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DOCUMENT DESCRIPTION
Big cross-organizational change can be difficult and not all organizational transformation is the same. Rapid advances in technology, a growing global creative workforce, and market with fewer and fewer barriers to entry are driving a hyper-creative volatile marketplace. New ideas are making established business positions obsolete at an increasing rate. Products and services that survive are exposed to commodifying price pressure.
The world has started to repeatedly demand Operational Excellence not only in innovation but in delivery of customer service. Continuous improvement has been deeply emphasized with the increasing demand in the marketplace. Companies must recognize the fundamental market shifts that are occurring and must learn to respond effectively. This can be done by building an organization that discovers, shapes, and brings Lean-led Business Transformation to scale as part of its core business direction and purpose.
This framework provides a big picture view of Lean-led Business Transformation and the 3 Core Benefits of a Lean-driven approach.
1. Organizational Capacity
2. Enhanced Customer Value
3. Leading-edge Operating Model
4. Operational Excellence
A Lean-led Approach provides business tangible results that are evident in financial performance, customer and employee satisfaction, and risk mitigation.
This deck also includes slide templates for you to use in your own business presentations.
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Framework Primer
Lean-led Business
Transformation
Presentation created by
Managers and staff have good
understanding of internal and
external customers and their
requirements. Enhanced
Customer Value
Improves productivity by reducing
waste in processes.
Creates capacity opportunities to
redeploy for new business.
Organizational
Capacity
Enables implementation of best
practices and standard
technology in support of risk
management and loss reduction. Leading-edge
Operating Model
Improves responsiveness,
including the ability to provide
clients with more timely.
Reduces errors resulting in higher
quality of service and continuous
improvement.
Operational
Excellence
21
3 4
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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Lean-led Business Transformation provides business the institutional
capability and framework to adapt to rapidly changing opportunities
Presentation Overview
Lean-led Business Transformation is a challenge with no easy answers but a journey well
worth the effort.
Big cross-organizational change can be difficult and not all organizational transformation is the same. Rapid
advances in technology, a growing global creative workforce, and market with fewer and fewer barriers to entry
are driving a hyper-creative volatile marketplace. New ideas are making established business positions obsolete
at an increasing rate. Products and services that survive are exposed to commodifying price pressure.
The world has started to repeatedly demand operational excellence not only in innovation but in delivery of
customer service. Continuous improvement has been deeply emphasized with the increasing demand in the
marketplace. Companies must recognize the fundamental market shifts that are occurring and must learn to
respond effectively. This can be done by building an organization that discovers, shapes, and brings Lean-led
Business Transformation to scale as part of its core business direction and purpose.
This framework provides a big picture view of Lean-led Business Transformation and the 3 Core Benefits
of a Lean-led Approach.
A Lean-led Approach provides business tangible results that are evident in financial performance, customer and
employee satisfaction, and risk mitigation.
This deck also includes slide templates for you to use in your own business presentations.
1 Organizational Capacity
2 Enhanced Customer Value
3 Leading-edge Operating Model
4 Operational Excellence
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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A Lean-led Business
Transformation embeds continuous
improvement in the organization. It
engages employees to help
business leaders successfully
govern and execute change.
Lean-led Transformation provides continuous improvement to cost
structures, client services, and risk reduction
The Lean-led Approach has proven to reduce relevant cost structures by 20% to 30% while
generating marked improvement in client service.
Lean-led Transformation – Overview
Companies are increasingly under pressure to cut costs and grow. Applying the Lean Principles allow
companies to fundamentally transform their operating models.
A Lean-led Business Transformation builds a robust,
factual understanding of the current state, exposing
improvement opportunities to design an end-state
operating model with enabling capabilities.
Achieves best-in class efficiency.
Reduces client, financial, and regulatory risk.
Creates measurable client impact.
Scales with growth.
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Changing market trends have pushed companies towards Lean-led
Transformation
Failure to heed growing market trends can lead to decreased margins and declining
profitability.
Lean-led Transformation – Market Trends
Source: A Lean-led Approach to Operating Model Transformation, Booz&Co, 2010
Market trends are adding pressure on companies to simultaneously cut costs and grow.
Commoditization
of basic services
Increased complexity and
globalization of investments
Stricter regulation
Increasing focus
on risk management
Change in
consumer behavior
TREND DESCRIPTION IMPACT
The value of basic stand-alone services is
declining, increasing integrated services.
Growth in cross-border activity, alternative
investments, and alternative exchanges.
Increased regulatory oversight; for example,
consumer protection and the Volcker rule.
Increased risk aversion and demand for risk
management.
Reduced willingness to incur debt.
