“Delivering the Journey:
Building Client and Employee Centric
Banks”
Kunal Chopra Sr. Director – CIBC
R&BB Process
Management
Page 2
Agenda
• Example of bad client experience and discussion 5 Minutes
• Client experience as a driver of business growth 2 Minutes
• Complexity of delivering a targeted experience / journey including methodology 3 Minutes
• ETE Digital Process Management 20 Minutes
• Background
• Data and Analytics
• ETE process and operating capabilities transformation
• Results to date of CIBC’s “Right for Client” process management transformation
• Key Take Away’s 2 Minutes
• Predictions for 2015 2 Minutes
• Q&A 15 Minutes
Page 3
Bad Client Experience
Let’s Watch: http://www.youtube.com/watch?v=AJQ3TM-p2QI As you watch the video, please consider:
• Why is this a bad client experience?
• Did the employee have the right enablers ( technology, information, knowledge and skills) to do their job?
• Did the organization miss any key opportunities?
Page 4
Client Experience as a Driver of Business Growth
• “55% of consumers would pay more for a better service experience
1”
• “One-third of financial services customers experience a service issue every year”
2The revenue at risk from dissatisfied clients is potentially enormous and should be a concern given how clients view financial services firms
1. SalesForce.com: http://blogs.salesforce.com/company/2013/10/customer-service-stats-55-of-consumers-would-pay-more-for-a-better-service-experience.html 2. Corporate Executive Board, Operations Council “Customer Experience Survey” 2010
3. Corporate Executive Board “ Managing the Unheard Voice of the Customer: Unlocking the Value of the Hidden Dissatisfied” pg. 11
Rates of Frequent Dissatisfaction by Industry3 Customer Views of Financial Services Firms3
For a midsized US bank, hidden dissatisfied clients and ineffective issue resolution represent a $536 million annual risk of revenue loss
due to attrition
3Page 5
Our Business Challenge
The business needed to improve its client and employee experience
Employee Experience
• Siloed functions and behavior
• Poor employee experience: many cycles and lots of churn
Operating Capabilities
• Transactions get stuck in the process
• Limited technology investments
• Limited definition of accountabilities and role purity
• Inefficient business and credit rules
Data
• No end-to-end process measurement
• Many “Urban Myths” and limited insight into true operating performance
Strategy
• Limited client service segmentation and design of targeted client journeys
Page 6
The Strategic Framework for a Solution
To deliver targeted and consistent client experiences requires the alignment of an organization’s strategic, employee, operational and data capabilities
• Is your organization committed to client centricity from a strategic perspective?
• Are you prepared to invest in this strategy?
• Are your employees aligned, motivated and incented to be brand ambassadors?
• Are your operating capabilities aligned end-to-end to optimize service delivery at each moment of truth along the client journey?
• Are you continuously and accurately measuring
satisfaction, service delivery and efficiency to find ways to improve?
Client centricity must be
“engineered” into service delivery design and
expectations as part of the DNA of the firm
Select Considerations
Page 7
How its Done: Two Transformations
Measure It Improve It Change It
Key Activities
Identify moments of truth and key milestones
Inventory processes
Lead with (ETE) analytics
Measured process performance ETE
Dispel “Urban Myths”
Identify improvement opportunities
Use analytics to identify and prioritize deep dive into opportunities
Prioritize areas of opportunity against defined criteria
Assess opportunities
holistically. We evaluated all our operating capabilities recognizing existing issues are not just process related
Develop relationships
Dispel myths and reveal truths without exposing people (built trust)
Syndicate issues and recommendations
Listen to partners
Continuously deliver quick wins. These build credibility!
ETE Digital Business Process Management Transformation
Client and Employee Centric
Bank Transformation Implement It
Page 8
ETE Digital Business Process Management Transformation
Business Process Management is “a management science that focuses on improving corporate performance by managing and optimizing a company’s business processes”
1Application Submission Initial Client
Contact
Adjudication Fulfillment
Origination
Adjudication
Retail Distribution Retail Operations
Time to initial Decision
Time to Final Approval
Funded Products Key Lending Moments of Truth
We needed a solution which allowed us to:
1. Measure true process performance and service delivery at client key moments of truth
2. Identify improvement opportunities and prioritize service delivery enhancements
3. Help change culture and align employees and operating capabilities end-to-end
4. Build, monitor and manage processes on an ETE basis
ETE Process Management in support of the client and the employee experience improves:
Institutions who have effective ETE Process Management grow revenue 42%
faster and improve process efficiency by 28%
21.Theodore Panagacos (25 September 2012). The Ultimate Guide to Business Process Management: Everything You Need to Know and How to Apply It to Your Organization. CreateSpace Independent Publishing Platform. pp. 6–7
2.Corporate Executive Board “ Managing the Unheard Voice of the Customer: Unlocking the Value of the Hidden Dissatisfied”
