Download as PDF, PPTX
![Analyze
PERFORMANCE MANAGEMENT
Sales targets are not communicated to RMs in a timely manner
despite being the main KPI against which performance is
measured Financial KPIs
KPI Report for individual RMs Non Financial KPIs
KPIs CIBG - KEY PERFORMANCE INDICATORS - FY 2010 Performance is Annual targets based
primarily gauged
[applicable to deposit mobilizing divisions: BBD- Regular Segment)
on ~20% increase
Financial KPIs
NAME: ABCABCABCABC
DIVISION:
UNIT:
BBD
CIBG against financial KPIs over the previous year
(80 % weightage)
DESIGNATION:
but no official targets
PAY BAND:
▪ Funds under management
S.No. Pillar KPI COMPARISON WEIGHT DENOMI Last Year Plan 2010 ACTUAL 2010 ACHIEVEMEN WEIGHTE Remarks
set for 2011
NATION 2009 T D SCORE
– Average Deposits
[A] FINANCIAL KPIs
(i) Funds under Mgt 1. Average 2010 Variance against 2009 15.0 AED mio 34,335,511.0 46,183,048.0 134.5% 20.2 Deposits include
Deposits (FD+CASA) Period End Actuals Current Accounts &
– Average CASA balance
base Fixed Deposits.
2. Average CASA 2010 plan - Average 15.0 AED mio 31515783 35,966,387.0 114.1% 17.1
balance Balance
– New deposits
3. Each RM to get 40 As per target decided 15.0 AED mio 30,000,000.0 3,304,173.8 11.0% 1.7 Closing balance of
New relationships by manager Current Accounts &
getting > AED 0.75m Fixed Deposits for each
▪ Revenue
deposit per relationship customer
(ii) Revenue 1. Actual Revenue Variance against Plan 20.0 AED mio 3,574,082.8 2,717,947.2 76.0% 15.2
2. Quality of Revenue Variance against actual 15.0 AED mio 4,981,920.0 5,115,337.0 102.7% 15.4 As per the account
– Volume based on Account
Planning weightages
previous years weighted
revenues as per the
account planning
planning exercise
– Quality
exercise
[B] NON FINANCIAL KPIs
Non-Financial KPIs (i) Internal Controls 1. Audit result Satisfactory result - 2.5; 2.5 (10.0) 2.5 Result will be taken for
Needs Improvement - last audit conducted.
(20 % weightage) Individual performance is tracked against
2. KYC completed
(5); Unsatisfactory - (10)
KYC >= 97% - 2.5; 2.5 0 0.0 To be provided by
▪ Audit Result (ii)
annual KPIs using this template; last year targets released
Behavioral Factors 1. Manager's
KYC < 97% - 0
10.0 10.0 7.0
Compliance
▪ KYC completed in last quarter
Assessment
2. Customer satisfaction 5.0 5.0 3.0
▪ Manager's rating TOTAL SCORE 100.0 82.1
▪ Customer satisfaction Audit and Managers Customer
Sales compliance rating Satisfaction
Performance management 80 5 10 5
focus % split of metrics
Figures are changed Financial KPIs Non-Financial KPIs
f or conf identiality
SOURCE: BBD KPI Report 14](https://image.slidesharecdn.com/wqd2011breakthroughprocessimprovementmashreqbank-improvingsalesserviceandqualityforcorporaterelationshipmanagers-111127071428-phpapp01/75/WQD2011-Breakthrough-Process-Improvement-Mashreq-Bank-Improving-Sales-Service-and-Quality-for-Corporate-Relationship-Managers-14-2048.jpg)
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WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality for Corporate Relationship Managers
The document outlines a lean project aimed at enhancing sales, service, and quality for corporate relationship managers at Mashreq Bank, emphasizing a customer-focused approach. It identifies key improvement opportunities and outlines a project charter with timelines, team involvement, and expected performance metrics. Notably, the project aims to increase relationship managers' time spent on sales activity from 20% to 40% by implementing effective performance management tools and improving administrative processes.