Deterioration of trust and customer loyalty.
Technology and compliance investment
requirements.
Growth and revenue diversification opportunity.
New processes and technologies to comply with
regulations.
Increased client need for advisory services.
New risk assessment capabilities and oversight
practices.
Declining profitability.
Increased competition for creditworthy
consumers.
Decreased unit margins per transaction.
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Lean can transform Operating Models to improve service, restructure
costs, and foster growth
Lean-led Transformation enable businesses to undertake executable Lean Programs
to meet challenges.
Lean-led Transformation – Operating Models and Objectives
KEY ACTIONS OPERATING MODEL
A Lean-led Business Transformation is focused towards achievement of 3 core objectives.
Align customization, pricing, and value.
Meet customer requirements.
Execute seamlessly.
Deliver real-time information to customers.
Different Client Service
Operational Improvement
Risk Mitigation
Establish optimal global footprint with a
strategy for local and regional delivery.
Standardize technology and processes.
Make all business units and functions
clearly accountable for costs.
Operational Improvement
Cost Efficiency
Post-Merger Integration
Risk Mitigation
Deploy technology platforms that allow
rapid reaction to market and regulatory
demands.
Create scale.
Build the flexibility to expand quickly as
needed.
Operational Improvement
Post-Merger Integration
Differentiated Client Service
Improved
Service
Restructured
Costs
Growth
Objectives
1
2
3
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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Lean is an approach to fundamentally transform an organization
Lean-led Approach is a process of continuous improvement that sharpens organization’s
capability to address growing business competition.
Lean-led Transformation Approach – Benefits
KEY BENEFITS OF LEAN
The Lean Approach is
anchored on the Philosophy
of Continuous Improvement.
A leadership philosophy that creates a long-term vision for excellence and fosters a
culture of continuous learning to maximize customer value, from top management
down to front-line staff.
Improves responsiveness, including
the ability to provide clients with
more timely information.
Reduces errors resulting in higher
quality of service and continuous
improvement.
Enables implementation of best
practices and standard technology in
support of risk management and loss
reduction.
Managers and staff have good
understanding of internal and
external customers and their
requirements.
Improves productivity by reducing
waste in processes.
Creates capacity opportunities to
redeploy for new business.
1 2
3 4
Enhanced
Customer
Value
Organizational
Capacity
Leading-edge
Operating Model
Operational
Excellence
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The Lean 3 phase process is comprehensive but can be executed with
relatively high speed
The Lean toolkit provides a rich set of tools that can be applied to meet defined corporate
goals.
Lean-led Transformation Approach – 3 Phase Process
Source: A Lean-led Approach to Operating Model Transformation, Booz&Co, 2010
The Lean 3 phase approach defines programs goals early, identifies the right people, defines the performance
measurement metrics, and communicates often to embed a culture of continuous improvement.
Quantify benefits
Prioritize projects
Develop implementation plans
Communicate
Update documentation
5-step current state assessment
Customer and customer purpose
Demand type and frequency
Current performance
Value stream
Environmental/structural factors
Time and motion study
Value stream mapping
Identifying waste
Workload profiling
Structured solutioning
Risk assessment
Current state assessment Target state design Implementation roadmap
Lean Design Principles
Operating Model Design
Workload balancing
Risk analytics and solution
Batch reduction/
elimination
Cellular/Integrated
team concepts
Equipment
reliability
Leveling
Reduce setup time
Standardized work
Quality at the
source
Workplace
organization
Visual control and
management
Pull systems
People involvement
1 2 3
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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Lean-led Transformation capacitates companies to undertake rigorous,
factual assessment of its organizational capacity
The 5-Step current state assessment is an effective tool to conducting rigorous, factual
assessment of our organization.
Lean-led Transformation Benefits – Organizational Capacity
IMPACT
Rigorous, factual assessment of
organizational capacity including
structural factors, performance, and value.
BENEFIT 1
PROCESS
Clarity gained on how things are actually performed
vs. how they are perceived.
Broad and analytic base established to identify and
build buy-in for continuous improvement.
Identify customer and customer purpose.
Determine demand type and frequency.
Review current performance.
Determine and review value stream.
Identify environmental and structural factors such as
workflow interruption.
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Customer value is enhanced with Lean-driven Transformation
The Lean-led Transformation Process must address the real customer concerns, values, or
expectations void of emotion or bias.
Lean-led Transformation Benefits – Enhanced Customer Value
IMPACT
Better understanding of internal and
external customers and their
requirements.
BENEFIT 2
PROCESS
Customer value maximized while minimizing waste.
Complete process from customer standpoint
captured.
