Presentation Title:

Presentation Title:

Utilizing Business Process Management (BPM) and Enterprise Architecture (EA) to Achieve and Maintain a Competitive Advantage

Presented By:

Joe Henneberry

ARIS Practice Manager

IDS Scheer Canada

1.1. IntroductionIntroduction

2.2. Business Process Management / Enterprise Architecture PrimerBusiness Process Management / Enterprise Architecture Primer

3.3. Business Process Management Approach at Merrill LynchBusiness Process Management Approach at Merrill Lynch

4.4. Client Account Opening ProcessClient Account Opening Process

5.5. Developing a Business Process ArchitectureDeveloping a Business Process Architecture

6.6. Benefits of a Business Process Management ApproachBenefits of a Business Process Management Approach

Agenda

Introduction

Merrill Lynch – The Company

• Merrill Lynch is one of the world's leading financial management and advisory companies

• Offices in 36 countries

• Total client assets of approximately $1.6 trillion

• Leading global underwriter of debt and equity securities

• Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets.

• Firm wide, assets under management total $479 billion.

Introduction

Merrill Lynch - The Challenge

• Determine root cause of “Pain Points” of the Account Opening Process which were discovered through previous customer surveys

• Improve initial point of contact with customers

• Understand the complexities of Merrill Lynch’s Client Account Opening Process which spans multiple products, organizations structures, application systems and data stores.

Introduction

Merrill Lynch – The Solution

• Utilize a Business Process Management (BPM) methodology to understand the complexity between KPIs, business processes, application systems, data and organizational systems.

• The BPM application selected was IDS Scheer’s ARIS Platform with it’s inherent ARIS methodology

BPM / EA Primer

BusinessProcess Modeling

Business Performance Management

Enterprise Enterprise Architecture Architecture IntegrationIntegration

Business Process Management

Tools

Business Process Management

Business Process ModelingArticulated and maintained end to end business process models used to manage process strategy across business and organizational silos.

Enterprise ArchitectureArticulated and maintained models which map the processes to data, applications and infrastructure to manage the elimination of redundant data, software and hardware.

Business Performance ManagementIntegration of Key Process Indicators (cost, timing, resources) from the legacy applications into the business process models for real-time management dashboards for day-to-day management.

Business Process Management SystemsLeveraging Service Oriented Applications (SOA) and Business Rule Engines as a integration layer on top of legacy applications to implement solutions and empower the business to design and implement process changes.

Articulated and maintained Business Process Modeling is the core for business Process Management (BPM)

BPM Approach at Merrill Lynch

• Determine enterprise initiatives

• Develop business processes that are in line with businessobjectives and KPIs

• Create enterprise repositories

• Organizational structures

• Application systems

• Data

• Products

• Processes

• Manage Tactical Projects

• Narrow scope by tactically focusing on specific areas of concern

• Don’t model the world

BPM Approach at Merrill Lynch

Merrill Lynch’s BPM End User Interface

Client Opening Account Process

The ARIS Methodology was used to decompose and document a current state “As Is” analysis. The “As Is” analysis consisted of:

• Step 1 - Qualitative As Is Analysis:

•Architecture analysis focusing on

•Organization structure (e.g.. hierarchies, org responsibilities, fragmentation, org breaks)

•Products portfolio & structure (e.g.. number & structure of products, differentiation between products)

•Process architecture (e.g.. flow through the organization, fragmentation, automation, level of standardization)

•Application system inventory (e.g.. number of systems, information flow, fragmentation)

•Data repository (e.g.. number of data clusters, storage of data, duplication, fragmentation)

•Pain points

• Step 2 - Quantitative As Is Analysis:

•Product quantities

•Process times

•Process costs

•Employee utilization


Organizational ViewOrganizational View The organization structure of ML GPC is mapped in the organization view.

The hierarchy is decomposed from top to bottom showing the Names of the organizational units and positions. These objects are re-used in the processes.

L5_ClientAccountServices/Financi...

L5_Client Account Services/Financial Planning Support

Head of ClientAccount Servic...

Staff Assistant

AdministrativeAssistant

L6_Consults-Xerox Liason

Hopewell

L6_Processing/S&D

Hopewell

L6_FPS/TPPHopewell

L6_LASHopewell

L6_DataStrategyInitiative

L6_MLUA/MFAJacksonville

AssistantSupervis...

SpcialistMLUA/MFA

IAMLUA/MFA

MLUA/IAPSelects Processing

ManagerMLUA/MFA

SupervisorMLUA/MFA

MFAProcessing

MFA/PIAProcessing

Data Strategyemployee

LASemployee

Manager LASManager Consults- Xerox Liason

Supervisor -Consults/Terms

SpecialistConsults/Terms

Consults/Termsemployee

XeroxConsult/Terms

Out to MgrConsult/Terms

Terms

SupervisorConsults/N...

SpecialistConsult/N...

Strategic ManagerData Strateg...

Consult/NewAccoun...

Consult/NewAccount WL

SupervisorConsults/Billing

Supervisor

ManagerFPS/TPP

SupervisorFoundations...

Foundationemployee

Premier/AssetClassifier

ProjectCoordinator

Supervisor ThirdParty Processing

Processi...

Supervisor ASAP1-DIST/NEWAC...

SpecialistASAP1-DIST/NEWAC...

