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September 6, 2007

Pension Corporation CEO Gail Stephens

Transforming an Organization for Service Excellence

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The Pension Corporation• One of the largest pension

administrators in Canada• Annual contributions = $1.8 billion• Financial reporting of pension plan

assets = $46 billion• 120,000 retirees; 240,000 active

members and 700 employers

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Backlogs and Other Challenges

• Became a Crown Agency in 2000• Under funded and understaffed• Unhappy clients• Unhappy staff• Increasing volumes with baby

boomers retiring

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Creating a Vision • Engage from the inside out• Engage employees, plan boards and

board of directors • Create a vision that everyone can

rally around• Post that vision everywhere

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Our Vision

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Strategic PlanningWe used the Balanced Scorecard

approach to improve our:1. Client Services2. Finances3. Internal Business Processes 4. Learning and Growth Opportunities

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1. Improving Client Services• Getting rid of the backlog• Improving day-to-day service• Streamlining, simplifying and

demystifying processes, products and communications

• Setting service targets

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2. Improving Finances• $12-million in reductions• Cost per member - from $114 to $101• Training has positive impact on bottom

line• National and international benchmarking• Risk Management• Quality Assurance

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3. Improving Internal Business Processes

• Developed a strategic plan, branch plans and personal business plans

• Five-year service agreements• Improved communications,

leveraged technology, retirement seminars

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Dashboard Approach

Service Demand

17,166

13,200

0

5,000

10,000

15,000

130%

FINAL PENSION OPTIONS

Service Results

94.3%

90%

5.3%

0.4%

0% 20% 40% 60% 80% 100%

On Time Target

Results

CLIENT SERVICES

Met target, with demand

30% more than expected

On time = 21 days22-42 days (within 100% standard)43+ days overdue (did not meet 100% standard)

Annual ForecastActual for 12 Months

FINAL RESULTS FOR THE

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3. Improving Internal Business Processes (continued)

• Simplify, streamline and improve business processes

• Communications standards• Re-designed our corporate website• Self service online

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4. Improving Learning and Growth Opportunities

• HR was a top priority • Adding more management positions• Investing in training• Succession planning• Recognizing employees

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Leadership is Visible• Annual branch visits• Regular CEO breakfasts and lunches• Meet every new employee• Employee satisfaction surveys• Online employee newsletter• Lead and communicate from your

heart

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Change over time

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Retention and Attraction• Succession Planning

– Job shadowing– Temporary assignments– Assistant Director positions– Screen applicants – Management coaching– Leadership training

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We have fun!

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Results Achieved

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Results Achieved• 95% of recently retired members• 87% of longer-term retired members• 95% of plan employers• 85 % of active members• 100% of trustees

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Results Achieved

A. Final Pension Option Targets

30

21

14 14

303030

85%90%

95% 95%

80%

75%70%

0

7

14

21

28

35

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

On

Tim

e S

tan

dar

d i

n D

ays

0%

50%

100%

On

Tim

e % T

arget

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Results AchievedB. Termination Information Letter Targets

2 2 2

30 30

2

95% 95% 95%90%

95% 95%

0

7

14

21

28

35

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

On

Tim

e S

tan

dard

in

Day

s

0%

50%

100%

On

Tim

e % T

arg

et

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Results Achieved

C. Termination Option Targets

28

21 21

14

303030

95% 95% 95% 95%95%90%

70%

0

7

14

21

28

35

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

On

Tim

e S

tan

dard

in

Days

0%

50%

100%

On

Tim

e %

Targ

et

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Results Achieved

First Pension Payments

303030 30

30 30

98%

98%98%98%

98%95% 98%

97%

74%

99% 99%

97%

0

10

20

30

40

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

On

Tim

e S

tan

dar

d i

n D

ays

0%

50%

100%

On

Tim

e %

On time Standard in Days On time Target On time Results

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Results Achieved

D. Purchase Cost Estimate Targets

30 30 30 21

180

6030

75%85% 85%

95%

60% 70% 70%

0

20

40

60

80

100

120

140

160

180

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

On

Tim

e S

tan

da

rd in

Da

ys

0%

50%

100%

On

Tim

e %

Targ

et

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The Future Challenges • Strong corporate branding and be a

great place to work• Employees = energized, effective and

proud• Exceptional Service• Succession planning, continuous

training and development requirements

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Thank you for joining me today.

Questions?

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Chief Executive Officer Gail Stephens

Transforming an Organization for Service Excellence