AVIVA UK General Insurance Resource Optimisation - Our story

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AVIVA UK General Insurance Resource Optimisation - Our story
AVIVA UK General Insurance Resource Optimisation
Our story
Adrian Hawes – Resource Optimisation Manager
Keith Stapleton – Resource Optimisation Specialist

 Version 1.0

                                                     Aviva
                                                     Aviva Confidential
                                                           Confidential   Page
                                                                           page1 1
AVIVA UK General Insurance Resource Optimisation - Our story
Who are we and the reasons why

Who are UKGI
Approximately 11,000 operations FTE spread
across a number of locations in the UK and India
Responsibilities range from settling claims, sales,
service and collections
Handle 20 million calls, 3.5 million renewals, and
paying £3.5 billion in claims
Also managing suppliers and providing technical
expertise to support Aviva’s personal and
commercial insurance business

Problem Statement
We are not optimising our resources so we’re spending money we don’t need to
No common view of what “resource optimisation” is across the whole of UKGI
Lack of confidence in the outputs of the existing processes

                                                      Aviva Confidential       page 2
AVIVA UK General Insurance Resource Optimisation - Our story
The objectives and approach

 Programme objectives
 Deliver a solution across UKGI that supports each business as well as the following:
  Enable the understanding of the true impact of financial decisions
  Optimisation strategies so they work for the people and the business
  Enabler for decision making based on fact not intuition
 Establish the best practice model and support post programme completion

  Programme approach
   Unified agreement at the highest level
   Six sigma approach to:
       Establish the needs of the customer
       Critical measurements
       Solution design and gaining the mandate
   Solution implementation
   Measurement and review
   Hand over to BAU

                                                  Aviva Confidential                    page 3
AVIVA UK General Insurance Resource Optimisation - Our story
The new approach

It is about planners using a new project methodology &
approach

Six Sigma seeks to improve the quality of process outputs by identifying
and removing the causes of defects (errors) and minimizing variability in
manufacturing and business processes.

The DMAIC project methodology has five phases:
Define the problem, the voice of the customer and the project goals.
Measure key aspects of the current process and collect relevant data.
Analyse the data to investigate and verify cause-and-effect
relationships.
Improve the current process based upon data analysis
Control the future state process to ensure that any deviations from
target are corrected before they result in defects.

                                                    Aviva Confidential      page 4
AVIVA UK General Insurance Resource Optimisation - Our story
Gaining the mandate

    Understanding the planning processes
    though SIPOCs so that they work together
    and complete the life cycle.
    Supplier – the source of information
    Inputs – the information supplied
    Process – how the information is used
    Outputs – what the information becomes
    Customers – who uses the outputs

                           Objectives
                           Objectives
                                                                    Critical to quality (CTQ) tree
                                                                    Identifying the customer’s key
     Need           Need                Need           Need         objectives and their underlying needs.
     Need           Need                Need           Need
                                                                    Aligning the solutions and defining the
                                                                    measurements of success.

  Measurement
  Measurement   Measurement
                Measurement      Measurement
                                 Measurement    Measurement
                                                Measurement

                                               Aviva Confidential                                        page 5
AVIVA UK General Insurance Resource Optimisation - Our story
The solution – the RO life cycle and modular approach

  Understanding how the solution can be implemented across all parts of UKGI:

                     Volume
                    forecasts

                                        Planning
 Management                           assumptions              Call Centre Blended Centre   Back office

                                                                Real time
                                                               management

                                                               Work schedule

                                                               Call schedule

                                                               Capacity plan
                                       Capacity
  Scheduling
                                       planning
                                                               Work forecast

                  Surplus/deficit

                                          Aviva Confidential                                              page 6
AVIVA UK General Insurance Resource Optimisation - Our story
The solution – Governance

                                              UKGI SLT executive summary

 Monthly “Demand” forum
 Discuss and agree:
  Work volume forecasts
                                                                 Review the reasons behind any
  Work and people assumptions                                  exception to service delivery
  Sign off the inputs to the plans                              Line balance the individual
                                                                centre’s plans across UKGI
 Monthly “Resource” forum
 Discuss and agree:
  Resource requirement projections
  Identify actions required to meet demand                   Making it work:

  Review the financial implications                           Attendance by the right people

