CCO Forum Case Study - BankWest The Power of Collaboration Between Front and Back Office - Presented by Jill Marks
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CCO Forum Case Study – BankWest
The Power of Collaboration Between Front and Back Office
Presented by
Jill Marks
Honorary Mention
IQPC Best
Improvement Project
2010The Problem / Opportunity
The Retail Mortgages operating model was constrained by fundamental issues resulting in
customers experiencing unacceptable delays to get their Unconditional offer resulting in
dissatisfied customers, low conversion rates and a poor rapport between Sales, Operations and
Risk Departments.
The goals of our Sales colleagues No clarity on Services colleagues
Sales and Services do not have access when ownership are rewarded to
colleagues are to, or easy means passes from action deals – not
misaligned causing of communicating Sales to Services focus on the
tension & with, Services or how it passes customer or deliver
frustration colleagues offers
“The current operating model is unsustainable and will not support either our
service aspirations or planned growth due to issues in the end to end
process. These cause delays for our customers, frustration for colleagues
and high levels of re-work and cost for the organisation”
We do not always get it Our processes There is not an There is a
right at the point of cannot cope with accountable significant drop off
sale and this creates the peaks and and empowered in deals from
rework and customer troughs in end to end application to
dissatisfaction demand we process owner disbursal
experience
2
© 2010 Limebridge AustraliaThe Solution
The Coffee Program was established to review, redesign and agree the full end to end home loan
process. Resolving the Customer Experience was the prime driver. Moving from approving 70% of
applications within 10 days to 85% of applications within 3 days was the goal.
Retail Executives from Sales, Operations, Risk and Products committed to meet weekly in Perth and
Executive Sydney to directly get involved to help identify and provide immediate direction to the Project Team.
Ownership This provided the necessary momentum and support to make things happen in the eyes of the
customer and not just to solve problems for specific Departments.
The first 100 days were an intensive ‘all hands on deck’ focus on Product proposition:
• Process diagnosis & design
Setting a 100 day
• IT systems architecture
plan • Organisational Structures and Incentives
• Product design and policies
The Exec team provided a direction that no more then 50% of the solutions should be IT based. The
IT / Non IT level of non-IT initiatives and minor quick wins enabled some early benefit realisation in 2009 and
expectations was
factored into the implementation approach.
The program used work streams with individual accountabilities and scope requirements to deliver
each
Phased approach
Phase.
to learn Each Coffee phase has built on lessons learned from the previous phase to refine implementation,
communications, training and stakeholder / colleague engagement.
3
© 2010 Limebridge AustraliaThe Solution….continued
Implementation of the Operating Model is divided into 6 work streams of activity that address the key
components and its success is proven in the effective running of a pilot period
The 6 Coffee Operating Model workstream’s scope
Customer Stream
Scope: Ensure that all streams are creating a coherent and effective customer experience
Identify opportunities to exploit Op Model changes into Marketing campaigns
Continuous Improvement and Process Quality Stream
Scope: Detailed definition of the control environment and associated processes i.e. Continuous feedback loop
Channel & Technology Stream
Product Scope: Identification,
Processes definition and
implementation of any IT
Stream changes required to
Scope: Detailed design Colleague & Organisation Stream support the Op Model
of the process for each Scope: Definition of the detailed organisational structure including the
channel, per product and transition plan (including training, leadership, Coffee IT drops
type recruitment, incentive schemes) to implement the Op Model Nov 09, Apr 10 & end 2010
Pilot Logistics & Financial Analysis
Scope: Definition and implementation of the pilot Analysis and
definition of the financial impact to Retail of the revised operating model
4The Phased Approach
The changes are being delivered through a series of phases compromising both technical and non-
technical changes with learning’s from the previous phase taken forward
Coffee
Coffee Phase 6
Coffee Phase 5
Coffee Phase 4
Coffee Operating Model
TBA
Coffee Phase 3
Phase 2 Process Roll Out
Coffee Phase 1 Optimisation 1.System Gate
Operating Model Enhancements
100 Days POS Automation ‘Pilot’ 1.System Checklist 2.Coffee/Genesis
Data validation @ (Gate) Integration
End2End process 1.POS Product 2.Org Design 3.Business/Retail
POS 1.System Checklist
review Selector Changes Org Design
1.Electronic (Gate)
cards & mortgages 2.Data Validation 3.Control 4.Other channel
1.Income Identification 2.Org Design
& Automation Framework UPOS e.g.
