Integrating Six Sigma with an EnterpriseWide Process Improvement Strategy

1
Integrating Six Sigma with an Enterprise-Wide
Process Improvement Strategy

• Global Lean, Six Sigma and Business Improvement
  Summit
• October 15, 2008
• Presented by
• Enterprise Business Process Services Jerry L.
  Calvert, SVP
• Lean Six Sigma Master black Belt

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You Really Do Need Six Sigma!
3
Contents
Overview

• SunTrust Corporate Overview
• Enterprise Business Process Services Overview
• EBPS Process Improvement Methodology
• Project Overview
• Current State Assessment
• Future State Design
• Business Case

4
Primary Market Areas
Overview
SunTrust enjoys a strong market position in some
of the highest-growth markets in the United
States.

• Total Assets 177 Billion
• Total Deposits 119 Billion
• Banking Locations 1699
• ATMs 2506
• Employees 31,602

Lines of Business

• Five Business Lines
• Retail
• Commercial
• Mortgage
• Corporate and Investment Banking
• Wealth and Investment Management

(1) Source SNL Financial. Growth projections
are based on the weighted average of MSAs and
counties not in any MSA in which the bank is
located. Based on current footprint.
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Five Major Lines of Business
Overview

• Retail Banking
• SunTrusts retail line of business provides
  financial solutions to five million client
  households as well as businesses with annual
  sales of up to 5 million.
• Commercial Banking
• SunTrusts commercial banking line of business
  serves companies, government, and nonprofit
  entities with
• annual sales or budgets from 5 million to 250
  million, delivering financing, treasury
  management, and access to the capital markets to
  more than 50,000 clients
• Corporate and Investment Banking
• SunTrusts Corporate and Investment Banking line
  of business (CIB) provides capital raising,
  treasury management, and other tailored financial
  solutions.
• Mortgage
• January 2007, SunTrusts mortgage servicing
  portfolio was 130 billion. SunTrust Mortgage,
  Inc. originates loans at more than 180 locations
  in SunTrust markets and adjacent states,
  maintains correspondent and broker relationships
  in 48 states.
• Wealth and Investment Management
• As of Jan 2007, SunTrust had total assets under
  advisement of approximately 245.8 billion,
  including approximately 207.1 billion in trust
  assets, and approximately 38.7 billion in retail
  brokerage assets

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Contents
Overview

• SunTrust Corporate Overview
• Enterprise Business Process Services Overview
• Mission
• Organization
• Objectives
• EBPS Process Improvement Methodology
• Project Overview
• Current State Assessment
• Future State Design
• Business Case

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Enterprise Business Process Services Mission
Overview
SunTrust Mission Help people and institutions
prosper
Enterprise Business Process Services Mission Help
SunTrust and our clients prosper by improving
business processes to create a more efficient
enterprise and make it easier for clients to do
business with us
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Build EBPS Organization
Overview
SVP EBPS Manager

• 2008 staffing plan
• 39 FTE to be reached by year-end
• Mix of more senior seasoned consultants with low
  to entry-level consultants
• Recruiting focus
• Remains on building strength across skill-sets.
• Continue to target mix of consulting/IE/financial
  services experience
• Consulting support
• 2008 plan assumes no use of external consultants
  to augment EBPS staff
• Any consulting funding would have to come from
  sponsoring LOB/Function
• Training Development
• 95 Certified in Six Sigma (70 Green Belts, 25
  Black Belts or MBB. Goal is to move to 100 BB
  by year-end.
• 95 Certified as Lean Practitioners

SVP Senior Mgr
GVP Senior Mgr
GVP Senior Mgr

• Project Managers
• Consultant
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• Project Managers
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• Project Managers
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• Core Bank Delivery Efficiency
• HR Process Transformation

• Deposit Account Opening
• WIM/STIS Account Opening
• Line Renewal

• Treasury Mgt Implementations Process Improvement
• Commercial Loan Originations
• Georgia Oglethorpe

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Key EBPS Objectives
Overview

