24 May 2010
Transforming the Bank to place customers
at the centre of everything we do
Jason MillettGeneral Manager, P&O Strategy & ExecutionWestpac Banking CorporationMay 2010
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Addressing customer needs is about ‘getting the basics right’
• Reliable delivery of products and services
• Consistent experience across channels and platforms
• Easy and simple to do business with
• Single and insightful view of information
• Flexible and responsive to requests
Typical Customer Service Needs
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Driving Principles
Most recommended
financial services company
To be the leading financial services company in Australia and New Zealand
Meet most customer
needs
Most skilled and engaged
people
Global leader in
sustainability
Highest returns in
sector
Operating as ‘One Team’
Focus on core markets
Strong local businesses Shared valuesEasy to do
business with
Westpac’s Customer Oriented Strategy
Source: WBC Group Update Dec 2009
Vision
Assessedby
Westpac’s ‘customer centric’ strategy focuses on directly fulfilling customer needs
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
• Westpac Local: The Bank Manager is back
• St. George: Greater regional focus while increasing distribution presence and reach
• Shift decision making and focus to front line
• Increased training, coaching and mentoring
• Pervasive cultural change, fundamentally improving customer focus
Source: WBC Investor Discussion Pack Nov 2009
1Customers
at the centreStrong local businesses2
• St. George: Australia’s leading regional bank ‘Big enough; Small enough’
• Westpac Brand: Strong, safe, local, responsible
• Leading ‘Institutional’brand
• Continue to deliver on merger synergies
• Build sales force productivity
• Process redesign and simplification
3More choices for customers
Sustained gains4
Westpac’s strategy is delivered by four complimentary initiatives
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Customer satisfaction Customer advocacy
Product oriented Distribution oriented
Siloed business unitsOne team
(accountable, collaborative, aligned, integrated)
Predominantly 1 brand Multi-brand
Bank centric Integrated financial services
Traditional banks The Westpac Group
Becoming ‘customer centric’ requires a significant shift of mindset
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Infrastructure
Product
Distribution (Sales & Service)
•Proactive lead generation tools•Single view of the customer•Integrated multi-channel origination & servicing
•Single source of truth for customer data
•Digitised documents
•Reliable and robust systems•Secure perimeter•Effective email & collaboration platforms
Operations
Customer Information
•Straight through processing
•Automated workflow, decisioning and document management
•Flexible and modular systems
•Customer based product solutions
•Dynamic pricing capability
There are several key target capabilities implied by a ‘customer centric’ focus
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Design requirements from the customer’s perspective (CCD)
Develop a clear technology strategy aligned to the business strategy
Ensure reliable and robust technology services are provided
Streamline customer fulfilment processes to be easy to do business with
Manage performance by measurable metrics
Systematically identify, prioritise and implement opportunities to ‘delight’
1
2
3
4
5
6
There are six key considerations to enable a ‘customer centric’organisation
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Business requirements
Technology solution
Customer process & interfaces
Design
1. Business process defines the experience
2. Technology drives the business process
3. Customer experience / design is an overlay
Current State Future State
Start Start HereHere
The CCD approach should ensure that we start to
address our business problem through the
needs of the customer.
= Desirability
= FeasibilityViability =
Design requirements from the customer’s perspective (Customer Centric Design)
1
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
We have created Design Personas to inform us of the customer experience
What?
Design Personas are representations of our typicalcustomers
Personas are relevant across Brand & Market Segmentation
Christopher WilkinsonOrganised &
Ambitious
Christopher WilkinsonOrganised &
Ambitious
Insight into the behavioral, social, emotional and motivational attributes of our customers or end users
Design Personas are representations of our typicalcustomers
Design Personas are created for any User – Customer and Staff
They represent larger audience groups based on contextual inquiry research & stakeholder knowledge
We use Design Personas to -
inform design decisions in relation to any project in the organisation
reduce risk by creating a balanced view of customer and remove personal bias through development
ensure that real user inform the design, even without being present
ensure we understand the typical behaviours and motivations of our customers
Capture the needs of the customer for all channel experiences –current gap for product experience
Design Personas are used to ensure that everyone understands the customer and who they are designing the solution for.
