Growing Americas

Growing Americas
Premier Financial Services
Premier Financial Services
Company
Company
Joe Valasquez
SVP, Quality & Productivity
Bank of America
2
#2
#2
#2
#2
#1
#1
#3
#3
#1
#1
#2
#2
#3
#3
#1
#1
#2
#2
#1
#1
#1
#1
#1
#1
#1
#1
#3
#3
#4
#4
#5
#5
#10
#10
Unrivaled Market Presence
3
Results at the Bottom Line
$7.13
$5.91
$5.33
2001 2002 2003
Start of Quality Program
1Q 2004
$1.83
16% Compound
Growth
4
Enormous Opportunities to Influence Customers (+, -)
5,700 banking centers
900 million transactions
Call centers
700 million transactions
16,000 ATMs
925 million
transactions
Debit & credit cards
2.1 billion transactions
(#1 Debit)
10 million active online users
800 million transactions
(#1 on-line)
2,500 mortgages
Per day
Customer contacts Customer contacts
- -
175 times each 175 times each
second second
5
Creating Business Value
6
The Bank Customer View
Sales Fulfillment Service
Generate
Demand
Offer
Choices
Respond to
Inquiry/
Assess Need
Process
Activity
Respond to
Requests/
Problems
Report
Activity
Process
Activity
Respond to
Requests/
Problems
Report
Activity
Setup
Customer/
Account
Confirm
Sales
Setup
Customer/
Account
Confirm
Sales
Card
Acquisition
Deposits
Banking Center Sales Online Needs
Assessment
eCommerce
DDA (Application Fulfillment)
Insurance
Banking Center Sales
Direct Marketing Sales
BAI Sales
Card
Activation
Card Issuance
CRE
Cons LoanSolutionsFulfillment (St. Pete)
LoanLine Fultillment
Retail Fulfillment
DFS
Retail Auto (Application Funding)
Comml Cdt & Ops (CRM to Completed
Loan Docs)
eCommerce
Enrollment
DDA (Application Fulfillment)
Card
Payments
Claims
CRE
Payments
Payment Problem Resolution
CROG
Contact Management (Intensity)
Fraud Non-Approval Rates
Associate Performance Variation
CS&S
Balance Service Play
Posted Transactions Service Play
Pending Transactions Service Play
Banking Center Problem Resolution
Deposits
Bkg Ctr Teller Svc Teller Mgmt
DFS
Final Payoffs (Cust Pmt to Lien
Release)
Cons Loan Liquidation Fore-
casting/Retention Process
(RV/Marine)
eCommerce
Payments
T&O Transaction Services
Process Checks
Process Cash
T&O - Global Ops
Process Trades
Enabling
CROG
Capacity Planning (Staffing)
Project Prioritization
CS&S
Readiness to Serve
T&O (contd)
Acquire and Maintain Data
Deliver Software Solutions
Maintain and Support Software
Application Hosting Services
Deliver Desktop and Connectivity Services
Problem Management
Project Management
System Compliance/Security
Research & Develop
New Business Ops
Design, Build & Maintain
Products & Processes
Deposits
Pricing
NPI
eCommerce
User Design
Insurance
NPI
DFS
Design MIS database/process to ensure accuracy/
integrity of data used by DFS to evaluate dealer/
DFS performance
eCommerce
Availability
Analyze/Develop
Seg Strategy
Assess Product
Or Channel
Opportunities
Analyze/Develop
Seg Strategy
Assess Product
Or Channel
Opportunities
Design Product/
Channel Concepts
Integrate/Bundle
Seg Concepts
Develop, Test &
Learn/Implement
Plans
Design & Build
Products/Processes
Processes Start and End with the Customer
7
Hoshin Planning
Top-Down Strategy, Driven and Owned by all
Bank Associates
Vision / Mission/ Goals
3-5 Year Breakthrough
Strategies
1
Bank of America
Ken Lewis, Chairman and CEO
Be Recognized As One of the Worlds Most Admired
Companies
Breakthrough Strategies
Provider of Choice
92% Customer Satisfaction
Employer of Choice
90% Associate Satisfaction
Investment of Choice
First in Peer Group
Total Shareholder
Return
1.1 Provide a world-class customer/client experience
through easy access and efficient, error-free service
C. Goslee / B. Desoer
