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Bringing Agile To Operations
Steven Odgers, CSO Transformation LeadAustralia & New Zealand Banking Group Limited
10 October 2019
Public Document
OUR DISCUSSION TODAY
• What problem are we trying to solve for Operations at ANZ ?
• Why does an ‘agile at scale’ model make sense ?
• What are the key changes ?
• Why is autonomy important ?
• Early days … but what is the outcome so far ?
• What is the role of AOM/Workware? How is it different ?
BRANCHES ACCOUNT OPENING
CUSTOMER ENQUIRIES COMPLAINTS
OPERATIONS - responsive enough to customers or frontline ?
WHEREIS MY
TRANSACTION?
NO-ONEGOT BACK TO ME!
WE’RE
WAITINGON MORE INFORMATION
COLLECTIONSSERVICINGLENDING
• ~5,000 employees (of 45,000 total employees at ANZ)• >125 specialist operations teams• 5 locations supporting Australia – Australia, India, China, Philippines, NZ
3
specialist functions
multiple locations
specialist functions
multiple locations
specialist functions
multiple locations
specialist functions
multiple locations
OUR ‘LIGHTHOUSE’ MODEL - agile at scale, high autonomy
Chapters cover the end-to-end small business customer value chain
LighthouseCustomer Value Team 1
Customer Value Team 2
Customer Value Team 3
Customer Value Team 4
Customer Value Team 5
Customer Value Team 6
On-boarding CollectionsAssessment ServicingVariationsFulfilment
Customer Value Lead – accountable for overall customer outcomes
Chapter Lead – functional expert, ensures capability build and quality, including compliance
Governance Lead – identifies and mitigates and credit & operational risks
Performance Lead – enables and reports on ongoing performance improvement (customer outcomes)
Production Coach – ensures active resource planning and capacity management to inform team decisions
Agile Coach – enables cultural shifts required, focused on agile ceremonies/tools & autonomous behavior
Customer Alignment Coach – supports resource/workflow alignment, people admin 4
teams aligned to frontline
teams aligned to frontline
objectives & Key Results shared with
frontline
objectives & Key Results shared with
frontline
BUSINESS OWNERS ‘LIGHTHOUSE’ – 30+ customer value teams
5
Business OwnersLead
Performance Lead
Agile/behavioural coaching Support to enable behavioural
and culture change
SA / WA / NT
5 Teams~60 FTE
~7 Chapter Leads
NSW/ACT
8 Teams~102 FTE
~10 Chapter Leads
VIC/TAS
8 Teams~102 FTE
~10 Chapter Leads
DevelopmentPool
1 x Lead2 CVTs
~25 FTE~2 Chapter Leads
QLD
6 Teams~68FTE
~7 Chapter Leads
Ongoing support from Centres of Excellence Capacity Management Quality Capability Development Credit Control Reporting Governance Continuous Improvement
Roles per region1 x Customer Value Lead ~60-120 FTE
1 x Customer Align. Coach ~60-120 FTE
Chapter Leads max ratio 1:10Business Execution Lead
EscalationsLead
Business Governance Lead/s
Business Owners Lighthouse
SPECIALIST
Health
Agri
AN INTEGRATED SYSTEM – agile at scale in operations
6
• Plan, Sync, Share• Commit• Meet customer
expectations
Daily CVT HUDDLES
3 week CHANGE TRAIN …• Small, regular,
iterative, changes
TEAM RULES• Team agreements• Caring for each other• Continuous improvement
Weekly & Ad-hoc SUPER HUDDLES
• Priorities – what & why• Observe, sense, respond• Alignment• Call out issues
• Retrospectives• Learning from mistakes• Teaching each other
KNOWLEDGE WORKERS
SPEAK UP & OPENNESS• Safe to share thoughts,
ideas, feedback
• Regular, open ops & frontline interaction• Caring for customers and each other• Continuous improvement & learning
2 Week FRONTLINE RETROS
• Autonomous & aligned change decisions
• Set/agreed change priorities
• Minimise bureaucracy
TRAFFIC LIGHTS
• Capacity planning• Alignment• Resourcing
Daily LH planning HUDDLES
• Dynamics, process, throughput
3 week CVT RETROS
CELEBRATE PROGRESS
PURPOSE, ICARE VALUES,PRINCIPLES
• Our “True North”• How we work together• Behaviour / ways of
working
Our highest priority is to provide an outstanding service to our Customers by quickly case managing their requests “end to end”. We develop
cross-functional skills, …go beyond our “functional
knowledge”… Better me, better you, better us
• Focused on end-to-end customer outcomes
• Customer, team & frontline feedback
• % Improvement on own customer outcome score
MEASURES OF SUCCESS
“PERSONAL BEST”• Agree what to learn next• Use skills learned• Celebrate/reward new skills• Regular 1:1 skills coaching• Growth Mindset
Our Customer
CULTURAL CHANGE – towards freedom with accountability
7
WE SERVE THE BEST INTERESTS OF OUR
CUSTOMERS SO COMMUNITIES THRIVE
NEW WAYS OF LEADING
PURPOSE & PRINCIPLES - for the ways we work together
8
Our highest priority is serving customers …
Delivering timely, quality outcomes, including end-to-end case management
Supporting each other and enhancing interactions with frontline
We care for everyone’s wellbeing & motivation
Embodying ANZ’s ICARE values
A culture we’re proud of
Continuously learning & improving by actively reflecting and adapting our work practices, building our knowledge, nurturing relationships and using new tools and experiences
Highly autonomous & highly aligned
Free to act, engage all of our capabilities and deliver better customer outcomes
Improving value for customers as the primary measure of success -measure accurately, often, informed by direct feedback from colleagues, frontline and customers
“Better me, better you, better us”Actively developing cross-functional skills, asking for help from team mates and going beyond our “functional knowledge” to continuously improve how we meet our customers’ needs
WE SERVE THE BEST INTERESTS OF OUR
CUSTOMERS SO COMMUNITIES THRIVE
CONTINUOUS IMPROVEMENT – empowerment with clarity
9
‘Go’ zone
examples:
• Improve team rosters to ensure all busy periods are well covered
• Transfer and loan/borrow resources
• Team-building exercises and interaction activities
• Improve team ‘Huddle' format, frequency, content, etc.
