Somesh chandra-religare

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Somesh chandra-religare

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Somesh chandra-religare

  1. 1. Working Draft - Last Modified 11/13/2010 5:06:29 PM Shared Services Experience in India – Business Case & Value Story Printed 11/13/2010 4:09:33 PM Religare Shared Services21st Sep, 2012 © Religare Corporate Services
  2. 2. Table of Contents Working Draft - Last Modified 11/13/2010 5:06:29 PMSection I : Context Setting – Set up before Shared ServicesSection II: Strategy & business case for Shared ServicesSection III: Religare’s Shared Services journey Printed 11/13/2010 4:09:33 PM © Religare Corporate Services | 1 | Confidential
  3. 3. I. Context Setting – Set up before Shared ServicesBack office and operations teams were integrated within the businessesbefore Shared Services was formed Asset Call centre Broking Lending management operations 513 branches 30 branches 60 branches Working Draft - Last Modified 11/13/2010 5:06:29 PM 10 Regional 22 Regional Custodian services Processing Centres Processing Centres 1 Central 1 Central 2 Central 1 Central Processing Centre Processing Centre Processing Centres Processing Centre Printed 11/13/2010 4:09:33 PM HC – ~800 HC – ~250 HC – ~70 HC – ~170 Key challenges - Each business unit decided on their operating practices (e.g. span of control, level of outsourcing) leading to variation in cost structure across businesses - Limited effort and incentive to share resources across BUs and drive consistent operating practices - Inconsistent customer experience due to lack of end-to-end view and management in silos © Religare Corporate Services | 2 | Confidential
  4. 4. Table of Contents Working Draft - Last Modified 11/13/2010 5:06:29 PMSection I : Context Setting – Set up before Shared ServicesSection II: Strategy & business case for Shared ServicesSection III: Religare’s Shared Services journey Printed 11/13/2010 4:09:33 PM © Religare Corporate Services | 3 | Confidential
  5. 5. II. Strategy & business case for Shared ServicesReligare Shared Services has been built on 5 key principles1 Minimum bar for Shared Services is better quality and Customer service at same or• lower costs. Potential cost savings will kick-in once rolled-out to scale Working Draft - Last Modified 11/13/2010 5:06:29 PM2 Shared services will be built in collaboration with businesses , will offer them• competitive advantage and flexibility3 Only standardized & repeatable processes will be migrated to Shared Services.• Capabilities specific to business remain with business (e.g., Compliance, Risk Management, Underwriting) Printed 11/13/2010 4:09:33 PM4 End-to-end customer outcomes will improve significantly•5 Shared Services will offer a superior environment for operations team members• Religare Shared Services operates completely through an “Outcome-based model”, i.e. businesses manage by outcomes & SLAs and not by people © Religare Corporate Services | 4 | Confidential
  6. 6. II. Strategy & business case for Shared ServicesBased on these principles, a strong KPI based business case was created S. No. Metric / KPI Target 1. Migrate work in collaboration with businesses 600 FTE Working Draft - Last Modified 11/13/2010 5:06:29 PM 2. Cost Productivity Gain 10%-15% 3. Quality – SLA adherence 95% 4. People Management – Monthly Attrition <= 5% Printed 11/13/2010 4:09:33 PM 5. Customer Experience 10% improvement Shared Services mission is “To provide end-to-end services to business delivering significant client impact” © Religare Corporate Services | 5 | Confidential
  7. 7. II. Strategy & business case for Shared ServicesClear implementation plan was created for identifying and migrating work toShared Services Capability Migration Heat Map Work Plan Matrix Tool Kit Working Draft - Last Modified 11/13/2010 5:06:29 PM • Leadership team • All business • Quarter wise • Six Sigma driven with mix of strong processes evaluated migration plan migration tool kit domain and process based on capability created and signed prepared with mindset matrix and guiding off with business review tollgates • Shared Services principles Finance Feasibility Study offerings • Identified processes Transaction Transition Plan • Customer for migration to Processing Implementation Service & Sales Shared Services Broking – Account Operations Pilot Printed 11/13/2010 4:09:33 PM • Collections Opening, • Finance & Customer Service Accounts Lending – Back • Transaction office Processing © Religare Corporate Services | 6 | Confidential
  8. 8. Table of Contents Working Draft - Last Modified 11/13/2010 5:06:29 PMSection I : Context Setting – Set up before Shared ServicesSection II: Strategy & business case for Shared ServicesSection III: Religare’s Shared Services journey Printed 11/13/2010 4:09:33 PM © Religare Corporate Services | 7 | Confidential
  9. 9. III. Religare’s Shared Services journeySignificant Value Creation has happened in the last one year through ReligareShared Services - SLA 4. Customer Orientation in teams Adherence up from 75% to 99% Working Draft - Last Modified 11/13/2010 5:06:29 PM 3. Cost Savings to business 11%-13% Productivity Gain - Attrition reduced from 20% to 3% per month Printed 11/13/2010 4:09:33 PM 2. People Management - Effective utilization: 30% team cross-trained on more than one process - Robust Governance structure / reviews with each business 1. Stronger Controls - Business Continuity planning and testing - Information Protection awareness and controls © Religare Corporate Services | 8 | Confidential
