Paris, 7th December 2010

A.C.E.Action for Continuous

Enhancement

Agenda

Company Overview

The « ACE » methology

The « ACE » program in Findomestic

Honshin Plan, Project Selection & Chartering

Firenze

• Headquarters Located in Firenze – Italy

• Headcount 2.173• 5.000.000 Customers• Part of BNP Paribas Group

since August 2009

Company Overview

Credit Card

Findomestic Gruppo Production Breakdown 2009

Amounts Financed by Findomestic Gruppoin billions of Euro

The Priorities of the Business Plan

• 3 Priorities for a central objective…..

Clear Ideas

• In figures

Recovery andincrease market share

Reach the excellencein operationalEnhancement &risk management

Develop all possible synergieswith BNL

Be bridges to the post-crisis

100 M€ of synergies in 2012

The kick off phase: Clear Factors of success and results

• Clear Factors of success– For the 17 taskforces, quantified objectives top-down

– External support suitable to the context (BCG and Roland Berger) and promotion of transversally by the staffing

– Weekly Project Committee and closing timing

• ~100 people mobilized• ~100 initiatives identified• ~100 IT projects realized• ~100 M€ of synergies identified

Results:

How can ACE support the Strategic Plan?

Defining a new 3-year Strategy

Organizational developmentand managerial environments

Discontinuity of management and business models as a result of an acquisition

Strategic Plan

Economic Ambition (Synergies)

- Top Management Vision

- Gap with the company’s perceived

- High functional mobility

- Change of activities / production sites

- Process Discontinuity / tools and HR

- New Positions & Managers

- Create alignment across the organization

- Understanding the organization based on data and facts

- The creation of value related to incremental costs to support the ambitions of business

The ACE projects after a discontinuity are acting as stabilizers-Wastes Elimination-Refocuses the team on the real priorities-Standardization of conduct

• ACE as a vehicle (projects) of direct communication between the Sponsor (Top Management) and the operational resources

• Align through ACE activities and the Sponsor’s challenge the operational resources to the vision of top management

ACE

Projects Prioritybased on:

-Reduction of the additional marginal costs-Expected synergies materialization

• Go & See – a data-oriented, results driven culture

• Assessment of the Middle Management

How can ACE support the Strategic Plan?

ACE Today– Organisation BNP-Paribas PF

Coach

Coach planned

72% of BNPP-PF world in FTE

São PauloBrasil

ParisFrance

MadridSpain

FlorenceItaly

MunichGermany

ACE Goal

Contribute to improve Findomestic Net income before tax

Eliminate waste

Reduce cost of poor quality

through projects aligned with business strategy to achieve Operational Excellence

Steps which do not add value

Impact of not doing right 1st time

Fundamental Principles of ACE Strategy

Elimination of non value adding activities (7 waste)

Synchronisation of flow at the operational level

Standardisation of processes and operations

Self management by teams of processes and performance

by

Drastically reduce lead-time in the flow of Financial services

Operational Efficiency

Simultaneously !

ImproveService Quality

ReduceResponse Times

ReduceOperational Risk

Better Faster Safer Cheaper

ReduceProcessing Costs

Operating expenses

Price

Margin

Operational Excellence

Lean> Waste Elimination> Flow> Standard

Six Sigma> Scrap / Rework Elimination> Process Optimization> Process Control

Change Management> Efficiency = Quality x Acceptance> Mobilize Commitment> Change Systems and Structures

Acceptance

Speed Variation Reduction

Individual and System Efficiency

Efficiency is not coming from individual performance but from coordination of the team members

THE ACE PROGRAM IN FINDOMESTIC

The BNP Paribas ACE Coach

Role: BNP Paribas ACE coach for Italy (Findomestic Banca)

Certification: LSS Master Black Belt

15+ years experience in Project Management, Lean Six Sigma, Quality and Change Management in Multinational American Companies (Thomas & Betts, Whirlpool Corporation, Parker Hannifin)

Training, Coaching and Certifications of over 250 Green & Black Belts resources

60+ projects as Project Leader and Coach 50+ Kaizen Events as facilitator

Giuseppe Matarazzo

Lean Six Sigma Coach

10% Reports & Program Management

30% Training

Project Leader 3 years assignment on projects A new mind set, better thinkers, a step in the career

60% Coaching

90% Projects5% Training 5% Reports

Roles of the Coach

Findomestic Project Roadmap

Preparation (4 wks)

Kaizen (3 Days)

Implementation (8wks)

Kick OffProject Charter

Validation Action PlanValidation

ACE Project Reviewwith Sponsor

Project Closure & Financial

validation

Timeline

Sponsor

Project Initation Project Validation Project Closure

Preparation

• Define Project Scope and Objectives• Data Collection • «KAIZEN Event“ Preparation