1.Problem Definition Validation 2.Electronic Changes
2.Affordability Valuations 3.Control Broker, Direct
2.Process Diagnosis
3.Indicative Solutions Calculator 3.Broker Framework
& Strategies 3.Data Input Automation
4.Program Charter Validation
5.Change Approach
Coffee Fixes
Non IT Changes
& Quick Wins
August 2008 July 2009 Nov 2009 Dec 2009 Apr 2010 May 2010 Oct 2010
5
© 2010 Limebridge AustraliaThe Methodology of the Solution
Clear and logical illustration of the use of methodology and tools - leveraging an external methodology
for our process work
Continuous Improvement Principles
Strategic Alignment Customer Focus Metrics Driven Empowered Teams
ÎMI reporting Î 1st 100 Days plan to develop Program Charter
ÎQuality Assurance / Risk reporting and Business Case
ÎContinuous Improvement Board ÎProject Vision aligned to Bankwest &
Control Initiate Retail vision and strategic plan
ÎColleague performance
measures and incentives
ÎNon IT quick wins ÎProblem Definition Statement
ÎStaged IT releases
Implement Business Understand ÎPain Point’ workshops with Sales,
ÎPilot of the Revised Operating Model Needs Services, Risk, Marketing & Products
ÎColleague Performance / Incentive Î Customer feedback forums
measures
ÎMI / Continuous Improvement Board
ÎRevised Retail Operating Model
ÎIT enhancements to existing systems Develop Innovate ÎHard Gate technology to prevent
ÎIT development of new systems incomplete applications progressing to
ÎNon IT process improvements processing teams
ÎColleague behaviours, performance measures ÎCAS (Customer Applications Solutions) team
and incentives to progress applications to Unconditional
Approval
ÎMI & Continuous Improvement Board
ÎOrg Design restructure
ÎContinuous Improvement Board
Continuous Improvement Culture
Process Project People Change Benefits
Leadership
Management Management Management Management
6
© 2010 LimeBridge AustraliaThe Results
The Customer and Business Impacts have been extremely positive
Bankwest Direct Channel Turnaround Times (to unconditional)
90%
Customer Experience Impacts
80%
70%
60%
For the direct channels there has been
a marked improvement in turnaround
% Uncon
50%
40%
times since April which correlates to
30%
improvements in Deal Quality.
20%
Improvements in turnaround times has
10%
been made. While volumes have
0%
decreased the conversion rates have
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10
improved giving a better balance sheet
1 Days or Less 3 Day or Less 5 Day or Less 10 Day or Less 10+ Days
position.
Application Volumes and Conversion Rates
2500 80% The percentage of deals moving to
70%
unconditional after 10 days shows a
2000
60%
downward trend as more of these deals
are converted within 10 days.
Conversion Rate
50%
1500
Conversion rate shown to be trending
Volume
40%
upwards (note that results for
1000
30%
conversion are only up to June to allow
500
20% for emergence).
10%
0 0%
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
7
Total Unconditional Non Converted Conversion
© 2010 Limebridge AustraliaThe Results cont…..
The result is a new sales and fulfilment experience for our customers, which reduces operating costs,
manages risk responsibly and drives increased colleague advocacy, through cultural change and
enhanced IT systems.
STRATEGIC COFFEE
PRIORITIES PROGRAM
OUTCOMES
9 85% of all unconditional offers to
9 customers
85% of allwithin
unconditional
3 days ofoffers to
application
Customer customers
9 Defined within
process so3customer
days of application
knows
Customer 9 what
Defined processup
is expected sofront
customer knows
Satisfaction what is expected up frontSatisfaction
Satisfaction 9 Improvement in Customer
9 scores
Improvement
80% in Customer Satisfaction
1. Reliable and scores 80%
controlled 9 FTE reduction in Retail Services
processes with 9 through
FTE reduction
improvedinprocessing
Retail Services
the right level Cost through improved
efficiency & reducedprocessing
follow up calls to
Cost
Efficiency efficiency & reduced follow up calls to
CHC
of support at
the point of Efficiency CHC
9 Reduction in reworked deals and
9 ‘more
Reduction in reworked
information deals
required’ and
requests
sale ‘more information required’ requests
5. Effective 2. Move
continuous towards a 9 Reduced levels of front office rework -
improvement higher level of Profitable 9 increasing
Reduced Sales
levels productivity,
of front office rework -
Profitable increasing Sales productivity,
process Customer unconditional Growth
Growth
combined
combined
costs
with reduction
with reduction
in servicing
in servicing
supported by approval at
costs
daily MI Satisfaction point of sale
9 New continuous improvement
& Colleague 9 framework
New continuous
to driveimprovement
improved process
Managing framework to drive improved
behaviourprocess
Engagement Managing
Risks
quality and colleague
quality and colleague
9 Implementation of ‘Process behaviour
Gates’
Risks 9 and
Implementation of ‘Process
preventative controls Gates’
at POS
Responsibly and preventative
9 Achieve > 90% dealcontrols
quality at POS
Responsibly 9 (combination
Achieve > 90% deal quality
of risk incidents, gate
(combination
and of risk incidents, gate
minor errors)
4. Relationship and minor errors)
Based Process 3. Process 9 Creation of Customer Application
fosters enforces 9 Solutions
Creation(CAS)
of Customer Application
Team within Services
teamwork and quality through Our People – Solutions
with clear (CAS)
points Team within Services
of contact
collaboration one way Our People – with clear points of contact
