MEASURING AND IMPROVING PERFORMANCE

There are several ways that banks can improve their efficiency in key processes using the Lean Thinking and Six Sigma techniques discussed in the Operations I module. The outcomes include:

  1. Improving common processes such as on-boarding customers (undertaking the KYC and AML processes), and originating and servicing loans;
  2. Elimination of paper documents and manual forms;
  3. Reduction in the cycle time to complete processes;
  4. Better balancing the workload across employees in multiple locations.

Key Performance Indicators: Key performance indicators (KPIs) are the measures that are crucial to the optimal performance of business processes and technology platforms.

The temptation to measure everything possible should be resisted, as it will only distract management from crucial information. What is measured is determined between the business and operations and technology sides of the business but should always have a strong emphasis on the customer experience the bank wants to deliver.

Process Measurement: These can be measured using process re-engineering tools such as Lean and Six Sigma. Wherever possible, accurate data should be used and the use of strong customer data analytics capabilities can create valuable insight. Customer journey analytics, as discussed in Customer Management is one such source of valuable data.

Robotic Process Automation (RPA): This is software that performs tasks that humans would have done previously and includes self-measuring capabilities to help the bank improve its performance by changing the process to become more efficient.

This is software that performs tasks that humans would have done previously and includes self-measuring capabilities to help the bank improve its performance by changing the process to become more efficient.

Artificial Intelligence (AI): Like RPA, AI software (which in reality is mostly machine learning software) can measure its own performance, allowing the bank to re-programme it to provide better responses to the inputs from customers, employees, or other software, such as RPA.

Customer Journey Analytics: You will recall that we discussed how customer journey analytics is used to improve interactions with customers and the processes that support them in Customer Management. Its use isn’t restricted to improving customer-facing processes, as the technique and data can improve the internal processes that underpin them.

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