BENEFITS AND CONTRIBUTION DERIVED BY BANK

OF AMERICA’S (BoA) INITIATIVE FROM SIX SIGMA

• Six Sigma tools were soon being applied across the entire Bank of America value
chain, from sales through fulfilment to service.

• Businesses and engineering teams were collaborating on projects to eliminate

variation and errors in key processes.

• In all, Six Sigma and the other quality tools that have become part of Bank of
America’s culture, have created benefits of more than $2 billion.

• Best of all, customer delight has increased by 50% across the company, with
some operational areas of the company showing even greater gains.
FROM CUSTOMER SATISFACTION TO CUSTOMER DELIGHT

• Customer satisfaction occurs when you meet your customer’s expectations.

• Customer delight occurs when you not only exceed your customer’s expectations but you also give
them what they want or desire.

• For example, when you look for a drugstore, you expect to find one close to home that has convenient
hours. You also expect to be treated courteously. You’re a satisfied customer if that occurs. What you
want is to be treated as an individual, with empathy and with sincere concern. When that happens,
you’re delighted.
BANK OF AMERICA’S IMPRESSIVE RESULTS THROUGH SIX
SIGMA
 Missing items on customer statements were reduced by 70%.

 Through a series of focused projects, defects in electronic channels (ATMs, online banking, etc.)
decreased by 88%.

 One project on mortgage applications reduced average cycle time by 15 days.

 Non-credit losses, including fraud, were driven down by 28% on a per-account basis, whereas the
number of new accounts increased by more than a million in 2003 alone.

 Same-day payments have been improved by 36%.

 Deposit processing has been improved by 47%.

 Reduced cycle times in several businesses by 50%.

 Time was reduced to 100 days to open a new banking center.

 “More proud of our improvement in customer metrics than
for our record breaking financial results.”
- Kenneth D. Lewis (2001), then Bank of America chairman and CEO

• These tremendous financial and customer satisfaction results have

convinced leaders throughout the company that Six Sigma works
and that quality efforts are critical to BoA in achieving their dream
of becoming most admired company.

• Six Sigma was generating the same magnitude of benefits at a bank

that had been seen in manufacturing organizations before.
 CONCLUSIONS GATHERED FROM THIS CASE STUDY
• Finance industry is considerably applying six sigma quality process with the aim of eliminating defects.

• Six Sigma is a powerful system.

• Measuring of quality that longs for perfection (6 Sigma = 3.4 defects/million = 99.999997% accurate).

• By implementing the Six Sigma concept, the banks give the priority to increasing their clients’ satisfaction,
which, in turn, results in the reduction of time cycle needed for the perfect service to be produced and
delivered to the client. Also, it enhances the processes related to the bank’s risk management at all levels,
resulting in increased profit and reduced costs.

• The main factors of successful Six Sigma implementation are: commitment to leadership, full engagement of
Six Sigma team leaders, integration with the top management strategy, business process frameworks,
intelligent network of clients and markets, real cost reductions, revenue and profit, motivation and
incentives to all employees, program infrastructure, corporate culture, etc.

• The success of Six Sigma concept implementation depends on the readiness of the employees themselves to
participate in it.
 Did you know?
In 2017, Bank of America is worth:

Total assets: US$2.281 trillion

Revenue: US$87.352 billion
(Wikipedia, 2018)

THANK YOU FOR YOUR ATTENTION

Q & A SESSION