• Updates to ‘Huddle’ Board design
• Priority for skills attainment by team members (with support from Chapter Lead)
• Improvements determined by Business Owner Lead as ‘quick win’ and ‘just do it’ ideas
• Actions for customers that do not increase risk or financial loss
‘Get approval first’ zone
• Key controls, segregation of duties, changes to standard letters
• Conducting agile ceremonies – e.g. retros, daily ‘huddles’
• Explicit links/alignment with frontline teams
• Risk policies
• Minimum allocation of people to collections and service calls
• Un-winding of autonomy
• Tools/registers used to monitor/track leave, work allocation, etc.
‘Stop & check’ zone
• Lighthouse purpose/vision/values
• Kanban Limits i.e. WIP queue limits
• Role changes e.g. who does what
• Agenda and minimum frequency for ‘Huddles’
YOUR DECISION self-managed in your teamNo pre-approval required
JOINT DECISION MAKINGdiscussion & alignment required inside and outside your team
INFLUENCE KEY OUTCOMESformal risk/compliance/ legal/policy owner assessments required
CONTINUOUS IMPROVEMENT – cross-skilling is at the heart
OUR PROGRESS – early indications on key measures of success
11
Small Business Customers
Customer Outcomes Matter Most
38%faster time to “approval in principle”
27%faster time to
final loan decision
21%faster ‘time to cash’
21%Fewer transfers for service requests
46%delay in speed to
answer service calls
2%Longer time taken to
resolve customer issues
Customer Servicing
- 44%Gap to target
customer outcomes
-14%Fewer customer
outcomes for Sep
510152025
Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19
Average Customer Outcome Score (CVT) Baseline Target
Loan Origination
PROGRESS – significant simplification
12
From … To …
60+ role types 10 role types (converging to 6 over time)
7+ channels for frontline to submit servicing requests 1 automated frontline servicing channel (re-purposed)
low transparency for frontline on service requests full transparency
18 Credit Approval Discretion (CAD) types 6 progressive CADs
>100 user access profiles 10 user access profiles
ANZ’S USE OF AOM – history & approach for lighthouse
13
In operation since 2007 1,700+ teams on Workware 10,000+ staff use RTM to
record stats 30+ champions
ActiveOps principles:1. Keep plans “In sight, in mind”2. Prevention better than cure3. Actions speak louder than words4. Use it or lose it (capacity)5. Strive for the best possible
Shift focus from Productivity to Outcomes
(remove NVA tasks)
CUSTOMER at the center
of everythingwe do Do it right the first
time to avoidre‐work
Shift in focus from individual to team
SHORT INTERVALCONTROLCROSS SKILLING
and better use of available capacity
Team member‐ledCheck‐in meetings
& huddles
Data‐based decisions
via Workware Analytics & WorkwareConnect
From 400+ core tasks to 20 customer outcomes
14
Benefits of customer outcomes vs core tasks:
‐ Simplification & transparency
‐ Understanding variation in performance
‐ Increased accountability towards the team goal and the customer
‐ Continues to leverage ActiveOps principles
‐ Increased focus on team vs individual goals
‐ Transferable skills & opportunities which do not exist in the conventional model
Performance Lead
Team Manager
Lighthouse Lead Production Coach*
Day to Day operating rhythm
Measures of Success &
Performance
Capacity Management
Chapter Lead*
Coaching & Development
* Team members with additional capacity planning skills
1) Decentralised Leadership Roles 2) Simplified Core Tasks
ANZ’S USE OF AOM – differences in our lighthouse model
THANK YOUQuestions ?