WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality across all domains of Branch Network
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WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality across all domains of Branch Network

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Breakthrough Process Improvement case study submitted by Mashreq Bank during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to ...

Breakthrough Process Improvement case study submitted by Mashreq Bank during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.

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WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality across all domains of Branch Network WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality across all domains of Branch Network Presentation Transcript

  • Lean project onImproving Sales, Service and Quality across alldomains of Branch NetworkA Mashreq Bank – Case study09.10.2011 1
  • IntroductionAbout MashreqMashreq has provided banking and financial services to millions of customers and businesses since 1967.We are one of UAEs leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait andBahrain.We focus on providing our customers access to a wide range of innovative products and services.Mashreq is invariably among the highest performing banks in the region. Last year we recorded a Net Profit of AED 803 millionfrom a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED84.8 billion.Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also havecustomer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseasoffices in nine countries, including Europe, US, Asia and Africa. Vision Customer focused To provide our customers the most rewarding banking We act in the interest of our customers, seeking to exceed their relationships expectations Mission Transparent and fair Being relationship based We are clear, concise and open in all our communications, and Delivering superior service treat customers and our colleagues with fairness, respect and trust Being the primary bank to our customers Progressive Being the Employer of Choice We are fast, agile and constantly think of ways to enhance Values customer experience We are on a constant journey towards service Bold excellence, developing innovative new products and We challenge established practices and take smart risks financial solutions. Anticipating your needs and providing Individually Responsible you with new opportunities, convenience and peace of We each take responsibility for the quality of our work, the success mind, stem from our core beliefs. of the bank and delivering the brand promise to each customer Teamwork, cooperation and responsiveness drive the way we work and form the basis of our core values 2
  • Project CharterE. The Goal Statement:Improve and reinvest capacity in branches of Sales and Service Officer’s (SSO)The teams involved:Branch Team – two pilot branches – Retail Banking GroupG. Stakeholders model:• Project chaired by the head of Retail banking• Decision making group formed for toll gate reviews involved stakeholders from – – SME banking – Credit operations – Risk management – Legal – OthersH. The project timelines:• Diagnostic – 3 weeks• Design – 3 weeks• Plan – 1 week• Roll out – 6 weeksI. Quick Win opportunities (If any)NA 3
  • The diagnostic indicates improvement opportunitiesacross 5 dimensions of the lean programmeKey improvement opportunities▪ Sales time of SSOs can be ▪ Scoreboards do not reflect the right indicators and are not increased from 8% to over 25% frequently updated – Move sales administrative tasks to tellers ▪ Performance huddles lack individual tracking and – Simplify key processes problem-solving elements around account opening and mortgages release ▪ Apart from sales, metrics are not tracked systematically; – Reduce rejection rates Process Efficiency Performance▪ Opportunity to increase Teller Management particularly, no commercial activities metrics capacity through move to alternative channels and process improvements▪ Teller and SSO staffing not coordinated with customer Customer footfall Mindsets Organization ▪ Skills gaps required to be▪ Main issues for branch staff are: and Behaviours and Skills closed with coaching on the – Communication of key back of gap analysis to allow changes not sufficient multi skilling and flexible – Lack of empowerment resourcing – Insufficient training for daily ▪ Surveys with customers highlight a generally very ▪ Resource planning is conducted tasks positive attitude towards branch performance ad hoc and not systematically▪ Staff expect: ▪ However, a number of areas were identified to tracked – greater flexibility, guide the future design, for example: ▪ Require to align spans of – higher employee recognition – Following through on promises made control for SSOs, observed – and innovative processes – Addressing requests in a reasonable time inconsistency of 1:4 and 1:7 in – Being knowledgeable about the products & DIC and Muraqabat, services respectively 4SOURCE: Team analysis