Distributionemployee

NEWAC

PLEDG

AP employee

StrategicDevelopment

Supervisor-Intl/FTS

NRC

ManagerProcessing/S&D

SupervisorASAP 2

Specialist ASAP 2

BULKS

WCMA CM

IMAGE

Supervisor ESOP/

ESOP

Fraud

LMA

Escheatments

MLFS


Product ViewProduct View The Product structure of ML GPC is mapped in the product view. A

decomposition of available product & services is shown in the product & service tree.

RetailAccounts

RetailCMA Sub A/C

GPCManaged Products

IAP

MLUA

MLIM PI

MFA

PIA

GFA

Tranfer on Death

Power of Attorney

Options

XOP

Employee StockOptions

Confidential

ML Prototype

Funds TransferService

Checks

MFA Selects

MFA

PIA

GFA

GlobalSelects

GPCServices

IAP


Process ViewProcess View The New Account Opening process flow is described in the process view. A high level value chain showing the main steps & responsible Organizational

Units is broken down into a detailed process with the functions, the position executing these functions & the system supporting them as well as the in-& output of each activity.

The average processing time per function & probabilities per decision are recorded and allow process time calculations. The cost rates for the position that execute the functions are mapped and enable process costing.

3_ApproveFact sheet_Advisory

4_AssignAccountNumber

_Advisory

2_ObtainAccount

Data_Advisory

5_Enter NewAccount

Data_Advisory

6_Preparerequired

Documents &Mailing

_Advisory

7_Receive &Review

Documents(xerox)_Advisory

8_Approve &ActivateAccount/Rtl_Adv

1_EstablishClient's Goals &

Espections_Advisory


Data ViewData View The data structure of ML GPC is mapped in the data view. The hierarchy is

decomposed from top to bottom showing the data clusters for the different products; the data clusters are then broken down to the different Entity Types that they contain. The clusters are re-used in the processes.

L1_GPC retail standard data

EDDinformation

Patriotact

information

Privacypledge

information

ML_GPCretail account

data

Traitsinformation

Requiredtraits

information

Applicabletraits

information

Auhtorizedaccount

individualsinformation(required)

Auhtorizedaccount

individualsinformation

(unformatted accts) Financialinformation

Employmentinformation

Tradinginformation

Correspondenceinformation

Auhtorizedaccount

individualsinformation

UngroupedAccount

information

FAapproval

information

Managerapproval

information

Accounttitle

information

Trustprofile

information

Grant/ownersource

of wealthinformation

Anticipatoryprofiling

information(required)

Interestedparties

information(DU)

Additionalservice

& featuresinformation

AYG_personal

information

AYG_personalgoals &cashflow

information

AYG_risktolerance& asset

allocation model

AYG_risk

toleranceprofile

AYG_personalbalancesheet

Merrill_CRAaccounts

information

Merrill_CRArelationship

number

Merrill_CRAclient

information

Merrill_CRAUTMA/UGMAinformation

Merrill_CRAretirementinformation

Merrill_CRAtax certification

& acknowledgementsinformation

W-9information

Jointaccount

agreement

ICMAinformation

W-8information

Trusteecertificationinformation

AYG_income,assets &liabilities

information

Requiredtraits

information

Accounttype

Tradetype

Ownershiptype

Numberof

signatories

Name& addressdisclosure

Dividendinterestusage

Accountrisk

factor

L2_Required traits information


Application System ViewApplication System View The application system structure within ML GPC is mapped in the

Application View. The hierarchy is decomposed from top to bottom showing the different systems used in the processes. These objects are re-used in the processes.

CAMU

PATHAsset

managementsystems

RetirementIK systems

Snaps

DQ system

GPCapplications

portflio

L1_GPC_ application systems inventory

MLD

Siebel

ANGKDA

KDI

KDC

Onlineenrollment

system

KD

PATHPrimary

residentialaddress

Newaccountnumber

Socialsecuritynumber

Employmentinformation

PATH Data store overview

VSAM

New accountrequired

Processretirement

account info

Mailed toclient

for signatu...

Batchtransfer

Updateclient

profile data

Processretail/CMA

account info

Addclientdata

Determinedocument

requirements

Processretirement

account info

Releaseactivation

& calcula...

KD

Processretail/CMA

account info

CAMU

PATH

Assetmanagement

systems

Addclientdata

RetirementIK systems

Snaps

DQ system

KD

DQ system

Processretail/CMA

account info

Assetmanagement

systems

KDProcessdelawareaccount

Retail/CMA

accou...

Retirementaccountactivated

Delawareaccountactivated

L1_GPC_ application flow overview


Pain Point Tree Pain Point Tree More than 100 Pain Points were considered

during the As Is Analysis that were gathered during previous surveys and during the interviews (selection provided)

1 Inefficient,manual processes

with limitedintegrated information

sharing

2 Unstandardizedof data collection& amount of data

accross prod.

Manual preparation& storage of paper

(profile) forms

Delayed accountopening due to

manual approvalsof profile form

XEROX:Outsourced documentmanagement delaysprocess & increases

costs

More than 100data elements to

be captured

5 No check ofreceived client info.

against publicrecords

No tracking ofdocumentssupportedproperly

InaccurateDQ system

Product areas candecide which docswith which content

are sent to client

Product areas candecide throuch whichoutsourcing provider

to send docs

6 Lack ofstandardization& consistency

of the processes

4 Unstandardizedconstruction ofdocs & limited

pre-filling abilityof apps.

