liking strategic planning, ing

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Linking Strategic Planning

Antoine Walthour Head of Strategic Planning, Lean Six Sigma and PMO

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Guideline www.ing-presentations.intranet

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Agenda

ING US Overview and Business Landscape Our Strategic Planning Journey Linking the Plan, Measuring Performance, and Delivering Results Q&A

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ING US Overview

q  The ING family of companies offer a comprehensive array of financial services and products to retail and institutional clients, which includes: §  Annuities §  Retirement Plans §  Life Insurance §  Mutual Funds §  Managed Accounts §  Alternative Investments §  Direct Banking §  Institutional Investment Management §  Employee Benefits §  Financial Planning

q  Holds top-tier rankings in our core product areas q  Is a top-3 provider of retirement plans q  Serves over 22 million customers q  Employs approximately 9,000 people


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Business Landscape


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ING US Insurance

US Insurance

•  Individual Life

•  Employee Benefits


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Policies Sold vs. Households with Children

Potential for Growing Need

Source: LIMRA’s Individual Life Sales Survey and LIMRA Estimates

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80Policies Households w/children

1980s 1990s 2000s

43%

40%

29%

20%

74%

52%

50%

Can’t afford life insurance

Difficult to decide how much I need

Have not gotten around to it

Worry about making the wrong decision

Prefer to put money in other financial products

No one has approached me

Unpleasant to think about dying


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Opportunity – Needs Are Up

42%39%

44%

50%

23%

32%

27%25%

1992 1998 2004 2010 1992 1998 2004 2010Needs more life insurance Likely to buy in next 12 months*

Source: LIMRA’s Individual Life Sales Survey and LIMRA Estimates

Trends in Need for Life Insurance and Future Purchase Intentions


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Benchmarks

§  The following companies were considered as ‘best in class’ in the area of strategic planning and their practices will be considered:

§  Ameritech §  American Society for Quality Control §  BancOne §  Chevron §  City of Phoenix §  City of Sunnyvale §  Commonwealth of Virginia §  Corning §  Dupont §  Florida Power & Light §  GTE §  IntelJohnson & Johnson §  Motorola §  Southern California Gas §  Wisconsin Electric Power §  Xerox

(“Best Practices in Customer-driven Strategic Planning” Federal Benchmarking Consortium Study Report).


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What does strategic planning support?

VISION

STRATEGY

STRATEGIC PLANNING

Development Execution Management


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Managing Strategy

Leverage Distribution

scale

§ Grow…. § Maintain…. § Improves § Drive… § Innovate…. Effective

Distribution

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Top tier competitive

position

§  Develop…..

Competitive Manufacturing

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§ Process….. Invest in

technology to move to

the next level

3

Efficient Operations

Strategy Objectives Key Initiatives


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Strategic Planning in US Insurance

Talent Management

Operating Plan

USEM Meetings

Linking activities through effective planning:

USEM Deep Dives

MTP Planning

Quarterly Planning Sessions

Bi-Weekly Executive LBT/EMT

Calls

Talent Management

Strategy Development

Strategic Planning


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Shift the Focus of Planning Sessions

Strategic

Tactical

Strategic

Tactical

0%

25%

50%

75%

100%

Current State Future State

•  Shift certain tactical and operational items to semi-monthly phone calls

•  Increase use of face-to-face time to develop, clarify and align long-term and short-term strategies


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Partial Planning Calendar

1st Quarter February

2nd Quarter May

3rd Quarter August

4th Quarter November

Key Topics

§ Establish operating plan targets

§ Review takeaways from sales meetings

§ Discuss market conditions and internal constraints

§ Align short-term and long-term strategies

§ Clarify and review vision and long-term strategy

§  Product Strategy §  Enabling Functions

§ Talent review & succession planning

§ Review macro environment

§ Strategic tactical planning

§ MTP refinement

§ Review year-end projections

§ Review PRT proposals

§ Review WPC results and build action plan

§ Talent Review

Standing Items

§ Review Year-End Results

§  Top 3-5 priorities by department

§ Review Quarterly Results






Location §  Minneapolis §  Offsite (Minot?) §  Leader’s Council Site §  Offsite (near Malvern?)

