Muda, Mura,

Muri…

How can these concepts

impact the financial

services industry?

Context/History of Lean

• Definition of Lean

• Toyota

Slide 2 © 2009 GAMA International

Sources of Waste

• Muda, mura, muri

• 7 Sources of waste

– Overproduction

– Errors

– Needless movement

– Excess inventory

– Overprocessing

– Waiting time

– Transportation

Slide 3 © 2009 GAMA International

Lean Financial Services Cutting costs while reducing risks

• Process improvement

• Performance Management

• Mindset & Capabilities

Slide 4 © 2009 GAMA International

Process Improvement 7 Design Practices of Lean

If you want to get lean, you might have to get a little mean.” - James P. Womack

• Place linked processes near one another

• Standardize procedures

• Eliminate loop-backs

• Set a common tempo

• Balance loads

• Segregate complexity

• Post performance results

Slide 5 © 2009 GAMA International

Performance Management

• Every employee has True North Metrics

• Daily meeting with team to review

metrics

• Regular review of metrics with

individuals

Slide 6 © 2009 GAMA International

Mindsets and Capabilities

• Serve the customer

• Pursue “active honesty”

• Decide carefully, implement quickly

• Candidly admit imperfections

• Speak honestly and with deep respect

• Go see and listen to learn

• Deliver on meaningful challenges

• Be a mentor

Slide 7 © 2009 GAMA International

Solutions to Waste – Part 1

• Overproduction

• Errors

• Needless movement

Slide 11 © 2009 GAMA International

For internal use only. Nothing contained in this document shall be disclosed outside State Farm unless proper authorization is obtained. 1

2

Weekly Huddle/Performance Board

Metrics Trends

Recognition

Key

Performance

Indicators

AFO

Targets

Week __

Results

Auto

Fire

Life

Bank

Mutual Funds

% MLD All

Policy Types

Issues

Auto Fire Target

Actual

Topic Action Owner Due Date

Life

% MLD All Policy

Types Mutual Funds

Bank

Role Clarity/Critical Tasks

Role Clarity/Critical Tasks Identified

Tasks Leader Consultant Specialist Secretary

1) Reports X X

2) Promotions Tracking X X X X

3) Calendar Management X X

4) Company Car Management X

5) Supply Management X X

Slide 13 © 2009 GAMA International

Auto Bank Marketing Training

Retention

Acquisition

Acquisition Gain

Auto, Fire, Bank

Corporate Relationship

Technology

Prospector+

Product Training

Defined systems/Continuity Manual

Slide 14 © 2009 GAMA International

Checkpoint System

Slide 15 © 2009 GAMA International

Solutions to Waste – Part 2

• Excess Inventory

• Overprocessing

• Waiting Time

• Tranportation

Slide 17 © 2009 GAMA International

Housekeeping

• Seri – Sort

• Seiton – Straighten

• Seiso – Shine

• Seiketsu – Standardize

• Shitsuke - Sustain

Slide 18 © 2009 GAMA International

Sales Process Diagnostic

Slide 19 © 2009 GAMA International

Weekly Huddle/Standing Agenda

Slide 20 © 2009 GAMA International

Producer -Role Clarity/Critical

Tasks

Slide 22 © 2009 GAMA International

Defined Systems/Continuity Manual

Slide 23 © 2009 GAMA International

OSOEz – Outlook Shared Office Efficiency

Slide 24 © 2009 GAMA International

Takeaways

• Sources of Waste

• Process improvement

• Performance Management

• Mindset & Capabilities

Slide 27 © 2009 GAMA International