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WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality for Corporate Relationship Managers
- 1. Lean project on ImprovingSales, Service and Quality for Corporate Relationship Managers A Mashreq Bank – Case study 09.10.2011 1
- 2. Introduction About Mashreq Mashreq hasprovided banking and financial services to millions of customers and businesses since 1967. We are one of UAE's leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait and Bahrain. We focus on providing our customers access to a wide range of innovative products and services. Mashreq is invariably among the highest performing banks in the region. Last year we recorded a Net Profit of AED 803 million from a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED 84.8 billion. Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also have customer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseas offices in nine countries, including Europe, US, Asia and Africa. Vision Customer focused To provide our customers the most rewarding banking We act in the interest of our customers, seeking to exceed their relationships expectations Mission Transparent and fair Being relationship based We are clear, concise and open in all our communications, and Delivering superior service treat customers and our colleagues with fairness, respect and trust Being the primary bank to our customers Progressive Being the Employer of Choice We are fast, agile and constantly think of ways to enhance Values customer experience We are on a constant journey towards service Bold excellence, developing innovative new products and We challenge established practices and take smart risks financial solutions. Anticipating your needs and providing Individually Responsible you with new opportunities, convenience and peace of We each take responsibility for the quality of our work, the success mind, stem from our core beliefs. of the bank and delivering the brand promise to each customer Teamwork, cooperation and responsiveness drive the way we work and form the basis of our core values 2
- 3. Project Charter E. TheGoal Statement: Improve RMs time on sales activity from 20% to 40% F. The teams involved: Medium Enterprise team – Corporate banking G. Stakeholders model: • Project chaired by the head of corporate banking • Decision making group formed for toll gate reviews involved stakeholders from – – SME banking – Credit operations – Wholesale risk management – Legal H. The project timelines: • Diagnostic – 3 weeks • Design – 3 weeks • Plan – 1 week • Roll out – 6 weeks I. Quick Win opportunities (If any) NA 3
- 4. Measure The diagnostic indicatesimprovement opportunities across the 5 dimensions of Lean Key improvement Key improvement opportunities opportunities ▪ Sales activity of RMs can be ▪ Implementing new and increased by 100% effective performance – Generate additional sales management tools such as time for RMs by regular huddle structure Process Efficiency Performance simplifying and and 1:1 performance and Management shortening administrative coaching dialogues processes such as Credit ▪ Full transparency in KPI Proposal wrinting and target setting required, – ARM absorb introducing leading and administrative tasks from Customer lagging indicators and RMs and free up sales Mindsets Organization making it transparent on capacity and and Skills performance boards ▪ Workplace/floor organisation Behaviours to be addressed ▪ Closing skills gaps to be addressed using a skills matrix and coaching plans ▪ Current structure perceived ▪ Customers voice sensitive to ▪ Skills gaps observed as pricing issues and quality of per new design of pilot as rigid and hierarchal service, in particular process team (assets vs liability ▪ Going forward, there is an delays and errors mix) opportunity to increase level of engagement, ensure ▪ A survey required that links ▪ Skills development to be customer importance and formally reviewed in transparency and improve reported performance performance meetings communication between management and staff 4
- 5. Measure Additional capacity creationopportunity, if reinvested, can increase sales activity by ~100% Additional sales activity Capacity created Percent of RM time Time savings from Percent of RM time process improvements 22.0 10.4 Time savings from transfers to ARMs 5.9 100% p.a. 4.5 3.2 ~42 2.5 20 4.4 0.7 2.4 Old % of New % of RM time on RM time on 2.0 3.0 sales activity sales activity 3.0 1.0 0 1.0 0 Total Credit Credit Excep- Queries2 Client Figures are changed improve- Proposals Facility tion1 Profitability f or conf identiality ment Agreement Report 1 Includes savings from Finance and Trade Centre related exceptions (operational and risk), cheque book exceptions and custom er call back exceptions 2 Includes savings from remittance related queries (inward and outward) 5
- 6. MINDSETS AND BEHAVIORS Measure Focus group workshop helped RMs identify key organizational issues and discuss their future vision of Mashreq From.. … to ▪ Engagement: "Decisions ▪ Vision: "We should try to are enforced upon me" be more innovative“ ▪ Delegation of decision ▪ Senior Management rights: "Approaching Support: "I need to know Senior management for that my efforts will be approvals requires time recognized“, "I want and we have to follow a guidance and support from strict hierarchy" senior management“ ▪ Outdatedmasked for Data policies & Data masked for ▪ Customer focused: "We confidentiality processes: "Policies are confidentiality need to have a better made by people who have under-standing of what our little understanding of how customers want“ things work on the ▪ Beat the competition: frontline" "We can beat our ▪ Lack of direction: "Last competition with year, KPI's were officially teamwork" signed off one month before appraisals" 6 SOURCE: Corporate RM f ocus group workshop 19 April
