wqd2011 - breakthrough process improvement - mashreq bank - improving sales, service and quality for...

1

Lean project on

Improving Sales, Service and Quality for Corporate Relationship Managers

A Mashreq Bank – Case study

09.10.2011

2 2

About Mashreq

Mashreq has provided banking and financial services to millions of customers and businesses since 1967.

We are one of UAE's leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait and

Bahrain.

We focus on providing our customers access to a wide range of innovative products and services.

Mashreq is invariably among the highest performing banks in the region. Last year we recorded a Net Profit of AED 803 million

from a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED

84.8 billion.

Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also have

customer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseas

offices in nine countries, including Europe, US, Asia and Africa.

Introduction

Vision To provide our customers the most rewarding banking

relationships

Mission Being relationship based

Delivering superior service

Being the primary bank to our customers

Being the Employer of Choice

Values We are on a constant journey towards service

excellence, developing innovative new products and

financial solutions. Anticipating your needs and providing

you with new opportunities, convenience and peace of

mind, stem from our core beliefs.

Teamwork, cooperation and responsiveness drive the

way we work and form the basis of our core values

Customer focused We act in the interest of our customers, seeking to exceed their

expectations

Transparent and fair We are clear, concise and open in all our communications, and

treat customers and our colleagues with fairness, respect and trust

Progressive We are fast, agile and constantly think of ways to enhance

customer experience

Bold We challenge established practices and take smart risks

Individually Responsible We each take responsibility for the quality of our work, the success

of the bank and delivering the brand promise to each customer

3

Project Charter E. The Goal Statement:

Improve RMs time on sales activity from 20% to 40%

F. The teams involved:

Medium Enterprise team – Corporate banking

G. Stakeholders model:

• Project chaired by the head of corporate banking

• Decision making group formed for toll gate reviews involved stakeholders from –

– SME banking

– Credit operations

– Wholesale risk management

– Legal

H. The project timelines:

• Diagnostic – 3 weeks

• Design – 3 weeks

• Plan – 1 week

• Roll out – 6 weeks

I. Quick Win opportunities (If any)

NA 3

4

Measure

4

The diagnostic indicates improvement opportunities

across the 5 dimensions of Lean

Customer

Performance Management

Organization and Skills

Mindsetsand Behaviours

Process Efficiency

Key improvement opportunities

Key improvement opportunities

▪ Sales activity of RMs can be increased by 100%– Generate additional sales

time for RMs by

simplifying and shortening administrative processes such as Credit Proposal wrinting

– ARM absorb

administrative tasks from RMs and free up sales capacity

▪ Workplace/floor organisation to be addressed

▪ Implementing new and effective performance management tools such as regular huddle structure

and 1:1 performance and coaching dialogues

▪ Full transparency in KPI and target setting required, introducing leading and

lagging indicators and making it transparent on performance boards

▪ Current structure perceived as rigid and hierarchal

▪ Going forward, there is an opportunity to increase level

of engagement, ensure transparency and improve communication between management and staff

▪ Customers voice sensitive to pricing issues and quality of service, in particular process delays and errors

▪ A survey required that links customer importance and reported performance

▪ Closing skills gaps to be addressed using a skills matrix and coaching plans

▪ Skills gaps observed as

per new design of pilot team (assets vs liability mix)

▪ Skills development to be formally reviewed in

performance meetings

5

Measure

5

Additional capacity creation opportunity, if reinvested, can

increase sales activity by ~100%

Percent of RM time

20

100% p.a.

New % of RM time on sales activity

~42

Old % of RM time on sales activity

Capacity created

Percent of RM time

Additional sales activity

5.9

2.5

2.4

3.0

0

22.0

Client Profitability Report

1.01.0

Queries2

3.0

0

Excep-tion1

4.4

2.0

Credit Facility Agreement

3.2

0.7

Credit Proposals

10.4

4.5

Total improve-ment

Time savings fromprocess improvements

Time savings fromtransfers to ARMs

1 Includes savings from Finance and Trade Centre related exceptions (operational and risk), cheque book exceptions and customer call back exceptions

2 Includes savings from remittance related queries (inward and outward)

Figures are changed

for confidentiality

6

Measure

6

From.. … to

Focus group workshop helped RMs identify key organizational

issues and discuss their future vision of Mashreq

SOURCE: Corporate RM focus group workshop 19 April

MINDSETS AND BEHAVIORS

▪ Vision: "We should try to be more innovative“

▪ Senior Management Support: "I need to know that my efforts will be recognized“, "I want guidance and support from senior management“

▪ Customer focused: "We need to have a better under-standing of what our customers want“

▪ Beat the competition: "We can beat our competition with teamwork"

▪ Engagement: "Decisions are enforced upon me"

▪ Delegation of decision rights: "Approaching Senior management for approvals requires time and we have to follow a strict hierarchy"

▪ Outdated policies & processes: "Policies are made by people who have little understanding of how things work on the frontline"