1.2 Attract and retain profitable customers/clientsand
continuously reward them for keeping and bringing more
of their business to us G. Taylor / R. DeMartini / B. Desoer
E. Brown
1.1 Become thetrusted advisor for financial solutions
R. DeMartini / E. Brown
1.4 Develop and deliver innovative new products and
solutions which make financial services work in ways it
never has before B. Desoer / E. Brown
VISION
GOALS
ASSOCIATE
SHAREHOLDER
CUSTOMER
2.1 Attract and retain a world-class work force
S. Alphin
2.2 Define and align Associate roles, measures and rewards
to our strategy S. Alphin
2.3 Provide the support and tools Associates need to excel
B. Desoer
2.4 Enable Associates to achieve professional growth
balanced with personal goals B. Desoer
2.5 Reflect in our work force the diversity of the communities
and customers we serve S. Alphin
3.1 Double Shareholder Value Add (SVA) in the next 3 years
J. Hance
3.2 Consistently achieve double-digit year-over-year (EPS)
growth J. Hance
3.3 Consistently achieveannual revenue growth targets J. Hance
3.4 Substantially reduce volatility of market, credit and
operational losses
B. Vandiver
3.5 Dramatically reduce the complexity of our business and
achieve double-digit productivity each year
C. Goslee / T. Arnoult
Page 1
The What
2002 Performance Plan Metric
1.1 Provide a world-class customer/client experience through easy access and efficient, error-free service
1.1.1 Drive Six Sigma & re-engineering across priority processes to address customer experience gaps and
achieve breakthrough quality and productivity improvements
1.1.2 Develop and deliver the appropriate enablers (people/process/technology) to make the customer
experience come alive in a sustainable and differentiated way
1.1.3 Implement a world-class problemresolution process
1.2 Attract and retain profitable customers/clientsand continuously reward themfor keeping and
bringing more of their business to us
1.2.1 Establish and implement a disciplined customer/client continuum(selection/acquisition/service) process
matched to individual customer group strategiesAlign customers/clients with the right level and
proactively up-tier themconsistent with their needs
1.2.2 Focus resources on a narrower set of corporate issuer clients where we can build a leading market
position and significantly increase emphasis and penetration of institutional investor clients
1.2.3 Create value propositions by customer segment while ensuring profit for the bank
1.2.4 Establish a meaningful loyalty programthat allows customers/clients to choose froma variety of rewards
1.2.5 Create an automated product aggregation capability that enables customers to bundle solutions
in a way that creates value for them
1.2.6 Create a distribution systemwith sufficient scale to cover the franchise and meet customer/client needs
1.3 Become the trusted advisor for financial solutions
1.3.1 Design and implement an industry leading financial advice process, tool-set, and associate
competencies by customer segment
1.3.2 Launch the brand building activities required to be recognized as a world-class investment provider
1.3.3 Design & implement the relationship management process across customer segments
1.3.4 Respond to our customer/client needs as they evolve (eg: insurance & retirement services capabilities)
1.3.5 Increase the size and margin of advisory, capital raising, and risk management activities, while
significantly reducing the corporate loans held on our balance sheet
1.4 Develop and deliver innovative new products and solutions which make financial services work in