- 7. VOICE OF THECUSTOMER Analyze Processing delays and errors, poor staff response and branch support caused the most dissatisfaction Top 9 reasons for dissatisfaction1 Proportion of complaints logged onto system 2 Percent Percent Key focus areas xxx 47 xxx 19 1 High fees and charges ▪ Customers charged xxx 16 xxx 16 higher f or trade licensing, service xxx 8 xxx 16 charges and check book f ee than other Poor branch Problem with online banks 8 13 support banking 2 Processing delays and errors xxx 6 xxx 13 Data masked ▪ Compliance issues, excessive approval xxx 6 xxx 9 for requirements and missing inf ormation confidentiality Problem with online 4 xxx 8 3 No response from staff banking ▪ Customers unhappy about RMs behavior, xxx 4 Other 4 sometimes misinf ormed by RMs Additional products 2 xxx 1 Not available 4 Poor Branch support ▪ Lack of coordination in Total 100 Total 100 branch, poor counter service Figures are changed f or conf identiality 1 Total 127 respondents surveyed with some having recently migrated f rom RBG 2 xx complaints logged onto system over last 6 months (true number likely higher as not all complaints logged) 7 SOURCE: CIBG Customer survey Dec 10, Complaints data Oct 10 – Mar 11, team analysis 5
- 8. PROCESS EFFICIENCY Analyze RM sales activity can increase by more than 100% Percent of pilot Percent of pilot % of RMs time dedicated to sales RM time spent ARM time spent activities xxx 20.2 0 Current 20 xxx 16.5 20.8 Potential ~40 xxx 6.4 7.8 Portfolio +100% 10.0 4.8 Administrative and management management time Internal Queries 11.5 17.0 ▪ New SME commercial model being implemented through Lean: ARM will absorb xxx 3.0 10.2 administrative tasks from RMs and free up sales capacityfor Data masked Administrative activities 14.8 19.6 confidentiality ▪ And, Lean will generate additional sales time for RMs xxx 17.6 19.8 by simplifying and shortening administrative processes Total 100 100 Figures are changed f or conf identiality RMs currently staying back beyond 7 pm on most days due to high workload SOURCE: Observation of 2 CIBG pilot cluster and non-pilot cluster RMs over 2 day period 8 Observation of 2 pilot cluster ARMs over 2 day period
- 9. PEOPLE PROCESS EFFICIENCY Analyze There is potential to minimize all 8 types of waste across the department Value zones ARM f ootf low Filing room 2 Value zones Unit printer/ Manager scanner Entrance 1 Division Head Office 3 Office Assist- Unit Manager Office ant/Fax 1 2 Division 3 Office Assistant workstation Head ▪ xxxx RM 4 4 RM workstations RM ▪ xxxx RM RM ARM ARM 4 5 Entrance 5 ARM workstations ▪ Used by ARMs 6 Conference Room ▪ Used by by team f or meeting Coffee/ tea 7 customers station 6 7 Printing/ production room Meeting Photo room 8 ▪ Used f or f iling/stationery/ printing -copy Key Observations 8 Coffee/tea station ▪ Filing spread across the of f ice ▪ xxx ▪ Photocopy machine location for Data masked sub-optimal ▪ Multiple areas with discarded paper confidentiality ▪ VPN not available f or hot-desking 9 SOURCE: Shadowing an ARM over a period of 2 hours
- 10. PROCESS EFFICIENCY Analyze Improving and simplifying existing processes and transferring to ARMs can free up approximately 20-25% of RM time Total tim e for com pleting end to end process - existing Total tim e for com pleting end to end process - after im provement Time Efficiency Process m inutes Key Opportunities Credit 862 ▪ Standardize input and and checklist for collecting customer information Proposal 562 - currently a lot of irrelevant inform ation is included ▪ Lengthy and subjective information; is difficult to interpret -35% ▪ WRM queries on credit proposal waste a significant proportion of the RMs tim e Credit Facility 200 Agreem ent ▪ Reduce number of signatures required on CFA documentation (size varies 125 between ~ 20 - 70 pages where each page needs to be signed by customer -38% and verified/initialized by the RMs Custom er 52 ▪ Non value add activity for RMs Queries 0 ▪ Follow up queries for transactions can be routed through corporate customer -100% service unit FTC related 100 ▪ Exceptions handled outside lotus notes lead to additional work in the process Level of impact exceptions 85 ▪ Manual follow ups required for closing the exceptions which could be -15% elim inated Call Back 20 ▪ Non Value add for RM Exception 0 ▪ Call backs should be routed to customer Call Back Unit -100% ▪ Analyze what proportion of call backs are routed to RMs ▪ Update customer contact information in the system Cheque book 65 ▪ Non Value add activity for RMs exceptions 0 To be addressed ▪ Analyze end-to-end process and link with branches in E2E -100% ▪ Update trade licenses to prevent exception reports workstream Client 282 ▪ Multiple follow ups to rectify errors/discrepancies once CPR is released profitability Report 142 ▪ SLA needed between business and support teams to provide accurate report -50% and agree on m argin of error Account 295 ▪ Sim plify form so that customer can fill it out easily without RM assistance Opening Process 215 ▪ Im prove communication between Cash and Account Management and RM to -27% sim plify m ultiple follow up procedure which wastes RM tim e Figures are changed 10 SOURCE: BBD Value Stream Mapping and observations f or conf identiality