Capture the voice of the customer on product and
services.
̶ Attribute of a product/service.
̶ Experience with a product/service or delivery.
̶ Encounter or experience with a business process or
representative.
Address issues and respond to customer need based
to quality requirements.
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The third benefit focuses on development of a Leading-edge Operating
Model
A Leading-edge Operating Model depicts a service delivery model of continuous
improvement.
Lean-led Transformation Benefits – Leading-edge Operating Model
IMPACT
A Leading-edge Operating Model with
organization, process, technology, and
footprint improvements.
BENEFIT 3
PROCESS
Lean Principles applied to process technology,
organization, footprint, and metrics design.
Resource utilization optimized against demand to
create capacity and improve staff satisfaction.
Short, medium, and long-term opportunities
articulated more clearly.
Corporate
Product and/or
Geographic Shared
Services
Global Centers of
Excellence (COEs)
Business Units
Corporate Relationship
Management
Corporate Service
Corporate Specific
Operations
COE and Shared
Services Interactions
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Below, we illustrate a detailed functional view of a Service Delivery Model
For large organizations, developing global CoEs prove to be a very effective way in
instituting best practices across the organization—and a source of Competitive Advantage.
Lean-led Transformation Benefits – Leading-edge Operating Model
Source: A Lean-led Approach to Operating Model Transformation, Booz&Co, 2010
Corporate
Business Units
Corporate Service
• Ultimate responsibility for service delivery.
• First point of contact for the client regarding day-to-day operations.
Corporate Relationship Management
• Manages client relationship on a strategic level, e.g., strategic client planning,
revenue and profitability delivery, cross sale products, executive connections.
Corporate Specific Operations
• Performs operational activities – in many cases customized or with high-level of
client interaction.
• Performs client-driven activities such as client set-up, account opening, billing,
project management, reporting, audit support.
COE and Shared Services Interactions
• Interacts with COEs and Shared Services to ensure appropriate delivery of
services and gathering of KPI/SLA information.
Product and/or Geographic Shared Services
• Performs more standard functions that incorporate product and geographic
specific nuances.
• High level of standardization across one or multiple centralized locations.
• Over time, some activities may migrate to COE.
Global Centers of Excellence (COEs)
• Performs activities that can be standardized and scaled across geographies
and business units.
• Centralized groups utilize standard processes, technology and workload
balancing to execute transactions across locations.
SERVICE DELIVERY MODEL – FUNCTIONAL VIEW
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The fourth benefit focuses on continuous improvement to achieve
Operational Excellence
Operational Excellence is the ultimate end of a Lean-led Business Transformation.
Lean-led Transformation Benefits – Operational Excellence
Source: A Lean-led Transformation to Operating Model Transformation, Booz&Co, 2010
IMPACT
A cycle of continuous improvement that
promotes Operational Excellence.
BENEFIT 4
PROCESS
Lean Masters assigned and developed to support
implementation and deployment of future Lean
projects.
Staff at all levels empowered to identify challenges
and suggest improvement opportunities.
Approaches designed to continually develop people
over time.
Cycle of Continuous Improvement
Solicit improvement ideas at all levels
Communicate
& train
Make
results
visible
Periodically
review
progress &
design
Pilot
Perfection
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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The Lean benefits lead to tangible financial results
The Lean benefits are evident in financial performance where there is greater efficiency and
effectiveness.
Lean-led Transformation – Tangible Results (1 of 2)
Through Lean-led Transformation, the most obvious tangible results are financial.
FINANCIAL PERFORMANCE1
Standardization of inefficient
processes.
Realization of automation
opportunities.
Adoption of best practices
across teams.
Retirement of redundant
systems.
Greater Efficiency and
Effectiveness.
̶ Better alignment of
resources with demand
and capacity.
Consolidation of location
footprint.
Low-cost worksites that
reduce salary inconsistencies.
Rapid implementation of
process improvements with
little or no investment.
Greater Efficiency and
Effectiveness
Process and Technology
Improvements
Saving Opportunities
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The lean benefits lead to tangible customer, employee, and risk mitigation
results
Lean-led Transformation ensures enhanced customer service, reduced losses
and increased employee engagement leading to positive bottom line.
Lean-led Transformation – Tangible Results (2 of 2)
CUSTOMER, EMPLOYEE, AND RISK BENEFITS2
Automation of manual
processes.
Reduced losses.
Better alignment to changing
regulations.
Improved accuracy and
responsiveness.
Flexibility to meet client
requirements.
Online access to real-time
information.
Alignment of resources to skill
levels.
Alternative workforce
strategies such as flexible
and part-time programs.