Participants §  LBT & EMT §  LBT & EMT §  LBT & EMT §  LBT & EMT

Length §  1.5 days LBT, .5 day LBT/EMT, 1.5 days EMT

§  1.5 LBT, .5 LBT/EMT, 1.5 EMT

§  1.5 LBT, .5 LBT/EMT, 1.5 EMT

§  1.5 LBT, .5 LBT/EMT, 1.5 EMT

•  Review of Quarterly and YE results should be brief and high level •  More detailed reviews can occur in semi-monthly phone calls


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Agenda


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The Linkage….

VISION

STRATEGY

STRATEGIC PLANNING


VISION

STRATEGY

STRATEGIC PLANNING


STRATEGIC PLANNING


Operating Results (pre-tax)Distributable EarningsUnderlying Results (pre-tax)

IRR, after taxNet Administrative ExpensesSalesReturn on Equity, Operating Results

1. 1. 1.

2. 2. 2.

3. 3. 3.

4. 4. 4.

5. 5. 5.

6. 6. 6.

7. 7. 7.

8. 8. 8.

9. 9. 9.

New products completed on time, on target in top tier in market

Productivity, cycle times, distributor satisfaction, AdminServer progress

See targets under initiative


See targets under initiatives

Strategic Objective: Turn size into scale by becoming a broader market player.

Have efficient operations (Sections 5 and 5.1)

Mission: Provide top tier product, competitive underwriting and strategies that position ING as a leading provider of protection and accumulation.

Meet our financial targets

See targets under initiativeExpense

KEY METRICS

Core Profit, PBT, VNB, IRR, Expense, EC, Sales

See HR Scorecard

Embed Six Sigma in our culture

Drive culture of compliance and meet ORM objectives

Attract, retain, develop and engage a diverse workforce

ORM score and Compliance Scorecard

HR Metric


See ORM and Compliance initiatives

Headcount, value created, customer satisfaction

See targets under initiatives

2011 TARGETS

Reporting capability and accuracy

Drive effective distribution

Have competitive manufacturing

Strategic Projects

Channel sales by premiums and policy count Distribution expansion

Expense Management


HIGH PRIORITY GOALS FOR 2011

Life Business Group2011 Operating Plan

Vision: Be the provider of choice for independent distribution. 2011 Life Financials

§ Offsite (near Malvern?)§ Leader’s Council Site§ Offsite (Minot?)§ MinneapolisLocation

§ LBT & EMT§ LBT & EMT§ LBT & EMT§ LBT & EMTParticipants

§ 1.5 LBT, .5 LBT/EMT, 1.5 EMT



§ 1.5 days LBT, .5 day LBT/EMT, 1.5 days EMT

Length

§ Review Quarterly Results

§ Top 3-5 priorities by department





§ Review Year-End Results


Standing Items

Key Topics

§ Review year-end projections

§ Review PRT proposals

§ Review WPC results and build action plan

§ Talent Review

§ Review macro environment

§ Strategic tactical planning

§ MTP refinement

§Clarify and review vision and long-term strategy

§ Product Strategy§ Enabling Functions

§Talent review & succession planning

§ Establish operating plan targets

§ Review takeaways from sales meetings

§ Discuss market conditions and internal constraints

§ Align short-term and long-term strategies

4th QuarterNovember

3rd QuarterAugust

2nd QuarterMay

1st QuarterFebruary

§ Offsite (near Malvern?)§ Leader’s Council Site§ Offsite (Minot?)§ MinneapolisLocation

§ LBT & EMT§ LBT & EMT§ LBT & EMT§ LBT & EMTParticipants




§ 1.5 days LBT, .5 day LBT/EMT, 1.5 days EMT

Length







§ Review Year-End Results


Standing Items

Key Topics

§ Review year-end projections

§ Review PRT proposals

§ Review WPC results and build action plan

§ Talent Review

§ Review macro environment

§ Strategic tactical planning

§ MTP refinement

§Clarify and review vision and long-term strategy

§ Product Strategy§ Enabling Functions

§Talent review & succession planning

§ Establish operating plan targets

§ Review takeaways from sales meetings

§ Discuss market conditions and internal constraints

§ Align short-term and long-term strategies

4th QuarterNovember

3rd QuarterAugust

2nd QuarterMay

1st QuarterFebruary

Strategy

Plan and Metrics

Management Routines

1.  Business As Usual

2.  Just Do it

3.  Continuous Improvement

4.  Technology

5.  People


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Agenda


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Thanks