- 11. Analyze Example ProcessFlow – Credit Proposal PROCESS MAP EXAMPLE Lead tim e Tim e spend Non-value add m inutes process Role Signoff Im proved required tim ing RM/ RM/ RM/ RM/ RM/ RM/ CSO ARM ARM ARM ARM ARM ARM 5 2 Support 10 5 30 10 30 Get the CBR3 Forward staff forwards Receipt of Fill out credit Get a market Fill out report from credit check credit check credit check Start check reference document CIU for new request to request to report from template check checklist Credit support staff CIU1 via CIU via email proposal EDMS 2 xxx 1 Day RM/ RM/ RM/ RM/ RM/ RM/ ARM UM ARM ARM ARM ARM 15 15 60 120 10 30 RM /UM define Collate CP Revert to Update Create strategy & Analyze CP data into the customer for customer Initiation note approve information write up additional information in in PREM4 initiation note (Module C) 5 information module C tbd tbd 40 60 0 0 x Day xxx xxx Repeat visits to customer can be RM/ RM/ eliminated through RM UM RM better planning ARM ARM 120 Attach 10 180 120 90 Approval Enter Module C, limits, security checklist, RM reviews UM reviews Reply to from WRM & details, terms Spreads, Fin- and forwards and forwards queries from forwarded to End ancials, CBRB6 CP to WRM in Credit and conditions Report, ACR & to UM in PREM WRM into PREM Credit Check PREM Document- in PREM ation 90 120 90 60 • Process time: xx minutes (xx hours) xxx • Post-improvement time: xx minutes • Time savings: 35% • Sign offs: 4 Figures are changed • Non value added- non customer facing: 4 f or conf identiality 1 CIU: Credit Initiation Unit; 2 EDMS: Electronic Data Management System 3 CBR: Central Bank Report 4 PREM: Portfolio Reporting and Exposure Management 5 Module C: Document containing customer financial information 6 In case of existing customer pull out the CBRB report from BIS 11 SOURCE: RM process walkthrough
- 12. Analyze PROCESS EFFICIENCY There ispotential to increase the sales conversion ratio Customer acquisition Key leak- age points Meetings Overall Meetings Calls made attended Sale Conversion planned by customer Rate Leads pro- xx xx xx xx vided by LMU 92% xx% xx% xx% Calls from 43 xx xx xx own sources 88% 97% xx% xx% xx 51 xx xx Total xx% 96% xx% 14% Urgent need to implement new leads model - Direct Sales Team to send high quality leads to RMs (as per commercial transformation workstream) No systematic lead generation process for existing customers (RMs relying mostly on own sources to generate new sales) Figures are changed SOURCE: conf identiality f or Lead Management Unit, customer call logs January -April 2011 12
- 13. Analyze PERFORMANCE MANAGEMENT KPI definition,target setting, reporting and improvement planning are key areas of focus for improved performance management KPI definition 1 = Poor ▪ Main KPIs exist but no clear cascade 5 = Best practice of top level sales KPIs to staf f level Corrective actions ▪ Job descriptions f or RMs in new Reporting formats and frequency roles have not been def ined as yet ▪ Root cause of problems f aced by ▪ Formats are unstandardized and clients are not identif ied quickly unclear (e.g., pipeline reports ▪ Corrective actions are not tracked 5 sent to UM in emails and excel systematically sheets in no particular f ormat) 4 ▪ Dif f icult to track perf ormance against target Performance review 3 ▪ Meetings are held regularly and Data collection, report have high attendance rates 2 ▪ No f ormal production data collection ▪ Discussions address perf ormance procedure gaps ▪ Data and report storage un- ▪ Room f or improvement in 1 standardized and poorly structuring meetings (agenda, organized, e.g., no record of sales roles, inputs, outputs) appointments - sometimes noted down on outlook and personal Blackberry calendars Improvement planning ▪ Few improvement actions outlined - of ten without any quantif ied Target setting impact ▪ Staf f is not aware of targets until ▪ Progress is not monitored very late in the year regularly ▪ Targets are not SMART1 Holding daily huddles as a regular activity has driven Chart shows weighted average of survey improvement in performance reviews responses of 3 pilot team RMs 1 SMART - Specif ic, Measurable, Actionable, Result-oriented, Time-bound SOURCE: Perf ormance Management Survey 13
- 14. Analyze PERFORMANCE MANAGEMENT Sales targetsare not communicated to RMs in a timely manner despite being the main KPI against which performance is measured Financial KPIs KPI Report for individual RMs Non Financial KPIs KPIs CIBG - KEY PERFORMANCE INDICATORS - FY 2010 Performance is Annual targets based primarily gauged [applicable to deposit mobilizing divisions: BBD- Regular Segment) on ~20% increase Financial KPIs NAME: ABCABCABCABC DIVISION: UNIT: BBD CIBG against financial KPIs over the previous year (80 % weightage) DESIGNATION: but no official targets PAY BAND: ▪ Funds under management S.No. Pillar KPI COMPARISON WEIGHT DENOMI Last Year Plan 2010 ACTUAL 2010 ACHIEVEMEN WEIGHTE Remarks set for 2011 NATION 2009 T D SCORE – Average Deposits [A] FINANCIAL KPIs (i) Funds under Mgt 1. Average 2010 Variance against 2009 15.0 AED mio 34,335,511.0 46,183,048.0 134.5% 20.2 Deposits include Deposits (FD+CASA) Period End Actuals Current Accounts & – Average CASA balance base Fixed Deposits. 