9 Alignment of Incentives Schemes
between Sales ‘gates’ 9 within
Alignment
Sales of Incentives Schemes
& Services
within Sales & Services
and Services
Iconic WA & 9 Providing differentiated service
Ô The ratio of benefits resulting from Non-IT initiatives as ECIconic WA & 9 proposition
Providing for
differentiated service
Bankwest customers
EC
Challenger forproposition
both WA andfor Bankwest customers
EC customers
opposed to IT development is well over 50% Challenger for both WA and
through all Channels EC customers
Brand through all Channels
Brand
IT Non-ITThe Imperatives for Success
Leadership Commitment alongside the provision of resources and visible commitment from senior
management is paramount to success
The escalation process for delivering the change
Personal
Personal attendance
attendance at at Training
Training & & Road-shows
Road-shows
Strategy Executive Messages
Messages in in newsletters
newsletters and and intranet
intranet communications
communications
& Direction Management Steering
Steering Committee
Committee meetings
meetings
Personal
Personal attendance
attendance at at Training
Training && Road-shows
Road-shows
Structure Senior Weekly
Weekly messages
messages in in newsletters
newsletters andand intranet
intranet
Leadership Group Continuous
Continuous Improvement
Improvement Board Board
& Governance
Middle Management Stakeholder
Stakeholder GroupGroup meetings
meetings
Manages
Manages barriers
barriers toto progress
progress by by exceptions
exceptions reporting
reporting
Progress Drives
Drives implementation
implementation acrossacross work
work streams
streams
& Issue Management Project Working Group Raises
Raises and
and resolves
resolves critical
critical issues
issues and
and risk
risk
Manages
Manages Implementation
Implementation activity
activity
Personal
Personal attendance
attendance at at Training
Training & & Road-shows
Road-shows
Driving the People Leaders Team
Team & & One-to-One
One-to-One development
development meetings
meetings
Team Leaders Cascade
Cascade communications
communications from from mgmt
mgmt & & project
project
Change
Team Managers Feedback
Feedback to to // from
from colleagues
colleagues
Reward
Reward & & recognition
recognition
Driving
Driving behavioural
behavioural change
change
Activity Sales Colleagues Project
Project SMEs
SMEs
Services Colleagues Process
Process Proving
Proving
Escalation Path Feedback
Feedback on on issues
issues // process
process
Steering Committee provides guidance to the project and makes policy, financial and scope decisions
Stakeholder Group is actively involved in the project, representing the lines of business, approving release of staff for
SME, testing and process proving functions
Continuous Improvement Board meets regularly to:
Ì Review MI and feedback from customers and colleagues
Ì Recommend process & IT enhancements and improvements
Ì Ensure effective feedback loop between Sales and Services is in place
Ì Recognise, reward and celebrate success / excellence
Ì Drive the desired behaviours through effective consequence management
Ì Ensure coaching & development provided and is driving the desired
9
behaviours / continuous improvement
© 2010 Limebridge AustraliaThe Imperatives for Success cont….
Coffee has been a success due to great collaboration and accountability at all levels of the organisation
Responsibility for the customer does not lie with an individual but transfers between
colleagues throughout the sales & fulfilment processes. Colleagues are clear on
when ownership of the customers is transferred e.g. in Coffee when the deal
passes through the ‘hard gate’
Technical changes alone do not deliver benefits – re-education, training and
communication was necessary to foster greater engagement between Sales &
Services leading to improved customer experiences
Collaboration between Sales, Operations, Risk, Strategy & Products, Change
Management and IT throughout the process has been critical to the success of the
program
Nominated Business Stream Leads were accountable throughout the process,
creating ownership in the new model and leading to smooth transition in the rollout
Decision makers engaged at the start of the process to collectively define principles
of the new model ensures end product is aligned to Bankwest strategic direction
Visible & vocal Exec support during implementation & ongoing is critical. Program
CSFs declined during drops in this visible sponsorship
10
© 2010 Limebridge AustraliaFuture Plans / Stages
Program Coffee continues to rollout and embed the operating model into the remaining sales channels
and products lines, whilst developing systems which foster greater engagement between Sales &
Services
R3 Kick Off R3 Expand R3 Embed R5 Completed (Phase 1 - HLS)
Complete Complete Complete
Coffee Coffee
R4 Completed Release 5 Release 6
Coffee 1.System 1. Hard Gate Automation
Release 4 Checklist
(Gate)
1.POS Product 2.Org Design Analysis Stage
Coffee Selector Changes
Release 3 2.Data 3.Control
Validation & Framework
Automation
1.System
Checklist Process
Optimisatio (Other Channels & Products)
(Gate) Coffee I.C.E
n
2.Org Design Operating Model Roll Out to BAU
Changes
3.Control
Framework (Proprietary Channels)
Operating
Model
‘Pilot’ Direct
Sales
(Analysis)
Broker
Phase 1 - Phase 3 - Direct Network/
Phase 2 - Expand Phase 1 Stores
Kick off Embed Sales CC -
Jan 18th HLS
Dec 14th April 16th (TBC) PL(TBC)
Dec 09 Jan 10 Feb 10 March 10 April 10 May 10 June 10 July 10 Aug 10 Sept 10
11
© 2010 Limebridge AustraliaYou can also read
