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CENTER for ADVANCED RESEARCH                                         Discovering and Documenting GreatnessAbsA bANK: CAsh ...
•	 FICA Centre (Know Your Client)                          Towards the end of•	 National Securities Centre (NSC).         ...
retrieval time of documents when requested by          and factory operations experience (engineers whocustomers was not c...
4. Make document handling world-class through                                 •	The 4 Disciplines of Execution as the exec...
levels of execution (individual, intact team and         of the culture and the leadership change process.organisational)....
from the inside. Five high level issues had been       everyone as “whole persons” and creating a moreidentified through f...
performance areas, related behaviours and measures      these weekly and monthly forums that Dieter Halfar,identified for ...
the central cash centre (hence the name “hub                       keeping no more than a certain percentage ofand spoke”)...
results. The teleconference calls and related       Record management Challenges and Results    information also provided ...
fig 3more Results productivity and Customer service                  from (2007)             to (2008)            % Improv...
integrated and others split. Process Engineers           •	Strong, internal expertise of the methodologiesand Team Leaders...
franklinCovey southern Africa is the southernand east African licensee of franklinCoveyCompany – a worldwide consulting an...
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Operational Excellence in Cash and Record Management (Cfr090604 Absa Cas Stu R1.0.4)

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Operational Excellence in Cash and Record Management (Cfr090604 Absa Cas Stu R1.0.4)

  1. 1. CENTER for ADVANCED RESEARCH Discovering and Documenting GreatnessAbsA bANK: CAsh ANd ReCoRds opeRAtIoNs embARKINg oN A tRANsfoRmAtIoN JouRNey by RyAN mIlellA sNApshot IntroductionoRgANIsAtIoNAl Implement and embed Absa Bank Limited (Absa) offers a complete range ofdetAIls: a Lean Manufacturing investment, commercial and retail banking productsAbsa Bank Ltd. (Absa), culture. and services to the full spectrum of the South Africanlisted on the JSE, is one Measure performance customer base. Absa became a subsidiary of Barclaysof South Africa’s largest using FranklinCovey’s Bank PLC on 27 July 2005, when Barclays acquired afinancial services groups. xQ (Execution Quotient) Organisation Assessment. controlling stake in the Absa Group. Absa’s businessAbsa’s Cash and RecordsOperations (C&RO). hIgh level Results: is conducted primarily in South Africa. Absa employssecures, processes and Staff morale up from 59% a customer-centric business model with businesstransports physical cash to 74% units serving specific customer segments. The Groupand documents. 1500 Execution culture up from interacts with its customers through a combinationemployees with costs of 51 to 69R452 million. of physical and electronic channels. Sustainable cost savingsDate of study: January to of R30 million per year Absa has a market capitalisation of over R60 billionDecember 2008 (nearly 7% of total annual (approximately US$7 billion). It is the biggest retailKey ChAlleNges: operating costs) bank in South Africa with approximately 800 retailEmbark on a Process improvements branches and 10,000 ATM cash points. It is one oftransformation journey. resulting in: four major banks in the local market and employsImprove employee morale. • Cash recycling improved approximately 40,000 people.Reduce operational costs by 60% and inventorywithout impacting quality/ required reduced by 25% Cash and Records Operations (C&RO) is responsibleservice. • Bond validation and for the processing, transporting and safe keepingsolutIoN stRAtegy: Generic Banking Products of physical cash and documents for the bank. TheUse FranklinCovey’s 4 cycle time reduced by 83%. Records Operations function essentially processes,Imperatives of Great • Turn-around-time forLeaders and 4 Disciplines retrieval of various retains and archives; in both physical and electronicof Execution. documents reduced by format, all bank records, i.e. records ranging from up to 94%. customer information to bank securities. Records Operations, in service at 800 branches, consists of: © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009
  2. 2. • FICA Centre (Know Your Client) Towards the end of• National Securities Centre (NSC). 