northeast ohio lss forum

Ke yC orp Public 1

Northe ast O h io

Le an S ix S igm a Forum

July 1 9, 201 1

Ke yC orp Public 2

Age nd a

Introd uction/Age nd a

O pe ning R e m arks - Tod d H am m ond , D ire ctor, Ke y Bank

R isk O pe rations

G e m ba Walk - Key Bank R isk O perations D ept.

Pre se ntation of Voice of C ustom e r S urve y R e sults

Re vie w of NE O LS S C harte r

Ne xt S te ps/Ne xt Me e ting

Ke yC orp Public 3

Le an S ix S igm a

R isk O pe rations

Alan Luck, O pE x Manage r

Ke yC orp Public 4

Age nd a

Ke y Bank

R isk O pe rations

Proce ss E xce lle nce Journe y

O ur Le an S ix S igm a Approach

S tructure

Train ing

Type s of Proce sse s

E xam ple Proje cts

Re sults

S ucce s s Factors

Ke yC orp Public 5

$$$$$

Ke yC orp Public 6

Ke y Bank (by the num be rs)

1 825 C om m e rcial Bank (Albany, NY) → Ke y Bank (1 979)

1 994 S ocie ty (C le ve land ) + Ke y (Albany)

$94 B in asse ts (Top 20)

1 3 S tate s

1 000+ Branche s

1 500+ ATMs

Ke yC orp Public 7

R isk O pe rations

1 50 pe ople

Default Management Mortgage s , E d ucational, Auto & Boat Loans

S upport Proces ses Workout (Loan R e structuring – Mod ifications )

Fore closure

Re posse ss ion

Inte rnal aud iting

E m ploye e E ngage m e nt

Ke yC orp Public 8

Le an Six Sigm a Le ad e rsh ip Ke y C orp Inte rnal 1Six Sigm a Le ad e rsh ip Ke y C orp Inte rnal 1

The Process Excellence J ourneyP

erfo

rman

ce

Skills

M ind se ts

Infrastructure

Leadership Support

Training

People

Process Capability

Financials

Reporting

Project Selection

Months to Execute

Hardware & Software

Strategy

A Culture of O perational Excellence

Launch

Early Success

Stabilization

InstitutionalizeTransform

Anecdotal

Ad Hoc

Burning Platform

Inconsistent

Driven Few

Minimal

1-2 Visionaries

3-9

Infrastructural

Aggregate, Average

Cost Reduction

Low Hanging

External Influx

Within Reporting Line

6-18

Maps, Goals

Transactional

Dashboard

Modular Accounting

Kaizen

Documented

Required Competencies

12-36

Internal Quality Mgmt.(DMAIC, DFSS, DMADV, etc.)

ProjectRoll-up

Industry Comparison

Idea Pipeline

Controlled

Career Oriented

24-48

DNA of Org (Quality extends to customers, suppliers, etc.)

Hoshin Kanri

Transformational

Future Oriented

Strategic Planning

Formalized EvaluationContinuous

Improvement

Majority

Career Development

Required

36+

O utsideSupport

Repatriated

New Hire

Repeatable

ExecutiveSupport

ABC

Individual Growth

Analytical

Gro

upD

ynam

ics

Atti

tude

s

Shock/Denial Anger/Depression/Blame “Hang In There”Peak Immobilization

Acknowledgement/Adjustment/Repatriation

Engagement

FormingLatent/Passive/Aggressive

StormingResistance/Debate

NormingSubmission

PerformingCompromise

TransformingMutually Beneficial

Directive StyleAchieve the task. Clarify tasks & expectations, get to know each other (Meyers Briggs, Strengths Finder –

Partnership Grid)

Guiding StyleBuild the team. Address conflicts, review team rules

and teams purpose (Shackleton, Abrashoff, Dent -Trust Commitments)

Supportive StyleEncourage others to contribute their knowledge and skill. Help

others think through and strengthen their ideas and suggestions.Provide appropriate reassurance when implementing others' new ideas. Review others' successes to reinforce their confidence with

new responsibilities.

