Breakthrough Process Improvement case study submitted by Mashreq Bank during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
WQD2011 - Breakthrough Process Improvement - Mashreq Bank - Improving Sales, Service and Quality for Corporate Relationship Managers
1. Lean project on
Improving Sales, Service and Quality for Corporate
Relationship Managers
A Mashreq Bank – Case study
09.10.2011
1
2. Introduction
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.
Vision Customer focused
To provide our customers the most rewarding banking We act in the interest of our customers, seeking to exceed their
relationships expectations
Mission Transparent and fair
Being relationship based We are clear, concise and open in all our communications, and
Delivering superior service treat customers and our colleagues with fairness, respect and trust
Being the primary bank to our customers Progressive
Being the Employer of Choice We are fast, agile and constantly think of ways to enhance
Values customer experience
We are on a constant journey towards service Bold
excellence, developing innovative new products and We challenge established practices and take smart risks
financial solutions. Anticipating your needs and providing Individually Responsible
you with new opportunities, convenience and peace of We each take responsibility for the quality of our work, the success
mind, stem from our core beliefs. of the bank and delivering the brand promise to each customer
Teamwork, cooperation and responsiveness drive the
way we work and form the basis of our core values 2
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
The diagnostic indicates improvement opportunities
across the 5 dimensions of Lean
Key improvement Key improvement
opportunities opportunities
▪ Sales activity of RMs can be ▪ Implementing new and
increased by 100% effective performance
– Generate additional sales management tools such as
time for RMs by regular huddle structure
Process Efficiency Performance
simplifying and and 1:1 performance and
Management
shortening administrative coaching dialogues
processes such as Credit ▪ Full transparency in KPI
Proposal wrinting and target setting required,
– ARM absorb introducing leading and
administrative tasks from Customer lagging indicators and
RMs and free up sales Mindsets Organization making it transparent on
capacity and and Skills performance boards
▪ Workplace/floor organisation Behaviours
to be addressed
▪ Closing skills gaps to be
addressed using a skills
matrix and coaching plans
▪ Current structure perceived ▪ Customers voice sensitive to ▪ Skills gaps observed as
pricing issues and quality of per new design of pilot
as rigid and hierarchal
service, in particular process team (assets vs liability
▪ Going forward, there is an
delays and errors mix)
opportunity to increase level
of engagement, ensure ▪ A survey required that links ▪ Skills development to be
customer importance and formally reviewed in
transparency and improve
reported performance performance meetings
communication between
management and staff 4
5. Measure
Additional capacity creation opportunity, if reinvested, can
increase sales activity by ~100%
Additional sales activity Capacity created
Percent of RM time Time savings from
Percent of RM time
process improvements
22.0 10.4
Time savings from
transfers to ARMs
5.9
100% p.a.
4.5
3.2
~42
2.5
20 4.4
0.7
2.4
Old % of New % of
RM time on RM time on 2.0 3.0
sales activity sales activity 3.0
1.0
0 1.0 0
Total Credit Credit Excep- Queries2 Client
Figures are changed
improve- Proposals Facility tion1 Profitability
f or conf identiality ment Agreement Report
1 Includes savings from Finance and Trade Centre related exceptions (operational and risk), cheque book exceptions and custom er call back
exceptions
2 Includes savings from remittance related queries (inward and outward)
5
6. MINDSETS AND BEHAVIORS
Measure
Focus group workshop helped RMs identify key organizational
issues and discuss their future vision of Mashreq
