bridging it implementation with anz’s organisational culture

Bridging IT implementation with

ANZ’s organisational culture

Peter DeanHead of Technology, Personal Banking & Wealth

Australia and New Zealand Banking Group Limited

Presentation to AFR 3rd Annual Banktech Summit

7 November 2002

Agenda

• The ANZ approach

– Strategy

– Technology focus

• Aligning IT with ANZ’s culture– People

– Customers

– Processes

– Infrastructure

• IT Case Study: ANZ’s approach to project management - aligning IT with ANZ’s culture.

• Key achievements

ANZ’s Strategy

Organic out-performance

Portfolioreshaping

Transformationalmoves

• Extend specialisation• Grow customer numbers• Increase share of wallet• Drive productivity

• Revenue growth materially higher than expense growth

• Take business units to sustainable leadership positions

• Build a range of strategic options

Our targets

• Invest in high growth areas• Build specialist capabilities• Exit weak positions• Risk reduction

• Step changes in positioning• Creating new growth options• Proactively shaping industry

Breakout culture

• Create the ‘Bank with a Human Face’

• Build strong commitment to our people

• Promote team performance and cultural transformation

ANZ’s Technology Focus

Putting technology to work to:

• Provide our customers with a personalised, consistent experience

• Empower our customers and our people with real time information access and online applications via web-based technology, anywhere and anytime

• Ensure our technology is robust, flexible and cost effective

• Aggressively reduce costs, improving productivity, benchmarking, increasing ‘straight-through’ processing, simplifying and automating administrative functions

• Provide low-risk, high-efficiency & state-of-the-art payment capabilities

Agenda

• The ANZ approach– Strategy



– Customers

– Processes

– Infrastructure



Initial Strategy (1998) – provided focus to align IT with ANZ’s culture

• Little BU focus• Poor

understanding of business drivers

• Service levels poorly understood

• Leadership weaknesses

• High staff turnover: 18%

• Many cultures

• Poor disaster recovery

• Inconsistent architectures

• Poor project management & methodology

• Billing of services incomplete and inaccurate

• Inflexible, high cost technology

• 15 data networks • 6 core systems• Many different

platforms

1998: Inward focused, low satisfaction, weak process, complex infrastructure 1998: Inward focused, low satisfaction, weak process, complex infrastructure

InfrastructureProcessPeopleCustomers (BU)

Customers - Commitment to focus technology on business unit objectives

Electronic timesheet capture for IT project tracking, reporting & billing

Detailed billing to Business Units for IT services

Customer survey/ feedback process on 6 monthly basis. Linked to individuals’ performance measures.

Service level agreements in place for each Business Unit

Average SLA for major systems

Average - 1999 Average - 2000 Average - 2001

Clear alignment between Technology & Business Units

People - Skilled & committed

pcs@home: heavily subsidised packages for staff to acquire PC’s

Online training courses

Management tertiary qualifications policy

Half yearly staff survey with action teams to address issues raised

Breakout cultural transformation workshop

eVouchers provided free to staff to choose reading materials

Capability Maturity Model• Significant productivity &

quality improvements• CMM

– AustraliaPartial level 2 certification - 1st Australian Bank

– Bangalore, Indialevel 4 certification

Project in a Box• ‘Best of breed’ project

management tools• Central repository for all project

reporting• Open access to all users

Process – designed to improve execution capability

Project management training• Generic training courses tailored

with ANZ specific content & latest Project in a Box tools

Reengineering in a Box• Standard tools,

templates & process for re-design of business processes

Continuous improvement programme

• Driving real culture change• Series of workshops for all staff• Resulted in significant cost

savings

Infrastructure - Commitment to rationalisation & standardisation

1998:

6 major systems

CBSHogan

2001Core Systems

1998 2002

- Provide all staff with best tools possible

- Low cost of ownership through standard solution

OS/2

Win 3.1Win NT

DOS

Servers & Desktops

1998

Multiple data networks

2000IP network

- Single IP Network provides universal connectivity

Platform FocusEg,W2K, UNIX, MVS

1998

8+ major platforms

Platforms2002

- Greater ability to leverage new technologies

- Lower hardware, software licence fees & support costs

- Simpler systems & platforms reduce cycle times

Initial IT strategy (1998) – where are we in 2002?

