AVIVA UK General Insurance Resource Optimisation - Our story
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AVIVA UK General Insurance Resource Optimisation Our story Adrian Hawes – Resource Optimisation Manager Keith Stapleton – Resource Optimisation Specialist Version 1.0 Aviva Aviva Confidential Confidential Page page1 1
Who are we and the reasons why Who are UKGI Approximately 11,000 operations FTE spread across a number of locations in the UK and India Responsibilities range from settling claims, sales, service and collections Handle 20 million calls, 3.5 million renewals, and paying £3.5 billion in claims Also managing suppliers and providing technical expertise to support Aviva’s personal and commercial insurance business Problem Statement We are not optimising our resources so we’re spending money we don’t need to No common view of what “resource optimisation” is across the whole of UKGI Lack of confidence in the outputs of the existing processes Aviva Confidential page 2
The objectives and approach Programme objectives Deliver a solution across UKGI that supports each business as well as the following: Enable the understanding of the true impact of financial decisions Optimisation strategies so they work for the people and the business Enabler for decision making based on fact not intuition Establish the best practice model and support post programme completion Programme approach Unified agreement at the highest level Six sigma approach to: Establish the needs of the customer Critical measurements Solution design and gaining the mandate Solution implementation Measurement and review Hand over to BAU Aviva Confidential page 3
The new approach It is about planners using a new project methodology & approach Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. The DMAIC project methodology has five phases: Define the problem, the voice of the customer and the project goals. Measure key aspects of the current process and collect relevant data. Analyse the data to investigate and verify cause-and-effect relationships. Improve the current process based upon data analysis Control the future state process to ensure that any deviations from target are corrected before they result in defects. Aviva Confidential page 4
Gaining the mandate Understanding the planning processes though SIPOCs so that they work together and complete the life cycle. Supplier – the source of information Inputs – the information supplied Process – how the information is used Outputs – what the information becomes Customers – who uses the outputs Objectives Objectives Critical to quality (CTQ) tree Identifying the customer’s key Need Need Need Need objectives and their underlying needs. Need Need Need Need Aligning the solutions and defining the measurements of success. Measurement Measurement Measurement Measurement Measurement Measurement Measurement Measurement Aviva Confidential page 5
The solution – the RO life cycle and modular approach Understanding how the solution can be implemented across all parts of UKGI: Volume forecasts Planning Management assumptions Call Centre Blended Centre Back office Real time management Work schedule Call schedule Capacity plan Capacity Scheduling planning Work forecast Surplus/deficit Aviva Confidential page 6
The solution – Governance UKGI SLT executive summary Monthly “Demand” forum Discuss and agree: Work volume forecasts Review the reasons behind any Work and people assumptions exception to service delivery Sign off the inputs to the plans Line balance the individual centre’s plans across UKGI Monthly “Resource” forum Discuss and agree: Resource requirement projections Identify actions required to meet demand Making it work: Review the financial implications Attendance by the right people Sign off business action plan Formalisation of the agenda and purpose Continuity between forums Making the required decisions Aviva Confidential page 7
Post Implementation – Programme to Best Practice How to hand over from the programme to the business as usual (BAU) team: Clear hand over plan at the start of each roll out Close working relationship with the BAU team during the programme roll out Handover of fully functioning planning life cycle Nurture the required skills As the programme progresses, how to ensure that the best practice is still supported? Start best practice when the programme commences, not at the end Allocate the appropriate amount of resource from the programme Plan revisits and be prepared to re-engage Nurture the required philosophy in the BAU teams Aviva Confidential page 8
The Manager’s Toolkit Continuous Cycle of Learning/Refinement Forecasts of process volumes Managing people, workload and Process and people service in real-time planning assumptions Right number of correctly trained & skilled people in the right place at the right time, at the right cost Scheduling people and Forecasts of FTE their time – today, requirement - from 1-24 tomorrow, next month – months ahead by ½ hour intervals Actual people: Aviva Confidential 00.00.00 page 10 Surplus/Deficit
