Deployment Of the 42 banks completing the survey instrument, approximately 20% (9) responded affirmatively to whether LSS had been deployed in their institutions. LSS Users
Deployment LSS appears to be more common among the very largest banks. All Respondents 2 29 9 40 Total 0 3 5 8 Greater than $50 billion 0 0 1 1 $25 billion - $50 billion 0 4 1 5 $10 billion - $25 billion 1 5 1 7 $5 billion - $10 billion 1 17 1 19 Less than $5 billion Not Sure No Yes Has your bank ever deployed Lean Six Sigma? Total Asset Size
Deployment Of the nine banks that have used LSS in their organizations, five have deployed it during the past year. LSS Users
Deployment Banks that have deployed LSS were divided on the scope of that deployment. LSS Users
Deployment LSS deployment spanned the major functional areas of banks, with Operations and Retail Banking heading the list.
Drivers and Priority Among LSS users, the initial decision to explore the potential of the methodology was triggered by one of several factors.
Blend of Lean & Six
Sigma tools works best
The range of business reasons underlying a bank’s decision to deploy LSS reflects the power of the methodology.
Drivers and Priority LSS Users
Drivers and Priority While LSS initiatives are clearly important to banks, such efforts are not among the leading priorities of those institutions.
At banks that have not deployed LSS, about one in six may be leaning toward launching an LSS initiative within the next 12 months. LSS Non-Users Drivers and Priority
When asked to speculate on the possible reasons their banks might cite for launching an LSS project within the next 12 months, LSS non-users were inclined to focus on customer and financial objectives. LSS Non-Users Drivers and Priority
Regarding the decision to launch an LSS initiative within the next 12 months, LSS non-users provided a glimpse at where many banks are with respect to their “LSS thinking.”
Selected Positive Comments
We are in the process of establishing the
foundation and education to be able to execute
Lean Six Sigma within the next year.
We are constantly looking for ways to improve
efficiency and have re-processed twice in the
past two years. We would have to consider the
benefits of Lean Six Sigma before considering
an additional process improvement initiative.
We already use Six Sigma in pockets of the
organization. The original question asked if
the bank deployed Six Sigma. Six Sigma is
done by lines of business and is not
Interested in the concept…sounds like
something we would be interested in looking
We have identified several processes that are
impeding our customer service and need to be
We have begun discussions and are currently
visiting with other organizations that have
implemented Six Sigma
Selected Neutral or Negative Comments
Not sure that it has anything to do with
trust work, since I have never heard of it.
If it can help with trust work, I would be
more than eager to hear more about it.
We are currently implementing several
other priority programs around software
and process enhancements. I doubt this
would be a priority within that time period.
Since I am unfamiliar with this, I do not
anticipate our using it. Would like more
We do not use Six Sigma now and, I
assume, Lean Six Sigma is based on Six
I have no idea what the term means, so I
have no way of knowing whether my
organization is interested or not.
Not on our radar screen.
Since I don’t know what it is, I don’t know if
we would launch it or not.
LSS Non-Users Drivers and Priority
Among banks that have not deployed LSS, the functional areas in the bank most likely to implement an LSS initiative are Operations, Retail Banking, IT, and Lending.
LSS Non-Users Drivers and Priority
At banks that have not deployed LSS, issues surrounding the lack of understanding of the methodology (including the time required to learn more about it) represent the most significant barrier to implementation.
Satisfaction and Impact Most surveyed banks were satisfied with their LSS implementation and results. LSS Users
Satisfaction and Impact While overall satisfaction among the LSS-user banks was positive, respondent comments indicated a range of opinions regarding the level of that satisfaction.
All divisions of the bank have used Lean Six Sigma with
We still have more to do to be successful in the deployment.
Knowledge transfer is good; time to [results] is slower than
LSS Users Representative Comments
Most respondents from banks that deployed LSS felt that the implementation and results had a positive impact on corporate culture. LSS Users Corporate Culture Satisfaction and Impact
Most respondents viewed the LSS impact on corporate culture as positive.
Representative Positive Comments
More fact-based decision-making is taking place.
People are now asking for data before making decisions.
Opportunity identification process has yielded unintended process
LSS is seen as a positive solution to issues and leads to cost-effective
Representative Neutral and Negative Comments
Six Sigma is not included in all major undertakings.
Spotty training has left a number of executives outside the loop.
LSS Users Satisfaction and Impact Corporate Culture Comments
Most executives at banks using LSS agree with the statement: “Lean Six Sigma has significant potential for widespread success in financial services.” LSS Users LSS General Potential Satisfaction and Impact
As expected, most executives at banks not using LSS appear to be relatively neutral about the statement: “Lean Six Sigma has significant potential for widespread success in financial services.”
I’ve been a process improvement
practitioner and have seen it provide
hard dollar results.
There are always opportunities to improve
and, since product differentiation is
challenging in banking, service is critical.
The level of diligence and complexity is
difficult for many organizations to sustain.
I don’t have a clue since this is the first
time I have ever heard of Lean Six Sigma.
Unsure, need more information.
Just another fad that will come and go.
LSS Non-Users LSS General Potential Satisfaction and Impact
LSS Needs A broad range of needs underlies current LSS initiatives among those using the methodology.
approach and reach
Drill into more depth in
our business units
Training needs appear to be distributed evenly across a range of areas.
Too early to know
at this time
Just beginning our
program and can
LSS Users LSS Needs
Executives at banks using LSS rate the LSS training programs they have attended as effective.
We ran our own executive
training with great success.
Broader reach would be an
Champion and project
selection training offered by
consultant were excellent.
LSS Users LSS Needs Personal Training Experience
Executives at banks using LSS are split on whether they would consider participating in further training. Representative Comment Depends on what would be offered LSS Users LSS Needs Personal Training Needs
Executives at banks not using LSS appear to be inclined toward participating in LSS training. LSS Non-Users LSS Needs Personal Training Needs
When LSS non-users were asked to explain why they would or would not consider attending, their responses provided insights into the type of training that would be attractive. LSS Needs Personal Training Needs
Awareness and appreciation for the impact Lean Six Sigma can have in banking organizations appears to be an “all or nothing” proposition .
Large organizations are leading the way. “Filtering down” to mid-sized and smaller organizations is proceeding more slowly than in many other industries.
Even within organizations deploying LSS, there appears to be many “left on the sidelines”.
Common Barriers to Faster “Spread” of LSS Capability within Organizations
Inadequate linkage between the Business Planning Process and the Lean Six Sigma Project Selection Process.
“ I’m all for this initiative but it’s not really helping me with what’s on the plate today.” Senior Executive Trust Operations STOP!
2. Treating all projects the same regardless of scope and complexity. “ It took us two years before we recognized that DMAIC is not a universal hammer for all problem nails. We probably wasted a lot of time optimizing processes that really needed to be leaned out or blown up.” Master Black Belt Money Center Bank Common Barriers to Faster “Spread” of LSS Capability within Organizations STOP!
3. Extensive training requirements make it difficult to get “non-belts” engaged. “ Compelling as it is, we simply can’t afford to pull people off the line for multi-week training sessions.” CEO Community Bank Holding Company Common Barriers to Faster “Spread” of LSS Capability within Organizations STOP!
Provide leaders with a fast, simple process for developing an improvement game plan linked to strategic objectives.
Match the right tools and resources to projects based on problem complexity.
3. Deploy tools and training “just-in-time”.
GO! GO! GO!
Y = f (x 1 , x 2 , x 3 ,…) What do you want to improve? What actions will get you there the fastest? Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Top Priority Outcome and Metrics Y X X X X X X X X X X X X X X X X X X X X X X X 1 X 2 X 3 Top Priority Performance Drivers Rapid Action Projects Expert Study Projects Leadership Decisions Improvement Game Plan Breakthrough Projects Leadership Planning Process
Leadership Planning Process – Key Tool: 4 Box Project Planning Tool EXPERT STUDY PROJECTS BREAK-THROUGH PROJECTS LEADERSHIP DECISIONS RAPID ACTION PROJECTS Apply Advanced Six Sigma Statistical Tools Apply Advanced Lean, Innovation and Intermediate Six Sigma Tools Apply Workout & Basic Lean & Six Sigma Tools Complexity “ Just Do It” – Apply Leadership Decision Making Tools Need for Engagement
LEADERSHIP ALIGNMENT Rapid Action Projects Breakthrough Projects Expert Study Projects AFTER ACTION REVIEW AND REPLANNING Executive Decision Projects (ongoing)
Engage people closest to the problem
Green Belt/Yellow Belt Driven
Use Black Belts as Coaches/Mentors
Engage cross-functional stakeholders from the start
Black Belt/MBB Driven
Black Belt driven with engagement as needed to “get the data”
Ensures linkage of all projects to the business strategy
Secures leadership commitment for all projects
Allows leadership team to control pace of deployment
Lock-in process control plans
Identify best practices and opportunities for “spread
A Repeating 90-Day Cycle of Improvement Accelerated Lean Six Sigma Deployment Model
Appendix: Additional Detail on the 4 Box Project Planning Model
EXPERT STUDY PROJECTS BREAK-THROUGH PROJECTS LEADERSHIP DECISIONS RAPID ACTION PROJECTS Apply Advanced Six Sigma Statistical Tools Apply Advanced Lean, Innovation and Intermediate Six Sigma Tools Apply Workout & Basic Lean & Six Sigma Tools Complexity “ Just Do It” – Apply Leadership Decision Making Tools Leadership Planning Process – Key Tool: 4 Box Project Planning Tool Need for Engagement
Leadership Decision Projects Accelerate results by making, communicating and enforcing a clear management decision to take action. Best used when:
Action required to improve performance is ABSOLUTELY CLEAR AND SPECIFIC .
Minimum risk/significant gain in making a DECISION TO ACT.
Making a clear decision will accelerate OTHER IMPROVEMENT ACTIONS.
EXPERT STUDY BREAK-THROUGH LEADERSHIP DECISION RAPID ACTION
Rapid Action Projects Achieve fast results by tapping into resident know-how and experience close to the improvement needed. Best used when: EXPERT STUDY BREAK- THROUGH LEADERSHIP DECISION RAPID ACTION
Action required to improve performance is CLEAR but how to best do it is not.
Minimal risk in taking action at the local level. High risk in not involving those who must OWN THE IMPROVEMENT.
LOCAL KNOW-HOW EXISTS and can be tapped with effective team approach.
Breakthrough Projects Achieve “quantum leaps” in performance on complex, cross-functional and silo-challenged processes and systems. Best used when:
It’s clear that existing process/ system is NOT CAPABLE of achieving desired performance.
Risk in maintaining the status quo FAR OUTWEIGHS risk in experimenting with new approaches.
STAKEHOLDER SUPPORT for change exists and can be leveraged through effective application of best practices for process redesign.
EXPERT STUDY BREAK- THROUGH LEADERSHIP DECISION RAPID ACTION
Expert Study Projects Accelerate results by gathering data and applying graphical and statistical analysis to identify root causes of problems and potential breakthrough paths. Best used when:
Action required is NOT CLEAR nor supportable with existing data.
HIGH RISK to current performance levels in taking action without more knowledge.
Application of STATISTICAL ANALYSIS will build the case for action needed to identify solutions and secure broad stakeholder support.
EXPERT STUDY RAPID ACTION CORE REDESIGN LEADERSHIP DECISION