  • MeasureRecent customer feedback has been very positive; still, we have identified 7 key S SO satisfaction drivers improvement areas T Teller satisfaction driversBoth Pilot Branches are Leveraging previous transaction survey the team identified key VOCexcelling in service priorities Customer satisfaction 1-10 of which 10 is Sales Officer 100 highest S1 S2 T1 S1 Following thro-ugh 95 on promises made to 10.0 S6 you 90 S3 S2 Addressing your 8.6 S4 T2 request in a 85 T3 reasonable time 80 S7 S5 S4 Being know- ledgeable about the Importance 75 T4 products & services 70 S5 Addressing your T5 T6 S10 request accurately 65 S9 S8 S6 Being able to S11 understand your 60 needs S13 S12 T7 S7 Waiting time to be 55 T9 T8 serviced 50 45 T10 Teller T4 Ability to provide 1.0 0 accurate inform- 0 60 62 64 66 68 70 72 74 76 78 80 82 84 ation upon request Customer satisfaction Performance 5
  • MeasureDiagnostic has shown capacity creation to deliver 25% direct sales activity, a sales potential increase of +200% Sales Officer Percent Sales activity 1.0 0.9 0.3 17.4 Percent SSO time 13.5 1.8 +217% Admin Account Info. Rejection Mortgage Total opening update release 25 8 Teller Percent Current % Future 13.5 0.7 SSO % SSO 2.0 2.1 8.7 time on time on sales sales activity in activity Auto- Cheque Cash / Remit- Flexible Total branch mation/ deposit cheque tance staffing migration withdrawal 6
  • Analyse Sales Officer spend 7.6 % of time on sales Dealing with customer query (face-to-face) 63.2% Dealing with customer query (over the phone) 0% Customer service 63.55% Cashier-type transaction processing 0.3% Sales 7.61% Sales conversation over telephone 0% Total customer Face-to-face customer sales meeting 7.6% interaction time 71.17% Customer service admin (customer not there) 12.7% Service admin 12.69% Opening/handling applications 1.8% Sales admin 1.83% Other customer admin 0% Hygiening prospect lists 0% Internal meeting 5.79% Internal discussion/huddle 3.1% Branch admin 2.34% Assisting a colleague 2.7% Branch Admin 2.3% Cash handling 0.00% Feedback/Training/Coaching 1.1%Coaching / feedback Learning / training 3.15% Seeking information (face-to-face/intranet) 2.1% Unproductive time 3.05% Idle time 2.7% 3.9% Re-stocking 0% Total time 100.00% Private conversation 0.3% 7
  • AnalyseCapacity is not varied with demand, leading to inconsistent service levels and unused potential to support Sales Officer Pilot Branch 1 50 Footfall per hour 45 43 40 40 Tellers per hour 35 33 30 28 Key Observations 25 20 20 20 15 ▪ Intraday foot flow fluctuation is quite 10 11 10 different from branch to branch 4 3 3 3 3 3 5 2 2 depending on the location and size 0 8am 9am 10am 11am 12pm 1pm 2pm 3pm ▪ Poor intraday capacity management Pilot Branch 2 ▪ Variation of tellers available 2-5 40 38 38 ▪ Variation of actual foot flow 35 30 ▪ Customer segmentation different re 25 23 transactions at Tellers 20 20 19 18 Retail 27% / Corp 63% Branch 1 15 14 Retail 45% / Corp 55% Branch 2 10 5 5 5 5 5 5 5 5 9 5 0 8:00 - 9:00 - 10:00 - 11:00 - 12:00 - 1:00 - 2:00 - 3:00 - 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 8
  • Analyse Improved performance management can enable a step change in performance of Sales Officer Key findings Targets and KPIs Reporting Key areas of opportunity Current performance scoreboard ▪ KPI set as observed in ▪ Not all reports available on branches cover only sales time (e.g.. Reject reports) ▪ Scoreboards do not goals ▪ Few reports are reflect the right ▪ Visual targets only exist automated – SFA and indicators and are not against high level KPIs SFE only1 frequently updated such as sales ▪ Performance huddles ▪ Service, Control or Quality lack individual are set in balance tracking and problem- scorecard, but not solving elements managed on daily basis ▪ Apart from sales, Performance meetings Improvement process metrics are not tracked ▪ Meetings are not ▪ Few improvement actions systematically; standardized; discussion particularly, no forward outlined and often without not focused on any quantified impact looking commercial performance gaps activities metrics ▪ No process to identify root causes1 Reporting systems to track sales 9