2. Average CASA 2010 plan - Average 15.0 AED mio 31515783 35,966,387.0 114.1% 17.1 balance Balance – New deposits 3. Each RM to get 40 As per target decided 15.0 AED mio 30,000,000.0 3,304,173.8 11.0% 1.7 Closing balance of New relationships by manager Current Accounts & getting > AED 0.75m Fixed Deposits for each ▪ Revenue deposit per relationship customer (ii) Revenue 1. Actual Revenue Variance against Plan 20.0 AED mio 3,574,082.8 2,717,947.2 76.0% 15.2 2. Quality of Revenue Variance against actual 15.0 AED mio 4,981,920.0 5,115,337.0 102.7% 15.4 As per the account – Volume based on Account Planning weightages previous years weighted revenues as per the account planning planning exercise – Quality exercise [B] NON FINANCIAL KPIs Non-Financial KPIs (i) Internal Controls 1. Audit result Satisfactory result - 2.5; 2.5 (10.0) 2.5 Result will be taken for Needs Improvement - last audit conducted. (20 % weightage) Individual performance is tracked against 2. KYC completed (5); Unsatisfactory - (10) KYC >= 97% - 2.5; 2.5 0 0.0 To be provided by ▪ Audit Result (ii) annual KPIs using this template; last year targets released Behavioral Factors 1. Manager's KYC < 97% - 0 10.0 10.0 7.0 Compliance ▪ KYC completed in last quarter Assessment 2. Customer satisfaction 5.0 5.0 3.0 ▪ Manager's rating TOTAL SCORE 100.0 82.1 ▪ Customer satisfaction Audit and Managers Customer Sales compliance rating Satisfaction Performance management 80 5 10 5 focus % split of metrics Figures are changed Financial KPIs Non-Financial KPIs f or conf identiality SOURCE: BBD KPI Report 14
- 15. Analyze PERFORMANCE MANAGEMENT Sales appointmentrecords are not well kept or properly organized Tracking sales appointments RMs use Outlook calendar features No official data on sales to keep track of important meetings; appointments as RMs use personal not all meetings are recorded Blackberry calendars to record meeting schedules Only a handful of meetings are recorded ▪ CRM not being used to track sales calls 15 SOURCE: BBD
- 16. Analyze SKILLS AND ORGANIZATION Skillsgaps will be analyzed with skills matrix as exemplified for pilot team Classroom Can do without trained support Actual skill Recognized Can train Required skill expert others Key gaps Lean skills Soft skills Technical skills Performance Management Asset Products knowledge Documentation of Liability Bank Systems Knowledge Improvement orientation Documentation of Asset Vigilance/Due Diligence Back End Operational Communication skills Process confirmation Learning knowledge Credit Risk Analysis Coaching/Feedback People orientation Liabilities Product Financial Analysis Setting Direction Results delivery Problem solving Data masked for confidentiality Selling skills Knowledge Knowledge Products Products 5S RM 1 RM 2 RM 3 RM 4 ARM 1 ARM 2 Lean Skills ▪ Transf er classroom learned Lean skills to rest of team Soft Skills ▪ Increase customer f ocus and improve on results delivery Technical Skills ▪ RMs will need to have product knowledge and understand processing both asset and and liability products ▪ Focus on credit risk analysis and f inancial analysis ▪ Current set-up has deliberate skills gaps around assets and liability to test new approach SOURCE: Team interviews, self assessments 16
- 17. Improve Proposed design approachfor corporate RMs Outputs DMG support Voice of the ▪ Design new customer questionnaire/ survey ▪ tbd 1 customer ▪ Define procedure for follow up and analysis Process efficiency ▪ Standard Operating Procedures for CP, CFA, call ▪ Nasser Masri 2 & end-to-end flow backs, finance and trade related exceptions, ▪ Johnson Rajan client profitability reports ▪ Amro Bibi ▪ Standardized template for Credit Proposals ▪ Tony John Crasta and CFA (With CP projects team) ▪ Nasser Paracha ▪ Updated systems with customer information for improved query handling - CRM ▪ Pipeline management for leads Performance ▪ Performance board ▪ Islam Shikoh 3 management ▪ Activity targets and metrics ▪ Amro Bibi ▪ MIS template / IT reporting tools ▪ Meeting structure/ agenda ▪ Structure one-on-one meetings with managers ▪ Capacity management tool/ holiday planner ▪ Implementation of CRM usage ▪ Skills matrix ▪ Islam Shikoh 4 Organisation and skill ▪ Coaching plan ▪ DILO ▪ Lean Wall ▪ Islam Shikoh Mindsets and 5 behaviours ▪ M&B survey and feedback ▪ Suggestions box ▪ Rewards and recognition – link to PM boards 17 SOURCE: Team Analysis
- 18. VOICE OF CUSTOMER Improve Customer surveys need to be conducted on an annual basis with actionable improvement plans From To ▪ Surveys are conducted on an ad hoc ▪ Conduct structured customer surveys basis when required once a year as launched online (9th May 2011) ▪ Results of surveys not linked to action ▪ Link customer surveys to action planning planning and feedback for and feedback improvement ▪ Customer survey results are not linked ▪ Link survey results to KPI’s for to team performance objectives RM/UM/DM Decisions required: ▪ Conduct customer survey on a routine basis – once a year SOURCE: Customer Feedback Survey Launched on 9 May 2011, 18 Mashreq Research Team 30