Increased confidence in
knowledge and capabilities.
Increased employee
engagement and retention.
Customer Service Risk Mitigation Staff Satisfaction
Beyond the easily quantifiable, there are also an array of tangible, softer benefits that are gained.
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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Successful execution of Lean-led Transformation requires strong
Governance and Leadership
Strong Governance and Leadership drive implementation and ensure that results
are achieved.
Governance and Leadership – Responsibilities
A strong Governance Body must take on a serious hold of its roles and responsibilities.
Executive
Sponsor
Lean
PMO
Working
Group
Workstream
1
2
3
4
Drive achievement of program goals,
leading overall solution development.
Communicate to stakeholders.
Manage program across
workstreams, evaluating progress
against plans.
Provide executive oversight and
direction.
Serve as decision-making and issue
resolution body.
Approve major implementation
decisions.
Confirm program results and benefits.
Plan and execute work against plan.
Identify issue and mitigating actions.
Generate deliverables.
Define strategic objectives.
Manage scope and priorities across
stakeholders.
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Governance and Leadership must meet 3 Critical Factors to success
Adherence to the 3 Keys to Success provides a strong foundation for the Lean-led
Transformation Program to anchor on.
Governance and Leadership – Success Factors
Undertaking the Lean-led Transformation must adhere to the 3 keys to success.
3 Alignment of working group participants to the Lean objective, scope, and activities.
1 Ongoing Senior Management support and prioritization.
2 Dedication of the Transformation Team to the Lean-led Program.
Create project plans.
Enforce discipline on deadlines.
Identify problems and quickly communicate solutions.
Run program management office.
Enforce chose methodology.
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Contents
Templates
Governance and Leadership
Overview
Lean-led Transformation
Approach
Key Benefits
Tangible Results
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Insert headline
Insert bumper.
Lean-led Transformation Approach – TEMPLATE
Source: A Lean-led Approach to Operating Model Transformation, Booz&Co, 2010
Current State Assessment Target State Design Implementation Roadmap
Time and Motion Study
Value Stream Mapping
Identifying Waste
Workload Profiling
Structured Solutioning
Risk Assessment
5-step Current State Assessment
Lean Design Principles
Workload Balancing
Risk Analytics and Solution
Operating Model Design
Prioritize Projects
Develop Implementation Plans
Update Documentation
Communicate
Quantify Benefits
1 2 3
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Insert headline
Insert bumper.
Benefits of Lean-led Approach – TEMPLATE
Managers and staff have good
understanding of internal and external
customers and their requirements.
Enhanced
Customer Value
Improves productivity by reducing
waste in processes.
Creates capacity opportunities to
redeploy for new business. Organizational
Capacity
Enables implementation of best
practices and standard technology in
support of risk management and loss
reduction. Leading-edge
Operating Model
Improves responsiveness, including
the ability to provide clients with more
timely information.
Reduces errors resulting in higher
quality of service and continuous
improvement.
Operational
Excellence
21
3 4
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Insert headline
Insert bumper.
Benefits of Lean-led Approach – TEMPLATE ALTERNATE
Leading-edge
Operating Model
Enhanced
Customer Value
Operational
Excellence
Organizational
Capacity
1 2
4 3
Insert filler text,
filler text, filler text,
filler text.
Insert filler text,
filler text, filler text,
filler text.
Insert filler text,
filler text.
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Insert headline
Insert bumper.
Benefits of Lean-led Approach – TEMPLATE ALTERNATE
KEY BENEFITS OF LEAN
Improves productivity by reducing
waste in processes.
Creates capacity opportunities to
redeploy for new business.
Managers and staff have good
understanding of internal and
external customers and their
requirements.
Enables implementation of best
practices and standard technology
in support of risk management
and loss reduction.
Improves responsiveness,
including the ability to provide
clients with more timely
information.
Reduces errors resulting in higher
quality of service and continuous
improvement.
Enhanced
Customer
Value
Organizational
Capacity
Leading-edge
Operating
Model
Operational
Excellence
1 3
2 4
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Insert headline
Insert bumper.
Cycle of Continuous Improvement – TEMPLATE
Source: A Lean-led Transformation to Operating Model Transformation, Booz&Co, 2010
Solicit improvement
ideas at all levels
Communicate
& train
Make
results
visible
Periodically
review
progress &
design
Pilot
PERFECTION
Insert filler text, filler text,
filler text, filler text, filler
text, filler text, filler text.
Insert filler text, filler text,
filler text, filler text.
Insert filler text, filler text,
filler text, filler text.
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Flevy— whether it's to jumpstart projects, to
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just to learn.
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32. 1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com