Date post: | 05-Dec-2014 |
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Economy & Finance |
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Leading Indian Bank Transformation Project
Mission : Zero Unhappiness
2
3
All complaints to be resolved with root fix ComplaintsComplaints
Get it right first time. Call up a customer if
error is noticed Transactions Transactions
Ensure First ContactResolution ContactsContacts
Close SR Within TAT Good Closure Quality Service RequestsService Requests
Root Cause Analysis & Review
Reduce Service Failure Flow
Delivery FailureDelivery Failure
Mission
4
Zero Unhappiness-Strategic Intent
Necessary step for the bank to be a service leader.
Leads to improved productivity & profit Generates a positive word of
mouth.Attracts new customers Provides a competitive advantage.
More difficult and slower for a competitor to respond to service improvement than to price change.
Help us retain customers. Cheaper to retain customers than to acquire
new ones
5
Customers
Service Transformation - Scope of Project
Channels
Call Center
Branches
Account Manager
ATM
Empowering &Strengthening
Channels
Chequebook not Received
EMI Not Banked
Cheque deposited Not Credited
NOC Matured
Central& Regional OperationTeams
RAOG CPCRPCRAPG
Service Failure Credit Card not received
Backend: RCA Led ProcessImprovements &
Management Control
Enablers:IT
Projects
Enabling IT Projects
& De-bottleneckin
g •Over 10 000 employees covered
Transformation : Results
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7
Results- Service Failure Reduction
61702
50374 49326
38029
33946
23187
6031162455
7998873886
4012348163
0
20000
40000
60000
80000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
8
4307529
9037555
14793313
21799520
29187237
37593205
Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
Results- Cost Saving Through Failure Reduction
9
Results- Deposits Service Failures
18284
16892
14638
11851
10702
9339
18968
2075922562
23806
11844
14804
0
5000
10000
15000
20000
25000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
10
Results- Credit Card Service Failures
27022
18725
20222
1436813865
10368
2116521644
2902429730
18403
18121
0
5000
10000
15000
20000
25000
30000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
11
Results - Home Loan Service Failures
1000510345
9806
6351
5354
1772
1264612344
19302
10019
5601
9101
0
5000
10000
15000
20000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
12
Results- Consumer Loan Service Failures
4497
3926
4239
5094
3822
1479
5523
57446080
6744
3816
4492
0
1000
2000
3000
4000
5000
6000
7000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
13
Results - Service Failures as % of Transactions
47211
629267162476392
102705108124
8480585096
86549
79463 8041055161
0.09%
0.17%
0.26%0.27%
0.20% 0.20% 0.21% 0.18% 0.17%
0.11%0.12%0.15%
0
20000
40000
60000
80000
100000
120000
Apr-04 May-04
Jun-04 Jul-04 Aug-04
Sep-04
Oct-04 Nov-04
Dec-04
Jan-05 Feb-05
Mar-05
Months
# o
f C
riti
ca
l Re
qu
es
ts
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
% a
ge
to
To
tal T
ran
sa
cti
on
s
# of Critical Requests % Age to Total Transactions (RHS)
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Results – Quality of Request Handling
55%
62% 62% 64% 64%68% 69%
72%68%
77%
88% 87%
30%
50%
70%
90%
Apr-04
May-04
J un-04
J ul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
J an-05
Feb-05
Mar-05
15
Results-Customer Feedback Scores
74%
78%80%
64%
70%
85%88% 87%
63%
67%
75%
83%
56%
62%
77%
82%80% 80%
80% 81%
72%76%
55%
65%
75%
85%
Q-I '04 Q-II '04 Q-III '04 J an'05 Feb'05 Mar'05
Phone banking Liability BranchesAsset Branches- Home Loan Asset Branches- Consumer Loan
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5411
97629354
7712
50624468 4500
5311
2681 2863 2744
11786
0
2000
4000
6000
8000
10000
12000
Apr-04 May-04 J un-04 J ul'04 Aug'04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05
Results:Written Complaints to Bank
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Service Pyramid- Deposits
Customer Base
Transactions
Service Failures
Service Requests
Contacts
Complaints
April 2004
143
23,806
127,314
8,517,004