The Manager’s Toolkit Getting the Inputs Right – Demand Forecasts Volume Forecast Volume forecasts underpinned by Sales & Marketing Plan, Pricing and Actuarial Valuation forecast Collaborative process with Operations Planning, Finance and Operations to adjust forecast to reflect operational reality Reviewed against actual performance at least monthly Signed off through robust governance Process assumptions Processes re-timed manually to give best possible view ahead of Xtaq deployment Existing automated data sources exploited to ensure accurate view of actual performance to inform assumptions Reviewed through a RAG scorecard monthly where possible Signed-off through robust governance Aviva Confidential 00.00.00 page 11
The Manager’s Toolkit Getting the Inputs Right – People Assumptions People assumptions % time not in the office % time on core processing tasks % time telephone handling % time on non-work activity Balance % on non-work tasks % time handling “caseload” People utilisation benchmark agreed Non-utilised time targeted against core non-work activities Self-service calculator provided to Team Managers Utilised time split between call work and “back-office” caseloads Signed-off through robust governance Aviva Confidential 00.00.00 page 12
The Manager’s Toolkit Capacity Planning – Front & Back Office Using the inputs signed-off earlier in the cycle Plans provide FTE requirement to handle forecasted workload (and existing caseload) and surplus/deficit view Capacity planning Caseload tracker in place – predicting service level achievement Surplus/deficit (balance of phone and caseload) and backlog Now able to challenge the Finance top down driven budget Signed-off through robust governance 100 90 80 70 60 50 40 30 Actual FTE (with attrition factored in) 20 Required FTE - Service Cap Plan Required FTE - Current Position 10 Budget FTE 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Aviva Confidential 00.00.00 page 13
The Manager’s Toolkit Scheduling Flexibly matching resource to demand; balancing calls with back office caseload in Claims centres Enable utilisation benchmark to be achieved and target delivery of required Scheduling service levels and non-work time Include people preferences giving greater flexibility to the people and the business Self service tools for advisors to book and manage their own time off Delivering the critical balancing acts: Work vs non-work Service vs availability Calls vs caseload Stability vs flexibility Individuals vs business Early notice vs minimal change Desire versus possibility Aviva Confidential 00.00.00 page 14
The Manager’s Toolkit Scheduling – Service Pack Making schedules meaningful for managers Clarity of expectations for managers and their people Scheduling Highlighting the challenges of day to day delivery and where actions may be needed Aviva Confidential 00.00.00 page 15
The Manager’s Toolkit Managing Real-Time Manage Blue Pumpkin – Pulse Comparison of forecast and actual call volumes Call handling performance comparison against plan Today’s and historical information Blue Pumpkin – Adherence What people are scheduled to do What people are doing Live updates Utilisation reporting How time was scheduled and recorded How well we planned and managed our time at work The impact of non work tasks and absence Highlighting opportunities for team or individual improvement Aviva Confidential 00.00.00 page 16
The Manager’s Toolkit Benefits Utilisation 2009 90% 85% 80% 75% Utilisation up 20% in Commercial Motor Claims 70% 65% Leadership Survey shows 50% uplift in scores 60% 55% for morale over 6 months 50% Centre of Excellence Commercial Claims Credit Hire Service level up from 44% to 70% - hitting 80% Jan-09 Dec-09 for first time in one of the busiest weeks of the year Schedule adherence up 59% in FNOL Teams Schedule Adherence in FNOL 85% 80% No FNOL complaints in 2010 – previously 3-4 75% 70% per month 65% 60% Back office operation justified recruitment via a 55% 50% capacity plan for the first time 45% 40% But what makes it more worthwhile…. Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 FNOL Aviva Confidential 00.00.00 page 17
The Manager’s Toolkit Benefits “Planning are independent and now joined up with Finance so my situation is listened to” “The advisors can see their colleagues adherence through the day which has created “They’ve built shifts peer pressure “ around me” “It gives you more time to “…makes us more plan and invest in efficient about how we people” spend our time” “It empowers people…its “Everyone can see what you’re more grown up, we don’t “Before it seemed like doing, that you are doing a need to ask managers every you couldn’t have any good job and say thanks. It 5 minutes” time-off” makes me feel like I have worked hard today” Aviva Confidential 00.00.00 page 18
Aviva UKGI Operations Next Steps Next Steps Onwards through UKGI Operations Perth Claims Centre nearing completion Integrate Xtaq data capture to reinvigorate our back office assumptions Revisit learning from initial implementations Aviva Confidential 00.00.00 page 19
Aviva UKGI Operations Next Steps & Learning Points Learning Points Focus on outcomes not the solution Consistent overall framework with controlled local bespoking Create a practical toolset for the operation Don’t chase FTE savings – they will materialise anyway Cultural change in back office is the biggest barrier to break down Collaboration at the heart of the model Perseverance pays off…..in the end Aviva Confidential 00.00.00 page 20
Aviva UKGI Operations Thanks for Listening Aviva Confidential 00.00.00 page 21
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