Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

Like this? Share it with your network

Share

BPM success in difficult times

on

  • 2,042 views

Uk Bank? Global Financial Crisis? Business as Usual? Better not be... here's the story from the battlefield from one of the hands-on business leaders. Hear it as it is.

Uk Bank? Global Financial Crisis? Business as Usual? Better not be... here's the story from the battlefield from one of the hands-on business leaders. Hear it as it is.

Statistics

Views

Total Views
2,042
Views on SlideShare
1,966
Embed Views
76

Actions

Likes
1
Downloads
105
Comments
0

5 Embeds 76

http://bpcommunity.blogspot.com 69
http://www.slideshare.net 2
http://www.lmodules.com 2
http://bpcommunity.blogspot.co.uk 2
https://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

BPM success in difficult times Presentation Transcript

  • 1. BPGroupEducationSeries2009-10 Improve efficiency and customer service, increase revenue and reduce costs Presentation series Business Process Management: Achieving & Sustaining Excellence in times of change: Sharing the story of restructure, cost prudence and improvement in volatile environments Additional Information: Training – www.bp2009.com | www.bp2010.com Web - www.bpgroup.org (join the BP Group – it’s free) Steve Towers BP Group Steve.towers@bpgroup.org
  • 2. BPGroupEducationSeries2009-10 Improve efficiency and customer service, increase revenue and reduce costs Presentation series Havana Abid Director of Operations Havana is an accomplished executive experienced in driving business performance in rapidly changing environments. With a track record in overcoming complex business challenges using experience based judgement, insight and information. Havana’s highly customer focused approach mixed with commercial acumen underpins a career of increasing productivity, building growth capacity, reducing costs, maximising revenue and achieving step change in the customer service experiences. In this presentation drawn directly from her top team experience with one of the UK’s leading banks Havana guides us through the story and the achievements. Steve Towers BP Group Steve.towers@bpgroup.org
  • 3. Achieving & Sustaining Excellence in Times of Change: Sharing the story of restructure, cost prudence and improvement in volatile environments Havana Abid Director Operations Published with permission - www.bpgroup.org - October 2009 Case Study – UK Financial Services Bank IQPC – Business Process Excellence Sept 2009
  • 4. Published with permission - www.bpgroup.org - October 2009 The Operations ‘Before’ Picture..... Fragmented Inefficient Overly complex organisational Physical and old IT governance processes Insufficiently Ineffective leveraged key performance resources measurement Unclear staff Moderate to Poor Customer accountabilities High Risk Experiences Low Staff High volumes of Morale & complaints Engagement Source: Ops Due Diligence 2003
  • 5. Published with permission - www.bpgroup.org - October 2009 Situation ‘Before’ Bank IT Architecture (showing risk categories) Infrastructure Channels Estate Telephony Branches Wealth IFA Mortgages Operations Agency AMS NT Desktop Desktop,Laptop & Server, NT V2 Laptop NT V2 Desktop Windows 3.1 Desktop NT V2 Desktop CHM Desktop, Laptop & EA NT Desktop OS/2 Server NT V3 Desktop Server, NT V3 Laptop NT V3 Desktop NT V2 Desktop V1 Laptop V2 Laptop V3 Laptop AMS NT Desktop AMS NT Server Group Support NT V3 Desktop Online Ecross Online WebBOS HATS Distribution RBOS (residential) Counter LetBOS (Mort. Application) Sales Support (lettings) MARS ISAAC CLOE CPBOS Legend Post only Sales Tools, e.g. Mort. Brain (MBL) (commercial) Querix ExWeb (sales mgt) CTP High Risk Sirius (CIB) Quasar Investment System (PEP) (Savings/Cash ISA) Central Sales Core Admin (non-cash ISA) Stratum/APT Medium Risk LISA (MX Mortgage) PCMS TeamTrack (Mortgages) (Comm’n Tracking) (Compliance trending) CBAS MPS (PEP) PCS Low Risk CIF (Customer Index) Group Support 3rd Party BACS Mortgage Suppliers NatWest FNBC TMS/Simcor Cyborg BankOne (Treasury) (HR/Payroll) Housing Aggregators: BoNY AssertaHome Toronto Dominion Musketeer Millennium Reuters Fish4Homes Equifax Experian CHAPS HSBC (Treasury) (GL) Bloomberg RightMove Source: IBM/BBG Group IT analysis 2003
