Bank on Lean Advantage

The imprint of operations on a bank’s performance is hard to overstate-and extends well beyond the back office. Although the word operations implies something mechanical, perhaps impersonal-such activities and processes have a profound impact on customer satisfaction and retention. In the late 1970’s, for example, Toyota began reengineering operations to deliver not only huge cost efficiencies but also a superior customer experience, which led to an enviable strategic advantage.
The BCG has used similar approach in financial services, they identified four phases,
1.Understand the drivers of customer value: Defining the optimal customer experience and the sources of customer value.
2.Define the target operating model: Review the operating model as a whole to determine how to transform end-to-end processes and deliver customer value.
3.Implement cell-based transformation: Segment the organization into cells to ensure that change occurs systematically and in manageable increments.
4.Pursue continuous improvement: Following the initial transformation, keep the cells in tact to continue finding ways to improve operations