Implementation

• Team Improvement Board and Performance monitoring• All Solutions selected implemented• Team work & Problem Solving• Performance improvement

KAIZEN Event

• Understand Voice of Customer (VOC)• Learn basic Lean tools (VSM, 7 Wastes, 5S, Probelm

Solving etc etc)• Develop an action Plan• Action Plan accepted by the project Sponsor

Key Project phases

Continuous Improvement

• Sustain results achieved and reduce process variation• Team work & Problem Solving• Challange on performance

Involvement in the Process is Critical

Project Leader

Invo

lvem

ent

Preparation Kaizen Implementation Continuous Improvement

Process Owners / Functional Leaders

100%

The Project Leader establish improvements and permanent controls –The Functional Leaders own the process after project completion andthey are responsable for the continuous improvement

The Project Leader establish improvements and permanent controls –The Functional Leaders own the process after project completion andthey are responsable for the continuous improvement

0%

50%

Roles & Responsabilities of the project team

Decide to lanch the project

Provide resources

Help to remove road blocks

Give Go / No go before implementing solutions

Sponsor

Help to select projects with the sponsors

Specialist of the ACE methodology

Give methodological support for the project leader and the team

Coach

Has been trained on change management and LEAN

Devote time to lead projects using ACE methods and tools

Facilitate Kaizen workshop and guide the Project team through solutions identification

Support natural team in executing the action plan.

Help to implement element of continuous improvement

Project Leader Participate actively in Kaizen

workshop’s

Identify the root causes, problems and opportunities to improve the process

Determine practical solutions to implement

Execute the action plan

Project Team

PROGRAMSTATUS

ACE Deployment Status in FindomesticCentro Studi di Zona 49 risorseP.L. C. Valentini - 4 progetti(3 team studio + 1 FOV)

Milano

Firenze

Roma

• ACE Deployment @ Q2 2010• Status YTD:

• 8 Projects completed• 8 in Implementation phase• 4 in Preparation• 1200k€ Financial Benefits savings

Catania

Napoli

Sede 33 risorseP.L. F. Grimaldi, A. Volpintesta, C. CinelliCtx legale, Gest. Frodi, Contab. Fornitori

Centro Studi di Zona 60 risorseP.L. S. D’Ascenzo - 4 progetti(3 team studio + 1 FOV)

Centro Studi di Zona 58 risorseP.L. S. Pennetta - 5 progetti(4 team studio + 1 FOV)

Centro Studi di Zona 43 risorseP.L. R. Giordano - 3 progetti(2 team studio + 1 FOV)

2011 Targets

• 30 Projects launched• 3 – 5 Projects per Project Leader• Sustainabilty and continuous improvement

on closed projects• Advance Problem Solving A3 for Middle

Management in QTR1 2011• Visual Management Standardization• Best Practices - Community

Project Selection & Chartering

The “Hoshin Plan” at Findomestic

At Findomestic we define “Hoshin Plan” as the process we use to manage our longer-term initiatives towards the accomplishment of our strategically-based breakthrough objectives

The Hoshin Plan Process

Hoshin Plan

Breakthrough Objectives

Annual Priorities

Measures

Countermeasures: Problem Solving

Review Meetings

A good Hoshin Plan Process Brings……

• Clear identification of specific, quantifiable breakthrough objectives which are linked to the strategic plan

• Clear identification of initiatives to achieve those objectives

• Development of Projects / Action Plans to implement the initiatives

• Clear identification of resources to work the Action Plans

• Visual Management of status• Process for verifying whether or not the initiatives

are working

Project SelectionVoice of

Business (VOB)

Strategy, PrioritiesImpact on P&L etc.

Customer claimsSatisfaction surveys , etc.

EmployeesRegulatorsAudits, etc.

Voice of Customer

(VOC)

Voice of Process (VOP)

Potential project list1st analyze : Projects not linked to a process (IT, reorg, …) Quick HitsProjects linked to a process Business Priorities Project Charters “GO / NO GO”

Business Case Problem Statement

Project Background Project Execution

Xxxxxxxx Xxx

Explains the context and the reasons why the project is important:Why is it important to do now ?What are the consequences of not doing ?How does this fit within the business or process priorities ?

Xxxxxxxx Xxx

Description of something which is not working, or an improvement opportunityFrom the customer perspective, or from the process’ point of view, what is the problem ?Size and impact of the problem ? Use specific business metrics

Objectives Xxxxxxxx

Xxx

What would you like to do ? How much and what type of benefit will you see ? (revenue, productivity, quality…)

Sponsor First and Last Name Project Leader First and Last Name Team members First and Last Name –

Entity/Function

Coach First and Last Name

Timeframe

Define Visualise / Solve Monitor

Startdd/mm

End dd/mmWorkshop current status: jj/mm …Workshop improvement op: jj/mm …

Scope Process : Segments : Out of scope :

Metrics

Process: What are the boundaries ? (Starting point / end point)Segments: Geographical area, products, customersOut of scope: What is not included ?