  • 6. Published with permission - www.bpgroup.org - October 2009 What we did 4 Key Improvement Themes Theme 1 – Establish the value of ‘Operations’ Theme 2 - Control Change & Improve end to end Theme 3 - Standardise, - Consolidate, - Simplify the Customer Experience Theme 4 – Enhance ‘value’ Operations resilience,
  • 7. Published with permission - www.bpgroup.org - October 2009 Why did we need to do it? Historically structured by Profit & Loss lines of business Operations was an after Lending Financial Savings & thought – not part of Services Deposits strategic design Financial Mortgage Savings Independent ‘back office’ Services Operations Operations operational areas with a Operations total of 1500+ resources Mortgages Savings FS Contact Contact Contact Centre Centre Centre Decision to move to a ‘shared services’ style enterprise model Consolidated to create Operations Apply customer - supplier principles 8
  • 8. Published with permission - www.bpgroup.org - October 2009 Theme 1 – Establish one Operation Bank strategy was built Lending Savings around two distinct FS offerings now backed by a single Operations function Operations had a seat and voice at the Senior Tables New Business New Business Mortgage Mortgage so was part of design not an Operations Operations Operations Operations after thought Customer experience is defined and standards set Customer Customer lifted from 30% - 88% Relations Relations allowing 23% improvement Savings Savings Operations Operations in unit cost to serve Operations creating capacity for growth
  • 9. Published with permission - www.bpgroup.org - October 2009 Theme 2 - Control Change & think ‘end to end’ Rank This M Rank Last M Initiative Name Ranking Factors Ranking 2006 Benefits 2006 Funding Constraints Reg no ng Plan Cumulat Cumulat Total Gate 2006 Strategic Score 2006 By Strategic Score Phase 2006 e ation Revenu P&L Costs ive P&L Costs Cash Costs ive Cash Varianc e Costs NPV Net Benefit By Net By NPV Benefit Benefit Operati Depreci Lifecycle member Exco £m £m £m £000 £m £m £m £m £m £m £m £m Depreciation on closed projects/ 2005 committed capital 12.85 12.85 12.85 2005 Accruals (See Note G) -3.36 9.49 -3.36 -3.36 Completed Projects (Note A) -0.30 -0.30 -0.29 -0.02 1.25 0.18 1.43 10.92 1.92 -1.44 Regulatory G057 BACs Remote Site DR Contingency CW IMP -0.13 -0.10 REG -0.02 -0.02 0.00 0.00 0.00 0.09 0.09 11.01 0.09 -1.35 G013 Basel II CG DEV -4.11 -0.75 REG -0.28 -0.28 0.00 0.00 0.29 0.18 0.47 11.48 0.55 -0.80 W001 CPF Risk Modelling CG IMP 1.31 -0.32 REG -0.04 -0.04 0.32 0.00 0.13 0.16 0.28 11.76 0.84 0.04 G061 Integrated Regulatory Reporting CW BC 0.00 -0.21 REG 0.00 0.00 0.00 0.00 0.00 0.21 0.21 11.97 0.21 0.25 G055 Transactional Monitoring System RH DEV -1.45 -0.38 REG -0.13 -0.10 -0.13 -0.03 0.14 0.11 0.25 12.22 0.56 0.81 Infrastructure P142 B2B Mortgage Ops RD BC -0.33 0.00 INF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.22 0.00 0.81 P140 BDI Campus RD BC 0.00 -0.51 INF 0.00 0.00 0.00 0.00 0.15 0.35 0.51 12.72 4.96 5.77 P132 Evolution of HR & Payroll Systems RD DD -0.24 -0.21 INF 0.00 0.00 0.00 0.00 0.08 0.13 0.21 12.93 1.02 6.80 P141 UFSS Release Management Blueprint RD IMP -0.05 -0.09 INF 0.00 0.00 0.00 0.00 0.00 0.09 0.09 13.02 0.09 6.88 Non Regulatory 1. Projects with one or more 'green' scores (see note C below) and/or projects baselined Baselined 1 1 Mortgage Systems Review: Performance, CG - 0.00 0.00 5 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.02 0.00 6.88 Monitoring & Testing (Note E) 2 3 R034 Build Mortgage Telephony Unit RH IMP 10.02 0.04 4 3 3 7 0.24 0.23 0.55 0.01 0.14 0.06 0.20 13.22 0.71 7.59 3 NEW R034 DMS Transition RH DD 0.78 0.05 4 8 2 7 0.21 0.00 0.00 0.21 0.01 0.15 0.16 13.37 0.20 