• Finalize SunTrusts Process-Improvement
  Methodology
• Complete all training (GB, BB, Lean, BPI and
  Champion) by year end
• Roll out elements of process improvement
  methodologies into pockets within LOBs and
  Functions
• Integrate Lean and Six Sigma methodologies into
  all projects going forward
• Identify and assess process improvement
  opportunities and drive measurable value
• Improved client experience (measured by revenue
  lift and non-financial metrics)
• Increased efficiency (measured by cost savings
  and non-financial metrics)
• Fully support and enable corporate-wide
  efficiency improvement initiative
• Drive transition to a paperless and more
  automated bank (non-check)
• Define enterprise non-check image capture
  strategy and work with Content Management COE to
  support execution
• Identify and evaluate potential applications of
  FileNet imaging and workflow ( other potential
  BPM solutions)

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EBPS Service Offerings
Overview
EBPS partners with LOBS and Functions on a wide
variety of opportunities ranging from large scale
transformational initiatives to small-scale
process problem resolution.

• Process Assessment and Improvement
• Current State Analysis Issue Identification
• Future State Design
• Implementation Roadmap
• Project Management for Execution (as needed)
• Rapid Improvement Process (RIP)
• Fast-paced approach to drive process improvements
• Facilitation
• Root Cause Analysis
• Requirements Identification
• Strategy Development

Services

• Metrics Development
• Metrics Identification
• Metrics Development and Deployment
• Process Improvement Training
• Business Process Improvement
• Lean
• Six Sigma
• Survey Development
• Design
• Implementation
• Result Summarization

EBPS staff can be called upon to play any of
these roles.

Roles

• Advisor
• Data Analyst
• Liaison/Coordinator

• Project Manager
• Process Analyst/Consultant
• Facilitator
• Process Lead

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The Current Environment has Forced us to
Re-Focus our Approaches
Overview

• The past three years have been unprecedented in
  the amount of change in the banking industry.
  The mortgage industry collapse along with the
  tightening of credit in general has put extreme
  pressure on banks to become more efficient,
  expand delivery channels and stem customer
  attrition.
• This sense of urgency has forced us to look at
  projects that are more quick wins and that
  require little to no technology spend. Projects
  that will increase deposits, reduce losses and
  measurably increase customer satisfaction are the
  top priority.

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Contents
Overview

• SunTrust Overview
• EBPS Overview
• EBPS Process Improvement Methodology
• Overview
• Tools Techniques
• Metrics and Balanced Scorecards
• Training
• Project Overview
• Objectives and Scope
• Team Structure
• Approach
• Current State Assessment
• Future State Design
• Business Case

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We Utilize a Variety of Improvement Programs
Tools Techniques

• The 3 primary improvement
• Methodologies. But there are more!

• We did not want to limit ourselves to just one
• approach!
• Six Sigma
• Lean
• TOC
• Rapid Improvement Process (RIP)
• Facilitated Workshops
• BPM
• Quality Teams and Councils
• Surveys

We dont want to be perceived as just a One
Trick Pony
All this includes a heavy dose of Change
Management!
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Methodical, Structured Problem Solving Let the
Problem Dictate the Approach
Tools Techniques

• Problem Solving Process
• Define the problem
• Analyze for potential causes of problem
• Identify possible solutions
• Analyze possible solutions
• Select the best solution
• Plan implementation
• Implement
• Verify that problem is resolved

Though we frequently need a more radical
deconstruct/reconstruct process to identify
root-causes using Six Sigma, there are times we
just need to refine and make small improvements
as with Lean. At times it may be a technological
overhaul using imaging and automated workflow as
with BPM

• What is the problem?
• Thats where the techniques begin...
• The various process improvement techniques all
  have the same aim and similarities
• They are methodical ways of addressing issues
• They are used to identify and solve problems

You can have many tools in a tool box, let the
project determine which tool you will use.
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BPI Methodology Built on the DMAIC Framework
Tools Techniques
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Robust BPI Methodology Built on Share-Point
Tools Techniques
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Project Approach
Tools Techniques
EBPS Process Improvement Methodology
Design Optimized Future State
Assess Current State
Develop Business Case Roadmap
Plan and Launch the Project
Control
Improve Implement
Analyze
Measure
Define
Key Activities

• Understand key account opening processes
• Document existing practices for resolving
  problems
• Interviews with key stakeholders for input and
  feedback
• Map current-state processes including tasks,
  technologies, people, channels, etc.
• Identify root causes for most common service
  problems

• Meet with Stakeholders and establish scope of
  project
• Develop working teams and roles and
  responsibilities
• Define key elements of account opening and
  service issues
• Identify critical touch points
• Understand key employee touch points

• Identify reasons for gaps including, but not
  limited to products, technology, processes,
  training
• Develop strawman of future-state processes for
  key functional areas
• Provide final metrics results showing performance
  improvement opportunities
• Assess impact on current service levels.

