Liam Ward
AMP Head of Operations HR
About AMP
•
Since 1849 AMP has been the leading independent wealth
management company in Australia and New Zealand.
•
AMP operates four core businesses: Financial Advice,
Superannuation, Banking, Investments, Life Insurance &
Retirement Services.
•
AMP are helping more than five million customers in Australia and
New Zealand own tomorrow.
•
AMP manage A$159 billion in assets for our customers.
•
AMP has around 945,000 shareholders.
•
6,000 employees across Australia, New Zealand and Asia help
service our financial planners, customers and shareholders.
2
Our Current World is Rapid Discontinuous
Change
ING slashes 7,000 jobs, CEO
leaves
January 26, 2010
Nikkei slumps on news of factory slowdown
日経は日本メーカーの売り上げ低迷のニュースにより深刻な状況へ
January 30, 2009
3
The start of the Journey (Why?)
•
•
•
•
Due to the GFC there was a need to aggressively reduce our unit
cost to be inline with ING Global targets.
There was little understanding of process frameworks and how they
related to our performance.
During 2008 INGLJ Operations found the need to place a greater
structure around the daily operations of its Contact Centre,
Underwriting and Administration areas.
Improving productivity ,increasing the quality of service provided to
customers while reducing the cost per transaction all became key
measurements.
4
Creating the Transformer Program
• A detailed 4 week audit of the Operations area in November 2008
was conducted to identify operational improvements.
• Through this process it was identified that there was not a solid
performance governance model. There were a number of
challenges to this:






Only a small number of our processes were identified and
mapped.
Process knowledge mainly stored in peoples heads.
There was no common process governance.
Inconsistent performance indicators.
Lack of visibility of day to day workload.
Quality of output not consistently assessed in all areas of
Operations.
5
Transformer Program
There were four main initiatives which formed the Transformer
Program. The aim of the program was to make ING Life Japan a
best practice Operations environment. The initiatives were;
1. Streamline the complexities of processes.
2. Implement a Management
Operating Methodology.
3. Introduce a Quality Assurance Program.
4. Increase Employee Engagement.
Process Improvement
Management
Operating
Methodology
Transformer
Program
Quality Assurance
People
The key objective of the Transformer program was to:
“To be recognized as having a best practice operational
area within the ING Asia Pacific Region”
6
Goals of Process Improvement
 Create a Business Process Framework for the Operations area






based on best practice models.
Review all activities from a value-add perspective for our
customers and apply Lean Principle to them.
Eliminate waste, over burdens & unevenness.
Visualise value streams, processes and daily workload.
Train & involve all employees to be Process Improvement key
value creators.
Reduce headcount by 30%
Reduce overtime by 14%
7
Business Process Framework Matrix (BPFM)
•
The BPFM is an excel tool that holds all the operational specifics to
a process.
• This tool is used to provide full visibility in priority setting for
process improvements.
Process
Hierarchy
Transaction
Service
Service Level Expectatio
n
Annual volume
Process
Map
Has this
process
optimized?
Surrender
2 Days
10min
54383
Y
Y
Policy Loan
2 Days
15min
4304
N
N
2 Days
5min
1204
N
N
2 Days
6.5min
197
N
N
Amount reduction
2 Days
9min
2541
N
N
Correct Bank Account
information
1 Day
8.5min
173
N
N
Billing/Paying-in Type A
1 Day
7min
52523
Y
Y
Paying In Billing/Paying-in Type B
1 Day
7min
1889
Y
Y
Billing/Paying-in (Group)
1 Day
11min
518743
Y
Y
Change of Address
2 Days
2min
33754
Y
Y
Change of Name
2 Days
4min
3832
Y
Y
Change of Date of Birth
2 Days
4min
69
Y
N
Change of Owner
2 Days
6min
1837
Y
Y
Paid Up
Paying Out Cancelation of rider
Alteration
Memo
Page 8 |
Creating a BPF Life Cycle
 Business Process Framework (BPF) is a management approach
focused on aligning all aspects of an organisation with the wants and
needs of clients and stakeholders.
Design
Business Process
Framework
Life-Cycle
Page 9 |
Process Library
 An intranet site was created on Share Point to provide the
information to all Operations employees.
 The contents within the site;
 AS-IS process maps
 TO-BE process maps
 Training materials i.e. guides
10
One Touch & Lean Kaizen
 Through the BPF process we identified three key objectives:
1. Reduce the unit cost of our transactions;
2. Reduce the number of touch points in our processes; and
3. Involve every employee in Operations to participate in the
process improvement journey.
 As a result we created two programs to run under the Process
Improvement banner. The programs were to run concurrently while
complementing each other in optimising our existing processes.
 The programs;
•
•
One Touch
Lean Kaizen
11
Lean Kaizen Program Concept
 Eliminate the waiting time and unnecessary interruption.
 Focus on true customer value, eliminate excessive over-quality.
 Take “pull principle”, change “push principle”, to eliminate over-
processing.
 Leveling workload imbalance and train the employees to be multiskilled to work a broader range of processes.
 Identify the wastes, leveraging bottom up approach, and collect
Kaizen ideas from all employees to fix them.
 Encourage all employees to be essential Lean drivers.
12
Lean Kaizen Program Organization
Program sponsor : COO
Project sponsor :
Division Managers
Facilitator:
Business Transformation Team
UW 1
UW 2
CS 1
CS2
CS3
CS4
CS5
CS6
CC1
CC2
CC3
OpB1
OpB2
Process
Owner
13
Project Schedule
Tasks
1
Hold Lean Program 2010 Briefing session
2
Hold Kick off meeting （Present the Project
charter）
3
Do Lean Office Assessment (AS-IS)
4
Create AS-IS value stream map
5
Decide the Kaizen Point
6
Set the "Lean Metrics“ (Target)
7
Create TO-BE value-stream map
8
Validate the TO-BE value stream map
9
Set the Action plan/Training plan
Mar
Apr
May
Jun
Jul
10 Train the staffs
11 Pilot
12 Do Lean Office Assessment (TO-BE)
13 Measure the result
14 Implement Optimized Process
15 Monitor the new process
14
One Touch Transformation
•
In total there were 18 processes in Administration that had been
chosen which covered 96% of the transaction volumes.
• The selection of these processes were determined by volume and
risk to the business.
• All Administration Processes have been defined by either Major or
Minor Processes.
• The Definition:


