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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
Client Opening Account Process
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
Client Opening Account Process
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
Client Opening Account Process
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
Client Opening Account Process
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
Client Opening Account Process
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
Client Opening Account Process
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
Lack ofrelational,reusable
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
Delayed accountopening due to
manual approvalsof profile form
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
Too manyaccount forms
Series 8 approvaldelays process
Delayed accountopening due to
manual approvalsof profile form
XEROX :Outsourced documentmanagement delaysprocess & increases
costs
No tracking ofdocumentssupportedproperly
InaccurateDQ system
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 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
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 ofprofile data
across 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 & 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
Lack ofrelational,reusable
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
Developing a BP Architecture
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
Developing a BP Architecture
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)
Developing a BP Architecture
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
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)
Developing a BP Architecture
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
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
I naccurateDQ system
Dupl i cat i on i nrevi ew of
documents
Mul ti pl e systemssupport the
process
Too manyaccount forms
Prospect met
Review client'sneed &
expectations
AYGprofilesheet
Retailaccountneeded
FinancialAdvisor (FA)
Client
Gatherclientprofile
Businessaccountneeded
Client
AYGprofilesheet
AYGprofilesheet
Retail ClientProfile Form(customized)
Retail ClientProfile Form(customized)
2_ O btainAccountData_
Advisory_Bus iness
FinancialAdvisor (FA)
2_ O btainN ew Account
Data_ FAC
FACaccountneeded
Retail factsheet (KDA)
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 )
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
FiancialAdvisor (FA)Retail fact
sheet (KDA)
Fact sheet tobe reviewed
Retail ClientProfile Form(customized)
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 (KDA)
Retail factsheet (KDA)
Retail factsheet (KDA)
Retail factsheet (KDA)
Client Associate(CA)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (KDA)
Retail factsheet (KDA)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (CAM)
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
Client Associate(CA)
Client Associate(CA)
RejectedFact sheet
Approvedfact sheet
Accountnumberrequired
95%
0. 95
CA brings itto Doc controller
3. 00 M inut e( s )
Client Associate(CA)
RejectedFact sheet
Bott l eneck - wai t i ng t i me!
5 %
Retail factsheet (KDA)
0. 05
Give back toCA for filling
in the missinginformation
2. 00 M inut e( s )
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (CAM)
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!!
Retail factsheet (KDA)
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (CAM)
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)
Client Associate(CA)
6_ a_ Prepare &Mail Documents
_ Advisory_ Retail
9%
batch from 5-5:30
Retail factsheet (KDA)
Retail factsheet (CAM)
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)
ID validationspecialist (Fraud)
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 Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
Client Associate(CA)
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
Client Associate(CA)
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
Client Associate(CA)
Retail factsheet (KDA)
Retail factsheet (CAM)
Retail factsheet (CAM)
Retail factsheet (KDA)
Retail factsheet (CAM)
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
Documentsneed to bescanned
Documentsneed to bescanned
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)
Retail factsheet (CAM)
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 )
Client accountrepresentative
Client accountrepresentative
Verify ifdocumentation
is accurate& complete
5. 00 M inut e( s )
Client accountrepresentative
6_ a_ Prepare &Mail Documents
_ Advisory_ Retail
Client accountrepresentative
ScannedImage of
New AccountDocuments
ScannedImage of
New AccountDocuments
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
Retail factsheet (KDA)
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
Mul ti pl e systemssupport the
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
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
Manualprocessrout i ng
Seri es 8 approvaldel ays process
Dupl i cat i on i nrevi ew of
documents
Manual pri nt /store of new
accounts documentsby branch,
outdated i nventory
Prof i l esheet
redundancy
