1

Lean project on

Improving Sales, Service and Quality across all

domains of Branch Network

A Mashreq Bank – Case study

09.10.2011

2 2

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.

Introduction

Vision To provide our customers the most rewarding banking

relationships

Mission Being relationship based

Delivering superior service

Being the primary bank to our customers

Being the Employer of Choice

Values We are on a constant journey towards service

excellence, developing innovative new products and

financial solutions. Anticipating your needs and providing

you with new opportunities, convenience and peace of

mind, stem from our core beliefs.

Teamwork, cooperation and responsiveness drive the

way we work and form the basis of our core values

Customer focused We act in the interest of our customers, seeking to exceed their

expectations

Transparent and fair We are clear, concise and open in all our communications, and

treat customers and our colleagues with fairness, respect and trust

Progressive We are fast, agile and constantly think of ways to enhance

customer experience

Bold We challenge established practices and take smart risks

Individually Responsible We each take responsibility for the quality of our work, the success

of the bank and delivering the brand promise to each customer

3

Project Charter E. The Goal Statement:

Improve and reinvest capacity in branches of Sales and Service Officer’s (SSO)

The teams involved:

Branch Team – two pilot branches – Retail Banking Group

G. Stakeholders model:

• Project chaired by the head of Retail banking

• Decision making group formed for toll gate reviews involved stakeholders from –

– SME banking

– Credit operations

– Risk management

– Legal

– Others

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

The diagnostic indicates improvement opportunities

across 5 dimensions of the lean programme

SOURCE: Team analysis

Customer

Performance

Management

Organization

and Skills

Mindsets

and Behaviours

Process Efficiency

Key improvement opportunities ▪ Scoreboards do not reflect the

right indicators and are not

frequently updated

▪ Performance huddles lack

individual tracking and

problem-solving elements

▪ Apart from sales, metrics are

not tracked systematically;

particularly, no commercial

activities metrics

▪ Skills gaps required to be

closed with coaching on the

back of gap analysis to allow

multi skilling and flexible

resourcing

▪ Resource planning is conducted

ad hoc and not systematically

tracked

▪ Require to align spans of

control for SSOs, observed

inconsistency of 1:4 and 1:7 in

DIC and Muraqabat,

respectively

▪ Sales time of SSOs can be

increased from 8% to over 25%

– Move sales administrative

tasks to tellers

– Simplify key processes

around account opening and

mortgages release

– Reduce rejection rates

▪ Opportunity to increase Teller

capacity through move to

alternative channels and process

improvements

▪ Teller and SSO staffing not

coordinated with customer

footfall

▪ Main issues for branch staff are:

– Communication of key

changes not sufficient

– Lack of empowerment

– Insufficient training for daily

tasks

▪ Staff expect:

– greater flexibility,

– higher employee recognition

– and innovative processes

▪ Surveys with customers highlight a generally very

positive attitude towards branch performance

▪ However, a number of areas were identified to

guide the future design, for example:

– Following through on promises made

– Addressing requests in a reasonable time

– Being knowledgeable about the products &

services

Measure

5

Recent customer feedback has been very positive; still, we have identified 7 key improvement areas

Both Pilot Branches are

excelling in service

Leveraging previous transaction survey the team identified key VOC

priorities

Performance

Imp

ort

an

ce

Sales Officer

S1 Following thro-ugh

on promises made to

you

S2 Addressing your

request in a

reasonable time

S4 Being know-

ledgeable about the

products & services

S5 Addressing your

request accurately

S6 Being able to

understand your

needs

S7 Waiting time to be

serviced

Teller T4 Ability to provide

accurate inform-

ation upon request Customer

satisfaction

8.6

10.0

1.0

Customer satisfaction

1-10 of which 10 is

highest

Customer satisfaction

1-10 of which 10 is

highest

82 80

50

0

68 66 64 62 60 0

S13 S12

S11

S10 S9 S8

78 76 74 72 70

95

90

85

80

75

70

65

60

55

45

100

84

T5

T4

T3 T2

T1

S7

S6

S5

S4

S3

S2 S1

T10

T9 T8

T7

T6

S

T

SO satisfaction drivers

Teller satisfaction drivers

6

Measure

6

Diagnostic has shown capacity creation to deliver 25% direct sales activity, a sales potential increase of +200%

Total

17.4

Mortgage

release

0.3

Rejection

0.9

Info.