Major – Any and all processes with a transaction volume
higher than 100 annually or monies coming in/out of the
business.
Minor - Any and all processes with a transaction volume less
than 100 annually or no payment related activity.
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One Optimization Transformation
4. Communicate & Train on the New Processes
1.Complete current Service Expectation’s (SE)& Process Maps
One Touch
2. Complete New Maps & Time SE’s
3. Seek Approval & Signoff of One Touch Processes
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5S as essential wisdom to be implemented
• 5S is an improvement process, originally summarised by five words
beginning with S, to create a workplace that will meet the criteria of
visual control and lean.
Ｓｏｒｔ
Remove unnecessary items
Set in Order
Sustain
Arrange necessary items for easy
And efficient access
Education to ensure that
Everyone follows ①-④
Standardize
Shine
Create guideline to ensure
keeping ①-③ every day　Cleaning everything
17
Management Operating Methodology
What is a Management Operating Methodology (MOM)?
• The MOM is a framework within which employees do their work
• It is a consistent, reliable and integrated system for planning,
decision-making, executing and reporting on client activities
Page 18 |
MOM Tools
•
A key to the success of the MOM is the ability to visualise the
business.
•
There are four main tools;
1. Master Schedule – an excel based tool that incorporates
forecasts, daily schedules and a monthly summary of
resources.
2. Daily Reporting – a hybrid of our mainframe systems and
Excel. The daily report displays the results for the previous
day by each team.
3. Whiteboards – displaying team results and communications.
4. Huddles – daily meetings to discuss results and plan for the
day.
•
These tools are critical to driving a focus to exceed our goals for
our clients, employees and shareholders.
Page 19 |
MOM in Action (Daily Huddle)
Page 20 |
Quality Assurance (QA)
The Quality Assurance Program consists of four major
components.
Complaints
- Complaints handling
Quality Control
- Reporting of complaints
- Check and approve 100% of all critical
transactions
- Action plans to reduce complaints
- All approvals are captured in a data base
- Rework is captured and reported on
Voice of Customer
- Survey Customers
Quality Monitor Program
- Reporting of Net Promoter Score
- Conduct quality reviews on all client service
value chain
- Action plans to reduce complaints
- Report quality results
- Action plans to reduce errors
Page 21 |
Benchmark study of Life Insurance
companies in Japan
In a recent benchmarking survey conducted on the Japanese insurance
industry ING Life Japan was number 1 in all key measurements of
productivity, service and performance.
# of CALLS/CSR/DAY
45
40
ING LIFE JAPAN
35
B
C
30
H
25
20
K
E
F
J
G
M
N
L
O
S
R
P
Q
U
15
D
10
W
5
Y
0
25:00
20:00
15:00
AHT （min）
10:00
05:00
00:00
22
One Touch Results
Through the introduction of One Touch there have been significant
improvements in processing times across all processes.
Process
Benefit per
Transaction (sec)
Benefit per
Transaction (%)
As is SE
One Touch SE
Change of Beneficiary
985
630
▲ 355
▲ 36.0
Change of Name
1200
768
▲ 432
▲ 36.0
Change of Owner
1507
1065
▲ 442
▲ 29.3
Change of Address
453
250
▲ 203
▲ 44.8
Re-issue of Policy 1
800
519
▲ 281
▲ 35.1
Re-issue of Policy 2
933
456
▲ 477
▲ 51.1
Fund Switch 1 by phone
597
573
▲ 24
▲ 4.0
Fund Switch 2 by mail
886
646
▲ 240
▲ 27.1
Withdrawal
334
283
▲ 51
▲ 15.3
Re-issue of Policy 1
800
519
▲ 281
▲ 5.1
23
Human Capital Improvement
Since the introduction of the Transformer Program there have
been strong productivity improvements which have lead to a
redistribution of our human capital.
Division
2009
2011
Contact Center
37
30
POS
74
39
UW
56
24
Op’s Total
167
93
The total cost of the Program so far has been equivalent to 4FTE.
24