes
      • Conduct metrics analysis
      • Redundant process handoffs
      • Technology challenges
      • Inconsistent training process
      • Tedious manual processing
      • Quality inefficiencies (up to 20% NIGO)
      • Lack of end-to-end visibility and metrics
      • Complex policies and procedures
      Based on initial findings, the following gaps were identified: A detailed Current State assessment was conducted for the STIS Account Opening process focusing on organizational structure, processes and procedures, technology, and quality.
    • 34. Current State - Gaps and Opportunities
      • Front Office
        • Client account setup process is fragmented and lacks the appropriate technology integration
        • Too much paperwork – can be overwhelming to client during acquisitions process
        • Account Opening process is paper-based which results in incomplete or incorrect data collection
        • Lack of imaging capabilities have greatly diminished branch capacity
        • Policies and procedures are not always clearly communicated across the business
      • Operations
        • Imaging process lacks efficient document capture and integrated workflow
        • Lack of system integration which results in many hard to manage manual processes
        • New account applications are often incomplete or wrong
        • Lack of case management capabilities
        • Lack of end-to-end metrics
      • Technology
        • System and application capabilities should support the needs and requirements of the business
        • Ambiguity regarding roles and responsibilities for technology contacts
        • Lack of robust reporting capabilities
        • Imagio, contact manager, and other applications are not standardized across the organization
        • Slow network performance and bandwidth issues within the branches
      Further research of issues in the current state led to the identification of the following gaps and opportunities in the Front Office , Operations , and Technology : Current State
    • 35. Current State – Associate Survey Feedback
      • A thirteen question survey was conducted to solicit feedback from our client facing Sales Professionals:
        • Eleven participants
        • Private Wealth Advisors, Private Financial Advisors, Investment Consultants and Investment Associates
        • Florida, Georgia and Tennessee
        • Questions focused on account opening and funding
      • “ When a client opens multiple accounts – it takes forever when opening through Streetscape because you have to reenter all of their information…”
      • With an integrated contact management solution, “…every account entered would automatically merge into the contact system.”
      • We need to “…improve the systems and consolidate the paperwork. The name, address, birthdate, SSN, etc., should only have to be recorded once.”
      • An automated workflow system would “…track pipeline, marketing activities, reviews and opportunities all from one site.”
      • “… we do not embrace technology to the point that it would make a significant increase in production. I am concerned that this will become a retention issue for reps and clients.”
      Current State
    • 36. Current State - Metrics Analysis *Based on Quality Sampling 8/15/06 - 8/28/06 (10 business days) for Annuities, Brokerage/IRA, Managed Accounts, and TOA. A two-week in-depth quality assessment was conducted within Richmond Operations for incoming documents and applications*. The results illustrate… NIGOs by Product Current State … and NIGOs by both Product and Region Annuities Transfer of Assets (TOA) Brokerage/ / IRA NIGO Ratio by Applications Total NIGOs by Region and Process Area For this two-week period, 3,553 applications were received Not In Good Order (NIGO), representing an 20% error rate and a process sigma of 2.4 . This error rate has a negative implication on the client’s experience with SunTrust. Year-to-date only 41% of new accounts were opened via Streetscape.
    • 37. Current State - Metrics Analysis Current State Using discrete data sets, Pareto Chart analysis was used to determine the most common error types by transactions. This was one of the indicators for areas of focus and improvement opportunities.
    • 38. Current State - Metrics Analysis The P-Chart was utilized to determine if the proportion of NIGOs for each day sampled is in control. Factors contributing to process variation are causing data points to fall outside of the process control limits. Current State 401 91 8/28/06 10 399 59 8/25/06 9 326 53 8/24/06 8 477 72 8/23/06 7 405 93 8/22/06 6 331 54 8/21/06 5 258 42 8/18/06 4 373 53 8/17/06 3 369 67 8/16/06 2 214 44 8/15/06 1 Total NIGO Date Sample
    • 39. Current State - Metrics Analysis
      • Most lost business occurs in the first 180 days for DDA clients, and 18 months for Investment Management and Trust clients.
      • Wealthy clients often “try out” an organization before committing a significant portion of their assets.
      • The best time to cross sell additional services to clients is when they are newly on board.
      • A dissatisfied client will tell 19 people about their poor experience.
      • New clients can often be the most vocal referral sources when they are “wowed” by their early experiences.