• Identify opportunities to create the desired
  experience, including improvements in service and
  delivery requirements
• Evaluate technology improvement opportunities
• Provide technology solutions for optimizing the
  Account Opening process

• Preliminary understanding of current state
• Baseline of most common issues/problems
• Process metrics
• End-to-End process models/SIPOC
• Process Narratives describing tasks,
  inputs/outputs, etc.
• Assess Value vs. Non Value

Key Deliverables

• Project team structure and timelines
• Target customer experience around account opening
• Defined scope document and revised timeline
• Project Charter Project Plan
• Key employee linkages

• Gaps and Issues
• Future-state process flows with best practices
• Service level assessment
• Future state SLAs
• Future-state technology
• Future-state organization
• Quick-win opportunities

• Detailed improvement opportunities
• Business case summary outlining costs and
  benefits
• Additional quick-win opportunities
• Final improvement results
• High level roadmap

Timing
Weeks 7-14
Weeks 14-18
Weeks 1-3
Weeks 2-9
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RIPs (Kaizens) are Structured Events with
Deliverables and Tools Sequenced at each Stage
Tools Techniques
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Rapid Improvement Process One-Week Schedule
Tools Techniques
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Facilitated Work Shops Accelerate Speed and
Ownership
Tools Techniques

• A facilitated workshop is a team-based
  information gathering and decision making
  technique to accelerate business planning and
  problem solving.
• Benefits are
• Speed
• Ownership
• Productivity
• Consensus
• Quality of Decision Making
• Enables the rapid exchange of information
• Involves key individuals
• This approach has had tremendous success

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Metrics are Presented in a Cascading Fashion
Based OnAppropriate Level of Detail and Need
Metrics Measurements
Metrics Cascade
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Training is Critical to Sustaining Successful
Change
Training
Basic BPI, Six Sigma Green Belt and Lean
Practitioner Training and Certification have
been very Successful! Facilitation Skills and
Black Belt Certification Are in development now.
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We are Leveraging Imaging BPM Technology
Tools Techniques
Configuration-driven development and pre-built
frameworks promise accelerated deployment and
reusability

• Benefits
• Flexible framework that can be leveraged across
  multiple processes
• New account opening
• Exceptions management
• Case management
• Business rules engine for front line applications
• Potential for process-driven methodology to
  improve service delivery
• Reengineer before, during, and after development
• Capture better metrics, enabling cyclical
  (continuous improvement) reengineering
• Potential to improve pace of delivery
• Concerns
• New and different generated internal noise
• Iterative and not waterfall breaking the
  rules
• Lack internal skill sets contractors required
  for development
• First implementation can be expensive success
  will breed more implementations

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Online Account Opening Project Utilizing BPM
Technology
Tools Techniques

• Challenges
• SunTrust, like other financial institutions,
  focused on deposit growth
• Cannibalization and acquisition expense have
  impacted traditional deposit growth strategies
• SunTrust online channel was not an effective
  vehicle for driving deposits
• Opportunities
• Online marketing potential due to high volume
  website traffic from potential and existing
  customers www.suntrust.com
• Lots of technology companies touting account
  opening expertise
• Quick implementation
• Lots of process waste and non-value activities
  Call center and Online
• Reduction in cycle times 15 days to 15 minutes

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In Conclusion

• Research still supports the claim that over 50
  of process improvements initiatives are not
  successful. By understanding the problem and
  selecting the right approach we will greatly
  enhance our probability of being successful.
• The Six Sigma methodology is the foundation of
  our improvement program but only one of several
  approaches we take to solve a problem.
• If the only tool you have is a hammer, you tend
  to see every problem as a nail.
• Abraham Maslow