▪ Lack of direction: "Last year, KPI's were officially signed off one month before appraisals"

Data masked for confidentiality


7

Analyze

7 5

Processing delays and errors, poor staff response and branch

support caused the most dissatisfaction

SOURCE: CIBG Customer survey Dec 10, Complaints data Oct 10 – Mar 11, team analysis

Top 9 reasons for dissatisfaction1 Proportion of complaints logged onto system2

100

1

4

8

9

13

13

16

16

19

Total

xxx

Other

xxx

xxx

xxx

Problem with online

banking

xxx

xxx

xxxKey focus areas

1

2

3

4

High fees and charges

▪ Customers charged

higher for trade

licensing, service

charges and check

book fee than other

banks

Processing delays and

errors

▪ Compliance issues,

excessive approval

requirements and

missing information

No response from staff

▪ Customers unhappy

about RMs behavior,

sometimes

misinformed by RMs

Poor Branch support

▪ Lack of coordination in

branch, poor counter

service

Percent

VOICE OF THE CUSTOMER

Percent

100

2

4

4

6

6

8

8

16

47

Total

Additional products

Not available

xxx

xxx

Problem with online

banking

xxx

xxx

Poor branch

support

xxx

xxx

1 Total 127 respondents surveyed with some having recently migrated from RBG

2 xx complaints logged onto system over last 6 months (true number likely higher as not all complaints logged)

Figures are changed

for confidentiality

Data masked

for confidentiality

8

Analyze

8

RM sales activity can increase by more than 100%

SOURCE: Observation of 2 CIBG pilot cluster and non-pilot cluster RMs over 2 day period

Observation of 2 pilot cluster ARMs over 2 day period

Ad

min

istr

ati

ve

an

d

ma

na

ge

me

nt

tim

e

Percent of pilot RM time spent

Percent of pilot ARM time spent

0

100

19.8

19.6

10.2

17.0

4.8

7.8

20.8

20.2

xxx 16.5

xxx

Total 100

xxx 17.6

Administrativeactivities

14.8

xxx 3.0

Internal Queries 11.5

Portfoliomanagement

10.0

xxx 6.4

PROCESS EFFICIENCY

Current

~40Potential

20

+100%

▪ New SME commercial model being implemented through Lean: ARM will absorb administrative tasks from RMs and

free up sales capacity

▪ And, Lean will generate additional sales time for RMsby simplifying and shortening

administrative processes

% of RMs time dedicated to sales activities

RMs currently staying back beyond 7 pmon most days due to high workload

Figures are changed

for confidentiality

Data masked for

confidentiality

9

Analyze

9

There is potential to minimize all 8 types of waste across the

department

SOURCE: Shadowing an ARM over a period of 2 hours

Division Head Office

Value zones

Unit Manager Office

Office Assistant workstation

Printing/ production room

▪ Used for f iling/stationery/ printing

Coffee/tea station

▪ xxx

ARM workstations

▪ Used by ARMs

RM workstations

▪ xxxx

Conference Room

▪ Used by by team for meeting

customers

1

2

3

7

8

5

4

6

Meeting room

Entr

ance

Entr

ance

RM RM ARM ARM

Coffee/ tea station

Filing room printer/ scanner

Unit Manager

Office Assist-ant/Fax

RM

RM

Photo-copy

Division Head

Value zones

1

2

3

4

4 5

6

7

8

ARM footf low

▪ xxxx

PEOPLE PROCESS EFFICIENCY

Key Observations

▪ Filing spread across the off ice

▪ Photocopy machine location sub-optimal

▪ Multiple areas with discarded paper

▪ VPN not available for hot-desking


10

Analyze

10

Improving and simplifying existing processes and transferring

to ARMs can free up approximately 20-25% of RM time

SOURCE: BBD Value Stream Mapping and observations

PROCESS EFFICIENCY

ProcessTime Efficiencyminutes Key Opportunities

862562

CreditProposal

-35%

200125

Credit FacilityAgreement

-38%

520

CustomerQueries

-100%

10085

FTC relatedexceptions

-15%

200

Call BackException

-100%

650

Cheque bookexceptions

-100%

282142

Client profitability

Report -50%

▪ Standardize input and and checklist for collecting customer information - currently a lot of irrelevant information is included

▪ Lengthy and subjective information; is difficult to interpret

▪ WRM queries on credit proposal waste a significant proportion of the RMs time

▪ Reduce number of signatures required on CFA documentation (size varies between ~ 20 - 70 pages where each page needs to be signed by customer

and verified/initialized by the RMs

▪ Non value add activity for RMs

▪ Follow up queries for transactions can be routed through corporate customer service unit

▪ Exceptions handled outside lotus notes lead to additional work in the process

▪ Manual follow ups required for closing the exceptions which could be eliminated