From.. … to
▪ Engagement: "Decisions ▪ Vision: "We should try to
are enforced upon me" be more innovative“
▪ Delegation of decision ▪ Senior Management
rights: "Approaching Support: "I need to know
Senior management for that my efforts will be
approvals requires time recognized“, "I want
and we have to follow a guidance and support from
strict hierarchy" senior management“
▪ Outdatedmasked for
Data policies & Data masked for
▪ Customer focused: "We
confidentiality
processes: "Policies are confidentiality
need to have a better
made by people who have under-standing of what our
little understanding of how customers want“
things work on the ▪ Beat the competition:
frontline" "We can beat our
▪ Lack of direction: "Last competition with
year, KPI's were officially teamwork"
signed off one month
before appraisals"
6
SOURCE: Corporate RM f ocus group workshop 19 April
7. VOICE OF THE CUSTOMER
Analyze
Processing delays and errors, poor staff response and branch
support caused the most dissatisfaction
Top 9 reasons for dissatisfaction1 Proportion of complaints logged onto system 2
Percent Percent
Key focus areas
xxx 47 xxx 19
1 High fees and charges
▪ Customers charged
xxx 16 xxx 16
higher f or trade
licensing, service
xxx 8 xxx 16 charges and check
book f ee than other
Poor branch Problem with online banks
8 13
support banking
2 Processing delays and
errors
xxx 6 xxx 13
Data masked
▪ Compliance issues,
excessive approval
xxx 6 xxx 9 for
requirements and
missing inf ormation
confidentiality
Problem with online
4 xxx 8 3 No response from staff
banking
▪ Customers unhappy
about RMs behavior,
xxx 4 Other 4
sometimes
misinf ormed by RMs
Additional products
2 xxx 1
Not available 4 Poor Branch support
▪ Lack of coordination in
Total 100 Total 100 branch, poor counter
service
Figures are changed
f or conf identiality
1 Total 127 respondents surveyed with some having recently migrated f rom RBG
2 xx complaints logged onto system over last 6 months (true number likely higher as not all complaints logged)
7
SOURCE: CIBG Customer survey Dec 10, Complaints data Oct 10 – Mar 11, team analysis 5
8. PROCESS EFFICIENCY
Analyze
RM sales activity can increase by more than 100%
Percent of pilot Percent of pilot
% of RMs time dedicated to sales
RM time spent ARM time spent
activities
xxx 20.2 0
Current 20
xxx 16.5 20.8
Potential ~40
xxx 6.4 7.8
Portfolio +100%
10.0 4.8
Administrative and
management
management time
Internal Queries 11.5 17.0 ▪ New SME commercial model
being implemented through
Lean: ARM will absorb
xxx 3.0 10.2 administrative tasks from RMs and
free up sales capacityfor
Data masked
Administrative
activities
14.8 19.6 confidentiality
▪ And, Lean will generate
additional sales time for RMs
xxx 17.6 19.8 by simplifying and shortening
administrative processes
Total 100 100
Figures are changed
f or conf identiality RMs currently staying back beyond 7 pm
on most days due to high workload
SOURCE: Observation of 2 CIBG pilot cluster and non-pilot cluster RMs over 2 day period 8
Observation of 2 pilot cluster ARMs over 2 day period
9. PEOPLE PROCESS EFFICIENCY
Analyze
There is potential to minimize all 8 types of waste across the
department Value zones ARM f ootf low
Filing room 2
Value zones Unit
printer/
Manager
scanner
Entrance
1 Division Head Office
3
Office
Assist-
Unit Manager Office ant/Fax 1
2
Division
3 Office Assistant workstation Head
▪ xxxx RM
4
4 RM workstations RM
▪ xxxx
RM RM ARM ARM
4 5
Entrance
5 ARM workstations
▪ Used by ARMs
6 Conference Room
▪ Used by by team f or meeting Coffee/
tea 7
customers station
6
7 Printing/ production room Meeting Photo
room 8
▪ Used f or f iling/stationery/ printing -copy
Key Observations
8 Coffee/tea station ▪ Filing spread across the of f ice
▪ xxx ▪ Photocopy machine location for
Data masked sub-optimal
▪ Multiple areas with discarded paper
confidentiality
▪ VPN not available f or hot-desking
9
SOURCE: Shadowing an ARM over a period of 2 hours
10. PROCESS EFFICIENCY
Analyze
Improving and simplifying existing processes and transferring
