AVIVA UK General Insurance Resource Optimisation - Our story
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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
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
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
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
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
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
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
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
Resource Optimisation
The Manager’s Toolkit
Aviva Confidential Page 9
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/DeficitThe 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 11The 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 12The 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 13The 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 14The 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 15The 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 16The 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 17The 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 18Aviva 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 19Aviva 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
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