Regional President Speech

• Impleme~ting Total Quality Management in a Changing Organization ·, ·' . ;.;.,,, . 'Wl'f~MMM@< ::,-::••·:'.''''''':'-':·:.>:.:::.:':':'::·':::,··.)/.: .. :.::··.:::':·•\:::::; .::·•:•· :::'·:··:;:·::.::.:-.-.: .. '.'···,·,;:,:·::•·.::.:·:':·:::':·:·:·:,:.:.:.:.:::.:'.\:'::':':::::::?"':::·:. Cathy E. Minehan, President and Chief Executive Officer Federal Reserve Bank of Boston The Massachusetts Women!s Forum February 6, 1995 SERVICES Agenda w..r~wai' -~-. '::r:,.,.,·~;;;fkiWdid:,1mm&.i%,J~%#11%1iMkf.'.:.\,:f,).'.:. . :.: ,.·.::.,,.·.·.,.:.:f:.'.:.:.:.:.'.\:.:.'.:.'.: . .::.· .. ,.:.''.<:.'.'.,,:,\:.'.:.,.::.:_.::.:.:.·.,.' .. (.::: ':: ,·.,··.··,_._,.-,-_,_:., ,:.:.:.: •. •Why is the Federal Reserve Bank of Boston Pursuing Total Quality Management? •Strategic Planning Process •What is Total Quality Management? - Customer Focus -Continuous Improvement -Total Participation -Societal Networking •How the Boston Fed is Implementing TQM •Examples of TQM Applications -Fed Reorganization -Future Intelligent Terminal -Check Internal Error Reduction Why Is the Boston Fed Pursuing metal Quality Management? •Consolidation •Changes in Regulations •Adoption of a Strategic Vision of the Fed' Role Strategic· Planning Process 1991 - 1995 Strategic Goals ij -Enhance our expertise on financial intermediation -Define and implement plans to adapt to the changing environment -Provide leadership in the development of valuable and unique services -Share our expertise and develop a strong regional presence •Forum Corporation •Center for Quality Management What is Total Quality Management? ; 9Cr-', i: ···· .... ;;ro W:i.Wf,W,MMM@l@H(':f.'.' ( ,:···.·.,,:-,:/··.,.···.·.·.,,.,:::,,.:,_··,.,_,_:_,_,.::.:: ''·?:.": ... ··.:'''·'·.:::: .. , .. :::.:·-::.,.'.::/ .. ,.::.' .. .:.:' ... ,.,. ... \.,.,:.:.· ..• .•. .• .•• .. ·.,.,. • Customer Focus -Market-In versus Product-Out -Listen to the "Voice of the Customer" •Continuous Improvement -Management by Fact -Focus on Process Improvement (POCA) -Focus on the Vital Few •Total Participation -Improvement is Part of Everyone's Daily Job -Management Leads by Example -Respect for People - Teamwork •Societal Networking -Mutual Learning from Individuals, Teams and Organizations How the Bo s con Fed 1 ■ S Implementing TQM • Voice of the Customer projects • Mission Statement / • Service Quality Awards • Employee Ideas program Fundamental cultural change communicated regularly • Process improvements to eliminate the 5 evils Senior officer sponsors monitor team progress • Documented reflections • Management driven with each senior office owning a piece of the TQM infrastructure Quality Teams addressing Bankwide issues • Problem Boards Tools and skills training for everyday Delays, Accidents, Waste, Lots of communications, publicity, Defects) recognition / ~s of networking through formal and informal events both inside and outside the Bank Examples of TQM Applications Fed Reorganization ivers -Align the overall organization with our strategic objectives -Organize to provide more effective customer support • Process -Two teams working simultaneously on project -Lots of participation from lower levels •Results -Combined customer support, marketing, accounting information, billing and support for electronic services in one division -Integrated customer support activities with payments operations at senior level to incorporate feedback fr both into product development -Payments services are organized along the same lines our markets - - wholesale and retail -Better morale, better buy-in from staff -More streamlined organization to deal quickly with .,\ ;;;; 00 rapid environmental changes Fed Organization Before Executive Office Administrative Support, Cash Management Support Payments and Securities and Customer Services Applications Software Payments System Strategy Protection Computing Services Interdistrict Transportation General Services Automation and Technical Services Check Image Property Management Marketing Strategy and Quality Check Collection Cash Services Services Management Planning Remittance and Adjustments Customer Services Accounting Funds Transfer and ACH Controllers Securities Transfer and Fiscal Agency System Integrated Accounting Services Fed Organization After Executive Office Payments and Business Cash and Administrative Information for Managers System Retail Payments Strategy Support Protection Data Security and Planning System Retail Payments Payments System Strategy Applications Support General Services Retail Payments (Check, ACH, Adjustments) Check Image MIS Operations and Communications Management Planning (General Wholesale Payments (Funds and Property Management Ledger, Budget, Support for Interdistrict Transportation Securities Transfer, Fiscal Agency) Strategic Planning) Cash Quality Support Business Strategy and Customer Support (Marketing Strategy, Customer Services, Accounting Information Services, Billing, Electronic Services Support) End User Strategy and Expense System Integrated Accounting Services Future Intelligent Terillinal ~, ··~· ·· lM i~w· · · mw.w.•, m ~mMMMt:::j::::::::",,.i:t·:,:J,::::"::,iJ::::i:).'"/.:.:::.,.-,,,,,,_·_.,:_::_,_,,_,_,_,_,,,.,."::.::.,.,,,,,.,::·:·.,,:., .. ,.-.:..:,.:.'.::.' .. · ..... ·:.- ... , ... ..::.·:::.:.:..:.'.'.- riI vers -Technological advances -Service improvements • Process -Voice of the Customer •Results -Added new requirements -Deleted some requirements we had assumed with our product-out strategy -Clear set of priorities for new features -Better relationships with interviewed customers - Increased operational awareness of team members Check Internal Error Reduction , ,, . .. . , ,,:, ~:· iillldWAftf&M~]Wffiiiimiimwi, .. :;::,.::::::::· :: ,:•::,:•:•:•••,':•:•,: :,•::: .. ,.,:,,,:•,:,.;.,.,.,: ,,,•: :,::: :,·.:,: :,:,.,.•:. :. : :;,:,,::; .. ::::: ,: ,:.•: :•::: ,.::, :,.,::,,.;,:,::,.,. ,.::•;::•::·:::::.,,,,,.,.,:,,:" :· .. :. riI vers -Reduce already low internal error rate -Demonstrate our commitment to quality to our customers and employees • Process -Rigorous application of 7-Step Problem Solving Method •Results -Preliminary results show significantly decreased error rates -Improved teamwork -Improved morale -Increased operational awareness of team BANK members SERVICES

Cathy E. Minehan (1995, February 5). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19950206_cathy_e_minehan

@misc{wtfs_regional_speeche_19950206_cathy_e_minehan,
  author = {Cathy E. Minehan},
  title = {Regional President Speech},
  year = {1995},
  month = {Feb},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19950206_cathy_e_minehan},
  note = {Retrieved via When the Fed Speaks corpus}
}