Formulating an FTE Efficiency Model for a leading bank
- Business Dilemma:
Changes in branch activity and diversion of activities to the back office resulted in the need for a new standard model and deep analysis of the demand for workers in branches. Our team was asked to formulate a new FTE Efficiency Model for the bank’s retail branches.
- Process:
The project team began by analyzing the bank’s activities and performance, studying the demand for the service, and conducting work research in a sample of selected branches. We identified the main elements of the branch activities and a level of employment analysis was conducted. Then, direct measurements were made for selected operations that have a high impact on the standard while examining the standard methodology and coverage ratios at leading banks. Finally, a regression-based linear model was built for each team/role and assessed for risk potential.
- Solution & impact:
We determined that the operating model was not service-based; that employee skills were only being utizilized partially; and that it was possible to divert many activities from the branches. Based on our recommendations, the bank implemented a new standardization model that resulted in significant streamlining of FTEs without affecting the operating model or scope of activity, while changing the branch’s deployment, resource planning and scheduling improved response times during peak hours.