to ARMs can free up approximately 20-25% of RM time
Total tim e for com pleting end to end process - existing
Total tim e for com pleting end to end process - after im provement
Time Efficiency
Process m inutes Key Opportunities
Credit 862 ▪ Standardize input and and checklist for collecting customer information
Proposal 562 - currently a lot of irrelevant inform ation is included
▪ Lengthy and subjective information; is difficult to interpret
-35%
▪ WRM queries on credit proposal waste a significant proportion of the RMs tim e
Credit Facility 200
Agreem ent
▪ Reduce number of signatures required on CFA documentation (size varies
125
between ~ 20 - 70 pages where each page needs to be signed by customer
-38% and verified/initialized by the RMs
Custom er 52 ▪ Non value add activity for RMs
Queries 0 ▪ Follow up queries for transactions can be routed through corporate customer
-100% service unit
FTC related 100 ▪ Exceptions handled outside lotus notes lead to additional work in the process
Level of impact
exceptions 85 ▪ Manual follow ups required for closing the exceptions which could be
-15% elim inated
Call Back 20 ▪ Non Value add for RM
Exception 0 ▪ Call backs should be routed to customer Call Back Unit
-100% ▪ Analyze what proportion of call backs are routed to RMs
▪ Update customer contact information in the system
Cheque book 65 ▪ Non Value add activity for RMs
exceptions 0 To be addressed
▪ Analyze end-to-end process and link with branches in E2E
-100% ▪ Update trade licenses to prevent exception reports workstream
Client
282 ▪ Multiple follow ups to rectify errors/discrepancies once CPR is released
profitability
Report
142 ▪ SLA needed between business and support teams to provide accurate report
-50% and agree on m argin of error
Account
295 ▪ Sim plify form so that customer can fill it out easily without RM assistance
Opening
Process
215 ▪ Im prove communication between Cash and Account Management and RM to
-27% sim plify m ultiple follow up procedure which wastes RM tim e
Figures are changed 10
SOURCE: BBD Value Stream Mapping and observations f or conf identiality
11. Analyze
Example Process Flow – Credit Proposal PROCESS MAP EXAMPLE
Lead tim e Tim e spend Non-value add
m inutes process
Role Signoff Im proved
required tim ing
RM/ RM/ RM/ RM/ RM/ RM/
CSO
ARM ARM ARM ARM ARM ARM
5 2 Support 10 5 30 10 30
Get the CBR3
Forward staff forwards Receipt of
Fill out credit Get a market Fill out report from
credit check credit check credit check
Start check reference document CIU for new
request to request to report from
template check checklist Credit
support staff CIU1 via CIU via email proposal
EDMS 2
xxx 1 Day
RM/ RM/ RM/ RM/ RM/ RM/
ARM UM ARM ARM ARM ARM
15 15 60 120 10 30
RM /UM define Collate CP Revert to Update
Create
strategy & Analyze CP data into the customer for customer
Initiation note
approve information write up additional information in
in PREM4
initiation note (Module C) 5 information module C
tbd tbd 40 60 0 0
x Day xxx xxx Repeat visits to
customer can be
RM/ RM/ eliminated through
RM UM RM better planning
ARM ARM
120 Attach 10 180 120 90 Approval
Enter Module C,
limits, security checklist, RM reviews UM reviews Reply to from WRM &
details, terms Spreads, Fin- and forwards and forwards queries from forwarded to End
ancials, CBRB6 CP to WRM in Credit
and conditions Report, ACR & to UM in PREM WRM
into PREM Credit Check PREM Document-
in PREM ation
90 120 90 60
• Process time: xx minutes (xx hours) xxx
• Post-improvement time: xx minutes
• Time savings: 35%
• Sign offs: 4 Figures are changed
• Non value added- non customer facing: 4 f or conf identiality
1 CIU: Credit Initiation Unit; 2 EDMS: Electronic Data Management System 3 CBR: Central Bank Report 4 PREM: Portfolio Reporting and Exposure
Management 5 Module C: Document containing customer financial information 6 In case of existing customer pull out the CBRB report from BIS
11
SOURCE: RM process walkthrough
12. Analyze
PROCESS EFFICIENCY