2007, Caesar Mtetwa was appointed to lead C&RO.The Cash Operations function essentially processes One of the challengesand transports cash, and loads ATMs with physical in Cash Operations, alsocash. Cash Operations consists of 13 Cash Centres headed up by a newlocated throughout South Africa that service 3300 appointee, Hamiltonoff-site ATMs and over 300 branches. Melane, is that physicalSupport provided to the Cash Operations includes cash attracts criminals,Change Management (including a Business and owing to high crime levels in the country, theImpact Manager and Change Analyst), Financial unit is considered a high risk environment in whichManagement, Internal Communications, Risk to work. This makes attracting and retaining talentManagement and Human Resources. a key challenge, resulting in deficits in technical know-how as well as leadership without sufficientthe problem to solve maturity. The cash industry was is over-invested Hendrik Oppermann, in cash processing capacity and is characterised head of Absa Operations, by few cash transporting companies, which makes had a vision: namely, both service and price less competitive. for Operations to be an industry pioneer in specific Challenges executing or fulfilling In 2007, the management of total cash inventory financial transactions. within the bank was decentralized, i.e. cash This meant embarking on management at retail branches and cash centres a transformation journey was managed separately, which resulted in a high for the entire division. and costly cash inventory. Turnaround times were In general, operations also too long and transportation costs too high.within the financial industry had followed a strategy The bulk cash deposits at retail branches imposedof standardisation, centralisation and automation high security risk and impacted negatively onto drive economies of scale and scalability of branch efficiencies as manifested by long queues.business. Operations, however, wanted to revise Management information systems were non-this type of strategy to standardise by activity existent, which made management of operationsrather than by product and to aggregate task by very difficult.capability rather that by business line. Too much attention was previously paid on reducingHendrik and his executive team were also aware ATM cash outs (service), which pushed operatingthat overall employee morale was low owing to an costs up significantly. The bank needed a moreentrenched, autocratic leadership style that had healthy balance between client service and cost-existed for a long time. There was also a lack of clear effective processes.strategic direction that created continuous shiftingof priorities. Managers experienced a culture of Measures were only being reported on a monthly“learnt helplessness” as most operational problems basis, after the fact, and there were no day-to-daywere escalated by employees to their managers. measures.Performance measures and documented workflows The processing time of records at Records Operationswere lacking, which resulted in favouritism and centres was too long. The documents could not bemanagement only being alerted to “bad news” at tracked or traced easily and had high chances ofthe last minute. being lost in the process of transportation. The © FranklinCovey. Center for Advanced Research. All rights reserved. August 20092
  3. 3. retrieval time of documents when requested by and factory operations experience (engineers whocustomers was not consistent and sometimes did challenged the “rules of the bank”).not comply with the service agreement. To ensure the execution of strategy alignedPeople-related challenges were, unfortunately, to the new vision of Hendrik Oppermann, theplentiful: transformation plan, developed and monitored by• leadership styles were autocratic, and Change Management (Karen Morkel) was embedded micromanagement was common within the leadership and execution framework. The transformation plan included:• employees did as they were told but no more • Setting the case for change (rationale)• trust was lacking • Effective stakeholder management (buy-in and• a “silo mentality” played out on a regular basis sponsorship) between interdependent teams • Driving employee line-of-sight• operations employees felt that they could not speak openly with their direct managers • Ensuring employee engagement• a paradigm of “things stay the same always” • Leadership development even if the economic realities around you say • Culture setting and instilling specific behaviours otherwise • Communication – constant review of strategy,• an “us and them” situation between permanent highlights, etc. and temporary employees, with permanent • Performance management employees receiving preferential treatment. • Talent development.Given these many challenges, the bank felt anurgent need to solve issues quickly to improve The plan was to be monitored closely withservice levels lest the negative perceptions of measurements in place to ensure success.the Records Operations teams multiply and the To discourage bogus team commitment andbad reputation inside Absa Group be reinforced. “cloning,” a theme of “Before a Team there is anSimultaneously, there was pressure from Absa Individual” was chosen. Team commitments wereGroup to get the cost/income ratio below 50 reinforced with team members that chose to stay,percent. With process inefficiencies and fixed cost while those who could not identify with the teamoverheads, daily volumes remained unpredictable opted out. Senior members intentionally created abut steadily increasing. With little or no line of culture of inclusivity.sight from within and weak capacity planning, The newly formed C&RO team, leveraging its newlythere were, as one might expect, differences in acquired engineering specialisations, put togetheropinion on the definition of “crucial.” In the FICA a three year strategy with strict annual milestonesenvironment, it was taking as long as 10 days to to take on the challenges C&RO were facing.process a document, a problem complicated by The strategy focused on four themes which werehaving two buildings from which to operate. referred to as “Must Win Battles”:transformation plan and Related 1. Make cash operations effective and efficientInterventions through reduction of cost and process improvementBy the end of 2007 Caesar Mtetwa had assembled astrong team with diverse experience. The group was 2. Pioneer effective capacity utilization in the casha balance between conventional banking experience industry(those that understood the “rules of the bank”) 3. Deliver a customer excellence program © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009 3
