Glynis Aquino, DTCCDonald Wiiken, DTCC

Empowering the Six Sigma

Business Philosophy at DTCC

Empowering the Six Sigma

Business Philosophy at DTCC

Karim HouryACSDA - October 10, 2007

Karim HouryACSDA - October 10, 2007

Business PhilosophyBusiness Philosophy

Also “management philosophy.” Platform for deployment. Usually,with a limited shelf-life.

Also “management philosophy.” Platform for deployment. Usually,with a limited shelf-life.

Fueling our Six Sigma Business PhilosophyFueling our Six Sigma Business Philosophy

6σ

But 6 Sigmastuck and evolved…

What’s in YOUR 6σ Engine?What’s in YOUR 6σ Engine?

Empower:

Also “enable.” Provide the official authority. Fuel with force and energy.

Empower:

Also “enable.” Provide the official authority. Fuel with force and energy.

Please join me for the ride…Please join me for the ride…

The Ride ! The Ride !

• DTCC at a glance

• Our Quality journey

• Lessons learned on the way

• DTCC at a glance

• Our Quality journey

• Lessons learned on the way

Background on DTCCBackground on DTCC

•Largest post-trade financial services infrastructure organization in the world

•“Cradle-to-Grave” management of securities

•Primary business focus on clearance, settlement, and asset servicing for equity and fixed income securities

• Industry owned

•Largest post-trade financial services infrastructure organization in the world

•“Cradle-to-Grave” management of securities

•Primary business focus on clearance, settlement, and asset servicing for equity and fixed income securities

• Industry owned

DTCC Mission Statement DTCC Mission Statement

By 2010, to be the acknowledged world-class provider of servicing solutions to financial markets through leadership, innovation, technology, risk management, and strategic alliances.

By 2010, to be the acknowledged world-class provider of servicing solutions to financial markets through leadership, innovation, technology, risk management, and strategic alliances.

•NYSE / NASDAQ

•Mutual Funds

• Insurance Companies

•Trust Companies

•NYSE / NASDAQ

•Mutual Funds

• Insurance Companies

•Trust Companies

•Banks

•Broker / Dealers

• Investment Managers

•Securities Firms

•Banks

•Broker / Dealers

• Investment Managers

•Securities Firms

DTCC CustomersDTCC Customers

More than 11,000 companies withinthe global financial services industry

More than 11,000 companies withinthe global financial services industry

2006 Performance Highlights2006 Performance Highlights

961 billion: Total number of shares traded8.6 billion: Total number of transactions

processed

$171.8 trillion: Financial obligations eliminated through netting

$36 trillion: Value of securities on deposit

$580 million: Rebates, discounts and interest back to customers

$1.5 quadrillion: Value of securities settled through DTCC

$2.1 trillion: Value of mutual fund transactions processed

Evolution of our Quality CultureEvolution of our Quality Culture

•Catalyst for Change

•Support DTCC Growth and Strategy

2010

2001

’02 to ‘06

2007

2000

The 100-Day

Plan

Launch of

Six Sigma

Program

Expansion

Program

Acceleration

1980’s• Quality Circles• Employee Participation Program

1990’s• Continuous Improvement

Program• Cost of Non Conformance• Work Process

Improvement

1980’s• Quality Circles• Employee Participation Program

1990’s• Continuous Improvement

Program• Cost of Non Conformance• Work Process

Improvement

Early 2000’s • Six Sigma Launch & Quality Council• Central Quality Office & Six Sigma

Infrastructure Teams• Balanced Business Scorecard• Cross-functional projects

Early 2000’s • Six Sigma Launch & Quality Council• Central Quality Office & Six Sigma

Infrastructure Teams• Balanced Business Scorecard• Cross-functional projects

Regular Octane: Executive SponsorshipRegular Octane: Executive Sponsorship

“ . . . and if we are to stay relevant in this changing financial services environment – then Six Sigma methodology and metrics must reach deeply into our organization.”

Jill M. Considine, former Chairman & CEOHow The Depository Trust & Clearing Corporation Built A Culture of Quality, June 2006

“ . . . our Six Sigma program has made DTCC better, measurably better, in the way we deliver services to our customers, and in the way we perform on a day-to-day basis.”

Don F. Donahue, Chairman & CEOSix Sigma in Financial Services Address, May 2007

QCA Quality Council with senior executives

Super Octane: A Clear RoadmapSuper Octane: A Clear Roadmap

Cruise Control

•6 Sigma goals linked to Corporate Goals

•Balanced Business Scorecard

Cruise Control

•6 Sigma goals linked to Corporate Goals

•Balanced Business Scorecard

Acceleration

• Quality Targets assigned by Business Unit

• Automated BBS structure

• DTCC-wide web based database

Acceleration

• Quality Targets assigned by Business Unit

• Automated BBS structure

• DTCC-wide web based database

Premium Octane: Engaging the BasePremium Octane: Engaging the Base

Cruise Control• 16 Yellow Belts, 81

Green Belts, 14 Black Belts, 1 Master Black Belt

• 7 rounds of Green Belts training

• eLearning and instructor-led training

• Green Belts Graduation Ceremonies

• 200 projects completed• 600+ employees

engaged

Cruise Control• 16 Yellow Belts, 81

Green Belts, 14 Black Belts, 1 Master Black Belt

• 7 rounds of Green Belts training

• eLearning and instructor-led training

• Green Belts Graduation Ceremonies

• 200 projects completed• 600+ employees

engaged

Acceleration

• More targeted training classes

• Enhanced coaching skills

• Rotation Program

• Project pipeline

• Kaizen Events

Acceleration

• More targeted training classes

• Enhanced coaching skills

• Rotation Program

• Project pipeline

• Kaizen Events

Turbo-Charge: Engaging the MiddleTurbo-Charge: Engaging the Middle

Cruise Control

• Identify Project Champions

• Expand Process Excellence

Cruise Control

• Identify Project Champions

• Expand Process Excellence

Acceleration

•Require Business Process Management Training

•Establish a Quality Forum

•Draw by example via Fast Track Managing Directors’ Training

Acceleration

•Require Business Process Management Training

•Establish a Quality Forum

•Draw by example via Fast Track Managing Directors’ Training

Your Car Needs External Sponsors Your Car Needs External Sponsors

’06 CUSTOMERSATISFACTION

91% Overall

91%Quality

94%Integrity

TrackProgressvs. Target

LaunchProjects

IdentifyProject Teams

Identify Improvement

Projects

Set Improvement

Target

Create Baseline

& Control Chart

TrackMetric

Identify Metric

Create Mapor SIPOC*

Keeping an Eye on our Internal Gauges too Keeping an Eye on our Internal Gauges too

ProcessControl Mgt

Lean &Decision Making

Training: E-Learningfor MetricsIdentify

Process & Team

Meet customer & shareholder needs

Provide a clear linkage between strategic corporate goals, process metrics, and improvement projects

Efficient processes, launch improvement projects, and tap into new markets

Drive Business Units to measure processes from an end-to-end perspective

Make decisions that benefit DTCC vs. Business Unit-specific objectives

Break down barriers among Business Units

Year 1

ID Process

& MetricYear 2

Improve

Process

& Metric

Year 3

ID New

Process

&/or Metric

ContinuousImprovement

Loop

Year 3

Continued

Improvement

Build

Improve

Re-Build

*SIPOC = Suppliers, Inputs, Process, Outputs, Customers

Balanced Business ScorecardBalanced Business Scorecard

Stakeholder / Financial Customer / Service Delivery

Strategic Positioning Employee / Learning and Growth

This is a journey, not a destinationThis is a journey, not a destination

Questions?Questions?