- 19. VOICE OF CUSTOMER Improve Three of four main customer concerns/issues identified in the diagnostic will be addressed as part of design solutions Customer Feedback Design Solution Processing delays and errors ▪ Reduce referrals and exceptions, (call ▪ Compliance issues, excessive approval backs, FTC referrals, Cheque book requirements, missing information referrals) ▪ Standardize Credit Proposal process reducing errors and lead time for approvals ▪ Enforce acceptance criteria for requests at branches No response from staff ▪ Increase customer facing time for RMs, ▪ Customers unhappy about RMs availability of customer data and behavior, sometimes misinformed information, ARM and call centre support by RMs to address customer concerns/queries Poor Branch support ▪ Lean in branches, streamlining of ▪ Lack of coordination in branch, poor branch processes counter service High fees and charges ▪ Not addressed as part of the Lean ▪ Customers charged higher for trade transformation workstream (may be licensing, service charges and check considered as part of commercial book fee than other banks workstream) SOURCE: Customer Feedback Survey Launched on 9 May 2011, 19 Mashreq Research Team
- 20. Design phase initiatives Improve To be covered in Wave 2 Improvement lever Processes Initiatives Impact ▪ Credit Proposal ▪ Design customer input template xx Re-design and ▪ Design customer documentation checklist Internal transfer ▪ Design internal checklist /guidelines for writing Credit Proposal ▪ Design standard template for credit proposal ▪ Credit Facility ▪ Convert CFA docum ent into booklet format to reduce xx ▪ Agreem ent num ber of signatures ▪ Push forward on issue of docum entation size with legal ▪ FTC Exceptions ▪ Further analysis of exceptions data including lim it expiry xx or excess ▪ Rem ittance Exceptions ▪ Analyse issues pertaining to incomplete inform ation and xx signature issues ▪ Analysis of channels used for call backs xx ▪ Call Back Exceptions ▪ Elim inating call backs for un-contactable customers xx ▪ Raise threshold lim its for call back ▪ Update customer inform ation in the system ▪ Cheque Book Exceptions ▪ Update trade license in the system xx ▪ Inconsistent form at ▪ Delivery to wrong branch ▪ Client Profitability ▪ Follow up with team working on CPR Report ▪ Account opening Process ▪ End-to-end process –Tackle in wave 2 ▪ Custom er Queries to be ▪ Train outsourced call center on corporate customer xx Transfer handled by the call queries Out center ▪ Plan com m unication for the customer to route the queries to the call center ▪ Ensure all RMs/ARM log custom er queries on CRM Total percent of RM tim e freed ~xx% 20
- 21. PROCESS EFFICIENCY Improve Processing time for Credit Proposals can be reduced through standardization, simplification of template and automation of inputs From To Current CP Sample 1 Current CP Sample 2 Customer Checklist CP Template Documentation Structured and required f rom standard CP f or al customer clients Dif f erent f ormats used – each CP must be Customer Input Template CP Checklist/ Guidelines read dif f erently ~7-15 pages containing excessive Checklist to assist inf ormation ARMs in writing CPs Description Description ▪ Credit Proposals are un-standardized, lengthy and Standardize subjective ▪ Standardize customer input template (company ▪ Extra ef f ort spent in collating customer inf ormation f inancials, background, etc.) through multiple calls and visits Minimize rework ▪ Takes a long time f or RM and UM to review ▪ Use of checklist in collecting customer documents will minimize return visits to customer Simplify ▪ Reduce the number of f ree text f ields in the CP template ▪ Reduction in number of iterations at review stage Decisions required ▪ Approve new credit proposal template, customer input template and checklist Potential impact xx% 21 SOURCE: WRM interviews, BBD RMs, team analysis 34
- 22. PROCESS EFFICIENCY Improve Reduce paperwork and administrative time by introducing new Credit Facility Agreement From To Existing CFA document New CFA document 1 Customer signs at Shortened CFA CFA document set 3 page schedule the end of terms Booklet and conditions Description Description ▪ Length of existing CFA documentation ~20-70 pages ▪ Convert Terms and Condition into a standard booklet of ▪ Length of Standard terms and conditions ~15-20 pages ~7-8 pages ▪ Customer signs each and every page of the CFA ▪ Obtain customer signatures on last page of booklet only document ▪ Include standard schedules in the booklet, not as a ▪ RMs review every page bef ore sending it to Wholesale separate document Credit Operations ▪ Document is sent back in case any page is lef t out by the customer/ RM ▪ 3 page schedule as separate document Decisions required Potential impact % Approve booklet version of CFA document as interim solution Approve redesign of CFA document with fewer pages (longer term solution) 1 New CFA document designed by legal (has not been rolled out so f ar) 22 SOURCE: Discussion with BBD RMs; Legal Department
- 23. PROCESS EFFICIENCY Improve Increase threshold limits and allow branches and CPC unit to process transactions to reduce number of call backs From To Call Back status Reasons for uncontactable ▪ Ref er all uncontactable call back cases Percent call backs to a senior manager within CPC 1 Remittances who will process it if the transaction is in order 26 Successf ul 51 Un- 7 2 ▪ Do not call back if signature has been 2 40 contact- verif ied f or applications submitted at able Contact Custo Contact Contact branch by customer not mer number number 18 available not not incompl in availab respondi ete in Unsuccessf ul Cancelled contact le ng contact list Call back threshold analysis ▪ Update customer contact number in CRM Percent – RMs to collect updated inf ormation 50 f rom customer 39 – Instruct customer to submit updated inf ormation at branch 11 > 1m 500k - 1m 0 - 500 k ▪ 40% of call backs are escalated to RMs as the customer is un- ▪ Increase the call back limit to 1 million contactable instead of 500k f or BBD ▪ Contact list is not updated with latest customer contact details Decisions required ▪ Grant CPC Remittance unit approval to process transactions which are in Potential impact % order without call backs ▪ Increase threshold limit for call backs ▪ Eliminate call-backs if application has been submitted at the branch 1 CPC: Cheque processing unit 23 SOURCE: Call back data for February to April 11 from the call back unit