      • New Brokerage Accounts
        • Missing client signature
        • Missing Risk Assessment Form
        • Missing source of income
      • Annuity Accounts
        • Missing client signature
        • Missing disclosures
        • Missing required paperwork
      • Managed Accounts
        • Missing representative signature
        • Missing Principal signature
        • Incomplete paperwork
        • Missing required paperwork
        • Not input into Advisor Port
      • Transfer of Assets (TOAs)
        • Missing client signature
        • Account mismatch
        • Incomplete instructions
        • Missing or incomplete statement
        • Non-transferable funds
      • Degradation of the Client Experience
        • Repeated unnecessary contacts
        • Delays in set-up or transfer of funds
        • Unexpected restrictions of account functionality
      • Financial Implications
        • Cost or rework
        • Loss of current business
        • Missed opportunity for additional business and cross-sells
        • Delays in bringing funds to SunTrust
      • Degradation of SunTrust as a Whole
        • Poor reputation as a Wealth Services provider
        • Client may question our ability to deliver this service and others
      *Client behaviors were extracted from the Strategies Group On-Boarding presentation 9/28/06. Current State Common Reasons for NIGOs Client Behavior* NIGO Implications
    • 40. Contents
      • SunTrust Corporate Overview
      • Enterprise Business Process Services Overview
      • Project Overview
      • Current State Assessment
      • The Future State Design
        • Approach Model
        • Process Blueprint
        • Benefit Analysis
      • Business Case
      Future State
    • 41. Future State Approach Model A Closer Look – Approach Model
      • Current State
      • Assessment
      • Integrated View
      • Best Practices
      • Future State
      • Blueprint
      Process Organization Quality
      • Framework
      • Metric Definition
      • Analysis
      • Management
      • Process
      • Assessment
      • Culture
      • Alignment
      • Skills
      • Sizing
      Provides a shared vision for the organization and serves as a critical foundation for the transition and future improvements Future State A comprehensive approach model utilizing Lean and Six Sigma techniques was utilized to ensure improvement efforts are aligned, integrated and balanced to enable optimal business performance.
      • Value Analysis
      • Alignment
      • Limitations
      • Best Practices
      Technology Culture and Behavior Strategy and Structure Process Organization Design Human Capital Aligns Enables Drives Inspires Drives Enables and Limits Supports Facilitates Inspires Inspires Shapes Technology Approach Model
    • 42. Future State Approach Model
      • Evaluate Current State Findings
      • Prioritize gaps and issues
      • Further drill down of key metrics
      • Initiate future state brainstorm discussions
      • Design Integrated End-to-end Future State Processes
      • Conduct future state work sessions with each functional area
      • Research financial services and banking industry best practices
      • Highlight potential non-value-added process steps
      • Review related technology projects and business initiatives
      • Complete Future State Design
      • Develop future state process blueprint
      • Document improvement opportunities
      • Calculate metrics benefits
      • Identify quick win opportunities
      • Initiate roadmap development
      Future State Future State Improvement Opportunities 1
      • Benefits:
        • Common systems and tools, LOB-wide
        • Single point of access for STIS client data and client financials, with 360 degree view
        • Elimination of redundant tedious data entry, thus saving time, reducing errors, and increasing efficiency
        • Ability to save and later reference work in regards to a client or a prospect
        • Free up Financial Advisor’s time to better focus on Client and prospecting
      Integrated Systems Future State Design of the STIS Account Opening Future State was an iterative process that incorporated SunTrust internal discussion feedback, detailed metrics analysis, and banking industry best practices. As with Current State, primary focus centered on organizational structure, processes and procedures, technology , and quality . Future State
    • 43. Future State Approach Model The Future State Design will provide a practical blueprint for addressing the key improvement opportunities identified from the Current State Assessment. Operational Inefficiencies
      • Redundant process handoffs
      • Quality inefficiencies (up to 20% NIGO)
      • Tedious manual processes resulting in higher costs
      • Too much paperwork
      Missed Front Office Opportunities
      • Tools and technologies that do not fully promote stronger client relationships
      • Increased processing time that results in fewer client referrals, reduced client trust, and higher costs
      Future State Current State (Broken processes & silos of work) We need to all be pulling together on this!
