In my previous post “Target a New Operating Model (Part 1) “, I discussed the first principle of Aligning Operations with the Business.
In this post, I will explain Principle 2, to Industrialise and Strengthen Processing across the enterprise.
Principle 2 : to Industrialise and Strengthen Processing
|Industrialise and Strengthen Processing||· Differentiate between fast lane and high touch processing|
|· Strive for Cross Asset processing architecture|
|· Develop enterprise wide shared service model|
|· Install culture of continuous improvement|
As the operating model for banks becomes more simple and specialised, focusing on higher transactional volume, the need for technology to understand the business dimensions becomes ever more critical.
Only by understanding the value proposition, including and how to drive value across the enterprise, can a world class next generation operating model be clearly defined.
The correct shared service model approach needs to be in place to differentiate between standard, utility transactions which can be STPd in the fast lane, from complex, bespoke processes that require a high degree of manual intervention and high touch processing. True economies of scale and automation can only be achieved by having a shared service model that is truly cross asset across all product silos, legal entities and geographical regions.
The fast lane utility processes will form the bedrock foundation to support business agility and process innovation by providing a flexible and agile framework to define customised business processes. By their very nature, these processes are often both complex and bespoke, requiring a high degree of manual intervention and entrepreneurial spirit to support aggressive business velocity into new market and geographies.
The drive to Industrialise and Strengthen Processing is all about working smarter, to create sustainable competitive advantage. It’s all about leveraging existing processes and domain expertise to build a culture of continuous process improvement and innovation, where change is viewed as an opportunity that will differentiate between a market leader and a market follower.
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770