• Explicit business partnership

• High Customer satisfaction 7.7 (Sep 02)

• Service Level Agreements

• Customer Survey/ feedback process

• Significant

benefits from our continuous improvement program

• Improved Staff satisfaction to 83%

• IT staff turnover below 4%

• Training on-line• Leadership

Development program

• Performance culture

• Full DRP in all critical

processes • 854 staff through

Project Mgt program• New Processes -

PiaB, One Team, CMM, Niku, RAD, Phased funding, Outcome Management

• Technology costs defined and regularly reported

• Technology governance, standards & policies

• Detailed billing

• Tandem, Unix & AS400 rationalisation

• 2 core systems• Single IP Network• Standard Win2000

desktop across Australia

• Intranet to all but 800 Int’l staff

• Established strategy for standardisation and re-use

2002: Customer focused, positive culture, improving process, simpler infrastructure 2002: Customer focused, positive culture, improving process, simpler infrastructure

Customers (BU)

People Process Infrastructure

Agenda

• The ANZ approach– Strategy



– Customers

– Processes

– Infrastructure



Situation analysis - What our internal business customers expect from IT

• IT support of each Business Unit’s strategy and agenda and elivery of annual Business Unit targets

• Dedicated IT team to meet Business Unit needs

• Maximisation of the return on investment in technology

• Accelerated, high quality, ‘no surprises’ delivery of IT projects

• Substantial increase in output, at reduced cost

• Zero customer impact operating environment

• Increasingly aggressive use of technology in short time frames

Our Project Management ChallengeSituation

• High demand for professional staff– Resources increasingly expensive

and limited

– Need to move from traditional ‘technical’ focus to ‘systems & business integration’ focus

• Complexity of large specialist organisation

– Projects increasingly need to cover multiple businesses

• Need to improve project delivery and build & maintain a project management culture

– Ensure a ‘no surprises’ culture

Solution

• Develop high quality project management system to better leverage our existing project management capability

Our Approach

Began with pilot of 100 staff

Development of ANZ’s Project

Management practices

Widespread deployment in Australia

Implementation in India

To ensure high quality delivery of IT projects, we implemented a two-phased approach - the Capability Maturity Model (CMM) for software development, followed by the refinement and enhancement of our project management (PM) practices

To ensure high quality delivery of IT projects, we implemented a two-phased approach - the Capability Maturity Model (CMM) for software development, followed by the refinement and enhancement of our project management (PM) practices

• Results were meeting expectations within 6 months• Work has been almost entirely self funding

CMM PM

Project Management Practices – what we have done

What

• Improved project delivery capability

• Improved project management capability

• Better managed the utilisation of project management skill sets to our project portfolio

Key attributes

• Evidenced by increase in projects with green or amber status

• Peer reviews, training and mentoring of project managers, project review process

• More informed of skill levels of project managers and better understand current and future skill requirements

• Improved delivery capability

• Professional project management culture

• Appropriate project management skills available for all

project engagements

• Highly developed project management skills and practices

• Improved risk profile for portfolio of projects

• Enhanced compliance to all standards and policies

Project Management Practices – key outcomes

Project Management Practices - advantages

For our business

• Greater flexibility

• Improved exposure and understanding of ‘project risk portfolio’

• More predictable project start-up and outcomes

• Standard modus operandi

• Development of the correct Project Management skill set for now and the future

• ‘Better and wanted project managers’ most appropriate candidate for an engagement

• Proper management of Project Management careers

For team members

• Better development of Project Management career paths

• Increased choice on future engagements

• Focussed career management

• Mentoring and coaching from within/ peer support

• Information forums

• Generic measurable Project Management KRAs

• Participate in project peer reviews

Key lessons

• Do this for tangible, business outcomes

• Use metrics to track progress and lock in results

• Make sure everyone is accountable for the same outcomes – and use strong incentives

• Strong support for teams with their customers – dates will be missed early in the program

• Teams go through a ‘valley of despair’ in the early stages and need help through this

Key challenge is change managementWinning hearts and minds is difficult at outsetFirst 6 months is very difficult – needs strong leadership &

experience helpsSuccess = excitement = more success

Key achievements

• Aligning IT implementation with ANZ’s focus on people, customers, process and infrastructure has delivered:

– Better outcomes for IT’s business unit customers

– Higher customer satisfaction

– High IT staff satisfaction rate

– High quality, more productive IT staff

– Simpler infrastructure - robust processes supported by a continuous improvement focus

Questions?

Copy of presentation available on

www.anz.com

The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in summary

form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment

objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is

appropriate.

For further information visit

www.anz.com

or contact

Philip GentryHead of Investor Relations

ph: (613) 9273 4185 fax: (613) 9273 4091 e-mail: [email protected]

bridging it implementation with anz’s organisational culture

Documents

anzs approach

anzs strategyorganic

technology business

webbased technology

project tracking

weak process

customers commitment

business driversservice