3 Multiple sustemsaddress separately

limited features/functionalities

Lack ofrelational,reusable

data

Mainframe workflowinhebits prefillingof data accross

different screens

7 Lack of internalorganization &communication

Missing standardsin process

documentation

A lot of initiativesaddressing differentissues with lack of

integration

Means ofcollection ofprofile data

not standardized

Duplicatedcollection

of profile data

Limited to nosharing of

profile dataacross products

Profilesheet

redundancy

Repetitive dataentry required

50% of the CA’snot aware of

auto approve -so nocheck the returned

CA experience &prefilled docsvs automated,

limited prefilleddoc sending

CA’s need todetermine documentrequirements based

on knowledge / resources

Prefilled clientdocumentation

is limited

Multiple Clientsignatures required

on numerousdocuments

Pain PointRoute CauseNew Account

Opening

Pain Point Tree & Root Cause

Numeroussources forcollection of

client information

Inconsistent appearanceof client packaging

for documentsmailed to clients

Lack of training /consistency for

account openingprocess

Informationdiscrepancies:

Varyinginformation

Owner’s Manual:Confusion regarding

use of owner’smanual

CA’s not documentexperts want reviewof client documents,

esp. legal

Fact SheetsUsability

Long processcycle time due to

sending - waiting -receving documents

No standardway of handlingowner's manual

Auto approvalcreates high

risks from complianceprospective

Fact sheets needto be filled out byhand even though

data in system


data

1 Inefficient,manual processes

with limitedintegrated information

sharing

Late assignmentof A/C number creates

problems in data matching

Different Groupsare working on

("fixing") the systems--> causes problems

Weak screensetup

Service / FeaturesSystem Disconnect

Statement Link:Linking statements

is a standalone process

Housholdinginadequate

CAM workflow:No ability to

navigate throughentry screens

CAM systemis slow to use

KD is a mainframesystem that is

not user friendly

Limited ability tosystematically prefillnew account screens

Too manyaccount forms

Owner’s Manual:Too complex/complicated

for client

Owner’s Manualdoesn’t include all

services and requireddocuments

Duplication inreview of

documents

A/C opening pendsfor receipt of clientdocuments which

delays transactions

Account no .assigned by a

standalone system& requires

separate proces

Series 8 approvaldelays process

Multiple systemssupport the process

Manualprocessrouting



2 Unstandardizedof data collection& amount of data

accross prod.

Manual preparation& storage of paper

(profile) forms

Data maintenance:Updated data fieldare not mirrored

to other DBs

Limited ability tosystematically prefillnew account screens


Series 8 approvaldelays process



XEROX :Outsourced documentmanagement delaysprocess & increases

costs


InaccurateDQ system

More than 100data elements to

be captured

5 No check ofreceived client info.

against publicrecords


InaccurateDQ system

Product areas candecide which docswith which contentare sent to client

Product areas candecide throuch whichoutsourcing provider

to send docs

6 Lack ofstandardization& consistency

of the processes

4 Unstandardizedconstruction ofdocs & limited

pre-filling abilityof apps.

3 Multiple sustemsaddress separately

limited features/functionalities


data

Mainframe workflowinhebits prefillingof data accross

different screens

7 Lack of internalorganization &communication

Missing standardsin process

documentation

A lot of initiativesaddressing differentissues with lack of

integration

Means ofcollection ofprofile data

not standardized

Duplicatedcollection

of profile data

Limited to nosharing ofprofile data

across products

Profilesheet

redundancy

Repetitive dataentry required

50% of the CA’snot aware of


CA experience &prefilled docsvs automated,

limited prefilleddoc sending

CA’s need todetermine documentrequirements based

on knowledge / resources

Prefilled clientdocumentation

is limited

Multiple Clientsignatures required


Pain PointRoute CauseNew Account

Opening

Pain Point Tree & Route Cause

Numeroussources forcollection of

client information

Inconsistent appearanceof client packaging

for documentsmailed to clients

Lack of training /consistency for

account openingprocess

Informationdiscrepancies:

Varyinginformation

Owner’s Manual:Confusion regarding

use of owner’smanual

CA’s not documentexperts want reviewof client documents,

esp. legal

Fact SheetsUsability

Long processcycle time due to

sending - waiting -receving documents

No standardway of handlingowner's manual

No overview whichfeatures client

requested

Auto approvalcreates high

risks from complianceprospective

CA manuallycompiles new

accounts paperworkto send to client

Manual print /store of new

accounts documentsby branch,

outdated inventory

Fact sheets needto be filled out byhand even though

data in system

Seggregation oforganizationalresponsibilityper product(org. silos)

One reason for the framented and unstandardized wayto process new accounts with regards to processes,systems, data and documents relies probably on thefact the the organizational responsibilities are alignedaround products rather than followinga customer oriented process approach(= product/ function oriented organizational silos)

Definition of BusinessRequirement not done

by Process Owners

Very often, the businessrequirements, e.g. Web enrollmentfor consults, are written by productresponsibles/ IT rather than fromProcess responsibles= business owners!