▪ Non Value add for RM

▪ Call backs should be routed to customer Call Back Unit

▪ Analyze what proportion of call backs are routed to RMs

▪ Update customer contact information in the system

▪ Non Value add activity for RMs

▪ Analyze end-to-end process and link with branches

▪ Update trade licenses to prevent exception reports

▪ Multiple follow ups to rectify errors/discrepancies once CPR is released

▪ SLA needed between business and support teams to provide accurate report

and agree on margin of error

Total time for completing end to end process - existing

Total time for completing end to end process - after improvement

295215

AccountOpening

Process -27%

▪ Simplify form so that customer can fill it out easily without RM assistance

▪ Improve communication between Cash and Account Management and RM to

simplify multiple follow up procedure which wastes RM time

To be addressed in E2E

workstream

Level of

impact

Figures are changed

for confidentiality

11

Analyze

11

Example Process Flow – Credit Proposal

SOURCE: RM process walkthrough

Fill out credit check

template

Forward credit check

request to support staff

Support staff forwards

credit check request to

CIU1 via EDMS2

Receipt of credit check

report from CIU via email

Collate CP data into the

write up (Module C)5

Analyze CP information

Revert to customer for

additional information

Update customer

information in module C

Create Initiation note

in PREM4

Start

xxx

Get a market reference

check

Get the CBR3

report from

CIU for new Credit

proposal

1 Day

xxx

RM /UM define strategy &

approve initiation note

x Day xxx

Fill out document

checklist

RM/ARM

RM/ARM

CSORM/ARM

RM/ARM

RM/ARM

RM/ARM

RM/ARM

RM/UM

RM/ARM

RM/ARM

RM/ARM

RM/ARM

1 CIU: Credit Initiation Unit; 2 EDMS: Electronic Data Management System 3 CBR: Central Bank Report 4 PREM: Portfolio Reporting and ExposureManagement 5 Module C: Document containing customer financial information 6 In case of existing customer pull out the CBRB report from BIS

Enter limits, security

details, terms and conditions

into PREM

RM reviews and forwards

to UM in PREM

UM reviews and forwards

CP to WRM in PREM

EndReply to queries from

WRM

xxx

Attach Module C, checklist, Spreads, Fin-ancials, CBRB6

Report, ACR & Credit Check in PREM

Approval from WRM &

forwarded to Credit

Document-ation

RM/ARM

RM/ARM

RM UM RM

• Process time: xx minutes (xx hours)• Post-improvement time: xx minutes

• Time savings: 35%• Sign offs: 4

• Non value added- non customer facing: 4

Role Signoff required

Time spend minutes

Lead timeNon-value addprocess

5 2 10 5 30 30

15 60 120 10

10

30

120 180 120 90

15

Improved timing

120

40 60

90 60

PROCESS MAP EXAMPLE

10

tbd tbd

90

0 0

Repeat visits to customer can be

eliminated through better planning

Figures are changed

for confidentiality

12

Analyze

12

There is potential to increase the sales conversion ratio

SOURCE: Lead Management Unit, customer call logs January-April 2011

Leads pro-

vided by

LMU

Calls from

own

sources

Calls madeMeetings

plannedSale

xx%

xx xx

Meetings

attended

by customer

Total

14%

xx 51 xx

43 xx xx

xx%

xx

xx

xx

xx

xx% 92% xx%

88% 97% xx%

xx% 96% xx%

Overall

Conversion

Rate

Urgent need to implement new leads model - Direct Sales Team to send

high quality leads to RMs (as per commercial transformation workstream)

No systematic lead generation process for existing customers

(RMs relying mostly on own sources to generate new sales)

Customer acquisition

PROCESS EFFICIENCY

Key leak-age points

Figures are changed

for confidentiality

13

Analyze

13

KPI definition, target setting, reporting and improvement planning are key areas of focus for improved performance management

PERFORMANCE MANAGEMENT

1 SMART - Specif ic, Measurable, Actionable, Result-oriented, Time-bound

SOURCE: Performance Management Survey

Chart shows weighted average of survey

responses of 3 pilot team RMs

1

2

3

4

5

1 = Poor

5 = Best practice

▪ Formats are unstandardized and

unclear (e.g., pipeline reports

sent to UM in emails and excel

sheets in no particular format)

▪ Diff icult to track performance

against target

Reporting formats and frequency

▪ No formal data collection

procedure

▪ Data and report storage un-

standardized and poorly

organized, e.g., no record of sales

appointments - sometimes noted

down on outlook and personal

Blackberry calendars

Data collection, report

production

▪ Staff is not aware of targets until

very late in the year

▪ Targets are not SMART1

Target setting

▪ Few improvement actions outlined

- often without any quantif ied

impact

▪ Progress is not monitored

regularly

Improvement planning

▪ Meetings are held regularly and

have high attendance rates

▪ Discussions address performance

gaps

▪ Room for improvement in

structuring meetings (agenda,

roles, inputs, outputs)

