Implementing a Lean transformation

Context

This client, a bank active in 3 neighbouring countries, had known massive growth (>25% per year) during a couple of years. The corresponding workload increase coincided with high personnel turnover typical for the region at that time. Both challenges were absorbed by massive recruitment. However, resources stayed scarce, and higher efficiency and effectiveness was required for further growth. An Operational Excellence Program was launched. When the economy slowed down, the Operational Excellence Program was pursued just the same, as the need for efficiency remained. Only the reasons changed.

Our Mission

Recruit and train the team that would drive the transformation
With the team, prepare the roll-out model and planning for the specific initiatives
Assist the team in implementing the change program in the mortgage-, debit card-, consumer finance- and corporate lending area (10-15 mln EUR savings ongoing)

Results

Within 1 year:

roll-out to mortgage and debit card area finalised; business teams executing ‘continuous improvement’ – in total 4.5 mln EUR realised
roll-out to consumer finance and corporate lending area – resulting in 5,2 mln Eur savings

Approach

Month 1-2: develop roll-out model for ideas developed with McKinsey
- Understanding and describing standard working procedures (improvements)
- Mapping of the roll-out (how many and which branches, what initiatives, …)
- Developing various roll-out options
Month 3: preparing the roll-out and the implementation team
- Preparing detailed supporting material for the roll-out (handbooks, training documents, communication documents, …)
- Mobilising and training the implementation team (Operational Excellence experts and business responsibles)
Month 4-6: implementing the changes in the branch network
- Executing general training sessions
- Providing on-site support to explain and coach new initiatives
- Follow-up
Month 6-8: certification of the debit card / mortgage roll-out results
Month 7-12 : preparing and starting the roll out in consumer finance and corporate lending areas

Main challenges

Execute the changes in a coordinated way in the three countries (with different cultures) simultaneously
Build a completely new team to a sufficiently high level, so it can drive the roll-out
Maintaining focus on operational efficiency, while at the same time it was decided to fully change the organisational structure and operating model of the bank