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This is the sole and exclusive property of HDFC Life. November 10, 2014 Grass Root Improvement Opportunities :A Service Industry Perspective 5 th November, 2014 Jitendra Agrawal
This is the sole and exclusive property of HDFC Life. November 10, 2014
Grass Root Improvement Opportunities :A Service Industry Perspective
5th November, 2014 Jitendra Agrawal
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Service Industry, Indian Insurance – landscape & imperatives
Excellence in Execution through Daily Management
Grass root improvement opportunities & initiatives
Agenda
Results
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Improvement approaches learning curve in Service Industry
#1 Quality Practices in Manufacturing
#2 Service sector dynamics
#3 Landscape & imperative of Insurance industry
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Improvement approaches learning curve in Service Industry
Simply Apply vs. Simplify and Apply
#1 Quality Practices in Manufacturing has matured ISO,QS, QCC, Kaizen, SGIA, Quality Tools, Lean, Six Sigma projects, Business Planning and Performance Management thru Balance Score Card, PD-DM & PDCA Business Excellence Models: CII Exim–EFQM, IMCRBNQA-MBNQA, Deming Prize
Further building TQM, TPM, Innovation work culture, redefining World Class Manufacturing
#2 Service sector dynamics are different and is fastest growing 60% of GDP, 35% employment, ½ FI, ¼ of Trade
Mix of old & young enterprises across domains viz. Retail, ITES, Telecom, Bank, Insurance….. Nascent stage in appreciating and deploying Quality Practices Creating own business models of survival and success Low tolerance to experiment and failure - creates challenges as well as opportunities
#3 Let‟s have macro-micro views on the Landscape & imperatives of Insurance industry Privatisation in 2000, 24 players, JV partners market leaders in their countries Each parent and partner organisation bring their own business ethos, process & practices Insurance is complex and is a composite of many industries
-Factory : manage transactions (value, volume & variance management)-Retail : front end (face to face sales and service delivery)-ITES : back end (customer lifecycle management & support in digital format)-HiTech : speciality (Insurance–actuarial, underwriting viz, Banking - treasure,
credit, AMC – investment etc)
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Understand Organization’s value chain, core and non core
-‘Red’ unique to industry type
-‘Blue’ equivalent to Operations units across industries, ‘Black’ –alike across industries
Marketing
Product
Actuarial
Underwriting
Branch Ops
Hub/COPSPersistency
Grievance
HR
IT
Accounts
Taxation
B Planning
B Intelligence
Q/B Excellence
StrategyL&D
Risk, Audit
Procurement
Admin/Maint
Distributor Planning
Medical
Outsourcing
Legal
Investment
Group Sales
Insurance
Retail Sales Retail/OEM Sales
Marketing
Purchase
Design/Tech
Engg/Projects
Plant (s)
Customer ServiceHR
IT
Accounts
Taxation
B Intelligence
Q/B Excellence
StrategyL&D
Risk, Audit
Procurement
Corporate Functions
Commercial
Legal
Sustanability
Logistics & Distribution
Auto Manufacturer
Retail/OEM Sales
Marketing
R&D
Product Design
Engineering
Feeder Units
Plant (s)
Packing & Dispatch
GrievanceHR
IT
Accounts
TaxationB Planning
B Intelligence
Q/B Excellence
StrategyL&D
Risk, Audit
Procurement
Admin
Maintenance
Outsourcing
Legal
QC/QA
Electrical Equipment Mfg
Retail Sales
Marketing
Own Labels Design
Merchandising
Visual Merchandising
Depots
StoresRetention
Customer ServiceHR
IT
Accounts
Taxation
B Planning
B Intelligence
Q/B Excellence
StrategyL&D
Risk, Audit
Vendorisation
Admin/Maint
Distributor Planning
Outsourcing
Legal
Corporate
Retail Stores
Sales &Business Development
Solution Design
Transition
Call Centre Ops
GrievanceHR
IT, Security, Network Mgmt
Taxation
B Analytics &Workforce Mgmt
Q/B Excellence
L&D
Risk, Audit
Admin/Maint
Legal
Billing & Accounts
Relationship Team
ITES/BPO
Banks
Credit
Retail Sales
Marketing
Product
Branch Ops
Hub/COPSTreasury
GrievanceHR
IT
Accounts
Taxation
B Planning
B Intelligence
Q/B Excellence
StrategyL&D
Risk, Audit
Procurement
Admin/Maint
Channel Planning
Collection
Outsourcing
Legal
Cash Mgmt
Corporate Sales
Credit
Maintenance
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What drives HDFC Life
The most successful and admired Life Insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money and set the standards in the industry.'The most obvious choice for all'.
