Process ERSTE Group. Buzzword oder Realität?

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Seite 1 07. Oktober 2010

OE 0196 0413

Process MGMT @ ERSTE Group

Buzzword oder Realität?

Bjoern Pichler

Group Org Retail, Corporate and PcM

October 2009

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Index

−

Check of Expectations of the audience

−

Short Intro - Who

ERSTE

is

−

What we got regarding BPM

−

Process Performance Management

−

Implementation

−

Experiences

−

Lessons Learned

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Index

−

Check of Expectations of the audience

−

Short Intro - Who

ERSTE

is

−

What we got regarding BPM

−

Process Performance Management

−

Implementation

−

Experiences

−

Lessons Learned

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- Erste Group went public in 1997

with a strategy to expand its retail

business model into CEE

- Acquisition of more than 10

banks between 1997 and 2008

- Erste Group now runs market

leading retail banking operations

in the new EU member states,

which remain underpenetrated

compared to their Western

European markets

2000 2001 2005 2006 2007 2004 2003 New holding structure improving Group governance 2008

History –

Austria’s first savings bank: Founded in 1819

- Erste Group’s customer base

grew from 600,000 in 1997 to

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June 2010 5

0

10

20

30

40

50

60

70

12. 97 07. 98 02. 99 09. 99 04. 00 11. 00 06. 01 01. 02 08. 02 03. 03 10. 03 05. 04 12. 04 07. 05 02. 06 09. 06 04. 07 11. 07 06. 08 01. 09 08. 09 03. 10

Erste Group Bank AG-Share

since 1997

in EUR

Česká spořitelna (CS) bid accepted by Czech government CS deal closed Capital increase Announcement of Cross-guarantee system Buyout of CS minorities & capital increase SLSP deal closed Riječka banka purchase Postabank acquisition; deal closed EU enlargement Novosadska banka purchase Stock-split 4:1 Closing of BCR acquisition Capital increase Signing of BCR acquisition

Purchase of Bank Prestige

Bank Center-Invest Lehmann Crisis Announcement of State Capital closing price on 14.5.10 EUR 31.19

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Strategy –

Consistent strategy since 1997 IPO

Geographic

focus:

Business

focus:

Efficiency

focus:

Retail & SME

banking

Central and

Eastern Europe

Cost

consciousness

Consistent but evolving strategy since 1997 IPO

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June 2010

7

All data are as of March 2010 excl. Austria’s Retail loans and deposits (YE 2009). Percentage numbers refer to market shares. Croatia branch numbers include Montenegro.

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Erste Group business snapshot –

Retail market leadership in the eastern part of the EU

Indire ct presence Clients: 0.1m Ukraine Retail loans: 1.7% Retail dep.:0.3% Branches: 134 Clients: 4.5m Romania Retail loans: 19.9% Retail dep.: 23.2% Branches: 665 Clients: 0.2m Serbia Retail loans: 3.2% Retail dep.: 2.7% Branches: 73 Clients: 3.1m Austria Retail loans: 19.0% Retail dep.: 19.1% Branches: 1,053 Clients: 0.8m Croatia Retail loans: 13.1% Retail dep.: 12.5% Branches: 138 Clients: 5.3m Czech Republic Retail loans: 27.3% Retail dep.: 29.4% Branches: 660 Clients: 2.5m Slovakia Retail loans: 26.3% Retail dep.: 27.7% Branches: 281 Clients: 0.9m Hungary Retail loans: 13.4% Retail dep.: 8.1% Branches: 201 Total population: 120m Bankable population: 92m Erste Group customers: 17.5m

Key market stats

EU resident customers: 16.4m

Non-EU or non-EU candidate country EU or-EU candidate country

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Index

−

Check of Expectations of the audience

−

Short Intro - Who

ERSTE

is

−

What we got regarding BPM

−

Process Performance Management

−

Implementation

−

Experiences

−

Lessons Learned

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ERSTE GRO UP

What we got @ ERSTE Group

−

Vision/Mission/Strategy

−

Established function & organisational positioning

−

Process MGMT Roles & Responsibilities concept

−

Process MGMT Trainingsconcept (SixSigma,…)

−

Group Standard for BPM tool

−

Group Process Map

−

Group Process Performance Measurement

−

central infrastructure with dedicated

Competence Center

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OE 0196 0413

Index

−

Check of Expectations of the audience

−

Short Intro - Who

ERSTE

is

−

What we got regarding BPM

−

Process Performance Management

−

Implementation

−

Experiences

−

Lessons Learned

−

Example Slides (from online-system)

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PPM Implementation

How we did it

−

On-boarding Top-MGMT (Holding Board) for investment into PPM

−

Pilot selection, execution

−

Decision for group-wide roll-out with specific scope based on pilot’s

success with:

−

Defined Roles & Responsibility concept

−

Existing Infrastructure

−

Existing Know-How INTERNALLY (goal: independence from Consultant)

−

Listening/Respecting ind. country requirements/desires

−

1 country roll-out: 6 months, current: 3 months

−

Set-up of dedicated Competence Center for PPM

−

Continuous scope-enlargement for ind. countries & divisions

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ERSTE GRO UP Slide 13 07. Oktober 2010 OE 0196 0413

3 process types

2

Implemented

Processes

(IT View)

Implemented

Processes

(IT View)

1

Designed

Processes

(Project View)

Designed

Processes

(Project View)

3

Executed

Processes

(Real Life)

Executed

Processes

(Real Life)

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Root cause analysis

Influencers (analysis criteria)

What?

