Cost/income ratio is a critical performance metric of the service organization, be it banks, insurance companies or telcos. One important factor directly influencing this ratio is the productivity of certain key processes including credit approval, claim adjustment and services provisioning.
Applying the principles of six-sigma allows you to evaluate the selected processes and pinpoint opportunities to redesign or streamline them.
- Lean Six Sigma
There are two complementing methodologies with a focus on critical customers’ satisfaction factors. Six Sigma drives profits through discovery and gratification of the client’s needs and wants, while Lean has a tangible influence on Cost-to-Income ratio through the introduction of waste reductions.
- Six Sigma
The profit driver in the service industry is satisfying the wants and needs of customers. Satisfaction is the basic metric of repeat business, new referral business, loyalty of current customers and consequent profit. Six Sigma helps to drive the profit via a complete process lifecycle management. Six Sigma provides the tools to discover customers’ wants and needs, breaks them down into several key metrics, prepares a process which strives to produce virtually no errors on all major satisfaction metrics, and implements the process in a sustainable and controllable manner. Regardless of whether it is a completely new business function or an adjustment of currently running operations, it is never too late to make your processes work in favor of your customers.
- Lean
Impacting Cost/Income ratio, a critical performance metric of service organizations, be it banks, insurance companies or telcos.
Although Six Sigma produces robust, virtually error free processes, not all of them bring value to the customer. “Lean” enables greater process visibility and evaluation of value-adding steps from the client’s perspective. Cutting non-essential steps positively impacts Cost-to-Income ratio, not to mention customer satisfaction through improved cycle times.