  4. 4. 4. Make document handling world-class through • The 4 Disciplines of Execution as the execution conversion of paper records to electronic records methodology. (imaging), thus improving processing efficiency • The Speed of Trust concepts to create confidence and reducing records operational costs. among the leadership.To support the organisational and individual “Lean,” a business continuous improvementtransformations, the following FranklinCovey methodology, was introduced and integratedmethodologies were used: with FranklinCovey’s leadership development and• xQ (Execution Quotient) Organisation Survey execution methodologies. to provide hard measures on execution In preparation for the new financial year in late improvements 2007, the xQ Survey was completed. This baseline• Leadership: Great Leaders, Great Teams, Great survey gave insight into C&RO’s culture of Results and its leadership framework (The 4 execution at the time. This information was shared Imperatives of Great Leaders) to enable the with everyone, highlighting their strengths and leadership community in implementing the weaknesses, by execution driver (the 6 execution significant changes through people, and drivers are Clarity, Commitment, Translation, Enabling, Synergy and Accountability) andfig 1leadership Imperatives Purpose, Values, Vision Pioneering, Process centricity, Continuous growth, Absa Values Stakeholder Needs Strategy Stakeholder Needs Customer Employee Inventors Functional structuring, Customer Employee Inventors Competition. Community Re-engineering, Capacity Competition. Community Government Planning, Talent & Innovation Government CLARIFY P PUR OSE Results Wildly Important Goals Gap Closure INSPIRE TRUST U NL LEN Business as Usual MS TE N TA YS LIG EA S A T H S Leadership Needs Stakeholder& Talent Processes, Structure, Stakeholder Needs & Development Customer Employee Inventors Systems Customer Employee Inventors Competition. Community and Leadership practices (LPI Competition. Community v how) Functional design (what Government the 4 Imperatives of Leadership) Government & Resource planning, Operational Career validation Culture (Behaviours) 4 Disciplines of Execution (4DX) Mental Capacity, Identity (xQ Information environment & Cultural blueprint), Leverage Strengths © FranklinCovey. Center for Advanced Research. All rights reserved. August 20094
  5. 5. levels of execution (individual, intact team and of the culture and the leadership change process.organisational). This information provided “hard In the FICA environment, headed up by Winstondata” to senior management on which action steps Mangaru, the thirteen high trust behaviourswere needed for the transformational journey that supported the uncovering of blind spots amongstlay ahead. some of the management team. The high trust behaviours remain today a key focus for Winston’sAdapted 4 Imperatives of great leaders management team.A key step in the transformation was the adoption Imperative 2, Clarify purpose: Create clarity andand adaptation of The 4 Imperatives of Great buy-in with the various intact teams on the Job toLeaders model. Each imperative was further be Done, Strategic Links, Money Making Model andenhanced and explained (see outer of leadership Team Purpose. This was key both before and in themodel on previous page), providing management early part of the new financial year. Deliberatingwith greater clarity as to what the role looked like and agreeing on team purpose, strategy, and planswhen practiced in the Operations environment. The for the new year was an inclusive affair takingleadership framework was used by individuals and the best from operations and the best from theteams as a roadmap to support the key activities, support functions as well as the best from uniquebehaviours, and outcomes required of leadership individuals. “I was allowed, no encouraged, to beduring this challenging time. During times of different. Even though I was part of Finance I feltchange, it is very tempting to remain “stuck in part of the team and as a result I worried aboutthe whirlwind” of the day-to-day priorities and a lot more than just my role. There was strongchallenges. The framework provided support alignment to a common purpose,” says Siyabongaand guidance to help identify activities that are Nduli, Finance Manager.important, but not urgent. Imperative 3, Align systems: Within thisThe leadership group participated in FranklinCovey’s imperative, particular attention was paid to TheLeadership: Great Leaders, Great Teams, Great Results 4 Disciplines of Execution both before and in