Lean comprises a philosophy or way of thinking that seeks the elimination of waste processes in organizations. Waste is anything that does not add value, such as: transport files from one location to another, the timeout records in the input or output tray, and the execution of unnecessary activities. Companies throw a lot of money to garbage can, through work practices that do not add value. By implementing Lean, organizations make large sums of money from the trashcan. Lean has a set of proven techniques for improving productivity tools, quality and response times. These tools and techniques are focused on creating a continuous flow, standardize inputs to reduce variability in processes and achieve greater operational flexibility.
This article describes the benefits that Lean offers banking, guidelines for successful implementation and how it can be used to develop a sustainable competitive advantage.
Benefits of Lean for Banking
International research reports that banks have introduced Lean techniques in its processes have cut costs by up to 30%, in addition to reduced delivery times and errors up to 80%. Its benefits are well documented in banking and in a wide variety of economic sectors:
- Improving profitability by increasing productivity and reducing costs.
- Decreased percentage of defects and improving service by reducing response times and errors.
- Increased revenue by allowing more time for sales at banks and other service companies.
- Greater involvement of staff.
- Mitigation of operational risk by standardizing processes and work practices.
Adopting Lean is to assume a new way of organizing or revise operational processes. It is a different way of running a business or institution. Only applying it to some of their practices is losing the ability to develop a sustainable competitive advantage.
The banks that have implemented Lean insurance have accelerated their loan approval processes, decreased operating costs, or increased time for sale reorganized its offices. These new capabilities, for example, allow you to increase sales while maintaining relatively low costs, lending to power faster and allow more time to sell in their offices.
The formation of cells in loans, customer or account processing creates a continuous flow, accelerating response times and reducing the error rate. Improvements in the processes of "backoffice" allow faster response to offices, as well as release staff in contact operational workload. The reorganization of offices and cross training allows more time for sales.
In general, any other bank implementing Lean Banking can achieve similar results obtained by the pioneers. To the extent that the other banks adopt these changes in their operations, response levels are similar, as are the costs and quality indicators. However, it will depend on the ability and innovation of its management and employees to use these new capabilities to gain market share profitably or continue to reap greater profitability of the operation to develop a continuous improvement program.