1. President Vice President Accounts Asst. VP Savings Asst. VP Checking Asst. VP Mktg Vice President Commercial Accounts Asst. VP Loans Asst. VP Services Vice President Customer Relations Customer Rep 1 Customer Rep 2 Vice President Loans Asst. VP LoansSup. StateSup. Federal Asst. VP Services Vice President Administration Sup. Maintenance Asst. VP ATM Asst. VP Employees Lt. Security Asst. VP Accounting Organization Chart for a Typical Bank

2. Obtain the mission statement for the organization being studied The mission statement is important to maintain clarity on exactly what organization (system) is being studied as well as understanding the primary business (mainstay) of the organization.

3. Banking Organization’s Mission Statement Be the premier community and business bank in the North Bay by building long-term relationships based on trust, expertise, and accountability, and by helping our customers, communities, employees and shareholders prosper. Build valued relationships as our customers’ trusted business resource by delivering Legendary Service, adhering to disciplined banking fundamentals, and contributing to the communities in which we serve. Guiding Principles: Build valued relationships as our customers’ trusted business resource by delivering Legendary Service, adhering to disciplined banking fundamentals, and contributing to the communities in which we serve. Our definitions for each of the guiding principles are: Valued Relationships: Valued Relationships: Build long-term relationships based on trust and respect, while inspiring loyalty through exceptional service. Through expertise, accountability and integrity become a trusted business resource to our customers. Disciplined Banking Fundamentals: Disciplined Banking Fundamentals: Provide banking services and advice that are prudent and safe, for both our customers and for our shareholders. Community Commitment: Community Commitment: Provide leadership, volunteers, and financial contributions to help our communities thrive. Be the premier community and business bank in the North Bay by building long-term relationships based on trust, expertise, and accountability, and by helping our customers, communities, employees and shareholders prosper. Build valued relationships as our customers’ trusted business resource by delivering Legendary Service, adhering to disciplined banking fundamentals, and contributing to the communities in which we serve. Guiding Principles: Build valued relationships as our customers’ trusted business resource by delivering Legendary Service, adhering to disciplined banking fundamentals, and contributing to the communities in which we serve. Our definitions for each of the guiding principles are: Valued Relationships: Valued Relationships: Build long-term relationships based on trust and respect, while inspiring loyalty through exceptional service. Through expertise, accountability and integrity become a trusted business resource to our customers. Disciplined Banking Fundamentals: Disciplined Banking Fundamentals: Provide banking services and advice that are prudent and safe, for both our customers and for our shareholders. Community Commitment: Community Commitment: Provide leadership, volunteers, and financial contributions to help our communities thrive.

4. List the primary products and services the organization provides

6. Brainstorm a list of 10 to 30 key processes that form the mainstay(s) of the organization The primary activities that describe the business of the organization

7. Receive Deposits Open Accounts Prepare Customer Statements Maintain Money Market Assets Post Deposits Post Credit Card Transactions Post Commercial Transactions Monitor & Correct Overdrafts Track Federal Reserves Monitor & Verify Reserves Maintain & Monitor ATM Machines Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals Close Accounts Prepare Travelers Checks

8. Brainstorm a list of 10 to 30 key driver processes. These processes prepare the organization to run the mainstay processes and include processes that relate to the need the organization is targeting. Examples of such processes are customer research, customer feedback, strategic planning, business planning, budgeting, research and development, design, and redesign.

9. Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints

10. Brainstorm a list of 10 to 30 key processes that are necessary to support the business of the organization (e.g., accounting, human resource management, maintenance, etc.).

11. Conduct Credit Approvals Maintain Facilities Order & Maintain Inventory of Office Supplies Provide Administrative Support Update Computer Data Base Verify Compliance with Regulations Conduct Audit Monitor and Maintain Security Manage & Maintain Safety Deposit Boxes Work with Credit Suppliers

12. Using Deming's "Production Viewed as a System" as a model, develop the "mainstay" of the system Group from left to right those processes relating to suppliers, then processes describing the production, and then processes that distribute products or services. After locating the mainstay processes, connect the processes that have important relationships (receive important inputs to another process or send important outcomes to another process).