  • Focus Group Session revealed eagerness for change Analyse •Manual work •Very organized •Customers not •Always open for the happy with speed of customers service •Market leader •Hectic •Happy staff •Tied up with policy •Far sighted •Hunting for •Training staff customers •Supportive bosses •No job security •Team work •Not enough space, •Innovative equipment, training •Recognize & award staff Key feed-back from the questionnaire score (lowest and highest scores):Lowest - > - Once a problem is raised, it is resolved quickly - I regularly receive effective training before taking on new tasks or roles - Our managers work together effectively - We have a culture of giving and receiving feedbackHighest - > - I look forward to coming to work - I know what I am accountable for in my job and what are the targets I should meet - I feel trusted to do my job well - If we changed the way we work, performance would improve dramatically 10
  • Improve Branch design executive summary▪ Create 17% of SSO and more ▪ Display and manage than 16% of CSS capacity branches with perfor- through mance boards – Simplifying processes Process efficiency ▪ Run daily huddles Performance (and (e.g., cheque deposits) – Moving out of branches sales) management ▪ Introduce weekly 1:1 performance meetings (e.g., CCDM replenishing) – Transferring between SSO ▪ Develop structured sales and tellers Customer kits for SSO (e.g. statement issuance) Mindsets and Organization behaviours and skills – Improve migration through layout changes and CRO education ▪ Introduce skills matrix ▪ Introduce flexible staffing model in branches with▪ Introduce weekly team ▪ Run annual customer feedback intra-day choreography barometers survey ▪ Introduce rostering tool▪ Display lean wall ▪ Continue monthly transaction survey for monthly resource and engagement ▪ Use structured action plans on the allocation communication back of survey▪ Enforce key communication ▪ Develop KANO model for key such as delegation matrix indicators 11
  • Improve To 25% SSO time spent on sales Several initiatives will ensure that freed up 5 activity time is captured as sales activity Follow up on meetings 4 booked ▪ Improve daily Ensure enough performance meetings are management 3 booked ▪ Performance ▪ Plan meetings in boards Pull the right advance using ▪ Sales review customers to meet performance board meetings ▪ Increase quality of ▪ Encourage usage 2 the leads from of diaries/ CRM calendars Improve time usage ▪ Creation of a sales ▪ Automation kit ▪ Transfer of tasks ▪ Increase referrals 1 ▪ Branch flexible Free up time staffing model, i.e., RAG boards ▪ Stopping (e.g.., excessive stamping) ▪ Moving out of the branch (e.g.., account freeze) From 8% SSO time ▪ Simplifying (e.g.., cheque deposit)spent on sales activity 12
  • Skills matrix developed to manage branch development Improve ▪ Limited skills flexibility to permit cross- functionality (e.g.. Teller not able to support sales administration, limited product knowledge to refer to SSOs) ▪ Business English urgent requirement for some front line staff ▪ Lack of Lean skills ,mainly coaching and performance management as main driver for increased profitability in the branch Impact through skill development, coaching and more flexible staffing 13
  • ImproveWEEKLYWeekly 1:1 meetings to follow a clear and documented structure 1:1 SHEETEmployee Name: _______________ Signature: _______________Manager Name: _______________ Signature: _______________ Date: _______________KPI ( Key Performance Indicator ) Target PerformanceKey successes (Refer to behavioral competencies) Key issues encountered (Refer to behavioral competencies)Actions required for Status Who When Support requiredfollowing week (Red/Amber/Green) Impact through more ▪ BM/SSM/CSM to hold weekly rigorous coaching and 1:1 meetings performance management 14
  • ControlTwo boards used to manage performance and activities of the branch staffBranch performance board for Sales and services board forweekly review daily review M M M Branch BSC rank C Action of the day M Daily Targets setting M Weekly/ W Margin W Deposits Monthly C Staff Birthdays W Avg. Per Day Targets M C C R Top Performers Monthly Schedule C Planned M (report based) Submitted Booked Sales Sales W Credit cards W Loan Applications (report based) Meetings Coaching, 1:1 sessions Avg. Queue Time C SSO and Teller C Actual/Targets (report based) C HO New W CASA M Mashreq Gold – W Daily Targets setting Average revenue W W W C C C C W SME – median Referrals to Transaction Staff Suggestions portfolio revenues SSO MM Sales Errors W Team Barometer C C C Actual/Targets M M Targets setting Skill Matrix Quality and Problem Service Scores Solving (MTD Management C individual Cumulative) targetsW Weekly by assigned staff C Daily by assigned staff W Weekly by assigned staff R Daily by assigned staffM Monthly by Manager M Monthly by Manager C Daily by each individual ▪ Boards to be displayed and used in daily 15