    • 44. Future State Process Blueprint Integrated Systems for client data and client financials 1 2 Streamlined Account Setup for opening new accounts Document Imaging at point of receipt 3 4 Automated Workflow with electronic routing of tasks and documents 5 Case Management with end-to-end view, alerts, and reporting The Integrated Future State process illustrates the end-to-end, cross-department activities and highlights five key areas of improvement. Future State
    • 45. Integrated Systems Integrated systems for client data and client financials 1
      • Key Attributes :
        • LOB-wide Contact Manager
        • Contact Manager integrated with other front-end applications, CIS, Financial Planning Tool, and STIS Account Opening Process
      • Benefits :
        • Common systems and tools, LOB-wide
        • Single point of access for STIS client data and financials
        • Elimination of redundant tedious data entry
        • Increase efficiency and reduce errors
        • Ability to save and later reference that information
        • Free up Financial Advisor’s time to better focus on Client and prospecting
      Future State
    • 46. Streamlined Account Setup
      • Key Attributes :
        • Case Manager for Account Opening and Funding
        • Integrated applications
        • Document Manager with front office document capture
      Streamlined account setup for opening new accounts
      • Benefits :
        • Improve efficiency by eliminating redundant information
        • Online guidance and online help
        • Required documents and data clearly identified
        • Electronic work flow routing including control points and gates
        • Document control throughout process, with Financial Advisor accountability
        • Faster launch for account setup with reduced NIGOs
        • Virtually eliminate transit time delay in Interoffice Mail
      2 Future State
    • 47. Document Imaging / Automated Workflow
      • Key Attributes :
        • Document Capture at point of receipt
        • Case Manager (Workflow engine) including Rules Engine
        • Interface Front Office, Atlanta Ops, Richmond Ops, NFS, Annuity Carriers, and Advisor Port
      Automated workflow with electronic routing of tasks and documents 4 3 Document imaging at point of receipt
      • Benefits :
        • Front Office will own responsibility of document capture
        • Improved efficiency
        • Reduced errors and missing documents
        • Reduce lag time due to Interoffice mail and communication delays
        • End-to-end view with improved reporting and metrics
        • Allow Financial Advisor to focus on building business and fostering client relationships
        • Improved client experience
      Future State
    • 48. Case Management
      • Key Attributes :
        • Robust Case Management Tool for monitoring, tracking, and escalating action items, tasks, and issues
        • Alerts and Effective Reporting
        • Integrated document management
      • Benefits :
        • End-to-end view for Financial Advisors, Sales Assistants, Management, Compliance, and Operations.
        • Effective reporting and metrics, driving towards better business decisions, rewards, and coaching
        • Allow Financial Advisor to focus on building business and fostering client relationships
        • Increase efficiency of Financial Advisors and all support groups
      5 Case management with end-to-end view, alerts, and reporting Future State End-to-end view
    • 49. Future State Benefit Analysis Brokerage/IRA Accounts with ACAT Funding Future State: Source of Benefits Account Setup& Funding -Integrated Contact Management System will require less manual client data entry and reduce Initial Client Setup time for account opening by up to 75%. -Document and Data control will significantly reduce NIGOs, rework and delays. -Accountability for documents is owned by front office. Mailing -Integrated Document Management and Imaging System will enable applications to be imaged and indexed at the point of capture and eliminate 2 days of interoffice mail transportation time and reduce overnight mail expense. Imaging -Having documents imaged at the point of entry, will significantly reduce labor costs in middle office for imaging purposes and delay in process. Account Processing -An integrated workflow system will provide document control thus reducing the NIGO rate and rework in Richmond Ops. Potential 77% Reduction in Overall Processing Time Future State Note: This is actual processing time versus elapsed time for actual receipt of funding and assumes all paperwork is completed at the time of application. Notes: -Account setup usually involves more than one account per relationship. -Imaging includes time spent in queue. -Imaging capability will allow STIS to transmit images electronically to NFS thus eliminating mail time and reducing their SLA from 3 days to same day. -Account processing time takes into account NIGO rework. - Capacity in Front Office will increase significantly and free up staff to better support sales processes (Set appointments, service existing clients, etc.) 1 Hour 1 Day Total: 2 Days Launch Account Setup & Funding Account Processing Start Stop NFS Processing 1 Day Current State: Account Processing ½ Day Image Account Opening Docs Launch Acct Setup & Funding ½ Day Up to 2 Days Total: Up to 9 Days Mail Application 2 Days Image Funding Docs ½ Day Funding Processing Up to 3 Days NFS Processing 3 Days Start Stop