update

1.0

Account

opening

1.8

Admin

13.5

Total

13.5

Flexible

staffing

Remit-

tance

0.7

Cash /

cheque

withdrawal

2.1

Cheque

deposit

2.0

Auto-

mation/

migration

8.7

8

+217%

Future

% SSO

time on

sales

activity

25

Current %

SSO

time on

sales

activity in

branch

Sales activity

Sales Officer

Teller

Percent

Percent

Percent SSO time

7

Analyse

7

Sales Officer spend 7.6 % of time on sales

3.9%

Face-to-face customer sales meeting 7.6%

Sales conversation over telephone 0%

Dealing with customer query (face-to-face) 63.2%

Dealing with customer query (over the phone) 0%

Cashier-type transaction processing 0.3%

Opening/handling applications 1.8%

Other customer admin 0%

Hygiening prospect lists 0%

Customer service admin (customer not there) 12.7%

Internal discussion/huddle 3.1%

Assisting a colleague 2.7%

Branch Admin 2.3%

Feedback/Training/Coaching 1.1%

Seeking information (face-to-face/intranet) 2.1%

Re-stocking 0%

Private conversation 0.3%

Idle time 2.7%

100.00%

3.05%

3.15%

0.00%

2.34%

5.79%

1.83%

12.69%

71.17%

7.61%

63.55%

Total time

Unproductive time

Coaching / feedback

Learning / training

Cash handling

Branch admin

Internal meeting

Sales admin

Service admin

Total customer

interaction time

Sales

Customer service

8

Analyse

8

Capacity is not varied with demand, leading to inconsistent service levels and unused potential to support Sales Officer

Footfall per hour

Tellers per hour

4 3 3 3 3 2 2 3

28

43

20

40

33

11 10

20

0

5

10

15

20

25

30

35

40

45

50

8am 9am 10am 11am 12pm 1pm 2pm 3pm

Pilot Branch 1

5 5 5 5 5 5 5 5

14

38

23

38

20 19 18

9

0

5

10

15

20

25

30

35

40

8:00 -

9:00

9:00 -

10:00

10:00 -

11:00

11:00 -

12:00

12:00 -

1:00

1:00 -

2:00

2:00 -

3:00

3:00 -

4:00

Pilot Branch 2

Key Observations

▪ Intraday foot flow fluctuation is quite

different from branch to branch

depending on the location and size

▪ Poor intraday capacity management

▪ Variation of tellers available 2-5

▪ Variation of actual foot flow

▪ Customer segmentation different re

transactions at Tellers

Retail 27% / Corp 63% Branch 1

Retail 45% / Corp 55% Branch 2

9

Analyse

9

Improved performance management can enable a step change in performance of Sales Officer

1 Reporting systems to track sales

Current performance

scoreboard

▪ Scoreboards do not

reflect the right

indicators and are not

frequently updated

▪ Performance huddles

lack individual

tracking and problem-

solving elements

▪ Apart from sales,

metrics are not tracked

systematically;

particularly, no forward

looking commercial

activities metrics

Targets and KPIs

▪ Not all reports available on

time (e.g.. Reject reports)

▪ Few reports are

automated – SFA and

SFE only1

Reporting

▪ Meetings are not

standardized; discussion

not focused on

performance gaps

Performance meetings

▪ Few improvement actions

outlined and often without

any quantified impact

▪ No process to identify root

causes

Improvement process

Key findings

Key areas of opportunity

▪ KPI set as observed in

branches cover only sales

goals

▪ Visual targets only exist

against high level KPIs

such as sales

▪ Service, Control or Quality

are set in balance

scorecard, but not

managed on daily basis

10

Analyse Focus Group Session revealed eagerness for change

Key feed-back from the questionnaire score (lowest and highest scores):

- Once a problem is raised, it is resolved quickly

- I regularly receive effective training before taking on new tasks or roles

- Our managers work together effectively

- We have a culture of giving and receiving feedback

- I look forward to coming to work

- I know what I am accountable for in my job and what are the targets I should meet

- I feel trusted to do my job well

- If we changed the way we work, performance would improve dramatically

•Manual work

•Customers not

happy with speed of

service

•Hectic

•Tied up with policy

•Hunting for

customers

•No job security

•Not enough space,

equipment, training

•Very organized

•Always open for the

customers

•Market leader

•Happy staff

•Far sighted

•Training staff

•Supportive bosses

•Team work

•Innovative

•Recognize & award

staff

Lowest - >

Highest - >

10

11

Improve

11

Branch design executive summary

Customer

Performance (and

sales) management

Organization

and skills

Mindsets and

behaviours

Process efficiency

▪ Display and manage

branches with perfor-

mance boards

▪ Run daily huddles

▪ Introduce weekly 1:1

performance meetings

▪ Develop structured sales

kits for SSO

▪ Introduce weekly team

barometers

▪ Display lean wall

and engagement

communication

▪ Enforce key communication

such as delegation matrix

▪ Run annual customer feedback

survey

▪ Continue monthly transaction survey

▪ Use structured action plans on the

back of survey

▪ Develop KANO model for key

indicators

▪ Introduce skills matrix

▪ Introduce flexible staffing

model in branches with

intra-day choreography

▪ Introduce rostering tool

for monthly resource

allocation

▪ Create 17% of SSO and more

than 16% of CSS capacity

through

– Simplifying processes

(e.g., cheque deposits)

