This presentation shows how lean principles are used for mapping value streams, create visibility, manage work levels and how it helped the organization to dramatically reduce the amount of waste in the payments team performance. This transformation through processes optimization and improvement of teams performance had the most valuable impact on payments service quality, as well as customer and employee satisfaction.

1. LEJLA VULOVIĆ | HEAD OF CENTRAL OPERATIONS DIVISION | RAIFFEISEN BANK BOSNIA AND
HERZEGOVINA
Business Agility in Financial Services
Applying Lean Principles: Back-Office Use Case

2. PPM Experience
Organizational Transformation &
Restructuring,
PMO Set-up, Cash Operations
Management, E-Channels
Innovation, Payments Operations,
IT/ SW development,
Sizes from €20k to € 50 mil.
Education
M.Sc.Eng (Faculty of Electrical
Engineering, University of
Sarajevo)
Certified PMP since 2012
Name  Function  Company
Lejla Vulović
Head of Central (non-retail)
Operations
Raiffeisen Bank dd BiH
Professional Experinece
10 yrs. Project Mgm in Banking area
5 yrs. Senior Leadership &
Management
5 yrs. Trainer, Coach

3. Agenda
Lean in Banking
Main elements of Lean transformation
Payments Back Office Use Case

4. Lean in Banking

5. LEAN
creating more value for
customers with fewer resources.
Lean /li:n/ – eng. adjective (of a person or animal) slim, thin, especially healthily so, without fat; adjective (of
an industry or company) efficient with no wastage.

6. It all started with TOYOTA!
Lean implementation
moved from car
manufacturing to
other industries and
productions,
healthcare, service
companies such as
banking and finance,
IT...
Lean was originally created by Toyota to eliminate
waste and inefficiency in its manufacturing
operations.
The process became so successful that
it has been embraced in manufacturing
sectors around the world.
1956 – TPS (Toyota Production System) with all lean
elements introduced
1982 – Toyota and General Motors introduced the
first lean production system in western countries
1990s – TPS (lean) started to concour Europe (Opel,
Audi, Mercedes-Benz, Porsche,...)

7. The best definition of Lean in banking is …
…satisfying explicit and implicit customer needs
with the lowest consumption
of resources and preserving
the assets of the bank
by continuously eliminating waste, variability and
rigidity
SOURCE: McKinsey

8. Lean Strategy
Improve customer satisfaction by:
» Shortening processes
» Delivering faster
» Flexible production
» Improving quality
» Increasing productivity
» Decreasing costs
Lean Transformation
consists of three
phases: Diagnosis,
Design and
Implementation.
Continious
Improvement!

9. Main elements of Lean
transformation

10. Lean attacks 3 main inhibitors of superior performance – Waste,
Inflexibility, and Variability
Less waste means lower costs,
better quality and consistent
throughput (service level)
Reducing inflexibility means
delivering what clients want,
when they want it, and in the
right quantity (service level)
Reducing variability means
improving process reliability,
i.e., lowering cost and improving
qualitySOURCE: McKinsey

11. 3 main elements of Lean Approah
Around Voice of the
Customer, Lean
approach is built on
three elements, that
must all be present
for a successful
implementation.
Operating system
“The way the process is configured and
optimized to create value and minimize losses”
Management Infrastructure
“The formal structures and systems through
which resources are managed in support of the
service process”
Mindset and Behavior
“The way people think, feel and conduct
themselves on the shop floor, individually and
collectively”
SOURCE: McKinsey

12. Payments Back Office Use
Case

13. Optimize processes and
working methods
end to end
› Process simplification (removing process steps)
› SOPs - Standard operating procedures
› Physical layout changes
› 5 “S”

14. Payment processing time reduced 33%*
*From 42s (before lean implementation) to 28s through continious improvement.

15. Lean Office Layout

16. Build formal structures and
processes to manage
the operating system to deliver
business objectives
› Cascaded KPI structure
› Visual performance boards
› Performance reviews
› Daily morning meetings around KPIs
› Capacity planning

18. DRAMATIC INCREASE OF PRODUCTIVITY AND DECREASE OF ERROR RATE
Productivity Doubled
and further increased
through continious
improvement
Continious Improvement
Error Rate decreased
50%
and it is continiously reduced
Lean Sustainability Review performed twice a year. LSR Index 98%!

19. Employee Satisfaction in average 95%
Internal Customer Satisfaction in
average 93%

20. LEJLA VULOVIĆ | HEAD OF CENTRAL OPERATIONS DIVISION | RAIFFEISEN BANK BOSNIA AND
HERZEGOVINA
Be Lean!