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Lean Transformation Applied in the Financial Industry

Lean Transformation Applied in the Financial Industry

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Lean Transformation Lean Transformation Presentation Transcript

  • Lean Transformation Applied Nikat Malik December 2013 All Rights Reserved
  • Lean Transformation Defined     Holistic approach with a function centric focus to realise time measured benefits User involved participative method to identify issues and develop solutions Marked emphasis on continuous innovation Increases organisational capacity by improving productivity and responsiveness Structure of Lean Transformation Response Rework Waste Cost Flexibility Continuous Innovation Organisation Objective & Results Management Training Communication Deliverables User Needs Model Value Add Proposition Pull Versus Push Service Demand Model Functional Process Value Model Workflow Based Model Optimised Output - capable, available, adequate, flexible, continuous flow.
  • Phase Define Measure Analyse Design Control the opportunity the performance the opportunity the solution the performance Objective • Understand opportunity and problems • Establish case for change • Define vision for change and criteria for future state • Current state analysis and evaluation parameters • Design target state and operating model • Establish new operational methods • Establish control framework and a culture of continuous innovation Activity • Assess the opportunity • Organise Team • Identify Processes • Define User Needs • Define process to measure • Apply measures • Understand deviation • Determine sigma • Define hypothesis • Undertake analysis • Develop business case • Establish causes • Innovation ideas • Evaluate solution • Present recommendation • Implement solution • Integrate processes • Confirm & close Deliverable Lean Transformation – Structured Method to Manage Change Efficiently • Project charter • User needs • Process maps • Performance targets • Confirm stakeholders • Base performance • Inputs, processes, outputs • Operational parameters • Data collection plan • Formulate problem • Analyse data • Validate root causes • Document solution • Map processes • Engage process owners • Organisation impact • Finalise solution • Implementation plan • IT requirements • Document new processes • Agree measures & targets
  • Lean Transformation Components User Value Capability • Identify customer • Determine user value • Internal & external usage needs • Benchmark user experience Performance Process • Capability required to deliver value • Resources required to deliver capability • Align end-to-end value streams • Empower continuous innovation • Business strategy led performance objectives • Accepted measurement methods • Visible results and defects • Participative solutions • Defined roles & responsibilities • Meaningful metrics • Transparent process models and workflow • Deliver value on demand • Error proof controls versus defect & exception management • Standardised processes with expected results • Provide capacity for value creation Culture • Business strategy led transformation objectives • Involved & committed leadership • Imbibe lean principles in organisation • Emphasize behaviour to focus on customer value & focus on end-to-end value creation • Encourage innovation & learning • Re-examine processes periodically • Function-wide ownership for innovation Operating Methodology • Continuous innovation platform, tools and methodologies • Shared lean vision • Communicate change, action and plans • Collaborative execution • Measureable performance and rewards • Leadership and work force learning • Common language and terminology
  • Successful Application of Lean Principles in the Financial Industry Opportunity Application Areas • • • • • • Securities Services Trade Processing Accounting Processes Confirmation of transactions Cash Settlements With holding Tax • • • • • • Income Collection – Dividend, Interest Corporate Actions – rights & bonus issues Treasury Services – securities lending, CLS Custody, Trust & Depository Compliance Monitoring Fund Services – performance & attribution Rationale for Lean • • • • Matured products Standardized processes Low variation in tasks Narrow/Low expert requirements • • • • Predictive work effort Limited external interaction Rule based workflow Risk exposure Realized Benefits • Clarity on actual performance versus perception • Analytic base to identity improvement & innovation opportunities • Metrics to measure performance & confidence in new capabilities • Efficient utilisation of resources, technology and capacity • Improved accuracy, timeliness, risk control with less breaks, errors & open items • 60% of capital market processes can be standardised using Lean to achieve savings • Implementing a Lean programme has proven less expensive than Technology / Outsourcing / Offshoring alternatives for matured products & processes
  • Lean Operating Model Current State Operating Model Current State Assessment • Business Functions & Objectives • Process & Workflow Map • Current Performance • Performance & Control Structure • Value Stream Analysis • Environmental Factors Workload Assessment Time & Motion Study Identify Waste & Opportunity Areas Risk Assessment Target Operating Model Lean Design Principles • Standardised Work • Integrated Workflow • Transparent Control • Quality at Source • Pull Through Basis • People Participative • Process Alignment • Workload Balancing Operating Model Design Relationship Management Service Delivery Operations Centres of Excellence Shared Services Implementation Road Map Benefit Realization Organisation & Implementation Plan Prioritize Projects Communication