ways it never has before
1.4.1 Develop and implement a breakthrough product development process
1.4.2 Develop a strategy for non-proprietary offerings
1.4.3 Preserve and expand the bank's position in the payments/funds transfer process
1.1 Key Processes Sigma level
%Very Satisfied
1.2 Relationship Net Income ($RNI)
# Products Per Relationship
Market Penetration (%)
# Customer/Client Relationships
Concentration Limits (#)
1.3 Relationship Net Income ($RNI)
Market Penetration (%)
1.4 Relationship Net Income ($RNI)
Market Penetration (%)
2.1 Attract and retain a world-class work force
2.1.1 Implement Associate satisfaction surveys and address the most important issues
2.1.2 Adopt a world-class internal & external selection/recruitment/staffing process
2.1.3 Create a 6 month assimilation plan for new Associates
2.1.4 Develop a world-class recognition & compensation program
2.2 Define and align Associate roles, measures & rewards to our strategy
2.2.1 Define roles and complete performance management plans for all Associates, aligned to the corporate
strategy and to the supporting business unit performance plans
2.2.2 Align performance measures & incentives to re-enforce desired Associate behaviors
2.2.3 Require non-customer facing Associates to experience direct customer/client input on a quarterly basis
2.2.4 Implement success profiles for all positions
2.3 Provide the support and tools Associates need to excel
2.3.1 Ensure learning & development opportunities to maximize current Associate performance & future
potentialDevelop and implement an effective coaching program
2.3.2 Provide training to improve Associate capabilities in critical skills (relationship building, client
management, quality tools & processes, scorecard drivers--SVA).web-enable priority technical tools
2.3.3 Complete all improvements required to achieve a world-class talent planning process
2.4 Enable Associates to achieve professional growth balanced with personal goals
2.4.1 Develop and deliver a process & strategy to support career development
2.4.2 Ensure Associates are aware of all benefits offered to them
2.4.3 Provide our Associates the best value in financial services
2.4.4 Develop comprehensive mentoring/networking programs
2.5 Reflect the diversity of the communities and customers we serve in our work force
2.5.1 Attract, retain and develop associates with diverse skills and experiences
2.5.2 Determine and achieve diversity targets by band level
2.1 %Very Satisfied
%Positive responses for:
- Performance Plans
- Training
- Diversity
%Turnover Total
2.2 %Positive responses for
Performance Management
2.3 # Training Hours Completed
2.4 %Positive responses for
Performance Management
2.5 %Minority / Women in Band 1-3
positions
3.1 Double Shareholder Value Add (SVA) in the next 3 years
3.1.1 Implement Breakthrough (Hoshin) Strategic Planning company-wideachieve results on 1.1-2.5 above
3.1.2 Strengthen compensation linkages to SVA
3.1.3 Re-allocate resources and capital to high SVA growth businesses
3.1.4 Modify pricing & profitability tools to include SVA generated at the customer/client level
3.2 Consistently achieve double-digit Y-O-Y EPS growth
3.2.1 Achieve results on 1.1-3.1 above
3.2.2 Establish disciplined pricing/return hurdles at relationship level, inspect results & remedy as appropriate
3.3 Consistently achieve annual revenue growth targets
3.0 Total Shareholder Return (Rank
in Peer Group)
3.1 Change in SVA ($)
3.2 EPS ($ / %growth)
3.3 Revenue Growth (%)
12 Month Tactical Plan
Key Performance
Metrics
Page 2
The How
Performance Measures
to track progress