Performance review

Corrective actions

▪ Main KPIs exist but no clear cascade

of top level sales KPIs to staff level

▪ Job descriptions for RMs in new

roles have not been defined as yet

KPI definition

▪ Root cause of problems faced by

clients are not identif ied quickly

▪ Corrective actions are not tracked

systematically

Holding daily huddles as a regular activity has driven

improvement in performance reviews

14

Analyze

14

Sales targets are not communicated to RMs in a timely manner

despite being the main KPI against which performance is measured

SOURCE: BBD KPI Report

KPI Report for individual RMs

80

Managers rating

Customer Satisfaction

5 10 5

SalesAudit and compliance

Performance management focus % split of metrics

Financial KPIs

Non Financial KPIs

Financial KPIs Non-Financial KPIs

Financial KPIs

(80 % weightage)

▪ Funds under management

– Average Deposits

– Average CASA balance

– New deposits

▪ Revenue

– Volume

– Quality

Non-Financial KPIs

(20 % weightage)

▪ Audit Result

▪ KYC completed

▪ Manager's rating

▪ Customer satisfaction

CIBG - KEY PERFORMANCE INDICATORS - FY 2010[applicable to deposit mobilizing divisions: BBD- Regular Segment)

NAME: ABCABCABCABC

DIVISION: BBD

UNIT: CIBG

DESIGNATION:

PAY BAND:

S.No. Pillar KPI COMPARISON WEIGHT DENOMI

NATION

Last Year

2009

Plan 2010 ACTUAL 2010 ACHIEVEMEN

T

WEIGHTE

D SCORE

Remarks

[A] FINANCIAL KPIs

(i) Funds under Mgt 1. Average 2010

Deposits (FD+CASA)

base

Variance against 2009

Period End Actuals

15.0 AED mio 34,335,511.0 46,183,048.0 134.5% 20.2 Deposits include

Current Accounts &

Fixed Deposits.

2. Average CASA

balance

2010 plan - Average

Balance

15.0 AED mio 31515783 35,966,387.0 114.1% 17.1

3. Each RM to get 40

New relationships

getting > AED 0.75m

deposit per relationship

As per target decided

by manager

15.0 AED mio 30,000,000.0 3,304,173.8 11.0% 1.7 Closing balance of

Current Accounts &

Fixed Deposits for each

customer

(ii) Revenue 1. Actual Revenue Variance against Plan 20.0 AED mio 3,574,082.8 2,717,947.2 76.0% 15.2

2. Quality of Revenue

based on Account

Planning weightages

Variance against actual

previous years weighted

revenues as per the

account planning

exercise

15.0 AED mio 4,981,920.0 5,115,337.0 102.7% 15.4 As per the account

planning exercise

[B] NON FINANCIAL KPIs

(i) Internal Controls 1. Audit result Satisfactory result - 2.5;

Needs Improvement -

(5); Unsatisfactory - (10)

2.5 (10.0) 2.5 Result will be taken for

last audit conducted.

2. KYC completed KYC >= 97% - 2.5;

KYC < 97% - 0

2.5 0 0.0 To be provided by

Compliance

(ii) Behavioral Factors 1. Manager's

Assessment

10.0 10.0 7.0

2. Customer satisfaction 5.0 5.0 3.0

TOTAL SCORE 100.0 82.1

Performance is primarily gauged against financial KPIs

Annual targets based on ~20% increase over the previous year but no official targets

set for 2011

Individual performance is tracked against annual KPIs using this template; last year targets released

in last quarter


KPIs

Figures are changed

for confidentiality

15

Analyze

15

Sales appointment records are not well kept or properly

organized

SOURCE: BBD

RMs use Outlook calendar features to keep track of important meetings; not all meetings are recorded

No official data on sales appointments as RMs use personalBlackberry calendars to record meeting schedules


Only a handful of meetings are recorded

▪ CRM not being used to track sales calls

Tracking sales appointments

16

Analyze

16

Skills gaps will be analyzed with skills matrix as exemplified

for pilot team

SKILLS AND ORGANIZATION

Lean skills Soft skills

Pro

ble

m s

olv

ing

Pro

cess

confirm

ation

5S

Perf

orm

ance

Managem

ent

Learn

ing k

now

ledge

Coach

ing/F

eedback

Com

munic

ation s

kills

Sett

ing D

irect

ion

Impro

vem

ent

orienta

tion

People

orienta

tion

Ass

et Pro

duct

s know

ledge

Resu

lts

deliv

ery

Liabilities

Pro

duct

Know

ledge

Fin

anci

al Analy

sis

Vig

ilance

/Due D

iligence

Bank S

yst

em

s Know

ledge

Docu

menta

tion o

f Li

ability

Pro

duct

s

Selling s

kills

Back

End O

pera

tional

Know

ledge

Cre

dit R

isk A

naly

sis

Docu

menta

tion o

f Ass

et

Pro

duct

s

Technical skills

RM 4

RM 3

RM 1

RM 2

ARM 1

ARM 2

Lean Skills

▪ Transfer classroom learned Lean skills to rest of team

Soft Skills

▪ Increase customer focus and improve on results delivery

Technical Skills

▪ RMs will need to have product knowledge and understand processing both asset and and liability

products

▪ Focus on credit risk analysis and f inancial analysis

▪ Current set-up has deliberate skills gaps around assets and liability to test new approach

