Operational Performance

Challenge Summary

In this quickly changing environment with new and growing challenges, banks are realizing their existing processes do not adequately meet these challenges. Under the current economic conditions, banks are feeling increasing pressure to reduce their operating costs in order to maximize profits.

But changing processes doesn’t always lead to the desired results. In fact, many process improvement changes can result in additional work or more convoluted processes, which ultimately lead to higher operating costs.

In thiscurrent fast-paced environment, process improvements can become obsolete before they can be implemented. Or the bank’s priorities can change so quickly, the recommended changes will no longer meet objectives.

Our Perspective

We have witnessed major changes in the way banks operate – from increased centralization creating economies of scale to improved technology to support faster and more accurate services. Minimizing operating costs, while supporting the banks core strategy, is mission critical for every bank. Focusing on improving operational performance will allow banks to become more nimble and responsive to the challenges of the current business environment.

We believe the following key drivers are motivating banks to strive for better operational performance. The approach for designing any operational performance improvement program for our clients typically addresses one or more of these drivers.

Operating Cost Reduction – Banks are facing increased pressure to maintain profitability. We can help our clients develop and maintain the lowest cost environment to support their strategies in the marketplace.

Continuous Improvement – We are facing an increasingly competitive operating environment surrounded by very complex regulatory requirements. Consequently, operational performance improvement initiatives should be evergreen, not a one-time event. ADS helps clients create a culture of continuous improvement to maintain the highest level of operational performance.

Transparency – As the old phrase goes, “You can’t manage what you can’t measure.” With increased automation comes increased visibility into processes. Our clients benefit from improved information to better manage their processes; leading to improved efficiency and productivity.

Improved Customer Experience – Through improved operational performance, our clients can provide better customer service, along with enhancing the customer experience at every point of contact, from the branch to the ATM to the Internet. We assist our clients in making it easy for customers to do business with them, while maintaining security and compliance.

Information and Document Management – As banks become more data driven and geographically disbursed, it is necessary to accurately and efficiently manage data across the enterprise. Managing information and document flow not only improves operational performance, but also supports critical Regulatory Risk and Compliance efforts.

Process Improvement as a Revenue Enhancer – With improved processes, our clients can support the implementation of improved products and services. As banks seek new products and services to remain competitive, it is imperative to support those offerings in the most efficient, cost-effective way.

Increased Market Share through a Competitive Edge – Most banks offer the same products and services, with some slight variations. What if a commercial loan could be closed in 15 days, rather than in 30 days? What if a product or service could be offered for a lower price than a competitor, while maintaining product profitability? Focusing on operational performance improvement gives our clients a competitive edge.

Improved Regulatory Compliance – As processes are streamlined and enhanced with information technology, greater control and consistency can be achieved. We assist our clients in improving their abilities to comply with the vast array of regulatory requirements through operational performance improvement.

Solution Detail

Current State Assessment
The current state assessment is the foundation for evaluating our clients’ current processes and systems. This provides us with a solid overview of how technology and resources are used, as well as a clear perspective on the culture for change. Our assessment will include evaluation of process flows, turn-around times, volumes, bottlenecks, and the use of resources throughout the process.

End-State Solution Design
The end-state solution design is developed from the results of the Current State Assessment, brainstorming sessions with key stakeholders and strong business users, our own industry knowledge, and an understanding of our clients’ future strategy plans. The end-state solution design includes process flows and narratives to clearly describe the end-state.

Process Improvement Roadmap
This roadmap provides our clients with a clearly defined project work plan, including technology rollouts, timelines, project resource requirements and an implementation approach.

Vendor Evaluation
When our recommended solution includes the utilization of technology not currently in place, we can support our clients in the vendor evaluation process, including identification of potential vendors, support in the RFP process, and the evaluation and selection process.

Solution Implementation/Integration
The Solution Implementation / Integration project is typically the last key phase of an improvement initiative. ADS can begin this project in the planning phase and remain through the delivery and implementation phases.

What Can ADS Do For You?

• Work with you to define the best operating model to support your strategic and financial objectives:

• Operational cost structure
• Centralized vs. Decentralized operations
• Customer / Product profitability

• Build a performance improvement plan that can be implemented quickly and effectively
• Identify the tools and technology to meet your transparency expectations
• Help you develop processes that facilitate a strong customer experience
• Lead the program to implement real improvement in your operating environment