Financial Services Software

The Challenge

In the fast-paced financial services sector, timely and reliable software releases are critical. A department responsible for a high-impact software product, developed by six parallel Scrum teams, was struggling with long lead times, quality issues and recurring production incidents.

Despite strong performance within individual teams, the end-to-end development lifecycle suffered from:

• A 22-week release lead time
• A manual build process dependent on a single individual
• 13 weeks of regression testing, uncovering 24 serious defects
• Risk-accepted releases without full end-to-end testing
• Four production incidents, triggering regulatory concern

A regulator formally warned the organisation to improve due to the impact on customers, making change both urgent and unavoidable.

“High-performing teams, but a broken end-to-end system.”

The Turning Point: Value Stream Mapping

As part of a wider Agile transformation, a Value Stream Mapping (VSM) workshop was facilitated by a Catalyst Master Black Belt. Representatives from product, business analysis, development, testing, IT, build management, governance, regulatory and support functions came together to create a true end-to-end view of delivery.

The workshop focused on:

• Current State Analysis: Fact-based mapping to expose bottlenecks and delays
• Ideal State Vision: A CI/CD model with bullet-proof quality and zero defects
• Future State Design: Practical improvements deliverable within three months
• Action Planning: Clear ownership across “Do It”, “Kaizen Burst” and “Project” work

Strong preparation and a clear VSM charter ensured the right focus, pace and outcomes.

Cross-functional collaboration created a single, shared view of the problem — and the solution.

The Solution: Designing the “To-Be” State

The future state value stream targeted a 12-week lead time and zero production incidents. Key design decisions included:

• Automated regression testing (starting with a “bronze” test pack)
• Earlier bug detection, reducing defects escaping into regression
• Automated builds, removing dependency on manual intervention
• Simplified release sign-off, moving from multiple stakeholders to a single informed approver

The redesigned flow reduced development to four weeks, regression testing to two weeks, and sign-off to a single day — supported by strong automation and evidence-based quality controls.

From manual, risky releases to evidence-based confidence.

Implementation: 12 Weeks, Three Improvement Teams

Over 12 sprints, three focused improvement teams delivered the action plan with Catalyst coaching and facilitation.

Reducing Escaped Bugs (DMAgIC)

A Lean Six Sigma DMAgIC approach enabled rapid iteration:

• Root causes identified via Pareto analysis
• Continuous code merging introduced across teams
• Automated unit testing implemented using Jenkins
• Escaped defects reduced from 24 to 4

Simplifying Release Sign-Off

A Standardised Work workshop redesigned a heavily bureaucratic approval process:

• Sign-off reduced from days to minutes
• Quality improved through stronger evidence, not additional checks
• Accountability clarified through a single approver model

Automating Tests by Value

A “prioritise by value” approach ensured early benefits:

• Critical tests automated first
• A smoke test evolved into the bronze regression pack
• Regression lead time reduced from 14 days to 2 days

Automation delivered speed — prioritisation delivered impact

Coaching, Governance and Engagement

Catalyst provided hands-on coaching throughout:

• Training in Lean, Six Sigma, Agile, Design Thinking and Lean Start-up
• Sprint planning, backlog prioritisation and facilitation
• Visible risk management via a shared “RISK” board
• Weekly sponsor calls to maintain alignment and momentum

At one point, a critical team was diverted to other priorities. The governance cadence surfaced the issue quickly, enabling senior intervention to refocus effort and protect delivery.

Strong governance kept short-term pressures from derailing long-term change

Results and Lasting Impact

The initial 12-week transformation delivered:

• Lead time reduced from 22 weeks to 12 weeks

• Production incidents reduced to zero

• Serious defects in regression reduced from 24 to 4

• Improved morale, stability and confidence across teams

But this was just the beginning.

Zero production incidents maintained ever since — four years and counting

Today, the department:

• Releases into production every two weeks
• Deploys continuously to pre-production environments
• Engages customers daily for feedback and prioritisation
• Has earned formal commendation from the regulator

Quality, speed and continuous improvement are now embedded as mindsets, not initiatives.

Outcome

What began as a response to regulatory risk became a lasting transformation of how software is delivered. By combining Value Stream Mapping, Lean Six Sigma and Agile delivery — supported by strong coaching and governance — the organisation moved from fragile releases to confident, continuous delivery, creating enduring value for customers, teams and regulators alike.