33,570,703
6,323,798
Mar 2005
109
9,339
141,102
10,475,085
29,023,306
7,548,780
Up/ Drop
24% DROP
61% DROP
11% UP
26% UP
13% DROP
19% UP
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Service Pyramid- Credit Card
Customer Base
Transactions
Service Failures
Service Requests
Contacts
Complaints
April 2004
4,987
29,730
54,455
614,985
6,626,758
2,151,982
Mar 2005
2,704
10,368
104,346
905,739
9,297,300
3,079,637
Up/ Drop
46% DROP
65% DROP
92% UP
47% UP
40% UP
43% UP
20
Service Pyramid-Consumer Loans
Customer Base
Transactions
Service Failure
Service Requests
Contacts
Complaints
April 2004
180
6,744
50,488
106,881
1,690,064
1,277,860
Mar 2005
32
1,479
38,969
201,703
2,074,022
2,026,242
Up/ Drop
82% DROP
78 % DROP
23% DROP
89% UP
23%UP
59% UP
21
Service Pyramid-Home Loans
Customer Base
Transactions
Service Failure
Service Requests
Contacts
Complaints
April 2004
28
10,019
22,421
56,970
1,338,367
505,000
Mar 2005
15
1,772
33,378
160,008
1,072,098
623,417
Up/ Drop
46% DROP
82%DROP
49% UP
181% UP
20% DROP
23% UP
Transformation Methodology
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Transformation Process
Root Cause Analysis &
Improvement Plan
Fulfilling Wish List & Challenging Possibilities
Budgeting & Stretch Targets
Strengthening &
Empowering Front End
Continuous Review &
Management Control Systems
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Transformation Control System
Budget for Key Metrics for Mar 05
Daily Measurement of Metrics:Alarm
Express
Daily Review & Course Correction
Weekly comparison of
Budget vs. Actual
Root Cause Analysis
Fortnightly Review
Zero Unhappiness Scorecard & RCA
Improvement Implementation
Plan
Senior Management
Junior &Middle Management
Planning ControlAnalysis & Review
Focus on Short Interval Measurement, Analysis &Review
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0
10
20
30
40
50
60
70
80
90
100
13 14 15 16 17 18 19 20 21 22 23 24 25 26
Date
Nos
Base 2 Week Moving Average3 day Moving Average
Dashboard: Daily Alarm Express
Concept of alarm express was devised to promote daily measurement & control of performance Analyzing information- attaching meaning to indicators, setting it into context, recognizing
crisis development
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Transformation Measurement : Zero Unhappiness Scorecard-Sample
Top Branch CRs# Feb
Budget Feb Actual
Variance J an '05 Dec '04 Nov '04
Ikit not activated 125 50 75 169 245 422
Instruction for A/c closure not executed 120 80 40 242 139 182
Cash Deposited At Branch Not Credited 90 86 4 121 209 188
Address change not done 140 137 3 183 187 189
Transfer Of Accounts related issues 65 55 10 88 169 168
A/c Not Opened 20 4 16 37 131 101
Outstation collection - Dispute in Amt 20 2 18 50 64 66
FD Renewal not done - deposits 10 9 1 8 32 23
TDS Amount Deducted Disputed 5 5 0 11 13 10
Fixed deposit not linked to account 5 0 5 6 10 6
Form 15 H Not Entered 0 0 0 0 0 1
Cash Deposit In Atm Not Crdited 12 4 8 21 35 56
Fixed Deposit Interest Chq Not Received 2 0 2 3 3 8
Local Outwrd chq returned physical chq not recd 5 3 2 11 17 24
TOTAL 619 435 950 1254 1444
Total Quality Budget Feb 1-15Variance J an Dec Nov
Quality -North 90% 90% 0% 45% 55% 58%
Quality -East 90% 83% -7% 69% 58% 70%
Quality -West 90% 95% 5% 65% 59% 59%
Quality -South 90% 79% -11% 60% 58% 58%
Overall Branch Banking 90% 87% -3% 60% 58% 61%
Total TAT Budget Feb 1-15Variance J an
Total CR beyond 24 hours 0 51 -51 82
Zero Unhappiness Scorecard -Deposits - Branches
Sample Scorecard Scorecard presented &
reviewed in fortnightly reviews
All variances are linked to RCA
Comparison of Monthly Performance Vs. Budget
Focus on Top Service Failures
Key Indicators Focused On : Number of Service Failures, Quality, Service Request Closed within TAT
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Transformation : Product Wise Cases
Root Cause Analysis &
Improvement Plan
Fulfilling Wish List & Challenging Possibilities
Budgeting & Stretch Targets
Strengthening &
Empowering Front End
Continuous Review &
Management Control Systems
Deposits-Central Ops
RCA
Credit Card OpsRCA
Asset Loans OpsRCA
