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1012September,2012 ChelseaFC,London,UK

SECTORDATA:
BusinessProcessExcellenceinFinancialServices

BusinessProcessExcellenceforFinancialServicesExchange 1012September2012 ChelseaFC,London,UK www.bpefinanceexchange.com

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INTRODUCTION:
In October of 2011, PEX Network launched a Global Benchmarking Study of Trends and Success Factors in Business Process Excellence inviting members of the PEX Network website and social networking groups (includingTwitter,LinkedIn,andXing)toparticipate. The October 2011 study had 676 respondents representing process improvement professionals working in a wide variety of industries and disciplines. The largest numbers of respondents came from Manufacturing (15.9%), Financial Services (8.8%), Business & Consulting (8.5%), other Services (7.7%), Energy and Utilities (7.7%),andHealthcareandPharmaceuticals(6.3%&6.7%respectively). Respondents came from a variety of job roles and backgrounds, but were largely composed of managerlevel and above. Approximately 23% of survey respondents identified themselves as senior business executives or director level, while 45% identified themselves as a manager or leader (including Master Black Belts) of some sort. Following the release of the report Trends and Success Factors in Business Process Excellence 2012 we had a number of requests for industry and region specific data. This report compiles sectorspecific data from FinancialServiceandInsurance(FS&I)respondentsincomparisonwithcrossindustry(i.e.allindustryincluding that of FS&I companies) data. There was a relatively small sample size of 60 FS&I respondents out of the 676 fromthefullsurveysointhisreportwehavecompareditwiththecrossindustrydatatoprovideausefulpoint ofreference. The following report is by no means meant to be as comprehensive in analysis as the original report (which is recommended reading to help form a basis for interpreting the following sector specific data) but instead formsabodyofdatathatpractitionersworkinginindividualindustriesmayfinduseful.

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BENCHMARKINGSURVEY:RESULTSFOR FINANCIALSERVICES

Q: HOW LONG HAS YOUR OPERATIONAL EXCELLENCE PROGRAM BEEN RUNNING?

Response Not Yet Started 0-1 Years 2-3 Years 4-5 Years 7-10 Years 11+ Years All Industries 9.5% 14.6% 18.9% 24.5% 18.5% 14.0% Financial Services 3.3% 15.0% 20.0% 36.7% 20.0% 5.0%

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Q: WHICH DEPARTMENT IS RESPONSIBLE FOR PROCESS EXCELLENCE?

Answer Options Operations Quality IT Other All Industries 42.2% 22.4% 3.7% 31.7% Financial Services 8.3% 48.3% 13.3% 33.3%

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Q: HOW MANY FULL TIME RESOURCES DO YOU HAVE WORKING IN PROCESS EXCELLENCE?

Number of resources 0-10 10-50 50-100 100-200 200+ All Industries 47.2% 24.9% 10.5% 5.1% 12.3% Financial Services 36.7% 33.3% 18.3% 3.3% 8.3%

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Q: WHAT IS THE SCOPE OF YOUR PROCESS EXCELLENCE DEPLOYMENT?

Response Enterprise wide Have trained process improvement resources but no formal process improvement program One or more business units Small-scale pilot All industries 46.0% 11.1% 32.8% 10.0% Financial Services 40.0% 11.7% 43.3% 5.0%

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SectorData:BPEFinancialServices

Q: WHAT IMPACT IS THE ECONOMY HAVING ON YOUR OPERATIONAL EXCELLENCE BUDGET?

All Industries 18.6% 27.1% 54.4% Financial Services 21.7% 21.7% 55.0%

Budget is expected to decline in 2012 Budget is expected to increase in 2012 Budget is expected to remain flat in 2012

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Q: WHAT IS THE AVERAGE LENGTH OF A PROCESS IMPROVEMENT PROJECT AT YOUR COMPANY?

Response Dont measure Less than 3 months 3-6 months 6-12 months More than one year All Industries 9.2% 15.4% 39.1% 28.3% 7.8% Financial Services 5.0% 6.7% 48.3% 35.0% 3.3%

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Q: WHAT FRAMEWORKS/METHODOLOGIES DO YOU USE?

Surveyrespondentswereinvitedtoselectallthatapply.

Answer Options Lean Six Sigma Lean & Six Sigma Business Process Management/Automation Balanced Scorecard/Dashboards Data Management Technology Operational Intelligence Business Process Re-Engineering Total Quality Management Design For Six Sigma Hoshin Planning Process Excellence Framework All Industries 46.9% 36.6% 48.9% 25.3% 48.1% 17.0% 12.9% 25.7% 22.2% 18.8% 11.1% 13.7% Financial Services 50.0% 36.7% 61.7% 28.3% 46.7% 13.3% 13.3% 31.7% 10.0% 18.3% 8.3% 15.0%

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Q: IN WHICH DEPARTMENTS ARE YOU APPLYING PROCESS IMPROVEMENT METHODOLOGIES?

Surveyrespondentswereinvitedtoselectallthatapply.

Response General Business Operations IT Supply Chain Manufacturing Procurement Sales Marketing Customer Service Finance Human Resources Legal R&D Distribution Travel & Expenses All Industries 70.0% 39.4% 52.2% 47.2% 41.0% 28.6% 24.0% 47.8% 34.6% 34.8% 11.0% 24.0% 23.4% 15.2% Financial Services 81.7% 46.7% 23.3% N/A 25.0% 38.3% 26.7% 61.7% 50.0% 40.0% 16.7% 5.0% 21.7% 10.0%

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Q: WHAT IS THE GOAL OF YOUR PROCESS IMPROVEMENT PROGRAM?

