Refining the target operating model

Increasing benefits from Lean and Six Sigma initiatives

Though banks pursue Lean and Six Sigma initiatives only few are able to reap the full benefit from those. This article will show how looking at your operating model will allow you to define an integrated set of initiatives to increase their total return well above a level where it becomes visible.

Executive summary

  • Asset managers are confronted with lower revenues and higher costs arising from regulation
  • Discrete cost-reduction and performance-enhancing initiatives like Lean and Six Sigma have been initiated but are not enough to significantly affect the CIR
  • To achieve significant CIR improvements more cost-reduction levers than affected by Lean and Six Sigma need to be addressed
  • Refining the Target Operating Model helps to address all available levers for cost reductions and achieve a significant impact on CIR as well as operational efficiency

Performance issue 10 - January 2013

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

Performance issue 10
Did you find this useful?