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Contents
Overview

• SunTrust Overview
• EBPS Overview
• EBPS Process Improvement Methodology
• Project Overview
• Objectives and Scope
• Team Structure
• Approach
• Current State Assessment
• Future State Design
• Business Case

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Wealth and Investment Management Group SunTrust
Investment ServicesClient Account Opening
Using Lean Six Sigma to Drive Straight-Through
Processing

• Enterprise Business Process Services Jerry L.
  Calvert , SVP
• Lean Six Sigma Master Black Belt

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Project Focus
Overview
Focus is the end-to-end SunTrust Investment
Services Account Opening Process with emphasis on
streamlining the account opening process in order
to process a straight-through transaction
automatically from beginning to end with minimal
manual intervention. We must also improve the
client experience by reducing errors and process
inefficiencies by eliminating non-value-added
steps and therefore making it easier to do
business with SunTrust.
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Project Objectives and Scope
Overview

• Project Objectives
• Gain a thorough understanding and document the
  current environment (People, Processes, Systems,
  organization, quality)
• Analyze business processes, policies and
  procedures, key metrics and enabling systems and
  data
• Using Lean and Six Sigma principles, design a
  future-state that will enable straight-through
  processing and significantly improve the client
  experience
• Reduce unit costs, reduce cycle times, improve
  quality
• Benchmark future state against best practices

• Project Scope
• In Scope for Evaluation
• Client Experience
• Understanding client needs
• Organization
• Front Office, Operations
• Products/Processes
• Brokerage/IRAs, Annuities, Cashiering,
• Stock Cage, Managed Accounts, etc.
• Technology
• Imagio, Streetscape, Ncentive, etc.
• Out of Scope
• Desktop Stabilization and Performance
• Post-Account Opening Activities
• Trading, Statements, etc.

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Team Structure and Resources
Overview
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Overview
Project Approach

• Various Lean and Six Sigma improvement approaches
  were utilized on this initiative to reach its
  strategic goals
• VOC and VOB (Customer and Business surveys and
  interviews)
• DMAIC (Define-Measure-Analyze-Improve-Control)
• CPQ (Cost of Poor Quality) We were experiencing
  gt20 error rates on incoming applications
• Value-Stream mapping, Process mapping, SIPOC
• Root Cause Analysis (Cause Effect, Pareto,
  Brainstorming, 5 Whys, etc)
• Benchmarking (what are the best-in-class
  companies doing)
• Small Kaizen Events (fix the problem at the
  source by getting everyone involved)
• Streamlining via Straight-Through-Processing
• Poko-Yoke (mistake proofing the application
  process)
• Unit Costing (faster, cheaper, better)
• Cycle Time Analysis (gt75 reduction)

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Contents
Current State

• SunTrust Corporate Overview
• Enterprise Business Process Services Overview
• Project Overview
• Current State Assessment
• Initial Findings
• Gaps and Opportunities
• Associate Survey Feedback
• Metrics Analysis
• The Future State Design
• Business Case

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Current State - Initial Findings
Current State
A detailed Current State assessment was conducted
for the STIS Account Opening process focusing on
organizational structure, processes and
procedures, technology, and quality.

• Onsite Assessments
• Review organization / business models
• Interview stakeholders
• Document existing practices

• End-to-end Process Mapping
• Conduct work sessions with each functional area
• Map current state processes
• Conduct follow-up validation sessions

Based on initial findings, the following gaps
were identified

• Document Key Findings
• Baseline gaps and issues
• Identify root causes
• Conduct metrics analysis

• Quality inefficiencies (up to 20 NIGO)
• Lack of end-to-end visibility and metrics
• Complex policies and procedures

• Redundant process handoffs
• Technology challenges
• Inconsistent training process
• Tedious manual processing

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Current State - Gaps and Opportunities
Current State
Further research of issues in the current state
led to the identification of the following gaps
and opportunities in the Front Office,
Operations, and Technology