Classroom trained

Recognized expert

Can do without support

Can train others

Actual skill

Required skill

SOURCE: Team interviews, self assessments

Key gaps


17

Improve

17

Proposed design approach for corporate RMs

Outputs

Process efficiency & end-to-end flow

2

Performance management

3

Organisation and skill

4

Mindsets and behaviours

5

Voice of the customer

1▪ Design new customer questionnaire/ survey

▪ Define procedure for follow up and analysis

▪ Standard Operating Procedures for CP, CFA, call backs, finance and trade related exceptions, client profitability reports

▪ Standardized template for Credit Proposals

and CFA (With CP projects team)

▪ Updated systems with customer information for

improved query handling - CRM

▪ Pipeline management for leads

▪ Skills matrix

▪ Coaching plan

▪ DILO

▪ Performance board

▪ Activity targets and metrics

▪ MIS template / IT reporting tools

▪ Meeting structure/ agenda

▪ Structure one-on-one meetings with managers

▪ Capacity management tool/ holiday planner

▪ Implementation of CRM usage

▪ Lean Wall

▪ M&B survey and feedback

▪ Suggestions box

▪ Rewards and recognition – link to PM boards

DMG support

▪ tbd

▪ Nasser Masri

▪ Johnson Rajan

▪ Amro Bibi

▪ Tony John Crasta

▪ Nasser Paracha

▪ Islam Shikoh

▪ Islam Shikoh

SOURCE: Team Analysis

▪ Islam Shikoh

▪ Amro Bibi

18

Improve

18 30

VOICE OF CUSTOMER

ToFrom

Decisions required:▪ Conduct customer survey on a routine basis – once a year

Customer surveys need to be conducted on an annual basis

with actionable improvement plans

▪ Surveys are conducted on an ad hoc basis when required

▪ Conduct structured customer surveys once a year as launched online (9th May 2011)

▪ Results of surveys not linked to action planning and feedback for improvement

▪ Link customer surveys to action planning and feedback

▪ Customer survey results are not linked to team performance objectives

▪ Link survey results to KPI’s for RM/UM/DM

SOURCE: Customer Feedback Survey Launched on 9 May 2011,Mashreq Research Team

19

Improve

19 SOURCE: Customer Feedback Survey Launched on 9 May 2011,Mashreq Research Team

VOICE OF CUSTOMER

Design SolutionCustomer Feedback

Processing delays and errors▪ Compliance issues, excessive approval

requirements, missing information

▪ Reduce referrals and exceptions, (call backs, FTC referrals, Cheque book referrals)

▪ Standardize Credit Proposal processreducing errors and lead time for approvals

▪ Enforce acceptance criteria for requests at branches

No response from staff▪ Customers unhappy about RMs

behavior, sometimes misinformed by RMs

▪ Increase customer facing time for RMs, availability of customer data and information, ARM and call centre supportto address customer concerns/queries

Poor Branch support▪ Lack of coordination in branch, poor

counter service

▪ Lean in branches, streamlining of branch processes

High fees and charges▪ Customers charged higher for trade

licensing, service charges and check book fee than other banks

▪ Not addressed as part of the Lean transformation workstream (may be considered as part of commercial workstream)

Three of four main customer concerns/issues identified in the

diagnostic will be addressed as part of design solutions

20

Improve

20

Design phase initiatives

Processes Initiatives

Re-design and Internal transfer

Impact

Transfer Out

▪ Client Profitability Report

▪ Follow up with team working on CPR

Improvement lever

▪ Account opening Process ▪ End-to-end process –Tackle in wave 2

To be covered in Wave 2

▪ Credit Proposal ▪ Design customer input template▪ Design customer documentation checklist

▪ Design internal checklist /guidelines for writing Credit Proposal▪ Design standard template for credit proposal

xx

▪ Credit Facility ▪ Agreement

▪ Convert CFA document into booklet format to reduce number of signatures

▪ Push forward on issue of documentation size with legal

xx

▪ FTC Exceptions ▪ Further analysis of exceptions data including limit expiry or excess

xx

▪ Remittance Exceptions ▪ Analyse issues pertaining to incomplete information and signature issues

▪ Analysis of channels used for call backs

xx

▪ Call Back Exceptions ▪ Eliminating call backs for un-contactable customers▪ Raise threshold limits for call back

▪ Update customer information in the system

xx

▪ Cheque Book Exceptions ▪ Update trade license in the system▪ Inconsistent format