Bank of America Performance Plan Measures

2002 Milestones
2001 2002
METRIC Performance Goal Q1 Q2 Q3 Q4 Benchmark Source

Customer
y Processes Sigma level
Deposits
Payments
Problem Resolution

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD
Very Satisfied
Consumer/Comm/AMG
GCIB Issuer
GCIB Investor (rank)

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
TBD
TBD

TBD
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TBD

TBD
TBD
TBD
Per Relationship ($)
Consumer/Comm/AMG
GCIB (rev/strategic issuer
client)

TBD
TBD

TBD
TBD

TBD
TBD

TBD
TBD

TBD
TBD

TBD
TBD

TBD
TBD

TBD
TBD
roducts Per Relationship
Consumer/Comm/AMG

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD
Market Penet (target mkts)
Consumer
Premier
Small Business
Commercial
Private
GCIB Issuer
GCIB Investor

TBD
TBD
TBD
TBD
TBD
TBD
TBD

TBD
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TBD

TBD
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TBD
TBD
TBD

TBD
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TBD
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TBD

TBD
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TBD
TBD

TBD
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TBD

TBD
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TBD
Lead Bank Penet (target mkts)
Commercial

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD
ust/Client Relationships
Consumer/Comm/AMG

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD
ncentration Limits (#) TBD TBD TBD TBD TBD TBD TBD TBD
Associate
Very Satisfied TBD TBD TBD TBD TBD TBD TBD TBD
positive responses for:
Performance mgmt.
Training
Diversity

TBD
TBD
TBD

TBD
TBD
TBD

TBD
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TBD
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TBD

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TBD
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TBD
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TBD

TBD
TBD
TBD
Turnover Total TBD TBD TBD TBD TBD TBD TBD TBD
raining Hours Completed
r associate per year)
TBD TBD TBD TBD TBD TBD TBD TBD
Minority / Women in Band 1-3
itions
TBD TBD TBD TBD TBD TBD TBD TBD
Shareholder
al Shareholder Return (Rank in
er Group)
TBD TBD TBD TBD TBD TBD TBD TBD
ange in SVA ($) TBD TBD TBD TBD TBD TBD TBD TBD
S ($ / % growth) TBD TBD TBD TBD TBD TBD TBD TBD
venue Growth (%) TBD TBD TBD TBD TBD TBD TBD TBD
ding Rev. Stability (%) TBD TBD TBD TBD TBD TBD TBD TBD
Sensitivity ($)
Rising
Declining

TBD
TBD

TBD
TBD

TBD
TBD

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TBD
TBD
dit Loss Stability (bp/qtr) TBD TBD TBD TBD TBD TBD TBD TBD
erational Risk Stability TBD TBD TBD TBD TBD TBD TBD TBD
pital Adequacy (%)
er 1)
TBD TBD TBD TBD TBD TBD TBD TBD
ductivity ($)
ficiency Ratio
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD

Page 3
Balanced Scorecard
8
Six Sigma Six Sigma to execute
improvements
Were Driving Performance Through Core Processes
We identified our
services and the
supporting core
processes
Application Hosting
Channel Services
Cust.
Activity
Report-
ing
Desktop/Connection Services
Ext. Cust.
Inquiry/
Problem
Res.
Relationship Management
Mgmt.,
Reg., Op.
Report-
ing
Process
Trans-
actions
Secure Network Services
Software Dev.
I Want
Something
I Explore
My
Options
I Am
Offered
Choices
I Make a
Decision
I Get What I
Wanted
I Use What
I Received
I Get
Information
I Have A
Problem
Inquire Buy Use
Business Partner/External Customer Facing Processes
Applic.
Hosting
Channel
Services
Enabling Processes
Capacity
Planning
Change
Management
Configuration
Management
Billing/Cost
Recovery
Asset
Management
Information
Protection
Supporting Processes
Personnel Finance Measurement Planning Governance Communications Engineering
Infrastructure
integration
Align with
Business
Plan
Respond
to Inquiry/
Assess
Needs
Offer
Choices
Process
Activity
Report
Activity
Respond to
Requests/
Problems
Plan Build Operate
Design
Build &
Test
Deploy
T
&
O
S
e
r
v
ic
e
s
Application Hosting
Channel Services
Cust.
Activity
Report-
ing
Desktop/Connection Services
Ext. Cust.
Inquiry/
Problem
Res.
Relationship Management
Mgmt.,
Reg., Op.
Report-
ing
Process
Trans-
actions
Secure Network Services
Software Dev.
I Want
Something
I Explore
My
Options
I Am
Offered
Choices
I Make a
Decision
I Get What I
Wanted
I Use What
I Received
I Get
Information
I Have A
Problem
Inquire Buy Use
Business Partner/External Customer Facing Processes
Applic.
Hosting
Channel
Services
Enabling Processes
Capacity
Planning
Change
Management
Configuration
Management
Billing/Cost
Recovery
Asset
Management
Information
Protection
Supporting Processes
Personnel Finance Measurement Planning Governance Communications Engineering
Infrastructure
integration
Align with
Business
Plan
Respond
to Inquiry/
Assess
Needs
Offer
Choices
Process
Activity
Report
Activity
Respond to
Requests/
Problems
Plan Build Operate
Design
Build &
Test
Deploy
T
&
O
S
e
r
v
ic
e
s
Services and
Processes
We are analyzing
performance end-to-
end -- beginning and
ending with our
Customers/ Business
Partners
Offer Transaction
Capabilities
through Sale of
Deposit Products
Resolve
Problems &
Service Requests
Set Up Deposit
Product &
Transaction
Capability
Report
Transactions
Process
Transactions
Receive
Deposit
(334,000)
Receive
Deposit
(334,000)
Transport
Deposit
Transport
Deposit
Proof /
Encode
(265,000)
Proof /
Encode
(265,000)
Sort /
Capture
Sort /
Capture
Dispatch
or Store
Dispatch
or Store
EOD/
Post
EOD/
Post
Render
Statement
(5,000)
Render
Statement
(5,000)
Customer
Drafts
Deposit
(1,132,000)
----------
Other Banks
&
Business
Partners
(17,000 *)
PO
Delivers
Statement
Bank of America Processes.. ..
T&OProcesses
T&OProcesses
End-to-End Analysis of
Core Processes
Black Belt/Green Belt/
Kaizen
Management By Fact
ProblemStatement: Eastman Kodak Company's Order toCashSupply Chainranges are62to165days, as compared toBest inClass of 2-5days order
toreceipt and 20days DSOcontributingtoalost revenueopportunity exceeding$1B.
Overall Customer Satisfaction
(Top 2Boxes)
71.1% 69% 68%
91%
0%
20%
40%
60%
80%
100%
1996 1997 1998 1Q99 P&G/
Mercedes
USPerfect Order Delivery (SAPMetric)
43% 48%
58%
90%
0%
20%
40%
60%
80%
100%
Dec-98 Jan-99 Feb-99 Mar-99 BIC
Overall RevenueChart
14.7
13.8
13
13
12
12.5
13
13.5
14
14.5
15
1996 1997 1998 1Q99 Plan
$1B
Opportunity
OTCSupply ChainAverages
0
50
100
150
200
CI BIS HI KPRO D&AI
Number of Days
Key Drivers
Categories CausingPerformanceGap
