Background  

A financial institution with an annual profit exceeding $7 billion and a net operating income over $21 billion operates a remediation department tasked with rectifying monetary errors made by systems or other calculations affecting customers. Despite its significant financial resources, the department faced considerable challenges including identifying errors, making timely payments, high attrition rates, and a mounting backlog of remediation projects. Moreover, the team experienced leadership turnover and structural instability, compounded by audit concerns and regulatory pressures. The remediation department had over 150 staff that previously were allocated to multiple projects at any given time, applying a project mindset. After the initial transition to agile, which included dedicated coaching for a year resulting in some morale improvements and more stable project delivery albeit still slow, there was still potentials for fines by regulators, financial loss due to delay in payments and loss of reputation with customers and market confidence.  

Approach 

Recognising the urgency of the situation, the institution fostered a participatory approach to change, emphasising strategy co-creation and internal ownership. Rather than relying solely on external consultants, the institution empowered internal stakeholders, forming a "Way Finder Team" responsible for designing and experimenting with new processes. This participatory strategy involved a series of off-sites where leadership teams, delivery representatives, and key stakeholders collaboratively defined strategic intent and objectives. The consulting team provided, training and facilitation using a catalyst approach to enable the internal team.  

Strategic Co-Creation

Through a customised Search Conference, leadership teams, team representatives, and stakeholders co-created strategic objectives, fostering alignment and ownership among all stakeholders. 

PDW Design by Internal Teams

The Way Finder Team took the lead in restructuring the department's processes, technologies, and operational models. Utilising principles from Team Topologies, they split the complex value stream into four distinct archetypes: Stream-Aligned Teams, Enabling Teams, Complicated Systems Teams, and a Platform Team. 

Pilot Implementation by Internal Teams

The Way Finder Team spearheaded a pilot implementation, conducting socio-technical analyses and refining the new processes iteratively. This approach ensured that changes were not imposed from above but were instead collaboratively developed and tested internally.  

Changes Implemented 

Streamlining Value Streams

The institution split the domain into three main streams aligned with specific business functions (Consumer Finance, Everyday Banking and Mortgage) enabling targeted remediation efforts and enhancing operational efficiency. 

Socio-technical Redesign

Guided by principles from Open Systems Theory and Team Topologies, the department re-engineered processes, artefacts, team structures, and technologies using a reverse fast flow method. This redesign aimed to optimise collaboration, decision-making, and workflow.  

Four Team Archetypes

The Way Finder Team designed and implemented four team archetypes, including Stream-Aligned Teams, Enabling Teams, Complicated Systems Teams, and a Platform Team. This structural change facilitated clearer role definitions, streamlined communication, and improved collaboration.  

Outcomes 

• Increased Throughput and Efficiency

  Remediation project throughput increased by 110%, with cycle time reduced by over 50%, from 12 months to around 5 months per project. Project artefacts were reduced from 11 to 3, enhancing visibility and traceability. 

• Financial Impact

  The Platform Team facilitated $60 million in remediation payments in the first year alone, with a significant reduction in payment errors from around 10% to below 3%. 

• Enhanced Employee Retention

  Staff retention rates improved from 60% to 90% over two years, exceeding industry standards and indicating a boost in morale and job satisfaction. 

• Improved Customer Experience

  Customers experienced reduced errors, timely and accurate repayments, and clear communication, leading to enhanced satisfaction and trust in the institution. 

• Full Visibility and Traceability

  The restructuring efforts led to full visibility and traceability of remediation, business rules, payments, and customers, fostering greater accountability and compliance and passing all audit concerns as green after the change. 

• Simplified hiring

  The new team members on-boarding to productivity cycle time decreased from 6 months to 1 month, leading to significant cost savings and operational efficiencies. 

• Longevity and Sustainability of Change

  The department's throughput increased by another 50% to over 35 projects annually, with a further reduction of errors from 3% to 1%. The internal ownership of the changes ensured sustainability and longevity beyond the initial implementation phase.