Deposits BranchesInitiatives
Phone Banking Initiatives
Caselet Deposits: Deliverables Not Received
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Deposits : Deliverables Not Received
Apart from wrong creation, dispatch/delivery related issues needed focus
Back
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•Issue: RTO returns would sit at the branches, waiting for customer to collect them •Solution: Outbound Calling
•Every deliverable cleared resulted in a happy customer, lesser rework & cost savings•Average Contact Ratio:65%
Data :Nov04-Feb 05
Deposits : Deliverables Not Received
Back
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Deposits : Deliverables Not Received Issue :E-search Update
E-search information for certain deliverables not updated/ available resulting in inadequate /incomplete information to customers & Service Request creation errors
Initiative :E-Search Update (CTD Initiative) Identified mandatory uploads for First Contact
Resolution related to RPC/ CPC processes Designed and finalized the file formats for all mandatory
uploads - easy reading for front end National Co-ordinator appointed to tracking e-search
open cases and timely uploads I-KIT AOF Rejections,Modification Request
Rejections,Nomination Rejection Letters Nomination Registration Request Rejections,Non I-Kit SB/FD-RD AOF Rejections,Transfer of Account- Rejections,Transfer Cheque Returns, ATM Retained Cards,TDS - Form 15G Rejections etc.
Back
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0
1000
2000
3000
4000
5000
6000
7000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Est.
ATM/Debit Card PIN Chequebook 6350
1639
Deposits : Deliverables Not Received
Back
Caselet Deposits:Cheque Deposited Not Credited
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Deposits: Cheque Deposited Not Credited Cheque rejected / returned cases
New product line in esearch for uploading reject cheques
Strengthening of front end checks . Fortnightly audit by CTD
Outbound calling at branches for all final returns Amount parked in Insufficient details
account/collection account Pay-in slips with mobile numbers introduced
Selective Outbound Calling at RPCs to facilitate repair
Front End Service request creation Errors Training given to front end to ensure proper SR type
selection CTD shared the SR audit findings with front end on
fortnightly basis
Back
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8897
76697469
6832
5911
4474 4434
3724
3051
19401615
2145
1000
3000
5000
7000
9000
Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Est.
Deposits: Cheque Deposited Not Credited
Back
Caselet Credit Card:Card Not Received
36
37
Credit Card:Card Not Received
High Returns :New Card Delivery ProcessMultiple courier dispatch initiated for all
citiesASHI update started for all legs of the RTO
process Embossing Delays/Backlog
Embossing / Dispatch tracker initiated with vendor-wise, daily tracking
Development of additional vendors to reduce dependency
All embossing backlogs with Vendors cleared
Back
38
Credit Card:Card Not Received
25232412
1423 14371320
1474
1108
3552
4671
1902
1529
794
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Back
Caselet Credit Card:Cheque/Cash Not Credited
39
40
Credit Card: Cheque/Cash Deposited Not Credited Customer dropped cheque in CITIBANK
ATMs Separate tracking process in TIPS for
cheques dropped in CITIBANK drop boxes.Outbound calling, Letters to these
customersASHI updation done for these cases
Reduce Service Request Creation errors at Phone Banking
TIPS Access to all PBO’s at Call CenterRejection process made online
Back
41
Credit Card: Cheque/Cash Deposited Not Service Credited
1707
2231
13911434
1178
1068
944 936
807
583
363265
0
500
1000
1500
2000
2500
April May J une J uly August September October November December J anuary February March
Back
Asset Loans Caselets
42
43
Asset Loans:Refunds
Service Failures reduced from 4855 (April’04) to 1101 (Mar ‘05)
Steps for Service Failure Reduction Proactive Refund Initiated
Emi banked after foreclosure Excess foreclosure amount collected
Project 28-PDC factory locking date change from 18th to 28th of the month.