Surveyrespondentswereaskedtoselectaprimary,secondaryandtertiarygoal.Thedatabelowshows percentageofrespondentswhoidentifiedagoalaseitheraprimary,secondaryortertiaryaim.

Answer Options Improve Customer Satisfaction Reduce Costs Improve Efficiency Decrease Defects Adapt to New Regulations Adapt to a Merger or Acquisition Align IT Activities with Processes Increase Market Share and Revenue Regulatory Compliance Reduce Operational Risk Improve Innovation All Industries 50.4% 48.0% 51.3% 15.9% 2.9% 3.1% 4.7% 14.4% 4.7% 12.2% 10.8% Financial Services 76.7% 66.7% 66.7% 13.3% 3.3% 6.7% 6.7% 15.0% 13.3% 16.7% 11.7%

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Q: WHAT IS YOUR PRIMARY MEASURE OF SUCCESS?

Measure Cost Savings Customer Satisfaction Employee Attitude Change Increased Throughput/Efficiency Number of Trained Employees Top line Revenue Growth All industries 37.0% 24.3% 9.8% 2.7% 6.1% 20.0% Financial Services 40.4% 21.1% 1.8% 29.8% 1.8% 5.3%

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Q: HOW WOULD YOU DESCRIBE THE LEVEL OF INTEREST IN PROCESS IMPROVEMENT AT YOUR ORGANIZATION?

Responses Effort and interest have peaked Expanding Experiencing declining returns Program has been dismantled/at risk Self-sufficient / part of normal work environment All Industries 18.5% 51.1% 7.8% 5.7% 17.0% Financial Services 15.3% 61.0% 5.1% 6.8% 11.9%

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Q: WHAT TYPE OF PROCESS IMPROVEMENT WORK WILL BE THE FOCUS OF YOUR PROGRAM IN 2012?
Surveyrespondentswereinvitedtoselectallthatapply.

Answer Options Process Redesign Work Business Process Outsourcing Implementing Process Management Frameworks Process Automation Aligning Processes & IT Customer-centric Process Management Implementing Business Dashboards Process Modelling/Documentation Redesigning Performance Metrics Six Sigma Process Improvement Projects All Industries 49.8% 12.7% 28.8% 26.3% 30.1% 35.3% 28.2% 27.6% 30.9% 53.5% Financial Services 65.0% 20.0% 23.3% 35.0% 35.0% 45.0% 35.0% 35.0% 26.7% 48.3%

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Q: WHAT ARE YOUR KEY INVESTMENT AREAS FOR 2012?

Investment Area BPM Suites Business/Operational Intelligence Software Data Management Business Dashboards Other Software/Technology Software/Technology Integration Third-party Consultancy Services Training in Process Improvement Tools & Methodologies (e.g. Lean, Six Sigma, etc.) Training in Soft skills (e.g. leadership, culture, change management) Hiring New Process Improvement Employees All Industries 10.69% 20.04% 27.10% 29.58% 9.92% 18.89% 16.79% 70.04% 60.11% 21.76% Financial Services 28.3% 21.7% 15.0% 26.7% 6.7% 20.0% 18.3% 68.3% 51.7% 25.0%

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INTERESTEDINFINDINGOUTMORE?
The financial services industry is currently facing unprecedented operational, regulatory and economic pressures. Rigorous legal controls and recent aggressive efforts by regulators demand that operational and processexcellenceteamsactswiftlyinordertominimiseoperationalriskandimproveprocessgovernance. IQPC Exchanges Business Process Excellence in Financial Services Exchange forum provides three days of handson 'how to's' to ensure financial services firms are properly positioned and protected for what lies ahead. Taking place 1012 September 2012 in London, the Business Process Excellence in Financial Services Exchange is the must attend industry forum that brings together the financial services industrys most senior leaders from leading retail and investment banks and insurance companies. There is simply no better place to hearthelatesttipsformeasurablyimprovingprocess,performanceandthemanagementofoperationalrisk. Do not miss this unique opportunity to gain insights from and benchmark with process and operational excellenceleadersfromaroundtheworld. Formoreinformationabouttheeventortosignup,pleasevisitwww.bpefinanceexchange.comorcontactour customerservicesteamonexchangeteam@iqpc.com

ABOUT PROCESS EXCELLENCE NETWORK

Process Excellence Network (PEX Network), a division of IQPC, provides access to online resources, holds regularindustryforumsandconferencesonBusinessProcessManagement(BPM),Lean,ChangeManagement, Operational Excellence, Six Sigma, Risk Management, Customer Experience and more, we provide the forum where key industry experts and organizations share their experience, knowledge and tools, and your practitionerpeersconnectwithoneanotherallovertheworld,bothfacetofaceandonline. PEX Network enables you to advance your own process excellence journey by increasing your idea sources, wideningyourcontactsandfriendshipsandparticipatinginformalandinformallearningopportunities. Become a PEX Network member today and you'll have continuous exposure to new and timeless tools, techniques,andtechnologiestoextendyourperformancecapacityandyourorganization'sproductivity. Signupforfreeatwww.processexcellencenetwork.com

ABOUT THE SURVEY AUTHOR

DianaDavisiseditorofPEXNetwork.comandfollowstrendsinprocessexcellenceincluding Lean,SixSigma,andBPM.SheworkedpreviouslyasaproducerwithAssociatedPress TelevisionNewsandshehasalsoworkedinmarketingandbusinessdevelopmentinthe softwareindustry.DavisholdsaMaster'sinInternationalJournalismfromCityUniversity, LondonandaBAinEnglishfromtheUniversityofBritishColumbia,Vancouver.Shecanbe reachedondiana.davis@pexnetwork.com.

BusinessProcessExcellenceforFinancialServicesExchange 1012September2012 ChelseaFC,London,UK www.bpefinanceexchange.com