– Moving out of branches

(e.g., CCDM replenishing)

– Transferring between SSO

and tellers

(e.g. statement issuance)

– Improve migration through

layout changes and CRO

education

12

Improve

12

Several initiatives will ensure that freed up time is captured as sales activity

1

2

From

8% SSO time

spent on sales

activity

3

4

Free up time

▪ Stopping (e.g..,

excessive

stamping)

▪ Moving out of the

branch (e.g..,

account freeze)

▪ Simplifying (e.g..,

cheque deposit)

Improve time usage

▪ Automation

▪ Transfer of tasks

▪ Branch flexible

staffing model, i.e.,

RAG boards

Pull the right

customers to meet

▪ Increase quality of

the leads from

CRM

▪ Creation of a sales

kit

▪ Increase referrals

Ensure enough

meetings are

booked

▪ Plan meetings in

advance using

performance board

▪ Encourage usage

of diaries/

calendars

Follow up

on meetings

booked

▪ Improve daily

performance

management

▪ Performance

boards

▪ Sales review

meetings

5

To

25% SSO

time spent

on sales

activity

13

Improve

13

Skills matrix developed to manage branch development

Impact through skill development,

coaching and more flexible staffing

▪ Limited skills

flexibility to

permit cross-

functionality

(e.g.. Teller not

able to support

sales

administration,

limited product

knowledge to refer

to SSOs)

▪ Business

English urgent

requirement for

some front line

staff

▪ Lack of Lean skills

,mainly coaching

and performance

management as

main driver for

increased

profitability in the

branch

14

Improve

14

Weekly 1:1 meetings to follow a clear and documented structure WEEKLY 1:1 SHEET

Employee Name: _______________ Signature: _______________

Manager Name: _______________ Signature: _______________ Date: _______________

KPI ( Key Performance Indicator ) Target Performance

Key successes (Refer to behavioral competencies) Key issues encountered (Refer to behavioral competencies)

Actions required for following week

Who When Support required Status (Red/Amber/Green)

▪ BM/SSM/CSM to hold weekly

1:1 meetings

Impact through more

rigorous coaching and

performance management

15

Control

15

Two boards used to manage performance and activities of the branch staff

Branch performance board for

weekly review

Sales and services board for

daily review

C

Submitted Applications

Planned Sales

Meetings

C

Booked Sales (report based)

W

R

M

Coaching, 1:1 sessions

C

Avg. Per Day

Referrals to SSO MM Sales

Transaction Errors

W W W

M

Daily Targets settingM

M

Targets settingM

C

Management individual

targets

C Actual/Targets

CCC

Actual/Targets

M

Daily Targets setting Weekly/ Monthly Targets

W Weekly by assigned staff R Daily by assigned staff

M Monthly by Manager C Daily by each individual

W Weekly by assigned staff C Daily by assigned staff

M Monthly by Manager

M

M

M

C C

W

W

W W

W

W

Quality and Service Scores

(MTDCumulative)

Problem Solving

Skill Matrix

Staff Suggestions

HO New

Monthly Schedule

Branch BSC rank

Team BarometerW

C

C

C

Avg. Queue TimeSSO and Teller(report based)

Top Performers(report based)

Staff Birthdays

Action of the day

C

C

C

M

Margin Deposits

Credit cards Loan

Mashreq Gold –Average revenue

CASA

W SME – median portfolio revenues

▪ Boards to be displayed and used in daily

16

Control Morning huddles are structured and aligned with performance boards' data

Purpose: To identify plan for the day / week based on current results against targets. Highlight success areas with top performers. Review

sales pipeline / WIP. Obtain feedback and define the concerns.