There is potential to increase the sales conversion ratio
Customer acquisition
Key leak-
age points
Meetings Overall
Meetings
Calls made attended Sale Conversion
planned
by customer Rate
Leads pro-
xx xx xx xx
vided by
LMU 92% xx% xx%
xx%
Calls from
43 xx xx xx
own
sources
88% 97% xx% xx%
xx 51 xx xx
Total
xx% 96% xx% 14%
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)
Figures are changed
SOURCE: conf identiality
f or Lead Management Unit, customer call logs January -April 2011 12
13. Analyze
PERFORMANCE MANAGEMENT
KPI definition, target setting, reporting and improvement planning
are key areas of focus for improved performance management
KPI definition 1 = Poor
▪ Main KPIs exist but no clear cascade 5 = Best practice
of top level sales KPIs to staf f level
Corrective actions ▪ Job descriptions f or RMs in new Reporting formats and frequency
roles have not been def ined as yet
▪ Root cause of problems f aced by ▪ Formats are unstandardized and
clients are not identif ied quickly unclear (e.g., pipeline reports
▪ Corrective actions are not tracked
5
sent to UM in emails and excel
systematically sheets in no particular f ormat)
4 ▪ Dif f icult to track perf ormance
against target
Performance review 3
▪ Meetings are held regularly and Data collection, report
have high attendance rates 2 ▪ No f ormal
production data collection
▪ Discussions address perf ormance procedure
gaps ▪ Data and report storage un-
▪ Room f or improvement in 1
standardized and poorly
structuring meetings (agenda, organized, e.g., no record of sales
roles, inputs, outputs) appointments - sometimes noted
down on outlook and personal
Blackberry calendars
Improvement planning
▪ Few improvement actions outlined
- of ten without any quantif ied Target setting
impact ▪ Staf f is not aware of targets until
▪ Progress is not monitored very late in the year
regularly ▪ Targets are not SMART1
Holding daily huddles as a regular activity has driven Chart shows weighted average of survey
improvement in performance reviews responses of 3 pilot team RMs
1 SMART - Specif ic, Measurable, Actionable, Result-oriented, Time-bound
SOURCE: Perf ormance Management Survey
13
14. Analyze
PERFORMANCE MANAGEMENT
Sales targets are not communicated to RMs in a timely manner
despite being the main KPI against which performance is
measured Financial KPIs
KPI Report for individual RMs Non Financial KPIs
KPIs CIBG - KEY PERFORMANCE INDICATORS - FY 2010 Performance is Annual targets based
primarily gauged
[applicable to deposit mobilizing divisions: BBD- Regular Segment)
on ~20% increase
Financial KPIs
NAME: ABCABCABCABC
DIVISION:
UNIT:
BBD
CIBG against financial KPIs over the previous year
(80 % weightage)
DESIGNATION:
but no official targets
PAY BAND:
▪ Funds under management
S.No. Pillar KPI COMPARISON WEIGHT DENOMI Last Year Plan 2010 ACTUAL 2010 ACHIEVEMEN WEIGHTE Remarks
set for 2011
NATION 2009 T D SCORE
– Average Deposits
[A] FINANCIAL KPIs
(i) Funds under Mgt 1. Average 2010 Variance against 2009 15.0 AED mio 34,335,511.0 46,183,048.0 134.5% 20.2 Deposits include
Deposits (FD+CASA) Period End Actuals Current Accounts &
– Average CASA balance
base Fixed Deposits.
2. Average CASA 2010 plan - Average 15.0 AED mio 31515783 35,966,387.0 114.1% 17.1
balance Balance
– New deposits
3. Each RM to get 40 As per target decided 15.0 AED mio 30,000,000.0 3,304,173.8 11.0% 1.7 Closing balance of
New relationships by manager Current Accounts &
getting > AED 0.75m Fixed Deposits for each
▪ Revenue
deposit per relationship 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 Variance against actual 15.0 AED mio 4,981,920.0 5,115,337.0 102.7% 15.4 As per the account
– Volume based on Account
Planning weightages
previous years weighted
revenues as per the
account planning
planning exercise
– Quality
exercise
[B] NON FINANCIAL KPIs
Non-Financial KPIs (i) Internal Controls 1. Audit result Satisfactory result - 2.5; 2.5 (10.0) 2.5 Result will be taken for
Needs Improvement - last audit conducted.