1. Client and employee experience
2. Understanding of what drives value (e.g.
application quality), allowing us to focus our transformation effort
3. Employees’ understanding of how they impact the client experience
4. Growth and ongoing continuous improvement 5. Operating capacity
Page 9
Examples of our ETE Measurement
Lending Moments of Truth
Revenue and Growth
Management Process Effectiveness
By Product By Lender
Time to Decision
Number of Submissions
Days to First Response Sales
Pipeline
Volume Errors Cycle Time
We can measure and manage multiple aspects of the business, client experience and process on an ongoing and ETE basis nationally allowing us to truly manage the business. Select examples include:
Sales Pipeline/ Client
Experience Manager Branch Quality Process Step
Dashboards
Page 10
Using Analytics to Identify and
Quantify Improvement Opportunities
Project Prioritization Benefits Estimation and Validation
Client Satisfaction Transactional
Process
Operational Risk
v
Strategic Priorities including Clients
Employee Priorities
Projects not aligned to strategic priorities
Projects not aligned to client and employee drivers
Potential Benefits
v
Projects which align to strategic, client and employee priorities with the highest benefits
Actual data drives benefit projections and business case calculations
ETE process analytics allows us to improve our project prioritization and benefits calculations
Data
Benefits are in the tens of
millions
Page 11
The ETE Client and Employee Centric Process Transformation Methodology
...Enables Client-Centric Transformation and Continuous Improvement:
• Coordinate and align the evolution of business, technology and operational processes to strategic priorities including client experience
• Envision and articulate what you need to do to satisfy the wants and needs of employees. They are key to delivering a positive client experience
• Apply metrics and measurement to change the dialogue on an ETE basis. Measure, monitor and continuously refine based in clients needs and employee experience
• Convert strategy and business needs into complete, coordinated, sequenced business models, processes and projects to drive operational excellence and improve business performance through a positive client and employee experience
The Client and Employee Centric Process Transformation Methodology….
At each process Step, identify:
1. How does this step support the target client journey?
2. Are employees enabled with the right capabilities?
3. What does the data tell us?
4. Is the process effective and efficient?
Viewing the ETE process in the context of all operating capabilities and designing for the client and employee experience allows us to deliver significant operating improvements
Strategic Alignment
Employee Focus
Operations Capabilities
Data, Metrics & Analytics
Page 12
It Is Often Not Just the Process
Delivering upon client and employee expectations at each moment of truth in the process involves aligning and optimizing each relevant capability at each step in the process
Pricing and Amount
Increased relevance
Confidence on what I can buy
Funding on Time Decide Application
Increased relevance
Page 13
Client Centric Process Transformation - Design from the outside in
Starting with an understanding what our clients, employees and stakeholders need and expect from us, we challenged existing process, capabilities and beliefs to transform service delivery
The Client and Employee Centric Transformation Journey
Identify and focus on expectations at client moments of truth and employee experience
Establish baseline analytics that track and measure the journey within the ETE process
Engage employees and identify what matters to them
Address their concerns in the process and capabilities you design
Optimize operating capabilities at each point on the journey map focusing on what's right for the client and employee experience
Continuously measure, monitor and improve business, process and operational performance against changing client and employee expectations
Identify Client Service and Employee Experience
Expectations
Document the Current State
Align and Prioritize
Transform
Continuously Measure and Improve
Page 14
Client Centric Operating Capability Design Principles
Client Journey Employee Experience
Harmonize, align and simplify policies, procedures, controls so the client understands what is expected of both parties in the transaction.
Standardize processes, make them simple and easy
Capture data once and reuse it for all products
Pre-populate forms and information using available data
Allow client to acknowledge acceptance of terms electronically
Reuse of client data and history to serve
Elimination of unnecessary data entry
Minimize client visits. We can take their
information, forms documents in any channel using the method they prefer
Enable process and technology integration across multiple channels with one point of access for employees
Minimize errors and processing delays by pre- populating client info from front to back
Provide the lender information/guidance to capture case details completely and accurately,.
Integrated workflow and integrated decision where auto and manual decisions work together to
complete cases as appropriate
Electronic Data Capture Standardize &
Simplify
Multi channel
Automation
Examples of Client and Employee Centric design principles include:
Page 15
Results to Date
We are well down the path of significantly improving the client experience at key moments of truth, modernizing the bank and improving overall business performance
Overall projected benefits are in the tens of millions once we complete implementation
• Clients are starting to feel the difference
• Employees are starting to notice the difference
• Improved pull through: 10-15%%
• Reduced the number of submissions (touch points): 15-20%
• Reduced time to decision: 5-10%
• Reduced time to final approval: 25-35%
• Increased auto approval rates: 3-5%
• We achieved these improvements while volumes have increased: 15-20%
Service Delivery Enhancements Financial Benefits
Application Submission Initial Client
Contact
Adjudication Fulfillment
Origination
Adjudication
Retail Distribution Retail Operations
Time to initial Decision
Time to Final Approval
Funded Products Key Lending Moments of Truth
Page 16
Key Take Aways
As you set forth on enabling positive client experience journeys, the following will contribute to your success
1
Strategy
The potential revenue at risk from dissatisfied clients is substantial. Client centricity must be part of an organizations strategy.
2
Employees
Employee satisfaction, motivation and inspiration creates brand
ambassadors. Engaging, understanding and resolving employee challenges to improve their experience is critical to positive client service delivery.
3
Capabilities
To enable a positive client experience, organizations must think broadly about their capabilities (process, technology, policies, human capital, business rules, organization structure) at each point in the ETE process .
Page 17
Trends for 2015
The following trends will help shape the industry in 2015
1
2
Data and Analytics
Will continue to play an increasing role in segmenting client service delivery, measuring and delivering on all aspects of the client experience.
3
Process Management
Will play an increasing role in linking operations to effective service delivery and allowing organizations to manage their business end-to-end via process and detailed analytics.
Client Service Delivery
Will continue to become increasing complex to deliver as clients continue the rapid adoption of technology and demand an integrated and customized multi-channel experience.