Actual Target

Ex. : Lead Time

Ex. : Errors rate

Ex. : Volume processed by day

Financial Impact estimation : X€

Project Charter Template

General Information• Project Name

• Business Case which should contain the What, Where, When and Extent of the issue.

• The opportunity should be related to a key business issue.

Project Objectives• The key objectives for the project. They should be Measurable.

Projected Benefits• Estimated Financial benefits (guidelines in quantifying the opportunity)

Background• What is In and Out of project scope

Resources• List of team members with sufficient skill set to solve the problem.

• Time commitment clearly identified.

What’s Needed Initially on a Project Charter?

Good Project Start

Likelihood of Success

PROJECT EXAMPLES

36

Project Background Realizzazione dell’intervento

Business Case

Project Charter

Descrizione del problema

ACE Operational Excellence

Qualità:

Tempi/stock: • Analisi DFRO U del 31/08/2010 (173 PRT)• LEAD TIME: Da 1 a 86 giorni

Rischi:

Costi operativi:

Mission: “L'ufficio Frodi e Chargeback assicura la realizzazione di un idoneo sistema di gestione delle frodi e degli atti pregiudizievoli dannosi per l’Azienda…”

Contesto: L’ufficio G. Frodi e Cha. (composto da 11,26 FTE operativi più il responsabile) vede ad oggi la presenza di uno stock di prt in attesa di valutazione di circa il 22% del totale (lista DFRO U) e circa il 62% di prt in corso di lavorazione con un tempo di gestione che varia da 1 a 86 gg; 23 gg medi per la chiusura della prt contro un tempo di circa 9 giorni (nel campione analizzato) impiegati dal cliente per fornire i documenti necessari alla valutazione. Gest. Frodi legale ha gestito (1° sem. ‘10) 554 lettere ricevute dai clienti di cui il 29% erano lettere successive alla prima.Lo 0,21% del tot. transato cta (327000€ nel primo sem. 2010) e lo 0,15% del tot. finanziato cta (464000€ nel primo sem. 2010).Le carte oggetto di truffa ad oggi (primo sem. ‘10) sono 821.

Piano industriale: è previsto l’incremento di circa 115000 carte BNL nel triennio 2010 – 2012. A pieno regime il singolo FTE dovrà essere in grado di gestire un aumento del 8,7% dell’attuale carico di lavoro (dato stimato sulla base del rapporto monte carte Findomestic / carte Findomestic oggetto di truffa) derivante dalla sinergia con BNL.

ScopeMetriche

Sponsor Angelo PiazzaProject Leader Andrea VolpintestaTeam Manager Graziano DonniniTeam members Giuseppe Matarazzo; Francesco Grimaldi; Ivana LeoniCoach Giuseppe Matarazzo

Tempistiche

Attuale Target

Stock del 31/08/2010173 prt di cui

valutabili 38

0 (tranne attesa esiti

posta, banca, Cha.)

Passaggio a perdita in % sul monte truffe ( gen – giu ‘10) 35% Mant. Performance

% reclami e % 2° lettere sul totale esitato da G. Frodi legale 40% - 29% - 20% sul tot.

Lead time (campione 50 prt; med) 23gg 14gg

Capacità G. Frodi + CHA ( I° sem. ‘10 ) 17,25 prt/gg + 25% sul tot.

Chargeback 1° quadrim. ‘10 V 71% - P 29% Mant. performance

Kick-off Kaizen Bilancio

IN: Frodi, Chargeback Out: Informative giudiziarieTerritorio coinvolto: Italia

29/06/2010 14 – 16/9/2010 18/11/2010

Frodi e chargeback

• soddisfazione CLT: su 14 interviste media giudizi in una scala da 1a 5, 3.

• 554 lettere inviate da G. Frodi legale (vedi graf.)

• NRFT: 60 PRT IN - T 5 gg - 47 prt rilavorate = 78%

Lettere e reclami (1° sem. ‘10)

• P.p. = 35% circa del monte truffe gestito

Impatto finanziario: vedi S.D.G.

Stock

valutabili

Posta - banca

In corso di lavorazione

Kaizen event

Kaizen event

Kaizen event

Victory belongs to the most persevering     Napoleon

Questions?

For any further clarification, please send an email to:

Giuseppe Matarazzog.matarazzo@findomestic.com