Unfortunately, doing so often means major reductions in workforce or a delayed start of strategic initiatives that could lead to new sources of revenue. In 2009, companies in the S&P 500 displaced over 630,000 employees—19%, or 121,000, were in the financial services industry.
In the past, large financial institutions were able to increase revenues through increased market share fueled by mergers and acquisitions, and through total market growth. In today’s economy, however, firms no longer have the luxury of improving profit simply by increasing revenue. In addition, due to the significant headcount reductions in the financial services industry, these firms will need to improve operational efficiencies.
In utilizing well-proven Lean techniques, financial services firms can eliminate waste, reduce operational costs and even improve customer satisfaction. Lean can also complement other process improvement programs, such as Six Sigma, which already may be active in financial services firms. The existence of such programs will only help the adoption and sustainment of a Lean deployment. Short-term gains can be achieved even in the worst economy, but long-term success will depend upon the fortitude of leaders to remain committed to achieving a Lean culture, even after economic factors improve.
Access the white paper to learn more about our approach. We wrote this white paper in cooperation with our Highland Worldwide member firm: North Highland.