▪ Delivery to wrong branch

xx

▪ Customer Queries to be handled by the call

center

▪ Train outsourced call center on corporate customer queries

▪ Plan communication for the customer to route the queries to the call center

▪ Ensure all RMs/ARM log customer queries on CRM

xx

Total percent of RM time freed~xx%

xx

21

Improve

21 34SOURCE: WRM interviews, BBD RMs, team analysis

PROCESS EFFICIENCY

ToFrom

Decisions required

▪ Approve new credit proposal template, customer input template and checklist Potential impact xx%

Customer Checklist CP Template

Customer Input Template CP Checklist/ Guidelines

Current CP Sample 1 Current CP Sample 2

Documentation

required from

customer

Structured and

standard CP for al

clients

Description Description

Checklist to assist

ARMs in writing CPs

~7-15 pages

containing excessive

information

Different formats used

– each CP must be

read dif ferently

Processing time for Credit Proposals can be reduced through

standardization, simplification of template and automation of inputs

▪ Credit Proposals are un-standardized, lengthy and

subjective

▪ Extra effort spent in collating customer information

through multiple calls and visits

▪ Takes a long time for RM and UM to review

Standardize

▪ Standardize customer input template (company

f inancials, background, etc.)

Minimize rework

▪ Use of checklist in collecting customer documents will

minimize return visits to customer

Simplify

▪ Reduce the number of free text f ields in the CP template

▪ Reduction in number of iterations at review stage

22

Improve

22

Reduce paperwork and administrative time by introducing new

Credit Facility Agreement

SOURCE: Discussion with BBD RMs; Legal Department

PROCESS EFFICIENCY

ToFrom

Decisions required

Approve booklet version of CFA document as interim solution

Approve redesign of CFA document with fewer pages (longer term solution)

Potential impact %

Existing CFA document

CFA document set 3 page scheduleShortened CFA

Booklet

Customer signs at

the end of terms

and conditions

Description Description

New CFA document1

1 New CFA document designed by legal (has not been rolled out so far)

▪ Length of existing CFA documentation ~20-70 pages

▪ Length of Standard terms and conditions ~15-20 pages

▪ Customer signs each and every page of the CFA

document

▪ RMs review every page before sending it to Wholesale

Credit Operations

▪ Document is sent back in case any page is left out by the

customer/ RM

▪ 3 page schedule as separate document

▪ Convert Terms and Condition into a standard booklet of

~7-8 pages

▪ Obtain customer signatures on last page of booklet only

▪ Include standard schedules in the booklet, not as a

separate document

23

Improve

23

Increase threshold limits and allow branches and CPC unit to

process transactions to reduce number of call backs

SOURCE: Call back data for February to April 11 from the call back unit

PROCESS EFFICIENCY

From

▪ 40% of call backs are escalated to RMs as the customer is un-

contactable

▪ Contact list is not updated with latest customer contact details

Percent

Call Back status

To

1 CPC: Cheque processing unit

Call back threshold analysis

Percent

Reasons for uncontactable

call backs

51

Unsuccessful

1

Cancelled

8

Un-

contact-

able

40

Successful

26

2

Contact number incomplete in contact

Contact not available in contact list

Customer not available

7

Contact number not responding

2

11

3950

> 1m 0 - 500 k500k - 1m

Decisions required

▪ Grant CPC Remittance unit approval to process transactions which are in

order without call backs

▪ Increase threshold limit for call backs

▪ Eliminate call-backs if application has been submitted at the branch

Potential impact %

▪ Refer all uncontactable call back cases

to a senior manager within CPC1

Remittances who will process it if the

transaction is in order

▪ Do not call back if signature has been

verif ied for applications submitted at

branch by customer

▪ Update customer contact number in CRM

– RMs to collect updated information

from customer

– Instruct customer to submit updated

information at branch

▪ Increase the call back limit to 1 million

instead of 500k for BBD

24

Improve

24


Performance management boards will enable effective tracking

of key metrics on a daily basis

Queries/

Complaints Status

MER/CP Status

Area for problem

solving

Skills matrixCoaching/training

plans

Focus of the

month

Team

barometer

Meeting planner

Average assetstbd

CPR/Total RevenueAverage CASA

balance

Deal of the month

m Updated monthly

Q Updated quarterly

D Updated daily

Updated manually

Updated from reporting system

D

D

D D

D

m m

mm m

mD

Q

C

25

Improve

25

Performance dialogue must be linked and paced

to allow ownership at each level

Performance review

Tracking mechanism

Weekly QuarterlyDaily

Level

Frequency

Performance Board showing

weekly results

Divisional Manager

+Unit Managers

LF + Divisional

Manager

Team RM/ARMs

+ Unit Manager (if

available)

Unit Manager +

Team RM/ARMs

Performance board –

daily/monthly results

Monthly meeting

Daily Huddle(0800 hrs)

Monthly

Weekly Meeting

(Thursday at 0900 hrs)

