BUSINESS PROBLEM
A Major Defined Contribution Company was experiencing significant challenges in its reconciliation process, with a substantial backlog of open items spanning a two-year period.
To address these issues, the Client engaged Enterprise Iron to analyze their existing practices and implement process improvements.
Challenges:
- Large backlogs of reconciliation items accumulating over two years
- Lack of standardized processes leading to inefficiencies
- Escalations and consultations across multiple teams slowing resolution
- Unidentified gain/loss items impacting financial accounts
OUR SOLUTION
Enterprise Iron conducted a comprehensive analysis of the Client’s reconciliation practices and business processes, identifying key areas for improvement. The team provided 26 targeted recommendations, focusing on:
- Documenting policies and aligning Service Level Agreements (SLAs)
- Implementing automation and optimizing the use of the client’s workflow system
- Categorizing backlog items based on root causes to develop standardized resolution approaches
By implementing these strategies, Enterprise Iron empowered the Client’s processors to clear items independently, significantly reducing the need for escalations and cross-team consultations.
Key Achievements:
- Conducted an in-depth analysis of open gain/loss items, identifying over $2M in gains available for clearing from the Client’s Demand Deposit Account (DDA)
- Led a dedicated War Room team of client Subject Matter Experts (SMEs), enabling the categorization and closure of dozens of items per day
- Provided experienced consultants to address individual backlog items, leading to the resolution of thousands of pending issues
RESULTS & CLIENT BENEFITS
With a clearer understanding of specific process inefficiencies, the Client was able to prioritize and implement improvements effectively. By following the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) methodology, the Client achieved:
- Enhanced reconciliation accuracy and efficiency
- Streamlined operations with measurable process improvements
- Improved metrics allowing precise impact assessment of implemented changes
Enterprise Iron’s strategic recommendations and hands-on support enabled the Client to regain control of their reconciliation process, reducing backlog, optimizing workflows, and strengthening overall financial management.