Operational Efficiency Maximization

The search for sources of operational efficiency is generally only addressed through the analysis process. This approach is now well understood by operational staff. It also allows you to link to the Planning of IS which is also based on the description of the process.

This approach processes seek to identify redundancies, gaps, points of blocks. However, the search for sources of operational efficiency should also focus on service delivery to customers, whether operational or project: What are the services provided to date? What are the extensions of the scope that would significantly enhance service delivery and to benefit a greater number of actors (for example by integrating an operation today at the expense of clients)?

We also seek activities that have a characteristic position in relation to the concentrations of three assets:

* Information:
o dealer or a producer of information (focus information)
o interface or distributor of key information (broker positioning information)
* Means:
o holds a treatment capacity of computer or human (average concentration)
* Expertise:
o special expertise (concentration of expertise)


The presence of one of these assets is not enough to be a center of operational efficiency. However, from a couple of them, it will then be possible to change the activity to achieve a complete positioning. For example, concentrations are repositories of information. Develop the application infrastructure to manage this information and strengthen the expertise associated will then disseminate information on a larger scale and with better quality. This significantly raise the value added of the activity management repositories. This concentration of information and make changes to this perspective, therefore this activity subject to the establishment of a center of operational efficiency.

Another complementary approach is possible and easily accessible: mapping generic opportunities for sharing and industrialization will most frequently be used to initiate the search for sources of operational efficiency. This will be considered first and best practices in the sector and identify whether the existing organization is likely to reap the gains quickly.

The development of operational efficiency

The development of operational efficiency is a major concern of the major banking groups. This translates into at the moment through the consolidation of existing services in unique organizational entities in the Group. The aim is to reduce costs while improving the consistency, quality services and ultimately increase the operational efficiency of the entire organization.

However, the real centers of specialized operational efficiency (making the concentration of the three asset expertise, information and resources on a given field of activity) are not yet implemented only in a very ad hoc.
To develop such centers of operational efficiency, it is first necessary to identify relevant activities to concentrate in these clusters, so that they can then grow in terms of gains expertise, knowledge, productivity. Allowing them to have a real impact on the operational effectiveness of the Bank's medium term.



The establishment of centers of operational efficiency can significantly increase the operational efficiency of the entire Bank and facilitate response to the need for continuous development (see previous article in this blog). However, we must first identify the activities that could constitute sources of operational efficiency.

As we mentioned above, will be sought primarily in activities that allow centralization of three assets: information, expertise and resources. Joint ownership of these three assets pave the way for a wider range of services on the perimeter of activity. This offer will consist of both services 'operational' and services for projects. The problem is then to identify and evaluate the essential features of the future organization activities among distributed so far among multiple services or multiple entities.

Poles Of Operational Efficiency

Reduce the complexity of the development process: the poles of operational efficiency offer a range of services already in operation that are available to any entity by changing its processes. They are also available for personal service and dedicated to the support of development projects of other entities.
Increase and ensure quality of service: the service being delivered by a single entity, it will necessarily become generic, a common service level, so that gains of scale is generated. The range of services will be standardized at a level of quality and availability corresponding to the highest common denominator of user needs and guaranteed service agreements.
Reduce the overall cost of service delivery involved: the production cost of the service may be reduced by centralizing certain ways. However, changes will be especially noticeable in the final cost of use for each entity.
Increase the scope of use by allowing new entities to access the range of services: entities whose size did not develop these services in-house entities that had a similar service but with fewer resources and little adapted ...
Maintain the consistency and quality of information: the centralization of information management on a particular area will help to oversee the entire process of managing this information. It also allows perceiving the diversity of uses and coordinating accordingly.
Manage the evolution continues in a consistent manner on the different scope of responsibility of the poles: being at the heart of development projects and in contact with all clients on the perimeter, they are aware of the multiplicity of needs and include it in the trajectories of change in their activities.