0%
10%
20%
Pricing Policies/Financial Tech./Cust. Support Sales Support Order &Delivery
Comm./Info. Easeof Contact ProblemResolution
Eastman Kodak Overall DSO
(# of Days)
0
10
20
30
40
50
60
70
YE98 Jan-99 Feb-99 Best InClass
1PRIORITIZATION&ROOTCAUSE COUNTERMEASURES&ACTIVITIES WHO WHEN PROCESSCAPABILITY
1. DSO
High %of credits/refunds/delays Implement fail-safeprocess All BUs 12/1/99 Customer Sat., Perfect Order Delivery
Toomanyand varyingrebates Eliminaterebates All BUs 12/1/99 5 Days CycleTime Unfriendlypayment plans Implement e-commerce, small order credit cardsand
standardizeterms andconditions
All BUs 12/1/99 CycleTime, Customer Sat.
2. Shipment &Delivery
Unacceptabledeliverypredictabilityand order fulfillment Develop strategytomaximizeflexibility, ensurefull orders,
andmeet customer delivery requirements
All BUs 9/15/99 $ Inv., 2-5 pp OTCCustomer Sat.
Ineffective stocking strategy Reviewcustomer needs, maximizevelocity matching with
EKcapability
All BUs 7/1/99 2 Days CycleTime, 2-5 ppOTCCustomer Sat.,
$ Inv.
3. Manufacturing
Long manufacturingcycletimes Implement customer order demand pull andbuildtoorder All BUs 9/1/99 CycleTime, $Inv. Inflexiblemanufacturing Reduce set uptime/cost and mfg. insmall lots All BUs 9/1/99 CycleTime, $Inv.
4. Order Administration
Complexorder configuration Develop, simplify andimplement order configurator All BUs 10/1/99 Perfect Order Delivery
Uncompetitiveforecasting variability Improve mfg./supplier flexibility All BUs 7/1/99 2 Days CycleTime Insufficient personnel capability Train, certify andempower key roles All BUs 9/1/99 EmployeeSat., Perfect Order Delivery
Labor extensiveandcomplexorder entry Implement e-commerce All BUs 12/1/99 CycleTime, Employee Sat., Perfect Order
Delivery
5. Complexity
Large/complex product portfolio(000sKCat #s) Rationalize product portfolio andbundleproducts All BUs 10/1/99 2-3 pp OTCCustomer Sat., Perfect Order
Delivery
6. Product Development
Lackof OTCparticipationin commercializationprocess Reviewandfix gate process All BUs 7/15/99 2-3 pp OTCCustomer Sat.
7. Metrics
SupplyChainmanagedoncost in functional silos Implement endto endS/Cmetrics andservicelevel agreements All BUs 8/15/99 Customer Sat., Perfect Order Delivery
8. Systems
Standard ERPdoesnt meet customer needs Identify impact enhancingalternatives andimplement All BUs 8/15/99 2-3 pp OTCCustomer Sat.
BENCHMARK
Target
Target = 22
ProblemStatement: Eastman Kodak Company's Order toCashSupply Chainranges are62to165days, as compared toBest inClass of 2-5days order
toreceipt and 20days DSOcontributingtoalost revenueopportunity exceeding$1B.
Overall Customer Satisfaction
(Top 2Boxes)
71.1% 69% 68%
91%
0%
20%
40%
60%
80%
100%
1996 1997 1998 1Q99 P&G/
Mercedes
USPerfect Order Delivery (SAPMetric)
43% 48%
58%
90%
0%
20%
40%
60%
80%
100%
Dec-98 Jan-99 Feb-99 Mar-99 BIC
Overall RevenueChart
14.7
13.8
13
13
12
12.5
13
13.5
14
14.5
15
1996 1997 1998 1Q99 Plan
$1B
Opportunity
OTCSupply ChainAverages
0
50
100
150
200
CI BIS HI KPRO D&AI
Number of Days
Key Drivers
Categories CausingPerformanceGap
0%
10%
20%
Pricing Policies/Financial Tech./Cust. Support Sales Support Order &Delivery
Comm./Info. Easeof Contact ProblemResolution
Eastman Kodak Overall DSO
(# of Days)
0
10
20
30
40
50
60
70
YE98 Jan-99 Feb-99 Best InClass
1PRIORITIZATION&ROOTCAUSE COUNTERMEASURES&ACTIVITIES WHO WHEN PROCESSCAPABILITY
1. DSO
High %of credits/refunds/delays Implement fail-safeprocess All BUs 12/1/99 Customer Sat., Perfect Order Delivery
Toomanyand varyingrebates Eliminaterebates All BUs 12/1/99 5 Days CycleTime Unfriendlypayment plans Implement e-commerce, small order credit cardsand