    • 50. Future State Benefit Analysis Annuities Future State: Current State: Source of Benefits Account Setup & Funding -Integrated Contact Management System will require less manual client data entry and reduce Initial Client Setup time for account opening by up to 75%. -Document and Data control will significantly reduce NIGOs, rework and delays. -Accountability for documents is owned by front office. Mailing -Integrated Document Management and Imaging System will enable applications to be imaged and indexed at the point of capture and eliminate 2 days of interoffice mail processing time and reduce overnight mail expense. Imaging -Having documents imaged at the point of entry, will significantly reduce labor cost in middle office for imaging purposes and delay in process Account Processing -Annuity Net will eliminate the need for a manual review and an integrated workflow will automate the feed to each appropriate carrier thus eliminating labor cost for account setup in middle office. Potential 85% Reduction in Overall Processing Time Future State Note: This is actual processing time versus elapsed time for actual receipt of funding and assumes all paperwork is completed at the time of application. Notes: -Account setup usually involves more than one account per relationship. -Imaging includes time spent in queue. -Account processing time takes into account NIGO rework. -Annuities over $500K require an additional step for compliance review. - Capacity in Front Office will increase significantly and free up staff to better support sales processes (Set appointments, service existing clients, etc.) Account Processing & Funding ½ day Imaging Start Stop Launch Acct Setup & Funding ½ Day Up to 3 Days Total: Up to 7 Days Mail Application 2 Days RSS Suitability Review 1 Day 1-2 Hrs 1-2 Hrs Total: Up to 1 Day Launch Account Setup & Funding RSS Suitability Review Start Stop Account Processing 1-2 Hrs
    • 51. Contents
      • SunTrust Corporate Overview
      • Enterprise Business Process Services Overview
      • Project Overview
      • Current State Assessment
      • The Future State Design
      • Business Case
        • Operational & Quality
        • Streamlined Process
        • Financial Benefits
        • Summary
      Business Case
    • 52. Operational & Quality Benefits
      • Overall Technology and Process Improvement Benefits Include:
      • Quality Improvements
      • Reduction of Labor Costs
      • Increase Revenue and Profit Potential
        • Optimize Labor Efficiency of Front and Back Office Support Staff by $0+ Million annually
        • Increase Projected Revenue and Profit through increased capacity of Financial Advisors by $0.0 Million to $0.0 Million annually
        • Decrease Market Exposure
        • Improve Client Experience
        • Improve Employee Job Satisfaction
        • Decrease Cycle Time (70%)
        • Reduce NIGO’s and Re-work
        • by 40-60%
        • Significantly Reduce Number of Process
        • Steps by 52% (from 282 to 146 steps)
      Business Case 0 20 40 60 80 100 120 # Process Steps Br/IRA Current Br/IRA Future Annuity Current Annuity Future MA Acct Current MA Acct Future Richmond Ops Richmond Mailroom & Imaging Front Office
    • 53. A Streamlined Integrated Process Current State End-to-End Process Flow: Future State
      • Improvement Impact
      • Estimated 52% reduction in process steps
      • (from roughly 282 steps to 146 steps)
      • Reduction in cross organizational hand-offs
      • Reduced number of error resolution contact points
      • between Front Office and various Operations groups
      • Provides a single point of alert resolution to the
      • Financial Advisors versus the 14 in the current state.
      Future State End-to-End Process Flow: The Future State Process Blueprint enables significant reductions in the number of manual efforts and hand-offs present in the existing process today. Business Case
    • 54. Financial Benefits
      • There are quantitative, financial benefits associated with an improved account setup process:
      • Future State process improvements are expected to reduce the current
      • process from 283 steps to 146 steps .
      • Total cost to implement technology improvement solutions is approx. $0 Million.
      • The resulting annual financial benefit from reduced labor costs and increased sales revenue is $0.0 Million to $0.0 Million .
      Increased Revenues, Expense Reductions Expanded Sales Capacity Final Setup Operations Front Office 282 Steps Current State: Future State: 146 Steps $
        • Projected 3-Year and 5-Year Financial Benefit
        • is significant:
        • Resulting in an overall reduction
        • in Account Setup time of up to 50%.
      Implementing the Future State Design solution is critical to achieving the financial benefits and process improvements identified for the STIS Account Setup Process. Cumulative Projected Annual Financial Benefits Year 1 Year 2 Year 3 Year 4 Year 5 *Financial benefits are cumulative and include expense reductions, revenue enhancements, and technology costs. Business Case
    • 55. Overall Benefit Summary Integration of enhancements and recommendations identified in the Future State will result in a more optimized STIS Account Opening process that increases organizational productivity and improves the client experience.
      • Reduced cycle time up to 75% for Front Office account opening activities
      • Reduced NIGOs by 40 - 60% ( )
      • Lower labor costs
      • Reduced paperwork
      Significantly increase operational efficiency through:
      • Significantly increase Front Office capacity
      • More time to build client relationships
      • Increased client referrals
      • Increased business revenue
      • Improved client trust and satisfaction
      Allow Financial Advisors to better focus on clients, resulting in: Future State Operational Inefficiencies Missed Front Office Opportunities Future State Process Improvements Overall STIS Account Opening process time and costs reduced by up to 50% . Goal is to eliminate NIGOs entirely Business Case
    • 56. Conclusion
      • To be successful in achieving Process Excellence there must be a solid foundation to build on. This foundation must include:
      • Leadership must both clearly understand and communicate the need for change (there is no substitute for good leadership and many projects fail due to a lack of leadership)
      • There must be a compelling business case which includes increased revenue, lowered expenses and improved service (otherwise what’s the use in doing it?)
      • The Vision, Goals and Objectives must be clearly communicated and adhered to
      • Process Improvement experts cannot do it alone, the business as well as Information Technology must be involved (must be a team effort with a shared vision)
      • A sound structured methodology must be followed with tools, techniques and training provided . There is no substitute for data . (There is no magic formula, we use a combination of in-house developed BPI methodology, Six Sigma and Lean thinking)
      • Communicate your success and celebrate your achievements (everyone else in the company needs to know success is possible and they too will want to be a part of the success story)

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