  Sign off business action plan                               Formalisation of the agenda and purpose
                                                               Continuity between forums
                                                               Making the required decisions

                                               Aviva Confidential                                         page 7
AVIVA UK General Insurance Resource Optimisation - Our story
Post Implementation – Programme to Best Practice

  How to hand over from the programme to the
  business as usual (BAU) team:
   Clear hand over plan at the start of each roll out
   Close working relationship with the BAU team
  during the programme roll out
   Handover of fully functioning planning life cycle
   Nurture the required skills

                                                          As the programme progresses, how to
                                                          ensure that the best practice is still
                                                          supported?
                                                           Start best practice when the programme
                                                          commences, not at the end
                                                           Allocate the appropriate amount of
                                                          resource from the programme
                                                           Plan revisits and be prepared to re-engage
                                                           Nurture the required philosophy in the BAU
                                                          teams
                                                Aviva Confidential                                       page 8
AVIVA UK General Insurance Resource Optimisation - Our story
Resource Optimisation

The Manager’s Toolkit

        Aviva Confidential   Page 9
AVIVA UK General Insurance Resource Optimisation - Our story
The Manager’s Toolkit
Continuous Cycle of Learning/Refinement

                                          Forecasts of process
                                                volumes
  Managing people,
  workload and                                                       Process and people
  service in real-time                                               planning assumptions

                                            Right number of
                                           correctly trained &
                                             skilled people

                                         in the right place at the
                                          right time, at the right
                                                   cost

  Scheduling people and                                                  Forecasts of FTE
  their time – today,                                                 requirement - from 1-24
  tomorrow, next month –                                                  months ahead
  by ½ hour intervals
                                              Actual people:
   Aviva Confidential 00.00.00 page 10        Surplus/Deficit
The Manager’s Toolkit
Getting the Inputs Right – Demand Forecasts
 Volume Forecast

                                             Volume forecasts underpinned by Sales & Marketing Plan, Pricing
                                              and Actuarial Valuation forecast
                                             Collaborative process with Operations Planning, Finance and
                                              Operations to adjust forecast to reflect operational reality
                                             Reviewed against actual performance at least monthly
                                             Signed off through robust governance

                   Process
                   assumptions
                                             Processes re-timed manually to give best possible view ahead of Xtaq
                                              deployment
                                             Existing automated data sources exploited to ensure accurate view of
                                              actual performance to inform assumptions
                                             Reviewed through a RAG scorecard monthly where possible
                                             Signed-off through robust governance

      Aviva Confidential 00.00.00 page 11
The Manager’s Toolkit
Getting the Inputs Right – People Assumptions
                People
                assumptions
                                                                       % time not in the office

                                          % time on core processing
                                                    tasks

    % time telephone handling                                         % time on non-work activity

                                           Balance % on non-work
                                                   tasks

    % time handling “caseload”

 People utilisation benchmark agreed
 Non-utilised time targeted against core non-work activities
 Self-service calculator provided to Team Managers
 Utilised time split between call work and “back-office” caseloads
 Signed-off through robust governance
    Aviva Confidential 00.00.00 page 12
The Manager’s Toolkit
Capacity Planning – Front & Back Office
                                     Using the inputs signed-off earlier in the cycle
                                     Plans provide FTE requirement to handle forecasted workload (and
                                      existing caseload) and surplus/deficit view
                    Capacity
                    planning
                                     Caseload tracker in place – predicting service level achievement
  Surplus/deficit
                                      (balance of phone and caseload) and backlog
                                     Now able to challenge the Finance top down driven budget
                                     Signed-off through robust governance

       100

        90

        80

        70

        60

        50

        40

        30
                                                                                                  Actual FTE (with attrition factored in)
        20
                                                                                                  Required FTE - Service Cap Plan
                                                                                                  Required FTE - Current Position
        10
                                                                                                  Budget FTE
          0
                 Jan-10        Feb-10       Mar-10   Apr-10   May-10   Jun-10   Jul-10   Aug-10     Sep-10     Oct-10      Nov-10     Dec-10

      Aviva Confidential 00.00.00 page 13
The Manager’s Toolkit
  Scheduling
                                      Flexibly matching resource to demand; balancing calls with back office
                                       caseload in Claims centres
                                      Enable utilisation benchmark to be achieved and target delivery of required
Scheduling                             service levels and non-work time
                                      Include people preferences giving greater flexibility to the people and the
                                       business
                                      Self service tools for advisors to book and manage their own time off

