• 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.
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About AMP
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ING slashes 7,000 jobs, CEO leaves
January 26, 2010
Japan in cris
is as
jobs slashed
February 1, 2009
Australian budget to go into
deficit as financial crisis wipes
$115bn from tax revenue
AA
P
February 02, 2010
Korean exports shrin
k
by one-third
February 2, 2009 - 3
:03PM
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
Our Current World is Rapid Discontinuous Change
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.
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• 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.
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Creating the Transformer Program
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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
Quality Assurance People
Transformer
Program
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”
Transformer Program
Goals of Process ImprovementCreate 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%
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Process
Hierarchy
Transaction Service Level
Service Expectati
on
Annual volume
Process Map
Has this process
optimized?Memo
Paying Out
Surrender 2 Days 10min 54383 Y Y
Policy Loan 2 Days 15min 4304 N N
Paid Up 2 Days 5min 1204 N N
Cancelation of rider 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
Paying In
Billing/Paying-in Type A 1 Day 7min 52523 Y Y
Billing/Paying-in Type B 1 Day 7min 1889 Y Y
Billing/Paying-in (Group) 1 Day 11min 518743 Y Y
Alteration
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
• 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.
Business Process Framework Matrix (BPFM)
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.
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Modeling
Execution
Business Process
Framework
Life-Cycle
Monitorin
g
Opt
imiz
atio
nDesign
Creating a BPF Life Cycle
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
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Process Library
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
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One Touch & Lean Kaizen
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 multi-
skilled 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.
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Lean Kaizen Program Concept
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ProcessOwner
UW 1
Program sponsor : COO
Facilitator:Business Transformation Team
Project sponsor : Division Managers
UW 2 CS 1 CS2 CS3 CS4 CS5 CS6 CC1 CC2 CC3 OpB1 OpB2
Lean Kaizen Program Organization
Tasks Mar Apr May Jun Jul
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
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
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Project Schedule
• 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 Touch Transformation
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Step 1
Step 2
Step 3
Ste
p 4
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
One Optimization Transformation
SortRemove unnecessary items
Set in OrderArrange necessary items for easy
And efficient accessSustain
Education to ensure thatEveryone follows ①-④
StandardizeCreate guideline to ensure keeping ①-③ every day
ShineCleaning everything
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• 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.
5S as essential wisdom to be implemented
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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
Management Operating Methodology
• 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.
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MOM Tools
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The Quality Assurance Program consists of four major components.
Complaints- Complaints handling- Reporting of complaints
- Action plans to reduce complaints
Quality Control- Check and approve 100% of all critical transactions
- All approvals are captured in a data base
- Rework is captured and reported on
Voice of Customer - Survey Customers
- Reporting of Net Promoter Score
- Action plans to reduce complaints
Quality Monitor Program- Conduct quality reviews on all client service value chain
- Report quality results
- Action plans to reduce errors
Quality Assurance (QA)
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C
D
H
J
K L
P QRS
U
W
Y
ING LIFE J APAN
F
B
EG
MN
O
0
5
10
15
20
25
30
35
40
45
00:0005:0010:0015:0020:0025:00AHT (min)
# of CALLS/CSR/DAY
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.
Benchmark study of Life Insurance companies in Japan
Process As is SE One Touch SE Benefit per Transaction (sec)
Benefit per Transaction (%)
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
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Through the introduction of One Touch there have been significant improvements in processing times across all processes.
One Touch Results
Division 2009 2011
Contact Center 37 30
POS 74 39
UW 56 24
Op’s Total 167 93
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Since the introduction of the Transformer Program there have been strong productivity improvements which have lead to a redistribution of our human capital.
The total cost of the Program so far has been equivalent to 4FTE.
Human Capital Improvement