theprogramme. The programme was delivered in a early part of the new financial year. Similar tomanner that integrated individual development the Leadership development programmes, the 4with what was asked of individuals in the planning Disciplines of Execution training was integratedphase for the new financial year. with the annual planning process for the 2008Imperative 1, Inspire trust: Build trust in financial year and the individual performancechallenging circumstances using Stephen M R management process. The 4 Disciplines of ExecutionCovey’s thirteen high trust behaviours. Particular was the “vehicle” within which a balance betweenfocus was placed on management displaying the day-o-day whirlwind activities and the future statethirteen high trust behaviours. These behaviours of C&RO was created.were re-enforced and supported at every opportunity Imperative 4, unleash talent: This would remainby Karen Morkel and also by Caesar Mtetwa and a key focus area for the entire year and as it turnedHendrik Oppermann. These behaviours, as well as out, into 2009 as well.the “whole person paradigm,” were measured andre-measured via quarterly, anonymous climate National securities Centre (NsC)surveys. Once management understood what thesebehaviours looked like, each person was held For the NSC specifically, the challenge for Thatoaccountable to ensure he or she was living the Matolong, NSC Manager, and his managementbehaviours. This was essential for the sustainability team was to somehow simultaneously address the pressure from the outside as well as the pressure © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009 5
  6. 6. from the inside. Five high level issues had been everyone as “whole persons” and creating a moreidentified through facilitated sessions with his trusting environment, management was able toemployees that cut across all intact teams. These better understand what people do and how theyincluded inter alia, victimisation of employees, do it before making the much needed changes tolack of appropriate reward and recognition, lack of processes.mutual trust and respect between teams and theirteam leaders and lack of line-of-sight. Implementation of the executionThe approach taken was an integrated one, whereby methodologythe relationship between the external and internal While the adapted FranklinCovey leadershippressures was “lifted up” so to speak, for everyone framework provided support on how a leader shouldto see. A “whole person” approach was adopted be, the 4 Disciplines of Execution provided supportby management whereby the external pressures as to what intact teams should do.were dealt with through the operations employees. As part of discipline 1, focus on the WildlyThe performance management process and reward Important, the Must Win Battles were translatedand recognition structure, in particular, required into WIGs for the year. This was not a straight-attention. Performance management training was forward activity because new operational designsprovided to everyone. were to be implemented that challenged the “rulesChange Management (Karen Morkel) was key in of the bank.” Governance could not be overlookedobtaining people-related themes and trends and either while the “voice of the customer” was alwaysthen providing feedback to management that top of mind. Once these WIGs were agreed theythe issues could be addressed in a timely way by were then shared with all employees. Creation ofmanagement. Again, the 4 Imperatives leadership “line-of-sight” was a critical objective and quicklyframework and Lean supported the embedding of became a new buzz word. By creating line-of-the new behaviours. Morale levels were measured sight, it was expected that team planning wouldquarterly and in certain instances monthly. significantly improve.Different departments had different scores at discipline 2, Act on the lead measures, proveddifferent times indicating the pressures at the hardest to implement because identifying the 20time. These measurements unearthed the fact that percent of behaviours that will drive 80 percentthe real issue for operations employees was not the of the results in a “sea of change” was a big askvolume of work (as previously thought) but rather for operations employees. This discipline took holdhow they felt about the work they did and the only later in the year through the development ofenvironment they worked in. Through the initiative scoreboards (see Discipline 3), creation of a rhythmof operations employees’ anonymous “Glads, Bads or cadence of accountability (see Discipline 4) andand Mads” management was kept further in tune the implementation of Lean (see below).with what was happening on the shop floor. discipline 3, Keep a Compelling scoreboard: C&RODevelopment sessions for the management team leadership knew that they could not improve whatwere also introduced, facilitated by Karen Morkel. they could not measure. With the development ofThese sessions provided the opportunity for the scoreboards in every operational space, managers,management team to deal more effectively with tellers and clerks were reminded daily of the WIGstheir team dynamics and fully understand their and how they were doing against each one. “Theways of working and areas for improvement. Once scoreboards provide information such that peoplethis was established, it was easier to focus on can’t hide; people understand, they question andthe key leadership behaviours required and the even challenge management on the current wayimpact thereof on the bottom line. By involving of doing things,” says Caesar Mtetwa. The key © FranklinCovey. Center for Advanced Research. All rights reserved. August 20096