  • Control Morning huddles are structured and aligned with performance boards data Timing: 7-45 am (15 mins max)Morning Huddle (15 mins) Daily at Performance BoardPurpose: To identify plan for the day / week based on current results against targets. Highlight success areas with top performers. Reviewsales pipeline / WIP. Obtain feedback and define the concerns. Who Time AttendeesAgenda All ▪ Branch Manager▪ Greet; check for absence▪ Update on Head Office news ▪ All team members▪ Discuss Team news / Team barometerReview branch KPIs All▪ Discuss Quality / Service achievements with teller focus Output▪ Review last day/week results, mark top performers on board 10 mins ▪ All staff to be aware of gaps inRaise problems for resolution All performance▪ Identify key / pending issue(s), appoint staff for resolution▪ Obtain feed-back , ideas for improvement on long-term goals ▪ All staff have a clear vision on what to be treated as Individual andSummarize Plan of the Day All Team Task for the Day▪ Identify 1 Item/Target for Today – Sales / Service / Quality / Control▪ Obtain commitment for Referrals/Calls/Meeting ▪ Registered issue(s) for timely▪ Communicate / Reinstate the TOP 5 & Tag-Ons resolutionsSales review BM/SSM/ 5 - 10 mins▪ Review Sales board with previous day results SSOMeeting rules▪ Update board with KPIs prior to the meeting▪ This is not a problem-solving meeting – agree to take problems/improvement ideas off line▪ Keep mobile devices switched offDecision required▪ Implement standard huddle agenda in pilot branches 16
  • Control Regular surveys will ensure staff engagement and change acceptance ▪ Satisfaction score ▪ Action plans in place to address highs and lowsSatisfaction Level How to use the team barometer ▪ Dedicated resource in each branch to manage process ▪ Survey ran every Thursday ▪ Action items displayed on performance boards Weekly Trend Drive change by coaching, Track, reinforce, and trainings, root cause encourage positive analysis and two way behaviour dialogue 17
  • ControlTactical Implementation Plans – track each branch for consistency and timelines 18
  • Project Closure Lean Key Performance Indicators - upward trend for branches (lead indicator) SSO client meetings * Targets vary and depend on number of SSOs & Tellers in the branch SSO applications * Targets vary and depend on number of SSOs & Tellers in the branch Ave Ave30 Ave 30 Ave Linear (Ave) Linear (Ave)20 20 ▪ Average of all10 100 0 KPIs shows 9-14 July Week 1 16-21 July 23-28 July Week 2 Week 3 30-4 Aug Week 4 6-11 Aug Week 5 13-18 Aug 20-25 Aug Week 6 Week 7 9-14 July Week 1 16-21 July 23-28 July Week 2 Week 3 30-4 Aug Week 4 6-11 Aug Week 5 13-18 Aug 20-25 Aug Week 6 Week 7 positive trend Ave 3.2 13.4 13.2 15.6 20 23.4 25 Ave 5.6 10 12.2 19.6 18.6 18.4 18.6 for branches ▪ Mussafah 16 36 14 6 10 4 5 Mussafah 11 26 18 23 29 28 26 Mushriff 0 17 4 4 16 24 22 Mushriff 0 2 3 13 15 9 6 Steady increase Khalifa A 0 0 34 26 22 18 23 Khalifa A 0 0 12 10 10 18 10 Zaeyd 2nd 0 3 6 35 30 30 58 Zaeyd 2nd 17 14 18 42 18 21 28 in booked client AD Main 0 11 8 7 22 41 17 AD Main 0 8 10 10 21 16 23 meetings results Teller referrals Teller MM sales Ave * Targets vary and depend on number of SSOs & Tellers in the branch Ave * Targets vary and depend on number of SSOs & Tellers in the branch in increase of30 Ave 200 180 Ave number of client 160 applications ▪ Linear (Ave) 140 Linear (Ave)20 120 100 Wallet share10 80 increased due 60 40 to teller referrals 20 0 0 and MM sales 9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug 9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Ave 0.4 21.2 15.2 13.4 23 16.8 21.2 Ave 38 168 153.4 179.6 149.6 183.4 141.6 Mussafah 2 33 22 7 9 6 11 Mussafah 54 65 92 334 398 245 124 Mushriff 0 50 21 17 25 32 28 Mushriff 0 355 255 90 70 364 122 Khalifa A Zaeyd 2nd 0 0 6 8 16 7 6 16 21 48 5 22 19 27 Khalifa A Zaeyd 2nd 0 136 120 174 40 159 110 187 9 133 10 166 9 215 19 AD Main 0 9 10 21 12 19 21 AD Main 0 126 221 177 138 132 238
  • Project Closure Up to 12th position for MayBalance ScorecardImpacts on Pilot branch(Lag indicator) After 1st month 14th positionStart of Lean in16th position 20
  • Project ClosureLearnings Flexibility within tools used to deliver sales and service improvements within branches – ensure degree of customization for Branch Manager while not losing uniformed approach First week of new waves used as ‘mini-diagnostic’ to validate findings from extensive pilot analysis Key staff in completed branches used during training phase for future branch roll-out Regular ‘Problem Solving’ sessions held within Lean Team and Branches to encourage continuous improvementTeam Recognition CEO visits to relevant branches, regular newsletter detailing achievements, and recognition in CEO annual video conference across MENA 21
  • FinallyIn light of competitive nature in the Financial Services Market in UAE, it isessential that an organization can maximize it’s existing assets.By re-energising, re-investing, and retraining staff in conjunction withprocess efficiencies, and better use of support services…we cansignificantly increase sales potential without significant headcountexpansion. 22