7.79 4 4 C079 Personal Loan Project RH IMP 1.63 0.35 1 6 1 19 0.63 0.63 0.72 0.01 0.06 0.22 0.28 13.65 0.53 8.32 5 6 L131 Lifetime - Monthly Income Mortgage CG DD 0.42 -0.16 4 9 8 7 0.03 0.03 0.03 0.00 0.14 0.04 0.19 13.84 0.34 8.67 6 2 P123 Mortgage End 2 End - retail only RH DEV 11.05 -0.44 3 2 14 13 3.14 0.80 3.14 2.34 2.96 0.62 3.58 17.42 5.19 13.86 7 5 R038 Online Development of Retail Sites RH DEV 1.06 -0.65 2 7 20 17 0.16 0.17 0.26 -0.02 0.02 0.79 0.81 18.23 1.00 14.86 8 8 C090 B&B Lending RH DEV -0.34 -0.60 5 21 18 1 -0.01 -0.02 0.00 0.01 0.23 0.36 0.59 18.82 1.26 16.11 9 9 G059 Lending MI End State CW DD -0.86 -0.74 5 24 22 1 0.00 0.00 0.00 0.00 0.07 0.68 0.74 19.56 1.47 17.58 Not yet baselined 10 15 L151 Online Proposition Review CG BC 12.96 -1.21 5 1 24 1 0.00 0.00 0.00 0.00 0.00 1.21 1.21 20.78 1.21 18.79 11 12 C093 B&B Branded Lending RH BC 5.61 -0.28 5 4 11 1 0.30 0.28 0.00 0.02 0.00 0.59 0.59 21.36 1.02 19.82 12 11 P139 Sales Process Improvement RH DD 5.04 -0.73 4 5 21 7 0.00 0.00 -0.28 0.00 0.00 0.73 0.73 22.09 2.55 22.37 13 14 R041 Retail & Manufacturing Integration RH BC 0.00 -0.50 5 10 16 1 0.00 0.00 0.00 0.00 0.00 0.50 0.50 22.59 2.50 24.87 14 NEW R042 E2E Mortgages - Tactical Solution RH DD -0.77 -0.47 4 22 15 7 0.00 0.00 0.00 0.00 0.00 0.47 0.47 23.06 1.11 25.98 15 28 Development of New Niche Market Product CG CR 0.00 -0.63 4 10 19 7 0.00 0.00 0.00 0.00 0.00 0.63 0.63 23.68 0.63 26.60 TOTAL CASH COST £30m / TOTAL P&L COST £24.6m
  • 10. Published with permission - www.bpgroup.org - October 2009 Theme 3 Standardise, Consolidate & Simplify Cycle Performance Team as a Intervention Spans of Small control Business Process Coaching Accelerated Operations Performance Improvement Framework Performance Performance Laboratories Metrics Best Practice SmartPack Standards SOURCE: W D Scott Consulting (Copyright) 11
  • 11. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 - Performance Intervention Established a Performance Management Performance Office: Entity Financial & Resource • Planning Business Planning • Performance (Core Performance Analysis • Improvement Operations) • Change Performance Management Improvement Change Management INTERVENTION PHASES Proved a highly effective • Directive intervention model to • Collaborative / Mentored drive improvement • Participative • Owned 12
  • 12. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 - Best Practice Standards Established Process Partnership with WD Scott Process Actual Adopted benchmarked ‘best Standards Why? practice’ process standards Process Standard Analysis Customer Experience centric Trigger Established process controls Process Process Inputs Outputs Measured performance against ‘ideal’ standard Resource Planning Identified gaps, key causes Prevention Controls Inspection Defined solution Made the improvement real 13
  • 13. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 – End State Principles Defined ‘end state’ customer principles e.g. ‘End State’ Best Practice State’ 2. WHERE Conformance to ‘standard’ Desired ‘As Is’ Redesigned Is’ End Processing ‘batches of one’ State No ‘hand offs’ ‘As Is’ Improved Is’ 3. HOW Error free input Transition Same day completion ‘As Is’ Is’ Standardised 1. NOW Communicate the sustainable Undefined ‘As Is’ State step changes towards the ‘desired end state’ Operating Model
  • 14. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 - Performance Metrics Defined the ‘right’ metrics to deliver process intent Customer Firstly the customer Experience experience Then process effectiveness Effectiveness Followed by service Provide Quotation Provide Quotation And only then, efficiency Service Build a ‘customer journey’ Levels centric environment Efficiency 15
  • 15. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 – Process & Performance Coaching Established ‘process coaching’ roles’ Business Unit Module 1:2 team ratio Manager Coach for process Team Manager Team Manager conformance, then improvement, innovation and Team Team customer excellence 15 15 Process Eliminate causes of process Coach input and output waste Improvement Engage everyone in Planning improvement Performance Coaching for Improvement Manage up or out Performance Entity