(20 % weightage) Individual performance is tracked against
2. KYC completed
(5); Unsatisfactory - (10)
KYC >= 97% - 2.5; 2.5 0 0.0 To be provided by
▪ Audit Result (ii)
annual KPIs using this template; last year targets released
Behavioral Factors 1. Manager's
KYC < 97% - 0
10.0 10.0 7.0
Compliance
▪ KYC completed in last quarter
Assessment
2. Customer satisfaction 5.0 5.0 3.0
▪ Manager's rating TOTAL SCORE 100.0 82.1
▪ Customer satisfaction Audit and Managers Customer
Sales compliance rating Satisfaction
Performance management 80 5 10 5
focus % split of metrics
Figures are changed Financial KPIs Non-Financial KPIs
f or conf identiality
SOURCE: BBD KPI Report 14
15. Analyze
PERFORMANCE MANAGEMENT
Sales appointment records are not well kept or properly
organized
Tracking sales appointments
RMs use Outlook calendar features No official data on sales
to keep track of important meetings; appointments as RMs use personal
not all meetings are recorded Blackberry calendars to record
meeting schedules
Only a handful of meetings are recorded
▪ CRM not being used to track sales calls
15
SOURCE: BBD
16. Analyze
SKILLS AND ORGANIZATION
Skills gaps will be analyzed with skills matrix as exemplified
for pilot team Classroom Can do without
trained support Actual skill
Recognized Can train Required skill
expert others
Key gaps
Lean skills Soft skills Technical skills
Performance Management
Asset Products knowledge
Documentation of Liability
Bank Systems Knowledge
Improvement orientation
Documentation of Asset
Vigilance/Due Diligence
Back End Operational
Communication skills
Process confirmation
Learning knowledge
Credit Risk Analysis
Coaching/Feedback
People orientation
Liabilities Product
Financial Analysis
Setting Direction
Results delivery
Problem solving
Data masked for confidentiality
Selling skills
Knowledge
Knowledge
Products
Products
5S
RM 1
RM 2
RM 3
RM 4
ARM 1
ARM 2
Lean Skills
▪ Transf er classroom learned Lean skills to rest of team
Soft Skills
▪ Increase customer f ocus 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
SOURCE: Team interviews, self assessments
16
17. Improve
Proposed design approach for corporate RMs
Outputs DMG support
Voice of the ▪ Design new customer questionnaire/ survey ▪ tbd
1
customer ▪ Define procedure for follow up and analysis
Process efficiency ▪ Standard Operating Procedures for CP, CFA, call ▪ Nasser Masri
2
& end-to-end flow backs, finance and trade related exceptions, ▪ Johnson Rajan
client profitability reports
▪ Amro Bibi
▪ Standardized template for Credit Proposals ▪ Tony John Crasta
and CFA (With CP projects team) ▪ Nasser Paracha
▪ Updated systems with customer information for
improved query handling - CRM
▪ Pipeline management for leads
Performance
▪ Performance board
▪ Islam Shikoh
3
management ▪ Activity targets and metrics
▪ Amro Bibi
▪ MIS template / IT reporting tools
▪ Meeting structure/ agenda
▪ Structure one-on-one meetings with managers
▪ Capacity management tool/ holiday planner
▪ Implementation of CRM usage
▪ Skills matrix ▪ Islam Shikoh
4 Organisation and
skill ▪ Coaching plan
▪ DILO
▪ Lean Wall ▪ Islam Shikoh
Mindsets and
5
behaviours ▪ M&B survey and feedback
▪ Suggestions box
▪ Rewards and recognition – link to PM boards
17
SOURCE: Team Analysis
18. VOICE OF CUSTOMER
Improve
Customer surveys need to be conducted on an annual basis
with actionable improvement plans
From To
▪ Surveys are conducted on an ad hoc ▪ Conduct structured customer surveys
basis when required once a year as launched online (9th May
2011)
▪ Results of surveys not linked to action ▪ Link customer surveys to action planning
planning and feedback for and feedback
improvement
▪ Customer survey results are not linked ▪ Link survey results to KPI’s for
to team performance objectives RM/UM/DM
Decisions required:
▪ Conduct customer survey on a routine basis – once a year
SOURCE: Customer Feedback Survey Launched on 9 May 2011,
18
Mashreq Research Team 30
19. VOICE OF CUSTOMER
Improve
Three of four main customer concerns/issues identified in the
diagnostic will be addressed as part of design solutions
Customer Feedback Design Solution
Processing delays and errors ▪ Reduce referrals and exceptions, (call
▪ Compliance issues, excessive approval backs, FTC referrals, Cheque book
requirements, missing information referrals)
▪ Standardize Credit Proposal process
reducing errors and lead time for approvals
▪ Enforce acceptance criteria for requests
at branches
No response from staff ▪ Increase customer facing time for RMs,
▪ Customers unhappy about RMs availability of customer data and
behavior, sometimes misinformed information, ARM and call centre support
by RMs to address customer concerns/queries
Poor Branch support ▪ Lean in branches, streamlining of
▪ Lack of coordination in branch, poor branch processes
counter service
High fees and charges ▪ Not addressed as part of the Lean
▪ Customers charged higher for trade transformation workstream (may be
licensing, service charges and check considered as part of commercial
book fee than other banks workstream)
SOURCE: Customer Feedback Survey Launched on 9 May 2011,
19
Mashreq Research Team
20. Design phase initiatives
Improve To be covered
in Wave 2
Improvement lever Processes Initiatives Impact
▪ Credit Proposal ▪ Design customer input template xx
Re-design and ▪ Design customer documentation checklist
Internal transfer ▪ Design internal checklist /guidelines for writing Credit Proposal
▪ Design standard template for credit proposal
▪ Credit Facility ▪ Convert CFA docum ent into booklet format to reduce xx
▪ Agreem ent num ber of signatures
▪ Push forward on issue of docum entation size with legal
▪ FTC Exceptions ▪ Further analysis of exceptions data including lim it expiry xx
or excess
▪ Rem ittance Exceptions ▪ Analyse issues pertaining to incomplete inform ation and xx
signature issues
▪ Analysis of channels used for call backs
xx
▪ Call Back Exceptions ▪ Elim inating call backs for un-contactable customers xx
▪ Raise threshold lim its for call back
▪ Update customer inform ation in the system
▪ Cheque Book Exceptions ▪ Update trade license in the system xx
▪ Inconsistent form at
▪ Delivery to wrong branch
▪ Client Profitability ▪ Follow up with team working on CPR
Report
▪ Account opening Process ▪ End-to-end process –Tackle in wave 2
▪ Custom er Queries to be ▪ Train outsourced call center on corporate customer xx
Transfer handled by the call queries
Out center ▪ Plan com m unication for the customer to route the queries
to the call center
▪ Ensure all RMs/ARM log custom er queries on CRM
Total percent of RM tim e freed
~xx%
20
21. PROCESS EFFICIENCY
Improve
Processing time for Credit Proposals can be reduced through
standardization, simplification of template and automation
of inputs
From To
Current CP Sample 1 Current CP Sample 2 Customer Checklist CP Template
Documentation Structured and
required f rom standard CP f or al
customer clients
Dif f erent f ormats used
– each CP must be Customer Input Template CP Checklist/ Guidelines
read dif f erently
~7-15 pages
containing excessive Checklist to assist
inf ormation ARMs in writing CPs
Description Description
▪ Credit Proposals are un-standardized, lengthy and Standardize
subjective ▪ Standardize customer input template (company
▪ Extra ef f ort spent in collating customer inf ormation f inancials, background, etc.)
