Process Optimization in a Large Financial Institution

Case study

Client Overview:

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• Industry
  Banking and Financial Institutions
   

• Client Size
  Large, with over 20,000 employees

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Business Challenge
 

• Problem Statement:

  • The leadership team faced significant delays in the time to market for new product development. These delays were primarily due to lengthy risk management processes and complex governance structures.
     

• Objectives

  • Shorten the overall time to market by two-thirds.

  • Develop a renewed governance framework enabling product owners to efficiently complete all necessary governance in a timely manner.
     

Approach:
 

• Methodology

  • Assessment and Analysis: Conducted a comprehensive assessment of the existing governance and risk management processes to identify bottlenecks and inefficiencies.

  • Stakeholder Engagement: Engaged with key stakeholders, including product owners, risk management teams, and senior leadership, to gather insights and obtain buy-in for proposed changes.

  • Benchmarking: Performed industry benchmarking to understand best practices in governance frameworks and time-to-market optimization within the banking and financial sector.

  • Framework Redesign: Developed a streamlined governance framework with clearly defined roles, responsibilities, and processes to expedite decision-making and risk management.

  • Governance Charter: Created a governance charter defining clear roles and responsibilities for the entire group. Updated the group's policy instructions and standard operating procedures (SOPs) to reflect the new processes.

  • Pilot Testing: Implemented the redesigned governance framework in a pilot project to test its effectiveness and gather feedback.

  • Iterative Refinement: Refined the framework based on pilot results and feedback, ensuring it met the needs of all stakeholders and optimized the time to market.

  • Training and Rollout: Conducted training sessions for all relevant teams to ensure a smooth transition to the new framework and full understanding of their roles within it.
     

• Timeline:
  Over one year
   

Solution:
 

• Key Actions
   

  1. Initial Assessment: Conducted a comprehensive audit of the current governance and risk management processes to pinpoint inefficiencies.

  2. Stakeholder Engagement: Held targeted workshops and discussions with key stakeholders to understand their needs and secure their support for the changes.

  3. Framework Development: Designed a new governance framework based on insights gathered, defining roles and responsibilities clearly. Created a governance charter to formalize and communicate these roles and responsibilities.

  4. Policy and SOP Revision: Updated the group’s policy instructions and standard operating procedures (SOPs) to align with the new framework.

  5. Pilot Testing: Implemented the new governance framework in a selected pilot project, closely monitoring its effectiveness and gathering feedback.

  6. Refinement: Made iterative adjustments to the framework based on pilot feedback to ensure effectiveness.

  7. Training and Implementation: Conducted comprehensive training sessions to ensure all relevant teams understood the new framework and their specific roles within it. Rolled out the new framework across the organization, ensuring a smooth transition and full adoption.
      

Results:
 

• Qualitative Results

  • Executive Buy-In: Achieved strong buy-in and support from the executive leadership team, demonstrating confidence in the new governance framework.

  • Improved Processes: The new governance framework was successfully approved and implemented, leading to a more streamlined decision-making process.

  • Enhanced Collaboration: Improved collaboration and clarity among product owners, risk management teams, and senior leadership, ensuring everyone understood their roles and responsibilities.
     

• Quantitative Results

  • Reduced Time to Market: Although exact figures are not available, there was a significant reduction in the overall time to market for new product development. This improvement reflects the success of the new governance framework in eliminating bottlenecks and streamlining processes.
     

Summary
In summary, the project successfully addressed the challenge of lengthy time to market due to complex governance structures. By developing and implementing a streamlined governance framework, the organization achieved substantial improvements in efficiency, executive support, and team collaboration, leading to a notable reduction in time to market.