1
How? Why?
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
These personas are then driven into experience propositions and task models
Design Personas Experience Proposition Task Modelling
• Represents how users achieve their goals, by performing different roles
• Detailed customer requirements
Christopher WilkinsonOrganised &
Ambitious
Christopher WilkinsonOrganised &
Ambitious
Insight into the behavioral, social, emotional and motivational attributes of our customers or end users
A ‘brief’ from our customers, which is an empirically derived direction for the service / product
1
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Technology strategy – priority is reliability and customer experience
2
Stra
tegi
c In
vest
men
t Are
as
Reliability, Efficiency & Effectiveness
• Enhance IT reliability and efficiency • Improve resilience and capacity of Group Data Centres• Optimise supplier relationships
Customer Touch-points• Implement a common Sales & Service Desktop• Launch a new Internet Banking Platform
Product and Processing
• Deposit platform – transition to the next generation of Hogan• Operations Transformation – rollout new operations desktop• Payments – migrate to new platform• Cards Platform – consolidate existing platforms• Wealth – consolidate and improve core platforms• Secured Lending – transform platforms and processes
Enabling Programs• Repository of core customer information• Enhanced Enterprises Services Infrastructure
Cap
abili
ty
Source: WBC Group Update Dec 2009
Develop a clear technology strategy aligned to the business strategy
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
3
Drivers Of Service Outages
Ensure reliable and robust technology services are provided
Single Point of Failure
Volume Overflow
Hardware Old & Unreliable
Power Problems
Application Instability Downstream
Problems
Process Not Followed
Process Inadequate
BAU Change
Outages
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
4
Frontline staff: “What I want”• Reliable systems• Access to customer information• Able to complete processes on the spot
Customer Sign-up• Easy account opening
• Simple application forms
• Automated credit decisions
Customer Information• See all of a customer’s products on one screen
• View account history• See application status in all channels
Account Servicing
• In branch
• Customer self-service
Contact Centres• Closed loop feedback
• Agent level NPS• Integrated platform with same functionality as branches
Streamline customer fulfilment processes to be easy to do business with
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
5
• Net promoter score (NPS)
• Service delivery applications meeting service level agreements
• Project status – green, amber, red
• Number of ‘Severity 1’ incidents and mean time to restore service
• Programme health for end user, network, desktop applications, online
• Outages and number of customers impacted for Online, ATM, call centre
• Number of help desk calls
Some technology metrics that can be used to measure performance include:
Manage performance by measurable metrics
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Net Promoter Score is our key measure of customer performance
Recent Customer Experience
Recent Product Experience
Consistent Delivery
Brand Perception
Drivers of Net Promoter ScoreCalculation of Net Promoter Score
5
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
6
Guys we just need to do it !
Continuous Improvement ProcessConcept
• One employee feedback tool
• For use by all staff - frontline & back office
Key Focus • Product or process ideas that improve the customer and or staff experience
Method
• Suggestions stored & managed centrally
• Monthly steering committee prioritises ideas
• Set scoring system
• Validation by subject matter experts (if required)
Criteria
• Implementation cost (<$250k)
• Implementation time (<12 months)
• Impact on customer, employee, quality, efficiency, revenue and cost
Communication • Ongoing communication with the person who suggested the idea
Looks like this will need a full 12 months
study on it !
Systematically identify, prioritise and implement opportunities to ‘delight’
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
6
Continuous Improvement Ideas
Systematically identify, prioritise and implement opportunities to ‘delight’
Ideas by Group Ideas by Category3124ideas3124ideas
Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010
Lessons learned: Technology in a ‘customer centric’organisation
Design requirements from the customer’s perspective (CCD)
Technology strategy
aligned to business strategy
Reliable and robust
technology services
Streamline customer fulfillment processes
Manage performance
by measurable
metrics
Identify, prioritise and
implement opportunities
to delight
• Ensure commitment from all the senior leadership team to drive change
• Communicate a consistent message across all stakeholders
• Develop a program of work that will support a ‘customer centric’ focus
• Instil strong disciplines to focus on the highest value activities
• Uplift workforce capabilities to support the change