  7. 7. performance areas, related behaviours and measures these weekly and monthly forums that Dieter Halfar,identified for the environment were summarised acting as an internal 4 Disciplines of Execution coachas “PCDQCRMI”. It took a while for “PCDQRMI” to was able to support fellow managers, re-enforcingemerge at the operational level, but when it did it the training they had previously attended.stuck: Lean, a business continuous improvement methodology, was introduced into the C&RO p Productivity environment in parallel with FranklinCovey’s C Cost leadership development and execution methodology. d Delivery (of customer service) Lean defines all activities in an organization as either being value-adding or non-value adding from Q Quality the customer’s perspective. The purpose of Lean is R Risk to empower people to continuously identify and eliminate the non-value adding activities that exist m Morale (employee) in the organization in order to improve and deliver I Innovation higher value to customers. Lean is defined as a continuous improvement culture where all peoplediscipline 4, Create a Cadence of Accountability: actively contribute to waste elimination in order toInstitutionalising this rhythm of accountability increase value to the customer. C&RO’s drive fromproved a challenge. The rhythm of accountability the start of 2008 was to embed and sustain Leanand reporting on progress of WIGs was first created thinking and waste elimination principles withinat the management level via a number of forums/ the culture.meetings:• Weekly Change Team meetings (Change and Engineers)• Monthly Manco meetings for R&CM, a full 1-day review mechanism, whereby line of sight was improved with R&CM - both vertical and horizontal. These sessions focused on implementation initiatives, quality of outputs, costs incurred and later cost savings. These sessions became significant learning opportunities for members and helped strengthen the team because of the strong, inclusive team approach mentioned previously.The process allowed for constructive negotiationsbetween the “engineers” and the “operators.” WhileWIGs were primarily driven top down, operational Cash operations Challenges and Resultsmeasures were driven bottom up. Operations staff One of the WIGs identified to address the variouswere given the freedom within the parameters of inefficiencies was the implementation of a “hubthe WIGs and support from management to figure and spoke” process design. Instead of the variousout what to measure and how to measure and to retail branches and cash centres obtaining thecreate the scoreboards. Summarised scoreboards necessary funding from the South African Reservebecame the basis on which reports were prepared Bank (SARB) independently of each other, branchesfor monthly management meetings. It was also in agreed to direct their cash inventory requests to © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009 7
  8. 8. the central cash centre (hence the name “hub keeping no more than a certain percentage ofand spoke”) and then the cash centre would do every R1 received (an optimum level of cashthe necessary calculations to determine the overall required balancing cost with service).inventory needs for the branches and ATMs as a 2. Information on supply and demand, which waswhole and place the necessary cash inventory order always in the system, had to be found andfrom SARB as required. This redesign resulted in transformed by teams into knowledge.various efficiencies being created within the systemas has been detailed in the “Results” section 3. The Treasury team introduced daily planningbelow. The Ormonde Cash Centre was used as the sessions to determine how much money wouldpilot site. Thereafter “hub and spoke” was rolled be needed from SARB – how much would theyout nationally based on the results and learnings receive from Tellers and Branches (supply) andfrom the pilot site. how much demand there would be from their clients: RASC, ATM solutions and All Pay.To achieve a goal they had never achieved before(the implementation of hub and spoke) they had to 4. Weekly teleconference calls (weekly planning)do things they had never done before: for the thirteen Cash Centre Managers around the country was introduced. Results were monitored, 1. Stretch goals were introduced for the first time, the managers being held accountable for theirfig 2Results description from (2007) to (2008) % Improvement Comments R12.6 Million cost Cash Centre Inventory R514 Million R387 Million 25% saving R2.2 Million cost Atm Inventory Factor of 2.11 Factor of 1.8 15% saving Cash Recycling R4.4 Million cost 50% 80% 60% (productivity) saving Cash Availalbility 98.59% 98.86% Service Maintained (service) Cash outs 0.06 0.08 Service Maintained people (Internal employee 59%* 74% 25% opinion survey) Global Average people (xQ) 51* 69 35% of 62 For the year under review, except for risks associated with change, risk Risk levels were maintained at acceptable levels.*comparison score for prior year includes additional, related operating units (restructuring took place shortly after baseline data was obtained). © FranklinCovey. Center for Advanced Research. All rights reserved. August 20098
