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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

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
Problem #2: Too much work in progress

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

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
Problem #3: Understanding the customer

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

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
Problem #4: We don’t have problems

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

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
Problem #5: Improvement is a specialist’s job

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

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

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Lean for Financial Services v1.1

  • 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
  • 2. 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
  • 3. 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 Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 4. Problem #2: Too much work in progress Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 5. 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. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 6. Problem #3: Understanding the customer Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 7. 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. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 8. Problem #4: We don’t have problems Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 9. 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. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 10. Problem #5: Improvement is a specialist’s job Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  • 11. 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. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos