adding value through shared services december 3, 2011
TRANSCRIPT
Adding value through Shared Services
December 3, 2011
2
Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Adding services- transition methodologyAdding services- transition methodology
Impact deliveredImpact delivered
3
Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Adding services- transition methodologyAdding services- transition methodology
Impact deliveredImpact delivered
4
ICICI Prudential - product suite
Young and single Married Married with young
childrenMarried with grown
Up children Retired
Savings for Wealth creation
• Home purchase
• Pure protection (health + life)
• Wealth creation for long term
• Mortgage insurance
• Children’s education
• Savings for child’s marriage
• Retirement provision
• Health insurance
• Children’s higher studies
• Mortgage insurance
• Health care
• Retirement planning
• Post-retirement living expenses - Annuities
• Medical expenses
Age 25 - 30 Age 35-40 Age 40-55 Age 55+ Age 30-35
Products catering to every stage of life
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Insurance company of the year
award India Insurance Awards 2011
Best leading private player – Life CNBC TV 18 Awards 2011
Recognition
Life Insurance company of the year
award India Insurance Awards 2011
Award for Excellence in Cost
Management ICWAI Awards 2010
Rated iAAA for claims paying
ability By ICRA Limited
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Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Adding services- transition methodologyAdding services- transition methodology
Impact deliveredImpact delivered
7
Shared services- business case
Business Objective
s
Business Objective
s
Organization Goals
Organization Goals
Functional Goals
Functional Goals
Project Need
Project Need
Targetin
g Expansio
n
Increased presence
& distributi
on
Meeting demands of scale
Stakeholder servicing
Scaleable, Standardized, error free processes
Technology/ self service – reduce manual intervention
Improved Process delivery
Enhanced Company
& Employer
Brand
Cost Saves Cost
Saves
Increased management bandwidth
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Organizational challenges
Challenges
EmployeeEmployee
CompetitionCompetition Customer Customer
Economic
environment
Economic
environment Govt. policies &
regulator
Govt. policies & regulator
DistributionDistribution
9
Current challenges
Insurance
Industry
Environmen
t
Increased competition in private
space Market leader getting more
aggressive Continued volatility in equity
markets Decline in new business Higher policies in force New product features requirement Distributors: Lower earnings Increased participation by the
regulator
10
Current challenges
Changing consumer preference:
risk /rewardAffected by market fluctuationsDemand faster turn around & self
service
Customers
Self service & communicationComprehension of incomeCompliance support
Distributio
n
On boarding experienceIncreased managerial spansProductivity based manpower releaseSpace rationalizationControl on discretionary spends
Employees
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Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Adding services- transition methodologyAdding services- transition methodology
Impact deliveredImpact delivered
12
Shared Services vision
Our vision symbolizes :
Our motivation to partner functions across the organization
Our scope to influence organization policy & practices
Our philosophy of benchmarking and implementing world class, “next practices”
Our ability to create multi skilled resources that value add to core functions
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Achieving the vision
● Larger influence on business leadership & decisions
● Creation of domain over process experts
● Talent pool for multi skilled fungible resources
● Creation of centre of excellence
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Shared Services drivers
Shared ServicesShared ServicesProcessesProcesses
Com
plia
nce
Scalability
Speed
of Delivery
Cost Reduction
Adm
in. Burd
en
Efficien
cy
Shared Services objectives:
● Better quality
● Variable delivery cost
● Predictable delivery
● Improving CSAT
● Organization compliance
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Process hierarchy
Shared Services processes
Taxation & Compliance• TDS compute & file
• Work contract tax
• Forex management
• Statutory filings
• Direct tax
• Profession tax
• Labour welfare
• Contract labour
• Statutory bonus
• ESIC
• TDS certificates
• Employee
• Advisor
• Vendor
• GL reconciliation
• Staffing
• Employees : 10
• Vendors : 3
Customer Operations• Refunds
• Policy benefits
• Health & death claims
• Doctor payouts
• Hospital payouts
• Group payouts
• Foreclosures
• Hold & exception management
• Funding & reconciliation
• Claims intimation & assessment
• Staffing
• Employees : 10
• Vendors : 3
HR Operations• Employee On-boarding
• Antecedent & background checks
• Payroll & taxation
• Benefits administration
• Employee interface
• Peoplesoft mapping
• Employee database management
• Space management
• PIP/governance exit
• Staffing
• Employees : 7
• Vendors : 9
Expense Operations• Accounts payable
• Accounts receivable
• Contractual payouts
• Rent
• Mobile
• Petty cash
• Consultant payouts
• Sales commercial
• Advisor commission
• Sales reward redemptions
• Temp management
• Expense provisioning & funding
• Staffing
• Employees : 9
• Vendors : 9Resources: 36 FTE , 24 vendors
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Currently serving
Employees : 13000+
Alumni: 100000+
Outsourced staff : 3000 +
Branches: 1000+
Active Vendors: 7500 +
Advisors: 120000+
Customers: 100000 + pm
Shared Services
Process & Technology
Custo
mer
/
Statu
tory
agen
cies
Employees/
Vendors
Numbers as at September, 2011
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Shared services today
Pre-Shared Services Project
•HR Operations transferred to Central Servicing
Consolidate2007 - 2008
Stabilize
2008- 2010
Optimize
2010 - 2011
•Takeover of Taxation & compliance from Finance
• Takeover of Accounts payable from Finance
•Takeover of Sales rewards redemption from Sales support
• Service delivery channels enhanced, as needed
•Fully functioning shared services organisation implemented
• Takeover of policy holder payouts from Service
Employee
Technology• Policies• KPI Tracker• Peoplesoft
Regional HR• On-Boarding• Salary• Code• Letters
Line Manager• Full & Final (F&F)• Leave• PIP
Helpline• Payroll Queries• Governance (11/ 07)
Regional HR• PIP• Governance• Benefits
Regional HR• Resignations• Discrepancies
HR Operations• On-Boarding• Payroll• C&B Execution• Full & Final• Relocation• ????
• ’
Technology• Policies• KPI Tracker• Peoplesoft
Regional HR• On-Boarding• Salary• Code• Letters
Line Manager• Full & Final (F&F)• Leave• PIP
Helpline• Payroll Queries• Governance (11/ 07)
Regional HR• PIP• Governance• Benefits
Regional HR• Resignations• Discrepancies
HR Operations• On-Boarding• Payroll• C&B Execution• Full & Final• Relocation• ????
’
EmployeeEmployee
• HRSS concept & strategic direction unveiled
• Winner of “IPRU Best Quality process” ICICI Group
• Winner of IPRU “Best Prax” award
• Top 5 “Quality Process” ICICI Group
•Selected processes transferred to relevant delivery channels
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Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Adding services- transition methodologyAdding services- transition methodology
Impact deliveredImpact delivered
19
Transition methodology
Process Priority
Process Walkthroug
h
Mapping &
Documenting
Gap &
solution identificati
on
Exploring alternative
s
Final
solution identificatio
n
Transition and change management for implementation
Volume of transactions per month No. of on rolls & support
staff Average time per transaction Exceptions,
existing & future issues
Volume of transactions per month No. of on rolls & support
staff Average time per transaction Exceptions,
existing & future issues
Key drivers
Key drivers
Person dependent processes
Low levels of automation
Quality & timeliness of MIS
Multiple/no vendors Scalability issues Executive time in
transactional activities
Person dependent processes
Low levels of automation
Quality & timeliness of MIS
Multiple/no vendors Scalability issues Executive time in
transactional activities
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Project Approach
1. Process Prioritization
2. Process Walkthrough
3. Process Mapping
4. Fishbone Analysis5. Brainstorming for Solutions
6. Process Re design
7. Automation for scalability
8. Control through Metrics
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Solutioning process transition
1. Project Team Structure with workstreams
2. Categorization of activities with activity location
3. Vendor Evaluation on SWOT & Cost
100% vendor = 2.5 times internal cost100% vendor = 2.5 times internal cost
Decision: Hybrid shared servicesDecision: Hybrid shared services
Formation of Shared Services Team and Change Mgmt.
Formation of Shared Services Team and Change Mgmt.
Stage 1Stage 1
Reducing manual intervention with process improvement/
automation
Reducing manual intervention with process improvement/
automationStage 2Stage 2
Project Implementation StagesProject Implementation Stages
5. Determining TATs , metrics & owners for all processes
Creating dashboard to track metrics
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Agenda
ICICI Prudential- an introductionICICI Prudential- an introduction
Business case & challengesBusiness case & challenges
Vision, drivers & scopeVision, drivers & scope
Process transition methodologyProcess transition methodology
Impact deliveredImpact delivered
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Impact delivered - employee
Technology• Policies• KPI Tracker• Peoplesoft
• Regional HR• On-Boarding• Salary• Code• Letters
• Line Manager• Full & Final (F&F)• Leave• PIP
• Regional HR• PIP• Governance• Benefits
• Regional HR• Resignations• Discrepancies
• Shared Services• On-Boarding• Payroll• C&B execution• Full & final• Relocation• Etc.
Employee
Post On-Boarding
• Helpline• Payroll Queries• Governance
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Impact sustained
Green : >98% Amber : 98-91% Red : <91%
Green : >98% Amber : 98-91% Red : <91%
RAG DefinitionsObjectivity in
trackingObjectivity in
tracking
Ease of reviewEase of review
Single metric scoreSingle metric score
RAG: Key Features
RAG: Key Features
Sustained Improvement: RAG TrackingSustained Improvement: RAG Tracking
Over 100 key metrics reviewed with functional heads & Snr. Mgmt.
Over 100 key metrics reviewed with functional heads & Snr. Mgmt.
HR processHR process
Finance processFinance process
Sales processSales processMetrics
identified
Metrics identified
Owners Identified. Targets provided
Review with Function
Heads
Review with Leadership
Defect scores linked to owner KPI’s
Operations processOperations process
Shared Services process
Shared Services process
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Economies of scale Leverage scale to drive lower per unit cost Economies of place
Centralization Disaster recovery Talent pool
Operational excellence Organizational transformation Standardization Process re-engineering Six sigma Straight through processing Compliance/Business continuity Metrics/KPI
Technology enablement Automation Self service Data sharing Innovative applications
Value add service Reporting Policy consulting Joint business programs
Key benefits
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Thank you