  9. 9. results. The teleconference calls and related Record management Challenges and Results information also provided benchmarking and WIGs were first agreed and aligned to the Must best practice sharing opportunities. At first, Win Battles. Progress on WIGs was measured in many managers felt as though there was an percentage terms with “hard facts” to back up attempt to catch them out, but over time, the percentage achieved to date. Measures were particularly with the support provided by Lean, specifically time, quality and costs incurred, and later managers became more comfortable with the costs to be saved. Feedback created an opportunity transparent accountability process. to always ask the question as to whether the team 5. Solid walls were gradually broken down to be was effectively balancing progress on initiatives replaced with a strong interdependent culture (that made up the WIGs) with client needs. Both and a strong sense of purpose as demonstrated the NSC and FICA management meetings took by the new abilities to willingly share place monthly with Manager, Heads of Department, information with each other at the right time. Supervisors and invited Team Leaders present.Karen Morkel reflects, “In cases where cash centre Scoreboards were developed and put in place inmanagement was not progressive towards this new the operations environment, updated weekly andleadership approach, we had to be more stringent discussed daily. The management teams used theand be quite firm with certain unacceptable scoreboards that operations employees developedbehaviours. It was a partnering effort of reflecting to consistently monitor productivity levels. Theback to business what their leadership styles were departmental scoreboards are aggregated and formlike and the impact thereof on their teams and the report on which Thato Matolong, NSC Managerthen ensuring the support in re-enforcing the high and Winston Mangaru, FICA Manager, report backtrust behaviours. This process was one of great to Caesar Mtetwa on a monthly basis. Fifteendiscomfort and did not sit well with a number of minute daily meetings take place in the operationsmanagement team members. However, there were environment for Team Leaders and their employees.many who rose to the challenge and were willing From the development of WIGs for intact teams,to change.” individual performance contracting and regular performance reviews became more meaningful andChange champions were nominated by operations easier.employees. These champions were provided withtraining and were mandated within each cash centre The weekly and daily meetings became theto ensure they monitored the pulse of the people forum in which WIGs, related measures, and leadand kept lines of communication open between the behaviours were developed together. Over time, aoperations employees and management. safe environment was created where people became more comfortable saying “You have not delivered.Hamilton Melane says “People now better What do you intend to do about it?” Theseunderstand the impact of their behaviours on the questions were asked of peers and direct reportsbigger picture thanks to creation and maintenance but also of direct managers whose role becameof “line-of-sight.” The creation and development more of “clearing the path” (versus the previousof scoreboards resulted in improved morale - micromanagement and autocratic leadershipemployees became more motivated and committed styles). A rhythm of accountability was practicedto continuous improvement.” Leadership and role modelled by senior management and laterdevelopment, the practice of mutual accountability junior management.and the embedding of Lean as a culture remains asa WIG for 2009. The introduction of Lean and the WIGs created discomfort as certain functions needed to be © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009 9
  10. 10. fig 3more Results productivity and Customer service from (2007) to (2008) % Improvement NsC bond validation cycle time 6 Days 1 Day 83% NsC generic banking products cycle time 24 hours 4 hours 83% NsC homeloan retrievals turn-around-time 40 hours 2.4 hours 94% NsC generic banking products retrievals turn- 24 hours 6 hours 75% around-time fICA turn-around-time for the retrieval of 10 days 1 day 90% documents 7 days fICA cycle time 10 days 30% maximum Costs from (2007) to (2008) % Improvement Interest claims R494,000 R157,000 68% document Replacement R1.5 Million R0.9 Million Nearly 40% Annualised cost saving as follows: Docufile system replacement and head count reduction of 50 (FICA) R3.7 Million Lean implementation and head count reduction of 27 (NSC) R3.5 Million Merger of two FICA buildings into one R2.5 Million Total (versus an annual target of R8.5 Million) R9.7 Million Risk and people from (2007) to (2008) % Improvement Risk management: reduced number of 962 359 62% securities (title deeds and bonds) lost people: (emoployee opinione survey) 59%* 74% 25% people: (xQ) 51* 69 35%*comparison score for prior year includes additional, related operating units (restructuring took place shortly after baseline data was obtained).Unnecessary NSC roles identified and employees redeployed. While volume of work has increased by2.5 times, number of employees required in FICA has been reduced (there are 26 million documents instorage).Although not tracked specifically a clear reduction of escalation of problems by employees and also thedevelopment of the ability to educate a client on the process, thereby reducing errors at source. © FranklinCovey. Center for Advanced Research. All rights reserved. August 200910