• Front Office
• Client account setup process is fragmented and
  lacks the appropriate technology integration
• Too much paperwork can be overwhelming to
  client during acquisitions process
• Account Opening process is paper-based which
  results in incomplete or incorrect data
  collection
• Lack of imaging capabilities have greatly
  diminished branch capacity
• Policies and procedures are not always clearly
  communicated across the business
• Operations
• Imaging process lacks efficient document capture
  and integrated workflow
• Lack of system integration which results in many
  hard to manage manual processes
• New account applications are often incomplete or
  wrong
• Lack of case management capabilities
• Lack of end-to-end metrics
• Technology
• System and application capabilities should
  support the needs and requirements of the
  business
• Ambiguity regarding roles and responsibilities
  for technology contacts
• Lack of robust reporting capabilities
• Imagio, contact manager, and other applications
  are not standardized across the organization
• Slow network performance and bandwidth issues
  within the branches

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Current State Associate Survey Feedback
Current State

• A thirteen question survey was conducted to
  solicit feedback from our client facing Sales
  Professionals
• Eleven participants
• Private Wealth Advisors, Private Financial
  Advisors, Investment Consultants and Investment
  Associates
• Florida, Georgia and Tennessee
• Questions focused on account opening and funding

• When a client opens multiple accounts it takes
  forever when opening through Streetscape because
  you have to reenter all of their information
• With an integrated contact management solution,
  every account entered would automatically merge
  into the contact system.
• We need to improve the systems and consolidate
  the paperwork. The name, address, birthdate,
  SSN, etc., should only have to be recorded once.
• An automated workflow system would track
  pipeline, marketing activities, reviews and
  opportunities all from one site.
• we do not embrace technology to the point that
  it would make a significant increase in
  production. I am concerned that this will become
  a retention issue for reps and clients.

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Current State - Metrics Analysis
Current State
A two-week in-depth quality assessment was
conducted within Richmond Operations for incoming
documents and applications. The results
illustrate
Annuities
Transfer of Assets (TOA)
NIGOs by Product
Brokerage/ / IRA NIGO Ratio by Applications
Total NIGOs by Region and Process Area
and NIGOs by both Product and Region
Year-to-date only 41 of new accounts were opened
via Streetscape.
For this two-week period, 3,553 applications were
received Not In Good Order (NIGO), representing
an 20 error rate and a process sigma of 2.4.
This error rate has a negative implication on the
clients experience with SunTrust.
Based on Quality Sampling 8/15/06 - 8/28/06 (10
business days) for Annuities, Brokerage/IRA,
Managed Accounts, and TOA.
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Current State - Metrics Analysis
Current State
Using discrete data sets, Pareto Chart analysis
was used to determine the most common error types
by transactions. This was one of the indicators
for areas of focus and improvement opportunities.
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Current State - Metrics Analysis
Current State
The P-Chart was utilized to determine if the
proportion of NIGOs for each day sampled is in
control. Factors contributing to process
variation are causing data points to fall outside
of the process control limits.
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Current State - Metrics Analysis
Current State
Common Reasons for NIGOs
NIGO Implications
Client Behavior

• New Brokerage Accounts
• Missing client signature
• Missing Risk Assessment Form
• Missing source of income
• Annuity Accounts
• Missing client signature
• Missing disclosures
• Missing required paperwork
• Managed Accounts
• Missing representative signature
• Missing Principal signature
• Incomplete paperwork
• Missing required paperwork
• Not input into Advisor Port
• Transfer of Assets (TOAs)
• Missing client signature
• Account mismatch
• Incomplete instructions
• Missing or incomplete statement

• Degradation of the Client Experience
• Repeated unnecessary contacts
• Delays in set-up or transfer of funds
• Unexpected restrictions of account functionality
• Financial Implications
• Cost or rework
• Loss of current business
• Missed opportunity for additional business and
  cross-sells
• Delays in bringing funds to SunTrust
• Degradation of SunTrust as a Whole
• Poor reputation as a Wealth Services provider
• Client may question our ability to deliver this
  service and others

• Most lost business occurs in the first 180 days
  for DDA clients, and 18 months for Investment
  Management and Trust clients.
• Wealthy clients often try out an organization
  before committing a significant portion of their
  assets.
• The best time to cross sell additional services
  to clients is when they are newly on board.
• A dissatisfied client will tell 19 people about
  their poor experience.
• New clients can often be the most vocal referral
  sources when they are wowed by their early
  experiences.