through multiple calls and visits Minimize rework
▪ Takes a long time f or RM and UM to review ▪ Use of checklist in collecting customer documents will
minimize return visits to customer
Simplify
▪ Reduce the number of f ree text f ields in the CP template
▪ Reduction in number of iterations at review stage
Decisions required
▪ Approve new credit proposal template, customer input template and checklist Potential impact xx%
21
SOURCE: WRM interviews, BBD RMs, team analysis 34
22. PROCESS EFFICIENCY
Improve
Reduce paperwork and administrative time by introducing new
Credit Facility Agreement
From To
Existing CFA document New CFA document 1
Customer signs at
Shortened CFA
CFA document set 3 page schedule the end of terms
Booklet
and conditions
Description Description
▪ Length of existing CFA documentation ~20-70 pages ▪ Convert Terms and Condition into a standard booklet of
▪ Length of Standard terms and conditions ~15-20 pages ~7-8 pages
▪ Customer signs each and every page of the CFA ▪ Obtain customer signatures on last page of booklet only
document ▪ Include standard schedules in the booklet, not as a
▪ RMs review every page bef ore sending it to Wholesale separate document
Credit Operations
▪ Document is sent back in case any page is lef t out by the
customer/ RM
▪ 3 page schedule as separate document
Decisions required Potential impact %
Approve booklet version of CFA document as interim solution
Approve redesign of CFA document with fewer pages (longer term solution)
1 New CFA document designed by legal (has not been rolled out so f ar) 22
SOURCE: Discussion with BBD RMs; Legal Department
23. PROCESS EFFICIENCY
Improve
Increase threshold limits and allow branches and CPC unit to
process transactions to reduce number of call backs
From To
Call Back status Reasons for uncontactable ▪ Ref er all uncontactable call back cases
Percent call backs to a senior manager within CPC 1
Remittances who will process it if the
transaction is in order
26
Successf ul 51 Un- 7 2 ▪ Do not call back if signature has been
2
40 contact- verif ied f or applications submitted at
able Contact Custo Contact Contact branch by customer
not mer number number
18 available not not incompl
in availab respondi ete in
Unsuccessf ul Cancelled contact le ng contact
list
Call back threshold analysis ▪ Update customer contact number in CRM
Percent – RMs to collect updated inf ormation
50 f rom customer
39 – Instruct customer to submit updated
inf ormation at branch
11
> 1m 500k - 1m 0 - 500 k
▪ 40% of call backs are escalated to RMs as the customer is un- ▪ Increase the call back limit to 1 million
contactable instead of 500k f or BBD
▪ Contact list is not updated with latest customer contact details
Decisions required
▪ Grant CPC Remittance unit approval to process transactions which are in Potential impact %
order without call backs
▪ Increase threshold limit for call backs
▪ Eliminate call-backs if application has been submitted at the branch
1 CPC: Cheque processing unit 23
SOURCE: Call back data for February to April 11 from the call back unit
24. PERFORMANCE MANAGEMENT
Improve
Performance management boards will enable effective tracking
of key metrics on a daily basis
D m m
Queries/ Average CASA
CPR/Total Revenue
Complaints Status balance
m m m
D
tbd Average assets Deal of the month
MER/CP Status
D D
Area for problem C
solving Meeting planner
Q
D m D
Coaching/training Focus of the Team
Skills matrix
plans month barometer
D Updated daily Updated f rom reporting system
m Updated monthly Updated manually
Q Updated quarterly
24
25. Improve
PERFORMANCE MANAGEMENT
Performance dialogue must be linked and paced Perf ormance review
Tracking mechanism
to allow ownership at each level
Frequency
Daily Weekly Monthly Quarterly
LF +
Quarterly
Divisional
Led by Divisional Manager meeting
Manager
with UMs in attendance
Quarterly data of
all the KPIs
along with other
Divisional perform ance
Manager Monthly tools
Led by Unit Managers meeting
+Unit
Managers with RMs and ARMs in
attendance
Level
Perform ance ppt
prepared by UM
Unit having m onthly
Manager + Weekly sum mary of the
Team Meeting Board
RM/ARMs (Thursday at
0900 hrs)
Team
RM/ARMs Daily Huddle
+ Unit (0800 hrs)
Manager (if Perform ance
available) Board showing
Perform ance weekly results
board –
daily/m onthly
results
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