- 24. PERFORMANCE MANAGEMENT Improve Performance management boards will enable effective tracking of key metrics on a daily basis D m m Queries/ Average CASA CPR/Total Revenue Complaints Status balance m m m D tbd Average assets Deal of the month MER/CP Status D D Area for problem C solving Meeting planner Q D m D Coaching/training Focus of the Team Skills matrix plans month barometer D Updated daily Updated f rom reporting system m Updated monthly Updated manually Q Updated quarterly 24
- 25. Improve PERFORMANCE MANAGEMENT Performance dialoguemust be linked and paced Perf ormance review Tracking mechanism to allow ownership at each level Frequency Daily Weekly Monthly Quarterly LF + Quarterly Divisional Led by Divisional Manager meeting Manager with UMs in attendance Quarterly data of all the KPIs along with other Divisional perform ance Manager Monthly tools Led by Unit Managers meeting +Unit Managers with RMs and ARMs in attendance Level Perform ance ppt prepared by UM Unit having m onthly Manager + Weekly sum mary of the Team Meeting Board RM/ARMs (Thursday at 0900 hrs) Team RM/ARMs Daily Huddle + Unit (0800 hrs) Manager (if Perform ance available) Board showing Perform ance weekly results board – daily/m onthly results 25
- 26. ORGANISATION & SKILLS Improve Skills matrix identifying skill gaps that need to be addressed Classroom Can do without trained support Actual skill Recognized Can train Required skill expert others Key gaps Behavioral Lean Skills Technical Competencies Competencies Documentation of Liability Products Customer relationship management Documentation of Asset Products Back End Operational Knowledge Customer Profile / Transaction Liabilities Product Knowledge Asset Products Knowledge Vigilance/Due Diligence on Performance Management Bank Systems Knowledge Improvement Orientation Professional Expertise Coaching & Feedback Process Confirmation Credit Risk Analysis Data masked for confidentiality People Orientation Financial Analysis Lean Knowledge Setting Direction Problem Solving Results Delivery Selling Skills 5S # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # RM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # RM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # RM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # RM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ARM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ARM # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # UM # # # # # # # # # # # # # # # # # # # # # # # # SOURCE: Team interviews, self assessments 26 49
- 27. Improve MINDSETS AND BEHAVIOURS TeamBarometer to understand the team’s satisfaction level How to use the team barometer Satisfactory score What can we do to ▪ Used as a tool to initiate improve this? and facilitate constructive Employee Satisfaction Survey discussions in teams of Question Previous Current how to make experience week week 1) The new processes have been well embedded in my 2.3 3.3 better team Weekly trend of team engage- 2) The new processes have made my job easier 3.0 3.7 ▪ Put up on daily performance board to :D ment level Satisfaction Level 3) My 1:1s are regular and tailored to my needs 2.3 3.0 4) I am given sufficient time to develop or, where stimulate discussions 2.3 3.0 applicable, develop others ▪ Nominate one person to 5) I am aware of the teams performance and my 2.7 3.3 contributions to it 6) I feel sufficiently trained to do my job well 3.0 3.3 collect data and update results daily 7) I am getting my work done on time 2.7 3.7 ▪ Barometer results should 8) The changes implemented have made positive 2.3 3.3 benefits 9) Changes have added value to my role 3.0 3.3 highlight key points 10) Changes have the team perform to a higher standard 11) I feel empowered to do my job 2.0 2.7 3.0 3.3 around engagement, team dynamics, training and improvement Week 1 Week 5 Week 6 Week 2 Week 3 Week 4 12) I feel empowered to suggested continuous 1.7 3.7 ▪ Barometer results are improvement ideas 13) I look forward to coming to work every morning due anonymous and team 2.3 3.3 to the friendly environment I work in members should NOT be Weekly Trend Low satisfaction level asked to reveal their Highlight concerns High level of scores with team satisfaction Address and resolve Share best practice ▪ Barometer results are NOT areas of issue & success stories for evaluative purposes immediately with the team 27
- 28. Improve Tactical Implementation Plan(TIP) - Progress Back spikes mainly due to - FTC exceptions – delegation note to be signed of f by 30 Sep - Cheque book exceptions - action closed on 28 June 28 57