Delegating StyleDevelop the individual. The team negotiates more, adjusting somewhat to individual styles, facilitate &

recognize more, more one-on-one coaching, focus “big learning's” on top inhibitors and top skills (360’s)

Developing StyleTeam cares about the success of each other, true appreciation of individual strengths and weakness,

challenge team to grow in new ways with new challenges & visibility. (Boards, Cross-Company

Projects, New jobs, etc.)

Shock/Denial Anger/Depression/Blame “Hang In There”Peak Immobilization

Acknowledgement/Adjustment/Repatriation

Engagement

FormingLatent/Passive/Aggressive

StormingResistance/Debate

NormingSubmission

PerformingCompromise

TransformingMutually Beneficial

Directive StyleAchieve the task. Clarify tasks & expectations, get to know each other (Meyers Briggs, Strengths Finder –

Partnership Grid)

Guiding StyleBuild the team. Address conflicts, review team rules

and teams purpose (Shackleton, Abrashoff, Dent -Trust Commitments)

Supportive StyleEncourage others to contribute their knowledge and skill. Help

others think through and strengthen their ideas and suggestions.Provide appropriate reassurance when implementing others' new ideas. Review others' successes to reinforce their confidence with

new responsibilities.

Delegating StyleDevelop the individual. The team negotiates more, adjusting somewhat to individual styles, facilitate &

recognize more, more one-on-one coaching, focus “big learning's” on top inhibitors and top skills (360’s)

Developing StyleTeam cares about the success of each other, true appreciation of individual strengths and weakness,

challenge team to grow in new ways with new challenges & visibility. (Boards, Cross-Company

Projects, New jobs, etc.)

Unresolved: Conflict, confusion, nonalignment, missed goals

Unresolved: Apathy, skepticism, irrelevant competition, resistance

Unresolved: Boredom, burnout Unresolved: Inevitable DismantlingUnresolved: Overloaded, disharmony

Ke yC orp Public 9

Why Le an S ix S igm a?

H ow d o you im prove ?

Prove n, custom e r-focuse d , d ata-d rive n

For ALL proce sse s

Valuable analys is tools & skills (whe n re inforce d )

Ke yC orp Public 1 0

O ur LS S Approach

S OPs !!!!!!!

Me trics (whe re are we ?)

Assure ad he re nce to S O Ps

Proje ct/proce s s s e le ction

Proje cts vs . Kaize n e ve nts

D ata/analys is vs . Le an/qu ick h it


Proje ct Focus

Green Belt proje cts

5 months or les s(1s t day of training to Control Tollgate)