Governance and Management of Operational Efficiency

To ensure consistency of objectives and day to day 
developments, it is necessary to develop a unique control of the entire work area operationally and in terms of its development (projects). Cells respond directly support the daily needs of internal customers will be directly attached to the same manager as the study of cell changes (service projects) and project management.
Besides coordination facilitated the centralization of information on operational activity will also provide indicators for monitoring the activity complete and advanced.
The establishment of centers contributing to the development of operational efficiency of the organization

The division of operational efficiency can significantly increase the operational efficiency of any Bank by reducing the complexity of the process, facilitating the evolution of organizations, reducing the overall cost of the activity level of service or greater .
This structure also facilitates the response to the need for continuous development [1], ensuring consistency in its scope, and contributing directly to facilitate the work of projects and developments of its clients through its dedicated service and expertise.

For the pole reaches these goals, it will first identify the activities conducive to a centralized asset value and define the services 'operational' and 'projects' to enlist the broader scope of users. The identification, definition, implementation and establishment of the trajectory of evolution of the cluster operational efficiency will require to use an approach to take into account all the dimensions (budget, governance, expertise, information, human resources, IT etc.

The Division of Operational Efficiency

The division of operational efficiency based on a concentration of three assets that are the information, expertise and resources. Only structures to achieve the concentration of these three assets are likely to be centers of operational efficiency in its own right.
Vis-à-vis the information, the division will have a role as manager, owner or clearing house (broker). It therefore has a good command of a large set of information and / or complex, which will provide added value to share with its customers.

Developing the Sources of Operational Efficiency

The establishment of centers of operational efficiency can significantly increase the operational efficiency of the entire Bank and facilitate response to the need for continuous development . However, we must first identify the activities that could constitute sources of operational efficiency. As we mentioned above, will be sought primarily in activities that allow centralization of three assets: information, expertise and resources. Joint ownership of these three assets pave the way for a wider range of services on the perimeter of activity. This offer will consist of both services 'operational' and services for projects.

The problem is then to identify and evaluate the essential features of the future organization activities among distributed so far among multiple services or multiple entities. The search for sources of operational efficiency is generally only addressed through the analysis process. This approach is now well understood by operational staff. It also allows you to link to the Planning of IS which is also based on the description of the process.

This approach processes seek to identify redundancies, gaps, points of blocks. However, the search for sources of operational efficiency should also focus on service delivery to customers, whether operational or project: What are the services provided to date? What are the extensions of the scope that would significantly enhance service delivery and to benefit a greater number of actors?

Objectives Of Operational Efficiency

The division of operational efficiency is also involved in coordinating and facilitating changes in the scope of activity which he is responsible.

* Operational mission: deliver in-house or external service
o Shared: used by all clients (which requires a sufficient level of both standardization and adaptability to customer needs)
o Quality: ensuring a high level of service,
o Integrated: consistent with the possible developments and other services (the same principles or standards, consistency of information ...).
* Strategic Missions: alignment with corporate goals
o In terms of scope of activity: both operational manager of the service and project management strategy on the field, defining the principles and standards of practice and evolution,
o In terms of process, users of these services: the service of development projects for the integration of services,
o Financial issues: cost reduction in service level or above.

The establishment of centers of operational efficiency should facilitate changes by developing the flexibility of the organization. This distinguishes them from the pooling of services that do not necessarily generate earnings in excess of centralization of the means.
In terms of implementation, the creation of a center of operational efficiency is not in the pooling of existing services but rather to develop an internal provider with a service offering clean.
Key features of the poles of operational efficiency

To effectively perform its duties, the division of operational efficiency will:

* Involve activities for which it is actually possible to concentrate three types of assets: the expertise, resources and information,
* Be resolutely turned towards the customers either returning customers or projects of development,
* Be provided with a governance and management processes adapted.

Operational Efficiency Part.III

The combination of the two services is essential to ensure consistency in the development and daily management. Service levels associated with these two activities should be adapted to customer needs.
The provision of all services must be guaranteed by service agreements, reviewed regularly with key users. This will regulate the relationship with users and a corresponding reduction in the cost of the relationship.