Excellence, People Engagement, Integrity, Customer Centricity and Collaboration
Profitability and cost
leadership
Unique customer
experience Strategic
Themes
Owning & select
customer segments
Long term provider of insurance solutions
Diversify & fortify
distribution mix
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Strategic
Themes
226 years of Lineage – JV of HDFC Ltd (1977) and Standard Life (1825)
HDFC Life strikes several ‘firsts’
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2001First private life insurer to launch operations in India
2002First bonus declared along with founder’s bonus first private life insurer to do so
2003Crossed 1 lac policies & 10,000 financial consultants; first distributors tie-ups with PSU banks (Indian Bank & Union Bank of India)
2004Launch of Unit Linked funds (ULIP);distributors tie-ups with HDFC Bank, HDFC Ltd. & Saraswat Bank
2005Launch of “Sar UtthakeJiyo” campaign
2006Online premium payment facility and service helpline for customers
2007Crossed the 5 lac policy milestone
20081 lac financial consultants on-board; human capital of more than 15,000 employees in place
2009Launch of 1st products in the health segment – Criticareand Surgicare
2010Assets under management (AUM) crossed INR 4.1 BnUSD., 10th consecutive bonus declared
2011Brand relaunch as “HDFC Life” with new logo
2012Maiden profit of 45Mn USD Declared; total premium for 1 year crosses the milestone of 700Mn USD
2013 Highest ever first year premium FYP of 525Mn USD.; Launch of Click-2Buy– Point of Sale underwriting system; AUM crosses 8.2Bn USD
HFDC Life is at its Teenage.....creating capabilities to ‘Excellerate’ and „Fit for Future‟
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Grass root opportunities at workplace has 3 routes to excellence
Legend : DM -Daily Management, CFM–Cross Functional Management, PD-Policy Deployment
Horizontal Alignment (CFM)
Functional Improvement (DM)
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Establish BPM / BPM Next
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Conduct Periodic Audit / Assessments
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Take Improvement projects & drive RCA, CAPA
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Make Fact based reviews use YX Dashboards
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Ensure Values & Team operating behaviour
Application of Daily Management in HDFC Life
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6 Daily Work
Establish Ownership of Area of Roles & Responsibilities
Data-Based Communication
Daily Control
Daily Work Improvement
Define & Standardize Process
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1 2Establish BPM / BPM Next
Process objectives, Scope
SIPOC – Cross-functional ownership
Workflow
Metrics
Risk & Control (FMEA & Mitigation plan)
Escalations & exceptions
Continued suitability, review, manage change
3 Periodic Audit / Assessments
Internal / External Audits
Concurrent audit
SDA for various touch points
AIRr
Self-assessment
4 Improvement triggers, RCA , CAPA
Process improvement recommendations
Projects Management Pyramid
(eUreka, WoW,impACT, SI)
Deploy best practices & create next practices
5 Fact based reviews and YX based Dashboards Review cadence
Linkage to Annual Business Planning & enhancement
6 Enable Values & Team operating behaviour
Daily huddles, work load review & balance
Functional reviews, address cross-functional agenda
Visual SOP/Checklist manifesto
Discipline thru Basics@Workplace
Competency & Skill enhancement
Summary: Elements addressed in HDFC Life Daily Management
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Establish Ownership of Area of Roles & Responsibilities
Data-Based Communication
Daily Control
Daily Work Improvement
Define & Standardize Process
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Conclusion
Learning from Manufacturing sector – ‘know what’ & ‘know how’ of Quality Improvements through the filters of
- Relevant- Simplify
- Apply
- Speed - Learn
- Sustenance- Change
Practice : See – Do – Get and create your own Global Practices & Standard (GPS)
Thank You