  • 16. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 - Team as a Small Business Each team is regarded as a BUSINESS: ‘small business’ DIRECTION BUDGETS The team thinks through TARGETS business fundamentals (Why, What, How) TEAM: Then works through plans, Rewards & PLANS Recognition BUDGETS targets and budgets TARGETS Rewards are closely linked to performance Team Process Manager Coach Each team measured on customer scoreboard Team Members Customer focus days 17
  • 17. Published with permission - www.bpgroup.org - October 2009 How did we do it? Theme 3 – Leading the Way Fundamental shift in leadership behaviours Right people leading the charge Invested in training , The Intrapreneurial Manager CMi Masters Level 7 Qualification development and assessment ‘Partners in Management’ RIDFEAR ® Moments of Truth Coaching change, Leadership skills Honorable Leadership Doing what is says on the tin The Forum Think Tank for Leaders & Managers Consistency of word and action All levels and all ranks www.partnersinmanagement.co.uk 18
  • 18. Published with permission - www.bpgroup.org - October 2009 What were the results? 48% reduction in the number of roles ……. Resources linked to …. 15% reduction business volume on previous year… demand - ‘no fat’ 1,288 48% reduction Large reduction in 1,134 over 3 years……. management, performance monitoring 792 and casual workers 673 594 Increasingly moving away from fixed to flexible hours of work Industry Process definitions and standards established 2002 2003 2004 2005 2006 and maintained through Actual Actual Actual Actual Actual WD Scott Process No. of Roles in Operations Partnership 19
  • 19. Published with permission - www.bpgroup.org - October 2009 The results so far : Customer complaints Complaints Received (Monthly) 700 600 500 Volume 400 300 200 100 0 Savings Complaints Lending Complaints Source: Group Ops Finance & Planning Jan. 2005
  • 20. Published with permission - www.bpgroup.org - October 2009 The results so far : Staff efficiency Savings & Advice Support Mortgage Operations 100 Resource Utilisation/Efficiency (%) 90 80 70 60 50 Dec 05 40 30 20 Sept 03 10 0 Advice Branch Tax Free Savings Corres Redemptions Securities Retention & Property & Processing Processing Savings Processing Add Lending Insurance Source: Operations Transformation Performance Tracking;
  • 21. Published with permission - www.bpgroup.org - October 2009 What were the results? Significant improvement in resource utilisation Matching resources to work traffic Active resource management – multi skilled Doing the right things right Higher focus on customer value adding activities Desire to remove barriers and obstacles for excellence Mortgage Retail Direct Continuous improvement is Operations Operations Operations a ‘way of life’ Before After 22
  • 22. Published with permission - www.bpgroup.org - October 2009 The results so far : Staff Satisfaction PMO ROps MOps CRels Overall 94 94 79 84 87 79 66 63 57 47 Very Satisfied 2007 Quite Satisfied Quite Dissatisfied Very Dissatisfied 2005 Source: Operations quarterly staff satisfaction surveys
  • 23. Published with permission - www.bpgroup.org - October 2009 The results so far : IT Architecture Q1 2007 Infrastructure Channels Telephony Branches Online Mortgage Operations NT V2 Laptop NT V2 Desktop NT V3 Desktop XP V4 Desktop NT V3 Laptop NT V3 Desktop NT V2 Desktop NT V3 Desktop V1 Laptop V2 Laptop V3 Laptop AMS NT Group Support XP V4 Desktop Desktop AMS NT Server NT Server Network Flexible broadband technology Ecross Distribution HATS Online Teller Manufacturing) Sales Support Omiga Omiga Retail ISAAC CLOE Legend Post only Sales Tools, e.g. Mort. Brain (MBL) Querix ExWeb (sales mgt) CTP High Risk Quasar (Savings/Cash ISA) (PEP) Investment System Central Sales Core Admin (non-cash ISA) Medium Risk LISA PCMS TeamTrack (Mortgages) (Comm’n Tracking) (Compliance trending) UFSS CBAS (PEP) PCS Low Risk CIF (Customer Index) Group Support 3rd Party BACS Mortgage Suppliers NatWest FNBC TMS/Simcor Cyborg BankOne (Treasury) (HR/Payroll) BoNY Toronto Dominion Musketeer Millennium Reuters Equifax Experian CHAPS HSBC (Treasury) (GL) Bloomberg