        Delivering the critical balancing acts:
                                                                                 Work vs non-work
                                                                                Service vs availability
                                                                                 Calls vs caseload

          Stability vs flexibility
        Individuals vs business
    Early notice vs minimal change                                            Desire versus possibility
             Aviva Confidential 00.00.00 page 14
The Manager’s Toolkit
  Scheduling – Service Pack
                                      Making schedules meaningful for managers
                                      Clarity of expectations for managers and their people

Scheduling
                                      Highlighting the challenges of day to day delivery and where actions may be
                                       needed

             Aviva Confidential 00.00.00 page 15
The Manager’s Toolkit
  Managing Real-Time

Manage                                                             Blue Pumpkin – Pulse
                                                                    Comparison of forecast and actual call
                                                                     volumes
                                                                    Call handling performance comparison
                                                                     against plan
                                                                    Today’s and historical information

                                                                Blue Pumpkin – Adherence
                                                                 What people are scheduled to do
                                                                 What people are doing
                                                                 Live updates

                                               Utilisation reporting
                                                How time was scheduled and recorded
                                                How well we planned and managed our time at work
                                                The impact of non work tasks and absence
                                                Highlighting opportunities for team or individual improvement
         Aviva Confidential 00.00.00 page 16
The Manager’s Toolkit
Benefits

                                                                                               Utilisation 2009

                                                        90%

                                                        85%

                                                        80%

                                                        75%

   Utilisation up 20% in Commercial Motor Claims       70%

                                                        65%

   Leadership Survey shows 50% uplift in scores
                                                        60%

                                                        55%

    for morale over 6 months                            50%
                                                                   Centre of Excellence             Commercial Claims               Credit Hire

   Service level up from 44% to 70% - hitting 80%                                                   Jan-09     Dec-09

    for first time in one of the busiest weeks of the
    year
   Schedule adherence up 59% in FNOL Teams                                               Schedule Adherence in FNOL

                                                        85%

                                                        80%

   No FNOL complaints in 2010 – previously 3-4         75%

                                                        70%
    per month                                           65%
                                                        60%

   Back office operation justified recruitment via a   55%

                                                        50%
    capacity plan for the first time                    45%

                                                        40%

   But what makes it more worthwhile….                   Apr-09     May-09     Jun-09     Jul-09      Aug-09     Sep-09   Oct-09     Nov-09      Dec-09

                                                                                                        FNOL

    Aviva Confidential 00.00.00 page 17
The Manager’s Toolkit
Benefits

                                          “Planning are independent
                                            and now joined up with
                                          Finance so my situation is
                                                  listened to”           “The advisors can see their
                                                                        colleagues adherence through
                                                                          the day which has created
    “They’ve built shifts                                                      peer pressure “
       around me”

 “It gives you more time to                                                   “…makes us more
      plan and invest in                                                    efficient about how we
           people”                                                              spend our time”

  “It empowers people…its                                              “Everyone can see what you’re
  more grown up, we don’t                   “Before it seemed like       doing, that you are doing a
 need to ask managers every                 you couldn’t have any        good job and say thanks. It
          5 minutes”                               time-off”              makes me feel like I have
                                                                             worked hard today”
    Aviva Confidential 00.00.00 page 18
Aviva UKGI Operations
Next Steps

 Next Steps
  Onwards through UKGI Operations
  Perth Claims Centre nearing completion
  Integrate Xtaq data capture to reinvigorate our back office assumptions
  Revisit learning from initial implementations

    Aviva Confidential 00.00.00 page 19
Aviva UKGI Operations
Next Steps & Learning Points

Learning Points
 Focus on outcomes not the solution
 Consistent overall framework with controlled local bespoking
 Create a practical toolset for the operation
 Don’t chase FTE savings – they will materialise anyway
 Cultural change in back office is the biggest barrier to break down
 Collaboration at the heart of the model
 Perseverance pays off…..in the end

   Aviva Confidential 00.00.00 page 20
Aviva UKGI Operations

                                         Thanks for Listening

   Aviva Confidential 00.00.00 page 21
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