  10. 10. III. Religare’s Shared Services journey 1. Controls: Strong controls have been implemented in all key processes with focus on wing-to-wing performance – Customer Service TAT improvement case example Turn around time has improved from 43% pre transition to 78% post transition in six months with a target of 85% in next three monthsCase Resolution TAT Adherence TAT for the monthSep-Oct 11 43% 43% Pre transition performance Working Draft - Last Modified 11/13/2010 5:06:29 PM Transition to Shared Services, Process optimization Jan - 12 17% 60% & rigorous follow ups on open cases Better coordination (within Shared ServicesFeb/Mar 12 12% 72% Voice & Non Voice teams) Cross training of Customer Care & Branch Support Jun - 12 6% 78% teams, dashboard automation, relevant cases assigned directly to business Printed 11/13/2010 4:09:33 PM Category-wise root cause analysis with business & Sep 12 7% 85% resolution of identified gaps, other actions to be identified and implemented by Sep 2012 85% “This is an outstanding example of +98% how wing-to-wing collaboration through Shared Services teams can deliver real value to Customers” – President Broking © Religare Corporate Services | 9 | Confidential
  11. 11. III. Religare’s Shared Services journey2. People Management : Regular communication & transparent performancemanagement has reduced voluntary attrition from 22% in Jun’11 to 1% in Aug’12Metric Monthly Attrition Trend (Jun ‘11– Aug’12) 43% “Shared Services has given ampleTotal 28% opportunities for us to work on multiple processes from differentAttrition Working Draft - Last Modified 11/13/2010 5:06:29 PM 6% 3% businesses and build additional skills” - Tenured Senior Associate 22%Voluntary 6% 5% 1%Attrition “Structured monthly discussions with team leader help us understand our improvementKey Actions Taken / Underway areas” - Quality Team Lead Printed 11/13/2010 4:09:33 PM KPI & Stack Ranking Monthly 1x1 Feedback Incentives “KPIs, visual tools and fun at work help in working in a transparent Weekly Fun at Work Activities and motivating environment”- Associate Recognition © Religare Corporate Services | 10| Confidential
  12. 12. III. Religare’s Shared Services journey3. Cost Savings : Most processes migrated to shared services have delivered 10 -15%productivity improvement within 6-9 months Change post transition to Shared Services Cost Volumes HC *Normalized Working Draft - Last Modified 11/13/2010 5:06:29 PM Productivity Improvement Transaction Processing -7% 6% -7% 13% Finance & Accounts -11% 2% -7% 13% Printed 11/13/2010 4:09:33 PM Customer Service -11% -1% -5% 11% *Normalized based on cost & volume “We have been able to respond very well “Thanks to Shared Services management to these tough and uncertain market in leading the way on operational conditions, thanks to our shared services excellence and creating a solid platform team” - Broking CEO for all Religare businesses” - Group CEO © Religare Corporate Services | 11| Confidential
  13. 13. III. Religare’s Shared Services journey 4. Customer Orientation : Outcome based KPIs have seen significant improvement post migration to shared services “It is a great example of teamwork and collaboration – Metric Performance and support from the business. We now have a 400+ people Pre Transition Post Transition robust platform supporting all 71 78 Working Draft - Last Modified 11/13/2010 5:06:29 PM businesses that provides• Customer Service Resolution TAT (%) 43 35% outcome-based services with a process mindset and strong quality controls” - Group COO & 78 87 Head of Strategy• Collections Efficiency (%) NA 9% 86 99 100• Rent Cheque Delivery TAT (%) 14% “Finally we have built a Shared Services organization that is truly Printed 11/13/2010 4:09:33 PM focused on outcomes.” - 86 91 93 Group CFO• Customer Service Call Quality (%) 7% 88 99 99 Previously the account related• Inbound Call Answering Level (%) 11% requests were delayed but from last six months we are getting our statements on 97 97 99 time and our queries are• Employee Reimbursement TAT (%) 2% responded quickly!! – Equity Trading Customer © Religare Corporate Services | 12| Confidential
  14. 14. III. Religare’s Shared Services journeyReligare’s Shared Services performance has exceeded expectations on mostcounts but the journey has just began…S. No. Metric / KPI Target Current Status Migrate work in Working Draft - Last Modified 11/13/2010 5:06:29 PM 1. collaboration with 600 FTE 400 FTE ! businesses 2. Cost Productivity Gain 10%-15% 11%-13% 3. Quality – SLA adherence 95% 99% Printed 11/13/2010 4:09:33 PM People Management – 4. <= 5% <=3% Monthly Attrition 5. Customer Experience 10% improvement 25% improvement © Religare Corporate Services | | Confidential 13
  15. 15. Working Draft - Last Modified 11/13/2010 5:06:29 PM Printed 11/13/2010 4:09:33 PM | 14| Confidential Thank You © Religare Corporate Services

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