Focus on improvements("fixing problems ") reactiveand oriented to the bottom

The approach to fix the communicatedpain points often done bottom up, focussedmainly on technology improvements ratherthan fixing the PROCESS issues from thetop down.

Lack of businesstransparency &

process management

There is currently no existing standardfor getting process transparency from anend-to-end prospective. Also, a proactiveprocess management is not applied (processresponsibles). No company wide methodologyfor gaining transparency - different tools andmethods are used - no integrated view!

No common languagefor the various initiatives

in the firm

A lot of initiatives are currentlydone in parallel with focus on sameand different aspect within ML -there seems to be no commonlanguage and methodology toconnect these initiatives


data

Multiple systemssupport the process

Developing a BP Architecture

Process Approach OverviewProcess Approach Overview

• Merrill Lynch Global Private Client Services explored the use of creating a business process repository to capture and document all business processes for the division.

ApproachApproach

• Top / down organization focused approach

• Bottom-up process-focused approach

• Integrate top-down and bottom-up approach through process decomposition


Create top-down views of the organization

President ofGPC

GPCAmericasRegion

GPCEMEA &

Pacific Regions

GPCGlobal Bank

GPCCommunications

GPCGeneralCounsel

GPCHuman

Resources

Merrill LynchGlobal PrivateClients (GPC)

GPCFinance

Head ofGPC HR

Head ofGPC Finance

Head of GPCGeneral Counsel

Head of GPCCommunications

Co-Head 1 of GPCAmericas Region

Head of GPCGlobal Bank

Head of GPCEMEA&Pacific Region

Co-Head 2 of GPCAmericas Region

Status: Being processed Since/on: 7/22/2004Name: L1_Merrill Lynch GPC Organization Structure

Person responsible: James Gorman, President Last change: 7/23/2004 1:44:25 PM

GPC Core ProcessesGPC Support

Processes

GPC AmericasCore Processes

Global Bank CoreProcesses

GPC EMEA & PacifcCore Processes

GPC HR SupportProcesses

GPC Finance SupportProcesses

GPC OGC SupportProcesses

GPCCommunications

Support Processes

GPCAmericasRegion

GPCEMEA &

Pacific Regions

GPCGlobal Bank

GPCCommunication

s

GPCGeneralCounsel

GPCHuman

Resources

GPCFinance

Status: Being processed Since/on: 7/22/2004Name: L1 GPC Organizational Business Process Overview

Person responsible: James Gorman, President Last change: 7/22/2004 4:38:23 PM


At lowest levels of the organization define business processes

Client AccountService Processes

Managed ProductProcesses

XEROX ProcessesSystems &

DevelopmentProcesses

ProcessingS&DXerox Liason

CASProcessing

MLUA/MFAConsults

S&DXerox Liason

6_B_NewAccount/

Frau...

8_Approve &Activate

Account...

MFA WebEnrollment

Consult WebEnrollment

8_Approve &Activate

Account_Adviso...

90%10%

Enrollaccount

on EnrollmentWebsite

Reviewaccount

information

Consults/MFAWebsite

Client Associate(CA)

MFA Web Enrollment

6_c_Prepare &Mail MFA

Documents

MFAAccount

MailDocuments

InvestmentAnalyst

Submit WebEnrollment

ASAP is movedto different que

2.00 Minute(s)

Receivedocuments

Review forcompleteness &update systems

MNU

DQ

MN

InformationNOT complete

Send wirethrough ASAP

send to branchwith time

limitation (72 hrs)

Complete

AccountProcessor

AccountProcessor

AccountProcessor

Update MNU withinitials & send to

Investment Analyst

Snaps

MNSA

Snaps

ASAP path

MIMM

MNUClient Associate

(CA)

MNU

ASAP pathAccount

Processor

have to wait for documentsto be sent back from client -

see initiative = ConformSignature/Autoapproval-KIM)


Create organizational process buckets to capture generic business processes and create process from lowest process levels up

A. RelationshipManagement

B. Deliver GPCProducts to

Private Clients

C. Manage GlobalPrivate Client

Business

D. Develop GlobalPrivate Client

Business

Merrill LynchGlobal Private Client

BusinessProcesses

90%10%

Enrollaccount

on EnrollmentWebsite

Reviewaccount

information

Consults/MFAWebsite


MFA Web Enrollment

6_c_Prepare &Mail MFA

Documents

MFAAccount

MailDocuments

InvestmentAnalyst

Submit WebEnrollment

ASAP is movedto different que

2.00 Minute(s)

Receivedocuments

Review forcompleteness &update systems

MNU

DQ

MN

InformationNOT complete

Send wirethrough ASAP

send to branchwith time

limitation (72 hrs)

Complete

AccountProcessor

AccountProcessor

AccountProcessor

Update MNU withinitials & send to

Investment Analyst

Snaps

MNSA

Snaps

ASAP path

MIMM

MNUClient Associate

(CA)

MNU

ASAP pathAccount

Processor

have to wait for documentsto be sent back from client -

see initiative = ConformSignature/Autoapproval-KIM)


The As Is process flows were the bases to create To Be process flows to quantitatively and qualitatively identify areas for improvement. The business benefits gained were:

•Process visibility (end-to-end)