How?

Why?

Where/Who?

Indicators Distribution (process stability) Trend analyses

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Mission and allocation of PPM Roles

Head of Group

Process

Management

Head of Group

Process

Management

Responsible for the establishment and management of BPM and PPM

PPM Champion

Responsible to coordinate, standardize and organize PPM activities within the group

Role

_{Mission & Goals}

_Level

PPM Administrator

Responsible for the PPM technical governance within the group

PPM Customizing

Specialist

PPM Customizing

Specialist

Responsible for the customizing PPM and bring PPM knowledge to the local PPM Power User

IT Specialist

Responsible for the data sourcing within PPM

Org/IT Entity Group

PPM Power User

Responsible to coordinate and steer PPM activities in the entities

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Process Organization for PPM in

ERSTE Group

PPM Champion PPM Customizing Specialist PPM IT Specialist PPM Power User PPM Administrator Takes care of the technical governance

Technical Data manager in the Entity

Responsible to the data extraction and import in PPM

ARIS PPM Coordination

Support process standardization on group level

Group ARIS PPM Management

Operative ARIS PPM Power User in Entity

Supports Business Units with Report / KPIs

Supports in

improvement processes

Logo

Entity

Process Owner

Simple Loan Standard Process

Support to identify improvement potential Coordinates PPM Power User Support and knowledge Transfer BPM Organisation

E.g.

Performs the customization of the PPM system

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General PPM Change Management

Entities assessing the cost estimation and implementation plan. They decide about the implementation.

PPM Customizing Specialist setsup detailed

implementation plan with needed local resources

Customizing Specialist implements request with the needed local resources.

Process owner tests the changes and gives the sign-off for roll out.

Going live Process Owner request change Report change request to PPM Power User Based on improvement ideas (KPIs, measure points, …) Process owner request changes in PPM Report request to PPM Customizing Specialist

Asses cost estimation

PPM Customizing Specialist analyzes request and estimates effort of change / improvement. Align the change with group standard. Send cost estimation to PPM Power User PPM Customizing Specialist gives an estimation for effort and feedback about potential

implementation plan.

Plan implementation PPM Customizing and Set up Power User analyses and structures the request. PPM Power User PPM Customizing Specialist Process Owner PPM Customizing Specialist Process Owner PPM Customizing Specialist PPM IT Specialist PPM Customizing Specialist PPM

Power User Process Owner

Decision

PPM Champion

prioritizes and decides about request

PPM Champion

PPM Power User

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PPM Implementation and Usage:

Lessons Learned/Experiences

−

Integration of future role-holders into implementation project as soon as

possible

−

Continuous trainings and coaching (go-live + 3 qu)

−

Listening to individual pain points – erasing them as success stories

−

still do some quick wins (above mentioned is – as experienced showed

– mostly mid-term)

−

Top-down and down-up marketing of “vision” and especially benefits is

core

−

specific MGMT presentations (KISS principle)

−

bank-specific: bridge “wish-list” from business with “what is possible”

from operations in a mediator-like role

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Key Performance Indicator

Voice of the customer

Output criteria

Process Performance Indicator

(Instance)

Critical to Quality - Statement

(Instance)

The financing takes too much time!

The decisions have to be taken much faster!

Time for decision= through put-time from advice to approval

Time for decision < 19 h

FIL 0815, M06/2008 Private, EUR, 67,5 %

Translation into a actual result and its quality

Derive measurement criteria and dimensions

Target value/borders of tolerance

Specify by key dimensions and rate of achievement

Joint developmen of KPIs

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Selecting an entity

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Selected Product

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Top flop cycle time for disbursed

loans per branch

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OE 0196 0413 07. Oktober 2010 Slide 27 OE 0196 0413

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What is the difference from our

approach to regular controlling?

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Unusual

occurence –

big time gap

…

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Seite 33 26.02.2008

ARIS PPM – tech set-up

Read only User Loans Application Datamart Master Data Scoring Application JDBC-Extractor JDBC-Extractor Data (XML) Data (XML) PPM Client PPM-Application-Server Web-Server (Apache Tomcat) XML-Interface XML-Interface Oracle 9 Process Warehouse Process Warehouse PPM-Admin PPM-Config Transform Transform L o an c on tra c t is p ri n te d S i g ni ng c o n tra c t C on tr ac t is s ig ne d D i sb u rs em e nt Fro nt Offi c e a d vis o r c u st om e r L o an c o n trac t Fro nt Offi c e a d vis o r L o an co nt ra ct F IN A N TIX U pl o a d c o n tra c t C o l la te ra l c o nt ra ct C on tr ac t is u p lo ad e d L o an c on tra c t is p ri n te d S i g ni ng c o n tra c t C on tr ac t is s ig ne d D i sb u rs em e nt Fro nt Offi c e a d vis o r c u st om e r L o an c o n trac t Fro nt Offi c e a d vis o r L o an co nt ra ct F IN A N TIX U pl o a d c o n tra c t C o l la te ra l c o nt ra ct C on tr ac t is u p lo ad e d Deviation

Proce ss Definition Proce ss Exe cution

Proce ss Performance Measure ment Proce ss M anage ment Cockpit

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