Copyright © Institut Lean France 2011

Deploying Lean in BNL IT department

Paul Thysens

Deploying Lean in BNL IT departmentPaul Thysens – CIO BNL BNPP Group

Lean IT SummitOctober 14, 2011

BNL in the BNP Paribas Group

Through BNP Paribas Group, BNL offers to its Italia n customers access to the most

extensive international banking network

Through BNP Paribas Group, BNL offers to its Italia n customers access to the most

extensive international banking network

EUROPE

162 200

ASIA

11 000

AFRICA

9 800

MIDDLE EAST-

2 200

OCEANIA

600

FRANCE

65 400ITALY

19 100

BELGIUM

FRANCE

BELGIUM

ITALY

LUXEMBOURG

AMERICAS

19 400NORTH AMERICA

15 100SOUTH AMERICA

LUXEMBOURG

4 300

3 900

18 300

As of 31.12.10

205 000 Employees

2

BNL History From birth to BNPP Integration

BNL becomes a Limited Company

BNL becomes a multi-specialist Bank

BNL enters in the Group BNPP

BNL is listedon Milan Stock Exchange

Birth of BNL(Istituto Nazionale

per la Cooperazione)

2006

1992

1998

1913

1929

BNL becomes a State owned bank

2001

2011

Integration of Fortis

Integration of Bank Privèe

Integration of Artigiancassa

2009

20102008

3

Lean in BNL: ACE Program

Since 2006 BNL has adopted the Lean methodology with “ACE” in the Back Office in order to an operational efficiency and a simplify

Acquisition By BNP Paribas

Back OfficesSimplification and standardization of processes

IT DepartmentDevelopment and monitoring

2006 2009

� 2.000 people involved

� 30M€ of recurring gains

� +20% points for the customer satisfaction

� -50% defects

� Up to -90% reduction in lead time

� +20% of productivity

� 400 people involved

� 13 projects

� 1M€ of recurring gains

� -28% defects

� -73% reduction in lead time

Quality

Improvement

Reduce

Operational

Risks

Valuing

People

Increase

Competitiveness

ACE: A mélioration Continue de l‘Efficacité(Continuous Improvement Efficiency)

ACE: A mélioration Continue de l‘Efficacité(Continuous Improvement Efficiency)

4

The ProblemB

udge

t

70%

30%

CHANGE

Projects

RUN

Assets

Production

Work on the maintenance of the Run the Bank costs!Work on the maintenance of the Run the Bank costs!

2011 y

5

Trend

Keep the same Budget

Usage systems and costs of IT increase with volumes

Work on assets cost containment , understanding the activities covered

Run the bank tends to grow

Loss of budget for projects

Actions

► Quality Plan to stabilize the trend

Reduction applications consumer that allowed to absorb the volumes in 2 years

► Lean on Assets to reduce costs

Free effort and budget to investin Change the Bank

and/or to reduce the RUN cost

As is

Strategy

Quality Plan Lean in maintenance activities

► Improve the quality of applicationsin production

► Consolidate the results already obtained from optimization activities

► Help define standards and rules for the development of new applications

► Understand the case and discover the potential for improvement

► Reduce non quality (corrections and support)

► Free maintenance time to reinvest in projects

Quality

Improvement

Reduce

Operational

Risks

Valuing

People

Increase

Competitiveness

6

SPOC Support Model

� Move manteinance team skills on the SPOC

� Recurrent support to the SPOC

� Provide tracks , FAQ.

Telephone Self ticketing

SPOC

BACK OFFICE

Maintenance Team (Focal Point)

SUPPORTLevel I

Level II

Level III

USER

NEW

Acting on level III to improve the current support model and to increase theeffectiveness and efficiency of service

Focus on Maintenance Team

7

Results

Corrections Support

Volumes Lead time Volumes Lead time

► 5 teams involved (30 total) - equal to 30% of corrections and support effort

► 50 people involved (internal + external)

► 1 year of work

-28% -57% -30% -73%

Maintenance Budget

5.3 M€5.3 M€

1M€

1.9k€ Internal3.4k€ External

StakesFree Internal Effortto be reallocated on

project activities/ assets quality

8

Focus on a Maintenance Team

9

Volumes#tickets per month

29

1

19

Volume#tickets per month

120

80

Lead timeAverage

13 days

21h1

Corrections Support

Benefits vs People

10

Teams visualizing their own work►Teams design performance indicators reflecting their customers’ expectations and

put them on a wall

►People create their own Visual Management tools to make visible their daily work

►Every morning, they meet for 10-15 minutes to detect and solve problems early

Striving to really understand the problems►Classifying incidents and support requests

►Mapping the sources of incidents and requests

►Listening and talking to real users!

Solving problems with “low cost” solutions►Clarifying confusing error messages and help texts

►Collaborating with Help Desk to create or improve FAQs

►Training team members and writing check lists

►Developing tiny, targeted software evolutions

A Managerial Revolution for…

11

Goa

ls

Proposals &

results

?

► Go & see

► Encourage proposals from employees

► Small steps instead of big solutions

► Involvement of middle management

► Increase team building

► Work is less stressful and more interesting

► Can propose and implement improvements

► Increase face-to-face communication

► Work naturally with other groups

► Understand the E2E process, including the customer perspective

…motivated and happy People

Working with Suppliers

12

► Active involvement

► Visual management installed in the supplier offices and shared

with their people

► “Monetization" of the recovery of operational efficiency through

the renegotiation of contracts with suppliers within the medium-

long term partnership

► Share economical benefits

► Encourage and reward improvements

Next Steps

13

► Accelerate the deployment on maintenance teams (Yokoten method)

► Create of a new organizational structure to ensure the management

and continuous improvement of the applications

► Use E2E model during the analysis and the solution of the problem

(i.e. from one single ticket of Help Desk to application)

► Always work in synergy with Business teams in order to give a follow

up on maintenance performance and to provide information " market

oriented"

► Align senior managers through Lean strategy deployment

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| 08/11/2011|