•Information Repository

•Streamlined process

•Increased efficiency of applications

•Increased data usage

•Mitigation of pain points in the process

Long processcycl e t i me due to

sendi ng - wai t i ng -recevi ng documents

XEROX :Outsourced documentmanagement del aysprocess & i ncreases

costs

No t racki ng ofdocumentssupportedproperl y



I naccurateDQ system

Dupl i cat i on i nrevi ew of

documents

Mul ti pl e systemssupport the

process


Prospect met

Review client'sneed &

expectations

AYGprofilesheet

Retailaccountneeded

FinancialAdvisor (FA)

Client

Gatherclientprofile

Businessaccountneeded

Client

AYGprofilesheet

AYGprofilesheet

Retail ClientProfile Form(customized)


2_ O btainAccountData_

Advisory_Bus iness


2_ O btainN ew Account

Data_ FAC

FACaccountneeded

Retail factsheet (KDA)


ML website

Fact sheetcompleted

Allinformation

received

Clientinformation

missing

0. 20

Follow upwith client toget missinginformation

30. 00 M inu t e( s )

Enter initialdata on

fact sheet(hand-written)

10. 00 M inu t e( s )

Determinemissing

information onfact sheet

10. 00 M inu t e( s )

Completefact sheet

12. 00 M inu t e( s )

0. 80

Review & signfact sheet by FA

5. 00 M inut e( s )

0. 80

Give reviewedfact sheet for

SEC regulationapproval

2. 00 M inut e( s )

Print factsheet

2. 00 M inut e( s )






FiancialAdvisor (FA)Retail fact

sheet (KDA)

Fact sheet tobe reviewed


coul d be Bottl eneck = wai t i ng t i me!!

Client

Wai ti ng t i me to get mi ssi ngcl i ent 's i nformat i on !

AYGprofilesheet






Retail factsheet (CAM)















0. 05

Completefact sheet

(can includefollow up)

10. 00 M inu t e( s )

0. 05

Give completedfact sheet backfor final check

2. 00 M inut e( s )

Rejected &followed upfact sheet

Fact sheetapproved

Fact sheetrejected

(suitability &completeness)

Approve factsheet for SEC

regulation

5. 00 M inut e( s )

Series 8manager

Series 8manager

0. 95

Send approvedfact sheet to CA

to give it toDoc Controller

2. 00 M inut e( s )

Series 8manager



RejectedFact sheet

Approvedfact sheet

Accountnumberrequired

95%

0. 95

CA brings itto Doc controller

3. 00 M inut e( s )


RejectedFact sheet

Bott l eneck - wai t i ng t i me!

5 %


0. 05

Give back toCA for filling

in the missinginformation

2. 00 M inut e( s )






Approved factsheet with account

number

Fact sheetreceived backwith account

number

Assignaccountnumber

5. 00 M inut e( s )

DOC Controller

ANG

DOC Controller

Account numberassigned

Send backApproved fact

sheet withAccount number

5. 00 M inut e( s )Approved fact

sheet with accountnumber

Account numbersin log book

coul d be Bottl eneck = wai t i ng t i me!!





Newaccountnumber

KD

Batch processsends

correspondenceinformation

KDA Batchprocess

(every day 5-5:30)

2. 00 M inut e( s )

Clientdata

transferredto equifax

Recordclient data

10. 00 M inu t e( s )CAMU

Clientdata

recorded

Owners manualinformation

sent to Bowne(not consult)

IF AAAselected, client

will receivematerials

(not consult)


6_ a_ Prepare &Mail Documents

_ Advisory_ Retail

9%

batch from 5-5:30



KD

Newaccountnumber

KD

clientcorrespondence

data

DQ

Clientletter

MLPTCreate& mail

client letter

Mailcreated& client

letter sent

Equifax Transunion

Resolutionfound & CAinformed of

resolution viae-mail

Possible Fraudidentified &reported tocorporatesecurity

Account putunder advise(pending) to

branch

Issuelog

monitored

Archiveissue

resolution e -mail

Issueresolution

e-mailarchived

Matchclient info

with equifax

Matchclient

info withtransunion

Reviewreport for

failedtransactions

Issues logtracked in

excel

SARWEST

ID validationspecialist (Fraud)



Equifax/TUspreadsheet

6_ b_ Prepare &Mail ConsultDocuments

6_ c _ Prepare &Mail MFA

Documents

20% 80%

Documentsare

signedcorrectly

0. 20

Send backdocumentationwith comments

5. 00 M inut e( s )

0. 20

Complete& Sign New

AccountDocuments

30. 00 M inu t e( s )

0. 95

Providecompleteddocuments

to doc controllerin person via mail

1. 00 M inut e( s )

0. 95

Log documentsprior to

mailing toXEROX forscanning2. 00 M inut e( s )

0. 95

Makecopies ofsigned &

completeddocuments

2. 50 M inut e( s )

0. 95

Determinebag color

1. 00 M inut e( s )

0. 95

Fill & maildocument

bags

2. 00 M inut e( s )

0. 95

Add accountnumber manually

to all pagesfor xerox

2. 50 M inut e( s )

New AccountDocumentation

only

1. 00

ObtainNew AccountDocuments

3. 00 M inut e( s )

DOC Controller

DOC Controller

DOC Controller

1. 00

Determinerequired new

accountDocumention (for

new account)2. 00 M inut e( s )

Client isin the office

0. 10

Print outdocumentation

for client

5. 00 M inut e( s )