Direct credit of refund amount to Customer bank account.
SMS alert to customer informing dispatch details after closure of SR.
Monthly Reconciliation of Pre-Emi/Emi due and Banking for refund of excess Pre-Emi/Emi
Back
44
Asset Loans- EMI Banking
Service Failures reduced from 2212 in April’2004 to 436 in March’2005.
Steps for Service Failure Reduction: All banking done Centralized and through
System – discontinuation of manual processes Non-cycle date banking discontinued – banking
only on pre-specified dates of 1, 7, 15, 22 EMI Dues vs Banking reconciliation completed
prior to EMI Due dates – customers made aware in case of non-banking by tele calling.
Back
45
Asset Loans – NOCs for Matured loans Service Failures reduced from 2656 in
April’2004 to 330 in March’2005. Steps for Service Failure Reduction:
Dispatch of NOCs scheduled as per Cycle date and repayment mode – NOCs dispatched on clearance of final EMI
Loans closed in system before dispatch of NOCs
Charges to the customer after a specified date
Intimation letter sent to customer where RC no is not updated
Back
Phone Banking Caselets
46
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Phone Banking Initiatives-Quality Training conducted on the processes for top
Service Failure's Internal SR audit team set up to monitor 100%
of Service Failure captured at Phonebanking Daily audit reports for feedback/refresher training
Daily healthy debate between Operations & Phone Banking teams on Service Creation errors
Checklist in Service CRM updated to ensure all information is captured
SR Service creation error put as as negative scoring for all performance metrics
Back
48
Phone Banking Initiatives-Quality
78% 78% 77%
88%
83% 84% 85%
90%87%
92%95%
97%
Apr-04 May-04
J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Back
49
Phone Banking Initiatives-IVR UsageTechnical & Marketing Migration from CRN/TPIN
to Card no. and APIN All Menu options
available on Punch Fast Path Access to
various Menu Options Channel migration and
call mandating by PBO Promotion of Self
Banking on ATM screen saver , SMS , Pin Mailers
System recognition of difference between no input and incorrect input
Functionality added Internet Banking
userid / Last Payment details under transactions
Loan on Phone with authentication
Dedicated Options: Debit Card queries
Preferred Card Activation option introduced
Back
50
Phone Banking Initiatives- IVR Usage
24%
20%22% 22%
25%
34%37%
40% 41%43%
48%50%
36%
29% 30%
36% 36%
47%
52%55% 55%
59%
65%68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
April
May
J une
J uly
Augus
t
Sept
embe
r
Oct
ober
Novem
ber
Decem
ber
J anu
ary
Febr
uary
Mar
ch E
st.
Authentication Trasactions (over total calls)
Back
Branch Banking Caselets
51
52
Branches Initiatives : Service Failures/Cust IDs Alarm Express : Daily RCA sent to branches
Service Failure-wise, branch-wise, reason-wise,RMBB-wise
Short Interval Control of RMBBs Daily contacts by JGMs
Getting it right first time Two issues : Delay, Standard Checks not done
Catch the mistake before the customer does Call customer (outbound calling) and resolve
If can’t resolve in 24 hours Escalate and inform customer
Back
53
Branches Initiatives :Service Failures/ Customer IDs
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
1.3
.07
Back
54
Branch Initiatives :Quality
Initiatives at Branches Branch-wise Focus
Focus shifted from Zone-wise quality to Branch-wise quality
Short Interval Control From monthly review to weekly review of overall
quality Training of Branches conducted by Centralized
Operations Team E-search Updation project co-ordinated by CTD
Reduced wrong capture/duplicate capture
Back
55
Branch Initiatives- Quality
54
59
51
58
5350
59 58 60
65
83
90
0
10
20
30
40
50
60
70
80
90
100
Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar
Back
Thank You
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