Quarterly meeting

Performance ppt prepared by UM

having monthly summary of the

Board

Quarterly data of all the KPIs

along with other performance

tools


Led by Divisional Manager with UMs in attendance

Led by Unit Managers with RMs and ARMs in

attendance

26

Improve

26 49

Skills matrix identifying skill gaps that need to be addressed

SOURCE: Team interviews, self assessments

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

# # # # # # # # # # # # # # # # # # # # # # # #

Behavioral

CompetenciesLean Skills Technical Competencies

Res

ults

Del

iver

y

Peo

ple

Orie

ntat

ion

Impr

ovem

ent O

rient

atio

n

Set

ting

Dire

ctio

n

Pro

fess

iona

l Exp

ertis

e

Coa

chin

g &

Fee

dbac

k

Pro

cess

Con

firm

atio

n

5 S

Per

form

ance

Man

agem

ent

Pro

blem

Sol

ving

Lean

Kno

wle

dge

Ass

et P

rodu

cts

Kno

wle

dge

Liab

ilitie

s P

rodu

ct K

now

ledg

e

Cre

dit R

isk

Ana

lysi

s

Fina

ncia

l Ana

lysi

s

Doc

umen

tatio

n of

Ass

et P

rodu

cts

Doc

umen

tatio

n of

Lia

bilit

y P

rodu

cts

Ban

k S

yste

ms

Kno

wle

dge

Vig

ilanc

e/D

ue D

ilige

nce

on

Cus

tom

er P

rofil

e / T

rans

actio

n

Cus

tom

er re

latio

nshi

p m

anag

emen

t

UM

Bac

k E

nd O

pera

tiona

l Kno

wle

dge

Sel

ling

Ski

lls

RM

RM

RM

RM

ARM

ARM

Classroom trained

Recognized expert

Can do without support

Can train others

Actual skill

Required skill

Key gaps

ORGANISATION & SKILLS


27

Improve

27

Team Barometer to understand the team’s satisfaction level

QuestionPrevious

week

Current

week

1) The new processes have been well embedded in my

team2.3 3.3

2) The new processes have made my job easier 3.0 3.7

3) My 1:1s are regular and tailored to my needs 2.3 3.0

4) I am given sufficient time to develop or, where

applicable, develop others 2.3 3.0

5) I am aware of the teams performance and my

contributions to it 2.7 3.3

6) I feel sufficiently trained to do my job well 3.0 3.3

7) I am getting my work done on time 2.7 3.7

8) The changes implemented have made positive

benefits 2.3 3.3

9) Changes have added value to my role 3.0 3.3

10) Changes have the team perform to a higher

standard 2.0 3.0

11) I feel empowered to do my job 2.7 3.3

12) I feel empowered to suggested continuous

improvement ideas 1.7 3.7

13) I look forward to coming to work every morning due

to the friendly environment I work in 2.3 3.3

We

ek

1

We

ek

2

We

ek

3

We

ek

4

We

ek

5

We

ek

6

Employee Satisfaction Survey

Sati

sfa

cti

on

Level

Weekly Trend

Weekly trend of team engage-

ment level

Low satisfaction levelHighlight concerns

with teamAddress and resolve

areas of issue immediately

How to use the team barometer

▪ Used as a tool to initiate and facilitate constructive discussions in teams of how to make experience better

▪ Put up on daily performance board to stimulate discussions

▪ Nominate one person to collect data and update results daily

▪ Barometer results should highlight key points around engagement, team dynamics, training and improvement

▪ Barometer results are anonymous and team members should NOT be asked to reveal their scores

▪ Barometer results are NOT for evaluative purposes

Satisfactory scoreWhat can we do to

improve this?

High level of satisfaction

Share best practice & success stories

with the team

MINDSETS AND BEHAVIOURS

:D

28

Improve

28

Tactical Implementation Plan (TIP) - Progress

Back spikes mainly due to

- FTC exceptions – delegation note

to be signed off by 30 Sep

- Cheque book exceptions - action

closed on 28 June

57

29

Improve

29

Key improvements across the 5 dimensions of Lean

embedded as part of the Rollout

Customer

Performance

Management

Organization

and SkillsMindsets

and Behaviours

Process Efficiency

▪ RM and ARMs trained on the new

CP templates and checklist

▪ Process changes has led to an

increase in sales activity however

results have been tempered by

factors such as annual leave,

attrition, training needs and

Ramadan

▪ Sales time for the RMs will be

further enhanced as ARMs

becoming fully trained on CP, CFA

and query handling.

▪ Huddle issues successfully closed

through quick f ixes in the

processes at branch and

operations

▪ 5S successfully

implemented

▪ Morning huddles around the

performance board have

become the part of the teams

daily routine providing the team

with a forum to discuss best

practice, sharing of successes

and problem solving.

▪ Team barometer showing positive

trends compared to the beginning

of the roll out

▪ Focus groups held for evaluation

of Mindsets & Behaviors

▪ Skill matrix defined for all

clusters facilitating areas of

development for the RM, and

ARM

▪ Improved CFA has made the

documentation more customer

friendly.