Client isNOT in the

office

0. 80

Maildocumentation

to client

10. 00 M inu t e( s )

Documentationmailed

to client

Documentationprinted outfor client

Owners manual(welcome kit)

& New AccountDocumentation

Ownersmanual

(Welcome Kit)only

1. 00

Determineif client

meeting (face-to-face)

1. 00 M inut e( s )










Client

0. 80

Sign NewAccount

Documents

30. 00 M inu t e( s )

0. 80

Mail backcompleted Form

1. 00 Day ( s )

Client

New Accountdocumentation

completed& received

Documentationnot complete

& branchinformed

Documentationnot approved

& branchinformed

8_ Approve &ActivateAccount_Advisory_ Retail


DQ

Client

Client does notsend docs back

1 week

Documentsare signedincorrect

25%5%70%

Determinetype ofaccount

1. 00 M inut e( s )

RetailAccount

MailDocuments

ConsultAccount

MailDocuments

MFAAccount

MailDocuments

Fact sheetreceived backwith account

number

4_ Ass ign AccountN umber_Advisory_ Retail

CRA

CRA

CRA

CRA

CRA

CRA

CRA

CRA

CRA

CRA

CRA

CRA

Documentsneed to bescanned







Informationtransmitted to

CDOAutoapproveddocuments added

to DQ & AVLQ

Documentrequire manualapproval are

transferred toSNAPS_Retail

Transferdocuments

Insertbarcodesheets toseparate

account documents

Apply code& accountnumber todocuments

Recompiledocuments

& prepare forstorage

(location code)

Matchthe documentsin the bag with

the log

Scan documentsbased on

priority/affluence(i.e color type)

XEROX

XEROX

Transmitinformation

to CDO(client documents

online)

Add 5XR codefor missing

account number &transmit to Special

queue

Documentsindexed &ready fortranfer

Documentindexed withoutaccount number

& ready for transfer

Documentindexed - missingentry on the log

& ready for transfer

Documentindexed -

missing documentsidentified & ready

for transfer

XEROX

Add missingdocument to the

electronic log

XEROX

Add info toelectronic log

Documentsstored

XEROX

XEROXXEROX

ScannedImage of

New AccountDocuments



6_ b_ Prepare &Mail ConsultDocuments

6_ c _ Prepare &Mail MFA

Documents

XEROX

XEROX

XEROX

XEROX

Electronicverification oflog to branchinforming of

notification of reciept

Onlineverification

Approvedfact sheet

BusinessAccountOpening

Documents

CRARetail factsheet (KDA)


Completed &signed newAccount

documenation

MFA EnrollmentForm

ConsultsEnrollment

Form

Branchinformed

Snaps

Documentationapproved &

Image stored inSNAPS

Snaps

Accountnumberwrong

Documentationnot complete

& branchinformed

Documentationnot approved

& branchinformed

Statusupdated to"approved"

Status notupdated to"approved"

Statusupdated to"approved"

0. 60

Update statusmanually

in DQ

0. 50 M inut e( s )

0. 60

Reviewfor statuschange

in DQ system

0. 50 M inut e( s )

Client accountrepresentative

0. 10

Senddocumentation

to xerox forcorrection

1. 00 M inut e( s )



Verify ifdocumentation

is accurate& complete

5. 00 M inut e( s )


6_ a_ Prepare &Mail Documents

_ Advisory_ Retail


ScannedImage of


ScannedImage of


0. 30

Send ASAPaccount in return

status

2. 00 M inut e( s )e-mai l

30%

ASAPnotification toBranch with

short explanation

10%

Documentationsent to Xerox for

correction

7_ Receive &Scan

Documents(xerox)