- 29. Improve Key improvements acrossthe 5 dimensions of Lean embedded as part of the Rollout ▪ RM and ARMs trained on the new ▪ Morning huddles around the CP templates and checklist perf ormance board have ▪ Process changes has led to an become the part of the teams increase in sales activity however daily routine providing the team results have been tempered by with a f orum to discuss best Process Efficiency Performance f actors such as annual leave, practice, sharing of successes Management attrition, training needs and and problem solving. Ramadan ▪ Sales time f or the RMs will be f urther enhanced as ARMs becoming f ully trained on CP, CFA Customer and query handling. ▪ Huddle issues successf ully closed Mindsets Organization through quick f ixes in the and Skills and Behaviours processes at branch and operations ▪ 5S successf ully implemented ▪ Skill matrix def ined f or all clusters f acilitating areas of development f or the RM, and ARM ▪ Improved CFA has made the documentation more customer f riendly. ▪ ARMs continuing intensive on- ▪ Resolution of Huddle Board board training as they strive to ▪ Team barometer showing positive issues have enhanced the assume all CFA, CP and internal trends compared to the beginning customer experience query related duties. of the roll out ▪ Overall process changes made ▪ Focus groups held f or evaluation during pilot and wave 2 aim to of Mindsets & Behaviors have positive impact on the customer experience 29
- 30. Control PROCESS EFFICIENCY Model andprocess changes have lead to significant increase in sales activity (from 20 to 53%) in DIC Key categories Percent RM time spent Percent of RM time observed (Pilot) spent (Wave 2) Sales 59.3% 20.2% Sales 53.2% This sample may not be Sales entirely representative of the time typical contribution to CP 16.5%0.0% CP 0.0% CP/CFA work by RM Administrative and management CFA 6.4%0.0% CFA 0.0% ▪ OPE analysis conducted f or the DIC Portfolio 10.0% Portfolio Clusters and compared to 10.6% Management 10.6% Pilot….shows signif icant increase in Management sales productivity 11.5% Internal Queries Data masked Internal Queries 0.5% 0.5% ▪ Sales time represents all client for meetings including travel time confidentiality Customer Queries 3.0%Customer Queries 5.7% 5.7% ▪ Non Value add comprises of the time spent on lunch, breaks, personal emails Administrative 14.8%Administrative 13.8% 13.8% time Non Value add 17.6% Value Non 10.2% add 16.3% Total 100.0% Total 100.0% Figures are changed f or conf identiality SOURCE: OPE analysis by Lean central team during pilot and wave 2 roll out 30 OPE conducted for 4 RMs across 3 days (Wave 2)
- 31. MINDSETS AND BEHAVIOURS Control Engagement to be driven by open communication, problem solving and dialogue From To ▪ No survey to gauge the ▪ Weekly barometer to gauge team satisfaction Team satisfaction level of team level barometer ▪ Encourage discussion around engagement and team dynamics ▪ Problem solving and daily ▪ Constructive problem solving and open Problem huddles are useful but discussion around issues; sharing of best solving unstructured practices amongst team members to boost team moral and engagement ▪ Focus group discussions ▪ Focus group discussions showing staff Focus group showing teams perception about aspirations discussion engagement 31
- 32. Control PROCESS EFFICIENCY Adherence to5S standards shows a significant increase in score from 36% to 76% From To 36% adherence to 76% adherence to 5S standards 5S standards ▪ Unorganized drawers and cupboards ▪ Standards defined for storing documents ▪ No standard filing system and indexing files ▪ Unattended papers on the desk ▪ Unnecessary documents identified and are ▪ Unnecessary client documents stored in files to be moved to Metrofile Next Steps – • Initiative on paperless of f ice – Pilot out f or 1 client 32
- 33. Control Control and sustain– activities handed over to business Activity Frequency Owner Champion ▪ Voice of customer ▪ Post VOC ▪ Hameed ▪ Kashif Hafeez Voice of survey Customer action planning ▪ 5S sustain and ▪ Fortnightly ▪ DIC – Faisal ▪ DIC - Melvyn/George/Faraz Process control ▪ Deira – Anshuman Deira - Rehan/Sunish Efficiency ▪ Sharjah – A Khaja Sharjah - Rachel ▪ Weekly ▪ Hameed ▪ DIC – Faisal ▪ Process Deira – Anshuman confirmation Sharjah – A Khaja ▪ Updating huddle ▪ Daily ▪ DIC – Faisal ▪ DIC - Melvyn/George/Faraz boards ▪ Deira – Anshuman Deira – Irfan / Sujith ▪ Sharjah – A Khaja Sharjah - Rachel ▪ Daily team ▪ Daily ▪ DIC – Faisal huddles ▪ Deira – Anshuman ▪ NA ▪ Sharjah – A Khaja ▪ 1:1 coaching for ▪ Weekly ▪ DIC – Faisal ▪ Deira – Anshuman ▪ NA RMs and ARMs ▪ Sharjah – A Khaja ▪ KPI reporting ▪ Weekly - ▪ DIC – Faisal ▪ DIC - Melvyn/Wasim/Hashmat Thursday ▪ Deira – Anshuman Deira – Irfan / Sujith ▪ Sharjah – A Khaja Sharjah - Rachel 33
- 34. Project Closure Action Plan Check Do A.Learnings from the project and how they were leveraged One of the key challenges were to roll out the huddle boards on the floor and conduct regular huddles around it. This was managed properly by involving the RMs, ARMs, Ums right from the time of designing the boards. People involvement is the key to success. All solutions from the lean pilot project have been rolled out to other locations across Dubai. B.Team recognition Various improvement roll out during the project have been appreciated by the senior management of the bank. 34
- 35. Finally A. Why thisproject is an excellent improvement example? - Commitment from senior management was the key to the success of this project - The most important aspect of the project was changing the people’s mindset and behaviour - Inspite of having multiple stakeholders dependencies it was a well coordinated project through project plan and timelines - Most of the decision were taken on time, thanks to the decision making group reviewing and signing of each project toll gate 35