Manual preparati on& storage of paper
(profi l e) forms
Manual pri nt /store of new
accounts documentsby branch,
outdated i nventory
Dupl i cat i on i nrevi ew of
documents
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
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
Too manyaccount forms
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
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
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
No t racki ng ofdocumentssupportedproperl y
Manualprocessrout i ng
Seri es 8 approvaldel ays process
Seri es 8 approvaldel ays process
Dupl i cat i on i nrevi ew of
documents
Del ayed accountopeni ng due to
manual approval sof profi l e form
Del ayed accountopeni ng due to
manual approval sof profi l e form
No tracki ng ofdocumentssupportedproperl y
Manualprocessrout i ng
Mul ti pl e systemssupport the
process
Account no .assi gned by a
standal one system& requi res
separate process
Mul ti pl e systemssupport the
process
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
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
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
No t racki ng ofdocumentssupportedproperl y
No t racki ng ofdocumentssupportedproperl y
I naccurateDQ system
CA manual l ycompi l es new
accounts paperworkto send to cl i ent
Manual pri nt /store of new
accounts documentsby branch,
outdated i nventory
Manualprocessrout i ng
Long processcycl e t i me due to
sendi ng - wai t i ng -recevi ng documents
A/ C openi ng pendsfor recei pt of cl i entdocuments whi ch
del ays t ransact i ons
Mul ti pl e systemssupport the
process
Lack ofrel ati onal ,reusabl e
data
Li mi ted to noshari ng of
prof i l e dataacross products
CA’ s need todetermi ne documentrequi rements based
on knowl edge / resources
Mul ti pl e Cl i entsi gnatures requi red
on numerousdocuments
Fact sheets needto be f i l l ed out byhand even though
data i n system
Too manyaccount forms
Too manyaccount forms
50% of the CA’ snot aware of
auto approve -so nocheck the returned
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
Too manyaccount forms
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
FinancialAdvisor (FA)
FinancialAdvisor (FA)
FinancialAdvisor (FA)
Client
FinancialAdvisor (FA)
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)
FinancialAdvisor (FA)
FinancialAdvisor (FA)
FinancialAdvisor (FA)
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
FinancialAdvisor (FA)
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)
New AccountDocuments
0. 10
Give outPIN
if requested
2. 00 M i nut e( s)
Client AdvisorBranch (CAB)
Client AdvisorBranch (CAB)
New AccountDocuments
CRM
Client profile&
Client account plan
Client
Client AdvisorBranch (CAB)
CRM
Client
Client AdvisorBranch (CAB)
AMS Hub(Account
Mgt System)
Client isin the branch
Client AdvisorBranch (CAB)
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)
New AccountDocuments
Client AdvisorBranch (CAB)
customerprofile
Client Plan
Client AdvisorBranch (CAB)
New AccountDocuments
AMS Hub(Account
Mgt System)
New AccountDocuments
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)
Client Advisor CallCenter (CACC)
Client Advisor CallCenter (CACC)
CRM
Client Advisor CallCenter (CACC)
customerprofile
Client profile&
Client account plan
Client Plan
CRM
Client
Client Advisor CallCenter (CACC)
AMS Hub(Account
Mgt System)
Client
Client Advisor CallCenter (CACC)
Client
Client Advisor CallCenter (CACC)
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
New Accountneeds to bereviewed
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)
New AccountDocuments
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
New AccountDocuments.pdf
VerificationPIN
New AccountDocuments
Client
0. 70
Sign newAccount
Documents
2. 00 M i nut e( s)
AMS Hub(Account
Mgt System)
New AccountDocuments.pdf
New AccountDocuments
Client
New AccountDocuments
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
New AccountDocuments
New AccountDocuments
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
Benefits of a BPM Approach
• The average number of departments involved was 3 (fusion is happening)
• Successful projects had no less than 10% internal rate of return
• 78% had greater than 15%; Wild numbers included 100% and 360%
• 85% of the projects were dominated by human to human processes
• 15% of the projects were dominated by system to system processes
• 67% of the projects were completed in less than 6 months
• 50% of the projects were completed in less than 4 months
• 77% of the projects had returns greater than $100,000.00 per project
• 55% of the projects had returns in the $100,000.00 to $500,000.00 range
• 80% of the respondents felt an increase in competitive advantage
• Value to the company higher than ERP, CRM, SCM today
Source Gartner Group
Benefits of a BPM Approach
What Industries are Using BPM?
Transportation, 1%
Local and Regional Govt, 2%
Process Manufacturing, 2%
Communications, 12%
Financial Services, 46%
National and International Govt, 8%
Education, 2%
Services (includes IT Services), 5%
Others, 5%
Utilities, 3%
Discrete Manufacturing, 2%
Retail Trade, 2%
Healthcare, 10%
Source Gartner Group