60%

AYGprofilesheet


Welcome kitoption

suppressed

Prof i l esheet

redundancy

Means ofcol l ecti on ofprof i l e data

not standardi zed

Manual preparati on& storage of paper

(profi l e) forms


process

Dupl i catedcol l ecti on

of profi l e data

Lack ofrel ati onal ,reusabl e

data

More than 100data el ements to

be captured

Li mi ted to noshari ng of

prof i l e dataacross products

Repeti t i ve dataentry requi red

Numeroussources forcol l ecti on of

cl i ent i nformati on



Manualprocessrout i ng

Seri es 8 approvaldel ays process


documents

Manual pri nt /store of new


outdated i nventory

Prof i l esheet

redundancy

Manual preparati on& storage of paper

(profi l e) forms



outdated i nventory


documents


data


be captured



Repeti t i ve dataentry requi red

CA’ s need todetermi ne documentrequi rements based

on knowl edge / resources

Fact sheets needto be f i l l ed out byhand even though

data i n system


CA’ s not documentexperts want revi ewof cl i ent documents,

esp. l egal

Del ayed accountopeni ng due to

manual approval sof profi l e form



Lack of trai ni ng /consi stency for

account openi ngprocess

No overvi ew whi chfeatures cl i ent

requested

Fact SheetsUsabi l i ty










documents





No tracki ng ofdocumentssupportedproperl y



process

Account no .assi gned by a

standal one system& requi res

separate process


process


data


be captured



Mai nframe workfl owi nhebi ts prefi l l i ngof data accross

di fferent screens

Li mi ted abi l i ty tosystemati cal l y prefi l lnew account screens

KD i s a mai nframesystem that i s

not user f ri endl y

CAM systemi s sl ow to use

Late assi gnmentof A/ C number creates

probl ems i n data matchi ng

Weak screensetup

Servi ce / FeaturesSystem Di sconnect

Statement Li nk:Li nki ng statements

i s a standal one process

Houshol di ngi nadequate

CAM workfl ow:No abi l i ty to

navi gate throughentry screens

Data mai ntenance:Updated data f i el dare not mi rrored

to other DBs

CA experi ence &pref i l l ed docsvs automated,

l i mi ted prefi l l eddoc sendi ng

Pref i l l ed cl i entdocumentati on

i s l i mi ted

Lack of trai ni ng /consi stency for

account openi ngprocess

Product areas candeci de whi ch docswi th whi ch contentare sent to cl i ent

Product areas candeci de throuch whi choutsourci ng provi der

to send docs







I naccurateDQ system

CA manual l ycompi l es new

accounts paperworkto send to cl i ent



outdated i nventory




A/ C openi ng pendsfor recei pt of cl i entdocuments whi ch

del ays t ransact i ons


process


data



CA’ s need todetermi ne documentrequi rements based

on knowl edge / resources

Mul ti pl e Cl i entsi gnatures requi red


Fact sheets needto be f i l l ed out byhand even though

data i n system



50% of the CA’ snot aware of


I nconsi stent appearanceof cl i ent packagi ng

for documentsmai l ed to cl i ents

Product areas candeci de throuch whi choutsourci ng provi der

to send docs

Product areas candeci de whi ch docswi th whi ch contentare sent to cl i ent

No standardway of handl i ngowner's manual

Owner’ s Manualdoesn’ t i ncl ude al l

servi ces and requi reddocuments

Owner’ s Manual :Too compl ex/compl i cated

for cl i ent


Owner’ s Manual :Confusi on regardi ng

use of owner’ smanual

XEROX :Outsourced documentmanagement del aysprocess & i ncreases

costs

Initiate ClientRelationship &

gather Requir em ents

InitiateNew Account

Review &Appr ove Account

Mail Docum ents

Review &Appr ove Account

BRANCH ONLINE

Meetingscheduled

Meet client &introduce ML

5. 00 M i nut e( s)

Clienthub

Client profiledata transferredfor verification

10. 00 M i nut e( s )

Contactinfo (branch)

Send clientprofile & requiredaccount info to

system

0. 95 2. 00 M i nut e( s)

RetailAccount

titleinformation

Meetingcompleted

Understandclient's situation& expectations

10. 00 M i nut e( s )

RetailAuhtorizedaccount

individualsinformation(required)

Record clientprofile data

5. 00 M i nut e( s)

0. 95

Suggestcustomized

plan (selectedaccounts) to client

20. 00 M i nut e( s )

Retail Personalinformation for

accountauthorizedindividuals

CRM

Retail Personalinformation fornon-US account

authorizedindividuals




Client


RetailFinancial

information

RetailEmploymentinformation

CRMRetailresidentialinformation

CRM

RetailCorrespondence

information

Client Plan

0. 95

Gather requireddata & client

preferences to openselected account

15. 00 M i nut e( s )

customerprofile

Client PlanFinancial

Advisor (FA)

Client profile&

Client account plan

ClientprefersBranchChannel

Clientprefers

Call Center(FAC) Channel

ClientprefersOnline

Channel

CRM

CRM

Client

Client

Client

customerprofile

Client Plan

Client

0. 31

ClientreceivesPIN, URL& Manual

2. 00 M i nut e( s)

0. 32

Clientreceives

telephonenumber

2. 00 M i nut e( s)

0. 32

Clientreceives

CAcontact info

2. 00 M i nut e( s)




Contact info(online) &password

Contactinfo (Call Center)

& password

First meetingcompleted

Clientprofilealreadyexist

Clientprofileverified

Clientprofile

NOT verified

0. 05

Contact& inform

client

5. 00 M i nut e( s)

AYG_personal

information

AYG_personalgoals &cashflow

information

AYG_risk

toleranceprofile

AYG_personalbalancesheet

AYG_income,assets &liabilities

information

AYG_personal

informationCRM

AMS Hub(Account

Mgt System)

RetailAccount

titleinformation

AYG_personal

information

Onlinefact sheet(OLFS)

Clientinformed


5% 95%

Client isNOT inBranch

ReserveAccountNumber

1. 00 M i nut e( s)

CompleteNew AccountDocuments

5. 00 M i nut e( s)

Receive e-mail totrigger accountopening process

1. 00 M i nut e( s)

0. 10

VerifyNew Account

in AMS

2. 00 M i nut e( s)


0. 10

Give outPIN

if requested

2. 00 M i nut e( s)

Client AdvisorBranch (CAB)



CRM

Client profile&

Client account plan

Client


CRM

Client


AMS Hub(Account

Mgt System)

Client isin the branch


0. 70

Print outprefilled

New AccountDocument

2. 00 M i nut e( s)

0. 70

Sign newAccount

Documents

2. 00 M i nut e( s)

AMS Hub(Account

Mgt System)



customerprofile

Client Plan



AMS Hub(Account

Mgt System)


Client

Does the CA needs to see/ scan etc.document the cl i ent bri ngs i n?