▪ Resolution of Huddle Board

issues have enhanced the

customer experience

▪ Overall process changes made

during pilot and wave 2 aim to

have positive impact on the

customer experience

▪ ARMs continuing intensive on-

board training as they strive to

assume all CFA, CP and internal

query related duties.

30

Control

30

Model and process changes have lead to significant increase in

sales activity (from 20 to 53%) in DIC

SOURCE: OPE analysis by Lean central team during pilot and wave 2 roll outOPE conducted for 4 RMs across 3 days (Wave 2)

Ad

min

istr

ati

ve

an

d m

an

ag

em

en

t

tim

e

Percent of RM time

spent (Wave 2)

PROCESS EFFICIENCY

Sa

les

tim

e

Key categories

observed

Percent RM time spent

(Pilot)

20.2%

16.5%

100.0%

17.6%

14.8%

3.0%

11.5%

10.0%

6.4%

▪ OPE analysis conducted for the DIC

Clusters and compared to

Pilot….shows signif icant increase in

sales productivity

▪ Sales time represents all client

meetings including travel time

▪ Non Value add comprises of the

time spent on lunch, breaks,

personal emails

100.0%

10.2%

13.8%

5.7%

0.5%

10.6%

0.0%

0.0%

59.3%

Total

Non Value add

Administrative

Customer Queries

Internal Queries

Portfolio

Management

CFA

CP

Sales

100.0%

16.3%

13.8%

5.7%

0.5%

10.6%

0.0%

0.0%

53.2%

Total

Non Value add

Administrative

Customer Queries

Internal Queries

Portfolio

Management

CFA

CP

Sales This sample may not be

entirely representative of the

typical contribution to

CP/CFA work by RM

Figures are changed

for confidentiality

Data masked for

confidentiality

31

Control

31

Engagement to be driven by open communication, problem

solving and dialogue

MINDSETS AND BEHAVIOURS

To

▪ Constructive problem solving and open discussion around issues; sharing of best

practices amongst team members to boost team moral and engagement

From

▪ Weekly barometer to gauge team satisfaction level

▪ Encourage discussion around engagement and team dynamics

▪ No survey to gauge the satisfaction level of team

▪ Problem solving and daily huddles are useful but

unstructured

▪ Focus group discussions showing teams perception about

engagement

▪ Focus group discussions showing staff aspirations

Teambarometer

Problemsolving

Focus group discussion

32

Control

32

ToFrom

Adherence to 5S standards shows a significant increase in

score from 36% to 76%

PROCESS EFFICIENCY

▪ Unorganized drawers and cupboards▪ No standard filing system▪ Unattended papers on the desk▪ Unnecessary client documents stored in files

▪ Standards defined for storing documents and indexing files

▪ Unnecessary documents identified and are to be moved to Metrofile

36% adherence to 5S standards

76% adherence to 5S standards

Next Steps –

• Initiative on paperless off ice – Pilot out for 1 client

33

Control

33

Control and sustain – activities handed over to business

Activity OwnerFrequency

Voice of Customer

▪ Voice of customer action planning

▪ Hameed▪ Post VOC survey

Process Efficiency

▪ 5S sustain and control

▪ DIC – Faisal▪ Deira – Anshuman▪ Sharjah – A Khaja

▪ Fortnightly

▪ Process confirmation

▪ Weekly

▪ Updating huddle boards

▪ Daily

▪ Daily team huddles

▪ Daily

▪ 1:1 coaching for RMs and ARMs

▪ Weekly

▪ KPI reporting ▪ Weekly -Thursday

Champion

▪ NA

▪ DIC - Melvyn/George/Faraz Deira - Rehan/SunishSharjah - Rachel

▪ Hameed ▪ DIC – FaisalDeira – AnshumanSharjah – A Khaja


▪ DIC - Melvyn/George/Faraz Deira – Irfan / SujithSharjah - Rachel




▪ DIC - Melvyn/Wasim/Hashmat Deira – Irfan / SujithSharjah - Rachel

▪ NA

▪ Kashif Hafeez

34 34

Project Closure

A.Learnings from the project and how they

were leveraged One of the key challenges were to roll out the huddle boards on the floor and conduct

regular huddles around it. This was managed properly by involving the RMs, ARMs, Ums

right from the time of designing the boards. People involvement is the key to success.

All solutions from the lean pilot project have been rolled out to other locations across

Dubai.

B.Team recognition Various improvement roll out during the project have been appreciated by the senior

management of the bank.

Plan

Do Check

Action

35

Finally

35

A. Why this project is an excellent

improvement example? - Commitment from senior management was the key to the success

of this project

- The most important aspect of the project was changing the

people’s mindset and behaviour

- Inspite of having multiple stakeholders dependencies it was a well

coordinated project through project plan and timelines

- Most of the decision were taken on time, thanks to the decision

making group reviewing and signing of each project toll gate

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