Client behaviors were extracted from the
Strategies Group On-Boarding presentation 9/28/06.
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Contents
Future State

• SunTrust Corporate Overview
• Enterprise Business Process Services Overview
• Project Overview
• Current State Assessment
• The Future State Design
• Approach Model
• Process Blueprint
• Benefit Analysis
• Business Case

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Future State Approach Model
Future State
A comprehensive approach model utilizing Lean and
Six Sigma techniques was utilized to ensure
improvement efforts are aligned, integrated and
balanced to enable optimal business performance.
A Closer Look Approach Model
Process
Organization

• Current State
• Assessment
• Integrated View
• Best Practices
• Future State
• Blueprint

• Assessment
• Culture
• Alignment
• Skills
• Sizing

Quality

• Framework
• Metric Definition
• Analysis
• Management
• Process

Provides a shared vision for the organization and
serves as a critical foundation for the
transition and future improvements
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Future State Approach Model
Future State
Design of the STIS Account Opening Future State
was an iterative process that incorporated
SunTrust internal discussion feedback, detailed
metrics analysis, and banking industry best
practices.

• Evaluate Current State Findings
• Prioritize gaps and issues
• Further drill down of key metrics
• Initiate future state brainstorm discussions

Improvement Opportunities
Integrated Systems
Future State
Future State
1

• Design Integrated End-to-end Future State
  Processes
• Conduct future state work sessions with each
  functional area
• Research financial services and banking
  industry best practices
• Highlight potential non-value-added process
  steps
• Review related technology projects and business
  initiatives

• Benefits
• Common systems and tools, LOB-wide
• Single point of access for STIS client data and
  client financials, with 360 degree view
• Elimination of redundant tedious data entry, thus
  saving time, reducing errors, and increasing
  efficiency
• Ability to save and later reference work in
  regards to a client or a prospect
• Free up Financial Advisors time to better focus
  on Client and prospecting

• Complete Future State Design
• Develop future state process blueprint
• Document improvement opportunities
• Calculate metrics benefits
• Identify quick win opportunities
• Initiate roadmap development

As with Current State, primary focus centered on
organizational structure, processes and
procedures, technology, and quality.
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Future State Approach Model
Future State
The Future State Design will provide a practical
blueprint for addressing the key improvement
opportunities identified from the Current State
Assessment.
Operational Inefficiencies

• Redundant process handoffs
• Quality inefficiencies (up to 20 NIGO)
• Tedious manual processes resulting in higher
  costs
• Too much paperwork

Missed Front Office Opportunities
We need to all be pulling together on this!

• Tools and technologies that do not fully promote
  stronger client relationships
• Increased processing time that results in fewer
  client referrals, reduced client trust, and
  higher costs

Current State (Broken processes silos of work)
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Future State Process Blueprint
Future State
The Integrated Future State process illustrates
the end-to-end, cross-department activities and
highlights five key areas of improvement.
Integrated Systems for client data and client
financials
1
4
Automated Workflow with electronic routing of
tasks and documents
2
Streamlined Account Setup for opening new accounts
5
Case Management with end-to-end view, alerts, and
reporting
3
Document Imaging at point of receipt
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Integrated Systems
Future State
1
Integrated systems for client data and client
financials

• Key Attributes
• LOB-wide Contact Manager
• Contact Manager integrated with other front-end
  applications, CIS, Financial Planning Tool, and
  STIS Account Opening Process

• Benefits
• Common systems and tools, LOB-wide
• Single point of access for STIS client data and
  financials
• Elimination of redundant tedious data entry
• Increase efficiency and reduce errors
• Ability to save and later reference that
  information
• Free up Financial Advisors time to better focus
  on Client and prospecting

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Streamlined Account Setup
Future State
2
Streamlined account setup for opening new accounts

• Key Attributes
• Case Manager for Account Opening and Funding
• Integrated applications
• Document Manager with front office document
  capture

• Benefits
• Improve efficiency by eliminating redundant
  information
• Online guidance and online help
• Required documents and data clearly identified
• Electronic work flow routing including control
  points and gates
• Document control throughout process, with
  Financial Advisor accountability
• Faster launch for account setup with reduced
  NIGOs
• Virtually eliminate transit time delay in
  Interoffice Mail