standardizeterms andconditions
All BUs 12/1/99 CycleTime, Customer Sat.
2. Shipment &Delivery
Unacceptabledeliverypredictabilityand order fulfillment Develop strategytomaximizeflexibility, ensurefull orders,
andmeet customer delivery requirements
All BUs 9/15/99 $ Inv., 2-5 pp OTCCustomer Sat.
Ineffective stocking strategy Reviewcustomer needs, maximizevelocity matching with
EKcapability
All BUs 7/1/99 2 Days CycleTime, 2-5 ppOTCCustomer Sat.,
$ Inv.
3. Manufacturing
Long manufacturingcycletimes Implement customer order demand pull andbuildtoorder All BUs 9/1/99 CycleTime, $Inv. Inflexiblemanufacturing Reduce set uptime/cost and mfg. insmall lots All BUs 9/1/99 CycleTime, $Inv.
4. Order Administration
Complexorder configuration Develop, simplify andimplement order configurator All BUs 10/1/99 Perfect Order Delivery
Uncompetitiveforecasting variability Improve mfg./supplier flexibility All BUs 7/1/99 2 Days CycleTime Insufficient personnel capability Train, certify andempower key roles All BUs 9/1/99 EmployeeSat., Perfect Order Delivery
Labor extensiveandcomplexorder entry Implement e-commerce All BUs 12/1/99 CycleTime, Employee Sat., Perfect Order
Delivery
5. Complexity
Large/complex product portfolio(000sKCat #s) Rationalize product portfolio andbundleproducts All BUs 10/1/99 2-3 pp OTCCustomer Sat., Perfect Order
Delivery
6. Product Development
Lackof OTCparticipationin commercializationprocess Reviewandfix gate process All BUs 7/15/99 2-3 pp OTCCustomer Sat.
7. Metrics
SupplyChainmanagedoncost in functional silos Implement endto endS/Cmetrics andservicelevel agreements All BUs 8/15/99 Customer Sat., Perfect Order Delivery
8. Systems
Standard ERPdoesnt meet customer needs Identify impact enhancingalternatives andimplement All BUs 8/15/99 2-3 pp OTCCustomer Sat.
BENCHMARK
Target
Target = 22
MBFs MBFs to prioritize actions that drive
closure of performance gaps
Associate, Customer and Shareholder Associate, Customer and Shareholder Metrics to
define and measure our performance
Hoshin and Performance Plans
2004 Performance Measures
2002 2003 Bench Source
METRIC Performance Goal mark
Customer
Failed Customer
Interactions DPMO
Key Process
DPMO
Setting
T&O
goals
Setting Benchmarks
from world-class or
breakthrough
guidelines
Base-lining
2002
performance
9
Improving Core Processes Drives Customer
Satisfaction
Sales
Service
Fulfillment
Credits & payments
Deposit
Error free
processing
Customer
Customer
Delight
Delight
More than 64,000 associates have
participated in Quality and Productivity
training
Now employ more than 3,000 certified
Green Belts and Black Belts
Billions of dollars in benefits
Six
Six
Sigma
Sigma
10
We Are Delighting More Customers
12.6%
42.5%
9.7%
51.7%
0%
20%
40%
60%
80%
100%
4Q 2001 1Q 2004
Satisfied (6-8)
Delighted (9 10)
Dissatisfied (1 5)
11
(200,500)
(200,500)
(77,013)
(77,013) (89,574)
(89,574)
32,491
32,491
192,975
192,975
1999
1999
1997
1997
1998
1998
2000
2000
2001
2001
2002
2002
527,789
527,789
2003
2003
1,000,030
1,000,030
Growth in net new checking accounts
2004
2004
2,000,000 +
2,000,000 +
12
Keys to the Success of Quality & Productivity at
Bank of America
Ah Yes Starts at the top
Common Business Metrics across the organization with compensation
ties
Business Metrics that projects are derived from
Program flexibility Customize to meet business objectives
Constantly evolve the program to meet the business objectives
13
Contact Information
Joe Valasquez
SVP; Quality & Prod Exec
Phone: 704.386.1205
Fax: 704.388.2792
Email:
joe.l.valasquez@bankofamerica.com
IJL Building
201 North Tryon St
Charlotte, NC 28255