Research On Six Sigma Process Reengineering In The Commercial Banks

Over the past10years, China’s commercial banks’ external business environment hasundergone fundamental changes. Commercial banks had gone gradually from previouslyproduct-centric to customer-centric, its functionality from unitary to comprehensive. Meanwhile,commercial banks’ existing management structure and business processes became increasinglyunsuited to the full range of customer-centric philosophy of financial services, and had seriouslyhampered the efficiency of commercial banking services and sustained profit growth requirements,forcing banks to shift from the traditional sector banks to process banks. During the process oftransformation, the questions of what needs to be changed, where to change, and how to changewill inevitably be stumbled upon. Six Sigma process reengineering for commercial banks providesa mature theoretical platform for system improvements, as well as a range of tools that can be useddirectly. It increases the efficiency of commercial banks’ process reengineering, and reducesunnecessary human, material and financial resource squander while being sufficiently effective,maintaining the momentum of continuous improvement.This article will combine Six Sigma management methodology and process reengineering ofcommercial banks, starting from two dimensions, internal customers processes and externalcustomers processes. It is based on the actual successful examples, elaborating Six Sigmamanagement practice in commercial banks’ specific application process, in hope to providereference for the application of Six Sigma in the commercial banks.Firstly, Six Sigma management methods are described in detail. This paper describes theorigins, development and application status of Six Sigma management methods, and defines themeaning of Six Sigma management. Its organizational structure, the implementation process, andimplementation basis are illustrated as well.Secondly, the commercial bank process reengineering theory is introduced, and the meaningof processes bank and sector bank is defined. The cause, history and practice of commercial bankprocess reengineering, both foreign and domestic, are reviewed. Meanwhile, the role andsignificance of commercial banks’ process reengineering are highlighted.Finally, as an application-oriented paper, it adopts a case study perspective to thoroughlyanalyze the application of Six Sigma management methods in commercial banks, in order toprovide reference to general commercial bank management personnel.