Key takeaways
- • The CEO used Six Sigma before a crisis, not after one.
- • Error tracking by transaction drove better training and accountability.
- • No jobs were lost; several employees were promoted to handle higher-value work.
The challenge
In 2007, the CEO of a large national retail bank saw that mortgage growth was unsustainable. He chose to make the retail division lean before the storm hit, creating a scalable model for controlled, profitable growth. The initiative was called Simplify and Unleash.
Rapid expansion had brought frequent transaction errors, too many processes, training gaps and service issues. Back-office staff spent 35% of their time on inspection and rework, and customers lacked confidence in tellers.
Our approach
ProcessArc trained five project leaders as Green Belts on its Financial Services Six Sigma platform, each owning one area: recruiting, training, communication, processes and products.
- Data collection: only 30% of processes had error rates, so the team introduced error tracking for every retail transaction, feeding training, accountability and back-office improvements
- Process simplification: of 120+ teller processes, 10 high-volume core transactions were simplified, worth nearly $1 million
- Product and process elimination: 18 unprofitable products and several high-risk or redundant branch services were dropped
Results
- $2.1 million in financial benefits in eight months, with a pipeline for phase two
- Cycle time and error reports to sustain the gains, and success metrics for every new product launch
- Instead of planned staff reductions, several employees were promoted to handle higher-level transactions
Sheila ShaffieCo-founderBusiness transformation leader who honed her skills at three GE businesses: Plastics, Healthcare and Capital. GE Master Black Belt, University of Chicago MBA and co-author of The McGraw-Hill 36-Hour Course: Lean Six Sigma.