Lean for Financial Services v1.1

Lean for Financial Services

Andrea Darabos – Lean Agile Practitioner, Trainer
Lean Advantage Ltd. London, United Kingdom
Twitter: @Adarabos #leanadvantage
Comics created via www.comiker.com

Problem #1: Maximizing resource utilization

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos

Problem #1: Maximizing resource utilization
Resource utilization
High

By keeping your front-end staff 100% busy,
you optimize for resource utilization.

1
3

2
Low

Flow efficiency
Low

Customers, however value flow efficiency,
where their needs are served with
minimum delay.
Everything else equal, paying customers,
investors select banks, which are more
flow-efficient.

High
Recommended route
for a lean transformation


Problem #2: Too much work in progress


Problem #2: Too much work in progress
Little’s law:
𝒏𝒓 𝒐𝒇 𝒕𝒂𝒔𝒌𝒔 𝒊𝒏 𝒑𝒓𝒐𝒈𝒓𝒆𝒔𝒔
𝑪𝒐𝒎𝒑𝒍𝒆𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒐𝒇 𝒏𝒆𝒘 𝒕𝒂𝒔𝒌 =
𝒂𝒗𝒈 𝒄𝒐𝒎𝒑𝒍𝒆𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒐𝒇 𝒂 𝒕𝒂𝒔𝒌

Adding more work to your full pipeline
will just slow you down.
You need to understand your organization’s
development capacity, and match it with demand.
By limiting number of concurrent projects/features
and allowing for reprioritizing your pipeline, you will
get the right things done, faster.


Problem #3: Understanding the customer


Problem #3: Understanding the customer
Banks collect a lot of information on their
customers. However, this is not the same as
having a two-way dialogue with them on how
services could be improved.

The bank needs to learn from its customers,
what are the perceived real value-adding steps
in the bank’s services, and what is waste of
their time.


Problem #4: We don’t have problems


Problem #4: We don’t have problems
According to the Lean Agile adoption survey,
the #1 barrier to successful lean agile transformations is
the company culture.
The bank needs to encourage its employees to search
for problems, flag them and then work together to
prevent them from happening again.
This transparency is the foundation of
continuous improvement.


Problem #5: Improvement is a specialist’s job


Problem #5: Improvement is a specialist’s job
Non-Toyota thinking:

normal daily management + improvement

Toyota thinking:

normal daily management = process improvement
The definition above coins the
essence of lean at work.
Business leaders need to ensure
every employee is trained in
continuous improvement and is
encouraged to participate in
improving value creation for the
customer.


Lean for Financial Services v1.1

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