X

$25 K


LS S S tructure

25+All m anage m e nt +

h igh pe rform ing associate s

G re e n Be lts

2LS S Proce ss Manage rBlack Be lts

6S e nior Manage rsS ponsors

#LevelLS S Role


G re e n Be lt Train ing

Updated OI’s

To-Be Process Map

Control Plan

Process Dashboard Control Charts

Hypothesis Test

New Process Capability

Final Project Documentation

Elevator Speech

Brainstorming

Affinity Diagram

Solution Prioritization Matrix

Poka-Yoke

FMEA

Influence/ Communication Plan

Training Plan

Elevator Speech

Process Mapping

Value Add Analysis

Takt Time Analysis

Kanban Analysis Bar/Pie Chart

Dot Plot

Probability Curve

Scatter Plot Pareto Charts

Hypothesis Tests

Elevator Speech

Brainstorming

Fishbone Diagram

Prioritization matrix

Attribute MSA or Gage R&R Study

Sampling Plan

Data Collection Plan

Data Plots

Control Charts Sigma/Yield

Calculations

Elevator Speech

Charter

SIPOC

Voice of the customer

Gemba Visits

Affinity Diagram

CTQ Tree

Kano Model

Prioritization Matrix Benchmarking

Elevator Speech

Tools

17. Standardize Process & Prep Participants

18. Clarify Process Management and Monitoring Plan

19. Monitor Process & Evaluate Results

20. Change Mgmt & Communication Plan

21. Document Key Learnings

13.Identify, Evaluate & Select Potential Solutions

14.Mitigate Risk

15.Test or Pilot Solutions

16.Implement Improvements

9. Graph the Data and Develop Patterns

10.Visualize the Process and Identify Value

11.Verify and Quantify Critical Causes

12.Quantify Financial Benefits

5. Develop a Data Collection Plan

6. Verify the Measurement System & Gather Data

7. Determine Baseline Capability and Stability

8. Identify Potential Root Causes (Xs)

1. Determine the Business Case

2. Create a Project Charter

3. Map the Hi-Level Process

4. Translate the Voice of the Customer into CTQs (Ys)

Steps

ControlImproveAnalyzeMeasureDefine

Updated OI’s

To-Be Process Map

Control Plan

Process Dashboard Control Charts

Hypothesis Test

New Process Capability

Final Project Documentation

Elevator Speech

Brainstorming

Affinity Diagram

Solution Prioritization Matrix

Poka-Yoke

FMEA

Influence/ Communication Plan

Training Plan

Elevator Speech

Process Mapping

Value Add Analysis

Takt Time Analysis

Kanban Analysis Bar/Pie Chart

Dot Plot

Probability Curve

Scatter Plot Pareto Charts

Hypothesis Tests

Elevator Speech

Brainstorming

Fishbone Diagram

Prioritization matrix

Attribute MSA or Gage R&R Study

Sampling Plan

Data Collection Plan

Data Plots

Control Charts Sigma/Yield

Calculations

Elevator Speech

Charter

SIPOC

Voice of the customer

Gemba Visits

Affinity Diagram

CTQ Tree

Kano Model

Prioritization Matrix Benchmarking

Elevator Speech

Tools

17. Standardize Process & Prep Participants

18. Clarify Process Management and Monitoring Plan

19. Monitor Process & Evaluate Results

20. Change Mgmt & Communication Plan

21. Document Key Learnings

13.Identify, Evaluate & Select Potential Solutions

14.Mitigate Risk

15.Test or Pilot Solutions

16.Implement Improvements

9. Graph the Data and Develop Patterns

10.Visualize the Process and Identify Value

11.Verify and Quantify Critical Causes

12.Quantify Financial Benefits

5. Develop a Data Collection Plan

6. Verify the Measurement System & Gather Data

7. Determine Baseline Capability and Stability

8. Identify Potential Root Causes (Xs)

1. Determine the Business Case

2. Create a Project Charter

3. Map the Hi-Level Process

4. Translate the Voice of the Customer into CTQs (Ys)

Steps

ControlImproveAnalyzeMeasureDefine


Proce sse s

Default Management Metrics O utbound /Inbound C alling Avg H and le Tim e , C ontact Rate

C all D ocum e ntation D ocum e ntation Accuracy

Workout Workout Packe t Accuracy

Asset Management Re posse ss ion Liqu id ation R ate

Fore closure Fore closure C ycle T im e

Asse t R e m arke ting Ve nd or E ffe ctive ne ss


S e ttle m e nt D e cis ion Making

Is sue: Paying $300 K per month in commissions on defaulted loans

Metric: Ne t $ re cove re d afte r loan charge s off

Goal: Im prove ne t re cove re d $ by 1 0%

Data analys is : Paying $1 M per year in commissions (within 60 days) Poor settlement/payment criteria (learned through MSA)

S olution: C re ate se ttle m e nt m od e l

Results : Min. savings of $200 K/yr (m ore like $500 K)


R e ple vin Proce s s

Is sue: Paying $450 K per year in replevin costs

Metric: Re ple vin S ucce ss Rate , Liqu id ation rate post

re ple vin

Goal: Re d uce Re ple vin costs by 1 0%

Data analys is : O ut of 300 R eplevins filed , 1 3 granted , 8 assets recovered R epossession in 1 1 6 cases

S olution: E lim inate re ple vin filing only in spe cial case s

Results : E stim ate d at $1 50 K pe r ye ar


O ve rall R e sults

Wave 3

1 3 G re e n Be lts

$900 K savings ($70 K pe r proje ct)

Ability to colle ct and inte rpre t d ata = price le ss


S ucce s s Factors

Management S upport The Top

S ponsors

The Right Projects S cope , scope , scope

Resources Full-tim e Me ntors/C oache s (Black Be lts )

Tollgates E xpe ct re sults !

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