Root Cause Analysis Of Skyrocketing Error Rates In Processing Mutual Fund Transactions

The Business Challenge

A large independent broker was experiencing skyrocketing error rates in processing mutual fund transactions. Workers had been on mandatory overtime for two years. Processing costs were excessive and employee morale was at an all time low.

Expert’s Solution

Working with front line employees, we mapped and measured current processes across business functional areas. We analyzed causes using root cause analysis facilitated sessions. We provided alternatives with associated measures of the effect on process performance. We rationalized all existing business rules and eliminated all non value-added process steps. We hired and trained an internal team to focus on continuous improvement of back office processes and on measurement-based decision making. We introduced the Balanced Scorecard and the concept of leading indicators to predict performance.

Results

Paid overtime went from 40,000 hours annually to zero and eighteen people were freed up to work in another area of the business. We reduced errors 95% and for the first time in two years put smiles back on the faces of workers and managers.

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