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Document Imaging / Automated Workflow
Future State
Automated workflow with electronic routing of
tasks and documents
Document imaging at point of receipt
4
3

• Key Attributes
• Document Capture at point of receipt
• Case Manager (Workflow engine) including Rules
  Engine
• Interface Front Office, Atlanta Ops, Richmond
  Ops, NFS, Annuity Carriers, and Advisor Port

• Benefits
• Front Office will own responsibility of document
  capture
• Improved efficiency
• Reduced errors and missing documents
• Reduce lag time due to Interoffice mail and
  communication delays
• End-to-end view with improved reporting and
  metrics
• Allow Financial Advisor to focus on building
  business and fostering client relationships
• Improved client experience

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Case Management
Future State
5
Case management with end-to-end view, alerts, and
reporting
End-to-end view

• Benefits
• End-to-end view for Financial Advisors, Sales
  Assistants, Management, Compliance, and
  Operations.
• Effective reporting and metrics, driving towards
  better business decisions, rewards, and coaching
• Allow Financial Advisor to focus on building
  business and fostering client relationships
• Increase efficiency of Financial Advisors and all
  support groups

• Key Attributes
• Robust Case Management Tool for monitoring,
  tracking, and escalating action items, tasks, and
  issues
• Alerts and Effective Reporting
• Integrated document management

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Future State Benefit Analysis
Future State
Brokerage/IRA Accounts with ACAT Funding
Notes -Account setup usually involves more than
one account per relationship. -Imaging includes
time spent in queue. -Imaging capability will
allow STIS to transmit images electronically to
NFS thus eliminating mail time and reducing their
SLA from 3 days to same day. -Account processing
time takes into account NIGO rework. -Capacity in
Front Office will increase significantly and free
up staff to better support sales processes (Set
appointments, service existing clients, etc.)
Source of Benefits Account Setup
Funding -Integrated Contact Management System
will require less manual client data entry and
reduce Initial Client Setup time for account
opening by up to 75. -Document and Data control
will significantly reduce NIGOs, rework and
delays. -Accountability for documents is owned by
front office. Mailing -Integrated Document
Management and Imaging System will enable
applications to be imaged and indexed at the
point of capture and eliminate 2 days of
interoffice mail transportation time and reduce
overnight mail expense. Imaging -Having documents
imaged at the point of entry, will significantly
reduce labor costs in middle office for imaging
purposes and delay in process. Account
Processing -An integrated workflow system will
provide document control thus reducing the NIGO
rate and rework in Richmond Ops.
Note This is actual processing time versus
elapsed time for actual receipt of funding and
assumes all paperwork is completed at the time of
application.
Future State
Potential 77 Reduction in Overall Processing Time
50
Future State Benefit Analysis
Future State
Annuities
Current State
Notes -Account setup usually involves more than
one account per relationship. -Imaging includes
time spent in queue. -Account processing time
takes into account NIGO rework. -Annuities over
500K require an additional step for compliance
review. -Capacity in Front Office will increase
significantly and free up staff to better support
sales processes (Set appointments, service
existing clients, etc.)
Source of Benefits Account Setup
Funding -Integrated Contact Management System
will require less manual client data entry and
reduce Initial Client Setup time for account
opening by up to 75. -Document and Data control
will significantly reduce NIGOs, rework and
delays. -Accountability for documents is owned by
front office. Mailing -Integrated Document
Management and Imaging System will enable
applications to be imaged and indexed at the
point of capture and eliminate 2 days of
interoffice mail processing time and reduce
overnight mail expense. Imaging -Having documents
imaged at the point of entry, will significantly
reduce labor cost in middle office for imaging
purposes and delay in process Account
Processing -Annuity Net will eliminate the need
for a manual review and an integrated workflow
will automate the feed to each appropriate
carrier thus eliminating labor cost for account
setup in middle office.
Note This is actual processing time versus
elapsed time for actual receipt of funding and
assumes all paperwork is completed at the time of
application.
Future State
Potential 85 Reduction in Overall Processing Time
51
Contents
Business Case