Review clientprofile &

suggestedplan

5. 00 M i nut e( s)

Accountdata

Onlinefact sheet(OLFS)

Relationship/association

data

Merrill_CRAaccounts

information

Merrill_CRArelationship

number

Merrill_CRAclient

information

Merrill_CRAretirementinformation

CRA

CRA

CRA

AMS Hub(Account

Mgt System)

opti onal : branch scanni ngof si gned cl i ent page -

wi l l be attached as a f i l eto the cl i ent profi l e f i l e!

10%

90%

Receive e-mail totrigger account

opening process

1. 00 M i nut e( s)

inbound call

Accountnumber

Client Plan

Call customerfor missinginformation

10. 00 M i nut e( s )

Client calledto open new

account

Gather initialprofile data &select account

10. 00 M i nut e( s )

Client

Load clientprofile & planinto AccMgt

System

2. 00 M i nut e( s)

CompleteOpening ofAccount

5. 00 M i nut e( s)

Client Advisor CallCenter (CACC)

Client Plan

Load clientprofile & planinto AccMgt

System

2. 00 M i nut e( s)



CRM


customerprofile

Client profile&

Client account plan

Client Plan

CRM

Client


AMS Hub(Account

Mgt System)

Client


Client


customerprofile

customerprofile

Client Plan

CRM

CRMAMS Hub(Account

Mgt System)

CRM

CRMAMS Hub(Account

Mgt System)

OutboundCall

ReserveAccountNumber

1. 00 M i nut e( s)

AMS Hub(Account

Mgt System)

ActivatedAccountE-mail

notification

0. 95

CAactivatesaccount

2. 00 M i nut e( s)

ActivateAccount -

e-mail sentto client or CA

0. 95 2. 00 M i nut e( s)

Rejection - E-mailis sent to

client or CS

0. 00 2. 00 M i nut e( s)

client isnotified

CA isnotified

Series 8manager

InitialSystem

Verification

3. 00 M i nut e( s)

wi th defi nedparameters

Accountapproved

SystemVerification

failed

AccountInformation is

sent to Series 8Manager Queue

for manual approval0. 05 1. 00 M i nut e( s)

0. 05

Manualapproval ofDocuments

8. 00 M i nut e( s)

Accountrejected

Accountapproved

New Accountneeds to bereviewed



AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

Rejected AccountE-mail notification

client isnotified CA is

notified

CA support

Accountactivated

AMS Hub(Account

Mgt System)

95%

5%

1%99%

Verify signednew accountdocument/

profile sheet

Applye-signature

Receivesigned

documents

Signatureverified -

no changeswere made

Signatureverified -

changes weremade

Adjustinformation inAMS system

Veri fy that si gnature i s correct &no changes were made!

ArchiveSigned Profile

sheet

workstati on queue

E-Signatureavailable

E-Signaturenot available

0. 30

Print out & signcompleted

New AccountsDocuments

2. 00 M i nut e( s)

Determinepreferences

of client

1. 00 M i nut e( s)

0. 70

Mail documentsto client

2. 00 M i nut e( s)

0. 30

Mail documentsback to Branch

2. 00 M i nut e( s)

New AccountDocuments.pdf

0. 30

E-Mail NewAccount

Documents toClient

3. 00 M i nut e( s)

0. 30

Receive, complete& Review

New AccountDocument

5. 00 M i nut e( s)

Trigger sendingof AuthorizationPin to client for

E-Signature

2. 00 M i nut e( s)


Client

E-mail/onlinechannelpreferred

Client

AMS Hub(Account

Mgt System)

DirectMail channel

preferred

Client

0. 70

Print outprefilled

New AccountDocument

2. 00 M i nut e( s)

VerificationPIN


VerificationPIN


Client

0. 70

Sign newAccount

Documents

2. 00 M i nut e( s)

AMS Hub(Account

Mgt System)



Client


AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

0. 30

Mail documentsback to Branch

2. 00 M i nut e( s)

Client



CA support

CA supportCA support

AMS Hub(Account

Mgt System)

Newaccountprocess

completed

opti onal : branch scanni ngof si gned cl i ent page -

wi l l be attached as a f i l eto the cl i ent profi l e f i l e!

CA support

CA support

CA support

CA support

CA support

CA support

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

30% 70%

AMS Hub(Account

Mgt System)

VerificationPIN

Client

Client wants toopen accountover Internet

CompleteNew AccountDocuments

5. 00 M i nut e( s)

Cliententers

SSN/PIN

1. 00 M i nut e( s)

CRM

customerprofile

Client Plan

AMS Hub(Account

Mgt System)

AMS Hub(Account

Mgt System)

Load ClientProfile ifavailable

1. 00 M i nut e( s)

InitiateAccountOpeningProcess

2. 00 M i nut e( s)

Client

AMSOnline

Client

AMSOnline

Client

Contact info(online) &password

Client

AMS Hub(Account

Mgt System)

AMSOnline

AMS Hub(Account

Mgt System)

AMSOnline

Benefits of a BPM Approach

• Alignment of process flows to KPIs

• Integrated understanding of how changes in process effect application systems, data, products and organizational structures

• Significant reduction in cycle time for introducing process change

• Central repository i.e. one point of reference

• Decomposition of business processes from high level value added chains to process step analysis

QuestionsQuestions

Date post:	01-Jan-2016
Category:	Documents
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