Attendees

▪ Branch Manager

▪ All team members

Output

▪ All staff to be aware of gaps in

performance

▪ All staff have a clear vision on what

to be treated as Individual and

Team Task for the Day

▪ Registered issue(s) for timely

resolutions

Meeting rules

▪ Update board with KPIs prior to the meeting

▪ This is not a problem-solving meeting – agree to take problems/improvement ideas off line

▪ Keep mobile devices switched off

Decision required

▪ Implement standard huddle agenda in pilot branches

Morning Huddle (15 mins)

All

Review branch KPIs

▪ Discuss Quality / Service achievements with teller focus

▪ Review last day/week results, mark top performers on board

All

Raise problems for resolution

▪ Identify key / pending issue(s), appoint staff for resolution

▪ Obtain feed-back , ideas for improvement on long-term goals

All

Agenda

▪ Greet; check for absence

▪ Update on Head Office news

▪ Discuss Team news / Team barometer

Summarize Plan of the Day

▪ Identify 1 Item/Target for Today – Sales / Service / Quality / Control

▪ Obtain commitment for Referrals/Calls/Meeting

▪ Communicate / Reinstate the TOP 5 & Tag-Ons

All

Who Time

10 mins

Sales review

▪ Review Sales board with previous day results

BM/SSM/

SSO

5 - 10 mins

Timing: 7-45 am (15 mins max)

Daily at Performance Board

16

17

Control

17

Regular surveys will ensure staff engagement and change acceptance

How to use the team

barometer

▪ Dedicated resource in each

branch to manage process

▪ Survey ran every Thursday

▪ Action items displayed on

performance boards

Weekly Trend

Sa

tisfa

cti

on

Leve

l

▪ Satisfaction score

▪ Action plans in place to

address highs and lows

Drive change by coaching,

trainings, root cause

analysis and two way

dialogue

Track, reinforce, and

encourage positive

behaviour

18

Control

18

Tactical Implementation Plans – track each branch for consistency and timelines

19

Project Closure Lean Key Performance Indicators - upward trend for branches (lead indicator)

▪ Average of all

KPIs shows

positive trend

for branches

▪ Steady increase

in booked client

meetings results

in increase of

number of client

applications

▪ Wallet share

increased due

to teller referrals

and MM sales

* Targets vary and depend on number of SSOs & Tellers in the branch * Targets vary and depend on number of SSOs & Tellers in the branch

9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug 9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7

Ave 3.2 13.4 13.2 15.6 20 23.4 25 Ave 5.6 10 12.2 19.6 18.6 18.4 18.6

Mussafah 16 36 14 6 10 4 5 Mussafah 11 26 18 23 29 28 26

Mushriff 0 17 4 4 16 24 22 Mushriff 0 2 3 13 15 9 6

Khalifa A 0 0 34 26 22 18 23 Khalifa A 0 0 12 10 10 18 10

Zaeyd 2nd 0 3 6 35 30 30 58 Zaeyd 2nd 17 14 18 42 18 21 28

AD Main 0 11 8 7 22 41 17 AD Main 0 8 10 10 21 16 23

* Targets vary and depend on number of SSOs & Tellers in the branch * Targets vary and depend on number of SSOs & Tellers in the branch

9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug 9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7

Ave 0.4 21.2 15.2 13.4 23 16.8 21.2 Ave 38 168 153.4 179.6 149.6 183.4 141.6

Mussafah 2 33 22 7 9 6 11 Mussafah 54 65 92 334 398 245 124

Mushriff 0 50 21 17 25 32 28 Mushriff 0 355 255 90 70 364 122

Khalifa A 0 6 16 6 21 5 19 Khalifa A 0 120 40 110 9 10 9

Zaeyd 2nd 0 8 7 16 48 22 27 Zaeyd 2nd 136 174 159 187 133 166 215

AD Main 0 9 10 21 12 19 21 AD Main 0 126 221 177 138 132 238

SSO client meetings SSO applications

Teller referrals Teller MM sales

0

10

20

30

Ave

Ave

Linear (Ave)

0

10

20

30

Ave

Ave

Linear (Ave)

0

10

20

30

Ave

Ave

Linear (Ave)

0

20

40

60

80

100

120

140

160

180

200

Ave

Ave

Linear (Ave)

19

20 20

Project Closure

Up to 12th

position for

May

After 1st

month 14th

position

Start of Lean in

16th position

Balance Scorecard Impacts on Pilot branch (Lag indicator)

21 21

Project Closure Learnings

Flexibility within tools used to deliver sales and service improvements

within branches – ensure degree of customization for Branch Manager

while not losing uniformed approach

First week of new waves used as ‘mini-diagnostic’ to validate findings from

extensive pilot analysis

Key staff in completed branches used during training phase for future

branch roll-out

Regular ‘Problem Solving’ sessions held within Lean Team and Branches to

encourage continuous improvement

Team Recognition

CEO visits to relevant branches, regular newsletter detailing achievements,

and recognition in CEO annual video conference across MENA

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Finally

In light of competitive nature in the Financial Services Market in UAE, it is essential that an organization can maximize it’s existing assets.

By re-energising, re-investing, and retraining staff in conjunction with process efficiencies, and better use of support services…we can significantly increase sales potential without significant headcount expansion.

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