  • 24. Published with permission - www.bpgroup.org - October 2009 The results so far : 3 Year IT Investment Programme Principle 2005 2006 2007 2008 IT goals Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 New deskPC’s Next PC 1. Replace Agency Refresh Retail project: Branch refresh obsolete I.T. Central sites Project: Desktop refresh Central sites Project: 50% Server Refresh Removal of Laptop Factory 2. Improve Efficiency Application Rationalisation Ongoing Server Consolidation Upgrade Computer Rooms 3. Mitigate Remove obsolete mini computers New Server Build Risks Next server Mainframe: Positioning Mainframe Upgrade 4. Enable Telephony infrastructure upgrade LAN cabling upgrades as required business Upgrade Internet Infrastructure growth Upgrade Network: WAN, Branch LAN,
  • 25. Published with permission - www.bpgroup.org - October 2009 The results so far : Group Operations Costs 2006 (£m) Reduction of £12m on previous year.. £152m £147m ..£28m over last 3 £136m years £124m ....Whilst business growth of 18% 2002 2003 2004 2005 actual actual actual actual Source: Group Ops Finance & Planning Jan. 2006
  • 26. Published with permission - www.bpgroup.org - October 2009 The results so far : Cost Income Ratio 70 Cost income ratio (%) 65 60 55 50 45 40
  • 27. Published with permission - www.bpgroup.org - October 2009 Key Learning……. Senior Executive commitment and regular oversight Technology is not the silver bullet its at the end of the process not the beginning choose the investments wisely Choose your interventions carefully - successful execution is the key currency, words are cheap Getting the pace right - Companies have a capacity for absorbing change move too fast and change will be rejected staff love to feel competent, perception of unrelenting change undermines this Think and act systemically Consistent, clear and frequent communication to all staff Focus on achieving conformance and be seen energetically maintaining it This programme was always a customer experience programme
  • 28. Published with permission - www.bpgroup.org - October 2009 Key success factors… It hasn’t been easy BUT it has been worth while… Communication needs be consistent and clear Personal objectives need to be aligned up and down the structure linked to common aims across the company Defining and managing accountabilities and take corrective action - do something mentality Management by variation not by averages Achieving stability and ‘energetically’ retaining it Ensuring that everyone applies continuous improvement tools and techniques The change in management behaviour is critical to change CUSTOMER EXPERIENCE CHANGES WHEN PERFORMANCE & CULTURES CHANGE That changes ONLY WHEN MANAGEMENT BEHAVIOURS CHANGE 29
  • 29. Published with permission - www.bpgroup.org - October 2009 Respond to the Volatility & Chaos Despite banking crisis and its impacts...... Operations strong even today – ranked & accredited by Standard & Poor’s in 2009 due to these standards Established Customer Excellence culture - keep raising bar Demand led business – offers cost flexibility and prudence Change management control offers responsive Operations not a reactive one Operations acts as backbone in times of challenge and crisis offering service certainty and leadership strength to those that touch your daily and regular customer interactions Many of these techniques from WD Scott and Partners in Management are easy to install and don’t cost the earth Bring the purpose, process and people together to achieve performance 30
  • 30. Published with permission - www.bpgroup.org - October 2009 Thank you for listening Questions? Comments?