Governance and management:
To ensure consistency of objectives from day to day developments, it is necessary to establish a unique control of the whole area of work operationally and in terms of its development (projects). The cells respond directly support the daily needs of internal customers will be directly connected to the same manager as the study of cell changes (service projects) and project management.
In addition to coordination facilitated the centralization of information on operational activity will also have indicators for monitoring the activity and complete advanced.
The establishment of centers contributing to the development of operational effectiveness of the organization

The division of operational efficiency can significantly increase the operational efficiency of any Bank by reducing the complexity of the process, facilitating the evolution of organizations, reducing the overall cost of the activity level of service or greater .
This structure also facilitates the response to the need for continuous development, ensuring consistency in its scope, and contributing directly to facilitate the work of projects and developments of its clients through its dedicated service and expertise.

For the pole reaches these goals, it will first identify the activities conducive to centralization of assets to add value and define the services 'operational' and 'projects' to enlist the broader scope of users. The identification, definition, implementation and establishing the trajectory of evolution of the cluster operational efficiency will require using an approach to take into account all the dimensions (budget, governance, expertise, information, human resources, IT ...).

Operational Efficiency Part.II

To effectively perform its duties, the division of operational efficiency will:

* Relate to activities for which it is possible to concentrate really three types of assets: the expertise, resources and information,
* Be resolutely turned towards the customers either returning customers or projects of development,
* Be provided with a governance and management processes adapted.

The assets of the division of operational efficiency:
The division of operational efficiency based on concentration of the three assets that are the information, expertise and resources. Only the structures to achieve the concentration of these three assets are likely to constitute the poles of operational efficiency in its own right.
Vis-à-vis the information, the cluster will have a role as manager, owner or centralized (broker). It will therefore have a good command of a large set of information and / or complex, which will provide added value to share with its customers.
Expertise is a real knowledge of the scope of activity, the scope of use of services by clients, information and resources. The center will draw a capacity to formulate policies and methods. The expertise is not limited to a number of FTEs, but is the understanding of complex issues and ability to assist clients on these issues.
Means include other material, application or human (ie production capacity). The division of operational efficiency in the service of internal customers: With the exception of centers dedicated to specific clients of the company (call center, help desk ...), customers of a center of operational effectiveness of internal customers: other branches and departments, subsidiaries ... In particular, the implementation in place of a center of operational efficiency can send new customers such as small entities who could not afford these services before.
The division makes sense in the long term added value to its customers. To achieve this goal, the division must identify:

* The services 'operational' to make available the various entities on a recurring basis,
* Services projects or support services for the integration of services (eg setting up new tables referential or new releases for the cluster reference, definition and implementation of accounting controls of a project up or disseminating data for the accounting ... pole).

Operational Efficiency Part.I

A center operational efficiency is an organizational structure in place to deliver a set of specialized services. These services are focused exclusively on a set of functions similar (same functional area) and common entire enterprise or multiple directions. The division of operational efficiency is also involved in coordinating and facilitating changes in the scope of activity which he is responsible.

The tasks incumbent upon it are of two kinds:

* Operational mission: delivering in-house or external services
o Shared: used by all clients (which requires a sufficient level of both standardization and adaptability to customer needs)
o Quality: ensuring a high level of service,
o Integrated: consistent with the possible developments and other services (same principles or standards, consistency of information ...).
* Strategic Missions: alignment with corporate goals
o In terms of scope of activity: operational manager for both the service and project management in the strategic field, defining the principles and standards of practice and evolution,
o In terms of process users of these services: the service of development projects for the integration of services,
o Financial issues: cost reduction in service level or above.

The establishment of centers of operational efficiency should facilitate the changes by developing flexibility in the organization. This distinguishes them from the pooling of services that do not necessarily generate earnings above the centralization of resources.
In terms of implementation, the creation of a center of operational effectiveness is not in the sharing of existing services but rather to develop an internal provider with a service offering clean.
Key features of the poles of operational efficiency