13. Production viewed as a system Stage 0: Generation of ideas Design and redesign Consumer research Customers Production, assembly, inspection Test of processes, machines, methods, costs ABCDABCD Suppliers of materials and equipment Receipt and test of materials Distribution

14. Receive Deposits Open Accounts Prepare Customer Statements Track Federal Reserves Monitor & Verify Reserves Maintain Money Market Assets Monitor & Correct Overdrafts Post Deposits Close Accounts Post Credit Card Transactions Post Commercial Transactions Maintain & Monitor ATM Machines Prepare Travelers Checks Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals

15. Receive Deposits Open Accounts Prepare Customer Statements Track Federal Reserves Monitor & Verify Reserves Maintain Money Market Assets Monitor & Correct Overdrafts Post Deposits Close Accounts Post Credit Card Transactions Post Commercial Transactions Maintain & Monitor ATM Machines Prepare Travelers Checks Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals Customers Work with Promotions Suppliers Work with Forms Suppliers Work with on- line Data Transfer

16. Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints

17. Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints

18. Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints

19. Receive Deposits Open Accounts Prepare Customer Statements Track Federal Reserves Monitor & Verify Reserves Maintain Money Market Assets Monitor & Correct Overdrafts Post Deposits Close Accounts Post Credit Card Transactions Post Commercial Transactions Maintain & Monitor ATM Machines Prepare Travelers Checks Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals Customers Work with Promotions Suppliers Work with Forms Suppliers Work with on- line Data Transfer Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints

20. Conduct Credit Approvals Maintain Facilities Order & Maintain Inventory of Office Supplies Provide Administrative Support Update Computer Data Base Verify Compliance with Regulations Conduct Audit Monitor and Maintain Security Manage & Maintain Safety Deposit Boxes Work with Credit Suppliers

21. Conduct Credit Approvals Maintain Facilities Order & Maintain Inventory of Office Supplies Provide Administrative Support Update Computer Data Base Verify Compliance with Regulations Conduct Audit Monitor and Maintain Security Manage & Maintain Safety Deposit Boxes Work with Credit Suppliers

22. Receive Deposits Open Accounts Prepare Customer Statements Track Federal Reserves Monitor & Verify Reserves Maintain Money Market Assets Monitor & Correct Overdrafts Post Deposits Close Accounts Post Credit Card Transactions Post Commercial Transactions Maintain & Monitor ATM Machines Prepare Travelers Checks Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals Customers Work with Promotions Suppliers Work with Forms Suppliers Work with on-line Data Transfer Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints Conduct Credit Approvals Maintain Facilities Order & Maintain Inventory of Office Supplies Provide Administrative Support Update Computer Data Base Verify Compliance with Regulations Conduct Audit Monitor and Maintain Security Manage & Maintain Safety Deposit Boxes Work with Credit Suppliers

23. Receive Deposits Open Accounts Prepare Customer Statements Track Federal Reserves Monitor & Verify Reserves Maintain Money Market Assets Monitor & Correct Overdrafts Post Deposits Close Accounts Post Credit Card Transactions Post Commercial Transactions Maintain & Monitor ATM Machines Prepare Travelers Checks Prepare Cashiers Checks Establish Loans Monitor Loan Performance Post Withdrawals Customers Work with Promotions Suppliers Work with Forms Suppliers Work with on-line Data Transfer Develop Personnel Integrate People Into the System Conduct Customer Research Planning Prepare Advertising Develop New Products & Services Prepare Marketing Plan Hire People Obtain Customer Feedback Handle Customer Complaints Conduct Credit Approvals Maintain Facilities Order & Maintain Inventory of Office Supplies Provide Administrative Support Update Computer Data Base Verify Compliance with Regulations Conduct Audit Monitor and Maintain Security Manage & Maintain Safety Deposit Boxes Work with Credit Suppliers

24. President Vice President Accounts Asst. VP Savings Asst. VP Checking Asst. VP Mktg Vice President Commercial Accounts Asst. VP Loans Asst. VP Services Vice President Customer Relations Customer Rep 1 Customer Rep 2 Vice President Loans Asst. VP LoansSup. StateSup. Federal Asst. VP Services Vice President Administration Sup. Maintenance Asst. VP ATM Asst. VP Employees Lt. Security Asst. VP Accounting Organization Chart for a Typical Bank