• SunTrust Corporate Overview
• Enterprise Business Process Services Overview
• Project Overview
• Current State Assessment
• The Future State Design
• Business Case
• Operational Quality
• Streamlined Process
• Financial Benefits
• Summary

52
Operational Quality Benefits
Business Case

• Overall Technology and Process Improvement
  Benefits Include
• Quality Improvements
• Reduction of Labor Costs
• Increase Revenue and Profit Potential

• Optimize Labor Efficiency of Front and Back
  Office Support Staff by 0 Million annually
• Increase Projected Revenue and Profit through
  increased capacity of Financial Advisors by
  0.0 Million to 0.0 Million annually
• Decrease Market Exposure
• Improve Client Experience
• Improve Employee Job Satisfaction
• Decrease Cycle Time (70)
• Reduce NIGOs and Re-work
• by 40-60
• Significantly Reduce Number of Process
• Steps by 52 (from 282 to 146 steps)

53
A Streamlined Integrated Process
Future State
Business Case
The Future State Process Blueprint enables
significant reductions in the number of manual
efforts and hand-offs present in the existing
process today.
Current State End-to-End Process Flow
Future State End-to-End Process Flow

• Improvement Impact
• Estimated 52 reduction in process steps
• (from roughly 282 steps to 146 steps)
• Reduction in cross organizational hand-offs
• Reduced number of error resolution contact
  points
• between Front Office and various Operations
  groups
• Provides a single point of alert resolution to
  the
• Financial Advisors versus the 14 in the
  current state.

54
Financial Benefits
Business Case

• There are quantitative, financial benefits
  associated with an improved account setup process

• Future State process improvements are expected
  to reduce the current
• process from 283 steps to 146 steps.

Final Setup
Operations
Front Office

282 Steps
Current State

• Resulting in an overall reduction
• in Account Setup time of up to 50.

Future State
146 Steps
Increased Revenues, Expense Reductions
Expanded Sales Capacity

• Total cost to implement technology improvement
  solutions is approx. 0 Million.
• The resulting annual financial benefit from
  reduced labor costs and increased sales revenue
  is 0.0 Million to 0.0 Million.

• Projected 3-Year and 5-Year Financial Benefit
• is significant

Year 2
Year 3
Year 4
Year 5
Year 1
Financial benefits are cumulative and include
expense reductions, revenue enhancements, and
technology costs.
Cumulative Projected Annual Financial Benefits
Implementing the Future State Design solution is
critical to achieving the financial benefits and
process improvements identified for the STIS
Account Setup Process.
55
Overall Benefit Summary
Future State
Business Case
Integration of enhancements and recommendations
identified in the Future State will result in a
more optimized STIS Account Opening process that
increases organizational productivity and
improves the client experience.
Significantly increase operational efficiency
through
Operational Inefficiencies

• Reduced cycle time up to 75 for Front Office
  account opening activities
• Reduced NIGOs by 40 - 60 ( )
• Lower labor costs
• Reduced paperwork

Overall STIS Account Opening process time and
costs reduced by up to 50.
Goal is to eliminate NIGOs entirely
Future State Process Improvements
Missed Front Office Opportunities
Allow Financial Advisors to better focus on
clients, resulting in

• Significantly increase Front Office capacity
• More time to build client relationships
• Increased client referrals
• Increased business revenue
• Improved client trust and satisfaction

56
Conclusion

• To be successful in achieving Process Excellence
  there must be a solid foundation to build on.
  This foundation must include
• Leadership must both clearly understand and
  communicate the need for change (there is no
  substitute for good leadership and many projects
  fail due to a lack of leadership)
• There must be a compelling business case which
  includes increased revenue, lowered expenses and
  improved service (otherwise whats the use in
  doing it?)
• The Vision, Goals and Objectives must be clearly
  communicated and adhered to
• Process Improvement experts cannot do it alone,
  the business as well as Information Technology
  must be involved (must be a team effort with a
  shared vision)
• A sound structured methodology must be followed
  with tools, techniques and training provided.
  There is no substitute for data. (There is no
  magic formula, we use a combination of in-house
  developed BPI methodology, Six Sigma and Lean
  thinking)
• Communicate your success and celebrate your
  achievements (everyone else in the company needs
  to know success is possible and they too will
  want to be a part of the success story)