  11. 11. integrated and others split. Process Engineers • Strong, internal expertise of the methodologiesand Team Leaders acted as one voice to drive the and frameworks being used – this includesoperations team forward. The message was “Get both a coach to support line management ANDinvolved and drive change.” Some Team Leaders knowledge of the methodology by the linetook to these changes while others did not. This managers themselvesdiscomfort lasted for about two to three months • A co-ordinated approach to daily, weeklywhile individuals and intact teams grappled with and monthly meetings (still inconsistent andtheir new challenges. Ownership of the challenges still requires significant management energy)by Team Leaders and their teams was fundamental. creating a rhythm of accountability.In the FICA environment, similar to the NSC, line- While trust and transparency on deadlines andof-sight was achieved through clarification of deliverables played a major role during the year, itpurpose and development of WIGs. Regular, monthly remains a focus area for operations employees andcommunication forums for operations employees management to give and receive honest feedback.followed, creating the opportunity to clarify and Operations must be held accountable predominantlydiscuss purpose, WIGs and related challenges. for operations results while management mustSlowly, employees began to own the process and be held accountable for clearing the path forissues began to be brought to the fore. Lean culture operations employees. Operations employees havewas introduced in May and results became evident experienced more respect from management intwo months later. comparison to the past. There are still gaps within the management teams – some people embracedConclusion the change a lot quicker, whilst others are stillIn summary, an attempt to highlight critical success trapped in their old behavioural thinking patterns.factors has produced the following (in no While some teams took quickly to the support toolsparticular order): and resources offered, others did not, with the difference being clearly evident.• Right people on the team – create a team of strong, unique contributors The year was characterised by much self- development amidst the organisational change.• Embedding a transformation plan within an While the company made significant breaks from adapted, holistic leadership model (including the past and achieved significant results, it was the execution methodology) to create and also aware of the mistakes made along the way. execute strategy For example, amidst the excitement of doing things• Clarify team purpose and strategy – create clear, differently, some leaders realized that they needed consistent and simple communications thereon to have been more deliberate with more regular• Create line-of-sight - WIGS provide focus, stops to reflect and create building blocks from structure and stretch – limiting your focus to the which to take the next step. In certain instances, essential few really works! the leadership team also over-committed, either not truly understanding the size of the challenge,• The acid test of the effectiveness of WIGs or not involving certain stakeholders early enough. being cascaded top-down is the development, implementation and development of scoreboards While the company is proud of its results, it is aware bottom-up by operational employees. that the greatest work still lies ahead. Now that the basics have been put in place, there is a big need• Visible executive support of change initiatives. for focusing on the development and movement• An inclusive, integrated team - support functions of people. An area for focus going forward is to ARE part of the team “Unleash Talent”, which is a WIG for 2009. © FranklinCovey. Center for Advanced Research. All rights reserved. August 2009 11
  12. 12. franklinCovey southern Africa is the southernand east African licensee of franklinCoveyCompany – a worldwide consulting andleadership development organisation. We helporganisations, intact teams and individuals toachieve great performance in good times andbad by providing a unique blend of leadershipdevelopment and consulting solutions.for further information please contact:tel +27 (0)11 642 0422 | fax +27 (0)11 642181 | email info@franklincovey.co.za | www.franklincovey.co.za26 Wellington Road parktown 2193 | po box3389 parklands 2121 © FranklinCovey. Center for Advanced Research. All rights reserved. August 200912 CFR090604 Version 1.0.4

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