axa

• Company Overview

• Current Situation

• AXA Way

• Phases of Implementation

• Eight Steps for Transformation

• Problems and Challenges

• Recommendations

Agenda

• A French global insurance group headquartered in Paris.

• Engaged in life health insurance and investment management.

• Operation areas: life & savings, property & casualty, international insurance, asset management and other financial services.

• Operates in western Europe, North America and the Asia pacific region and the middle east.

Company Overview

AXA WayAXA Way

Current situationCurrent situation

Phases of implementation


Company overviewCompany overview

Eight steps of transformation Eight steps of transformation

RecommendationsRecommendations

Problems & ChallengesProblems & Challenges

Current Situation

1990s 2000sGood overall market condition

Decentralized Operation

Acquisition as main driving force of growth

High default rate

Over 140,000 employees and distributors

Stagnant customer service level

Market share stalled

Out of time organizational structure

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AXA Way

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AXA Way - Phase 1

Identify Problems

Define Conditions

Determine Causes

Develop Solutions

Prepare Actions Plan, Implement Improvements

Verify Results

Document, Communicate, and

Check for replications and

sustainability

Long-term Implementation

D.M.A.I.C

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AXA Way - Phase 2

D.M.O

Define Current Processes

Identify Key Metrics

Set Up Measurement Index

Monitor the Ongoing Processes

Take Actions to Maintain the

Stability of the System


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AXA Way - Phase 3

D.I.D.V.O

Define Current Processes

Identify Potential Areas of

Improvement

Create Innovative Ideas

Transform Ideas into Feasible

Solutions

Validate Solutions by using

Collaborative Intelligence

Implementation


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Establishing a sense of urgency

• Brunet identified that the current processes in the company had a default rate as high as 2 out of 10.

• Henry de Castries was found out that the fluctuation in the outcome of AXA’s processes was the strongest source of customer dissatisfaction.

• The global economic recession in 2001 resulted in financial market depreciation and a series of severe losses.

• A meeting with company’s top 300 executives was called to launch AXA Way.

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Formation of powerful coalition

• The AXA Way central team based at AXA’s headquarter would act as global leader.

• Local entities will apply guidelines and methodologies developed by central team regarding the priorities they would opt for by themselves.

• A recruitment of 10 members of central team was done in 2001.

• A recognized high potential manager was appointed as AXA Way leader reporting to CEO of the company.

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Communicating the vision

• Employees wrote testimonials to demonstrate the benefits of AXA Way.

• Leaders, the Group magazine and local entity newsletters, played a great part in this communication effort.

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Empowering others to act on the vision

• Some of the top executive who attended the initial meeting were skeptical about the AXA Way.

• Ownership of the tasks they were involved in and contribution towards improvement of processes.

• Awareness of their activities , the group (strategies and objectives) and contribution to organization.

“Six Sigma may be fine for industry [manufacturing companies] but you will soon discover our business is a very special one”

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Planning for and creating short term wins

• First steps were to focus on simple processes in order to achieve quick wins from the low hanging fruits.

• Additional operating costs generated by the program would be minimal and the current priorities of the entities involved would be supported, not challenged.

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Consolidating improvements and producing more changes

• Shifting from phase 1 to 2, a shift in the focus from DMAIC to DMO projects.

• No low-hanging fruit on this side of the fence!AXA WayAXA Way








Institutionalizing the new approaches

• Central Team – 10 members

• Visible and recognized high potential managers appointed as AXA Way Leader

• Black belts

• By 2005, AXA way implemented in majority of AXA entities and 90% of Group revenue was generated by entities involved with the AXA Way

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Issues during “Phase 1”

• Spread awareness of the AXA Way program.

• Original projects were slow runners.

• No short-cuts to conclusions, so executives were impatient.

• Measure of impact on customer satisfaction was not possible.

• Customer-centric & process-centric for support of customer service.

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Issues During “Phase 1”

• Mere option.

• Projects are meant to deliver lasting benefit.

• Customer not given the focus.

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Issues during “Phase 2”

• Stronger understanding & facilitation of processes.

• Learning & development would be slow.

• IT infrastructure & adequacy of AXA Way team.

• Validity of AWNPI

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Recommendations

• Confidence building measures should be implemented.

• Improve the Customer Relationship Management by establishing better IT infrastructure.

• Publicize how the company is better in handling customers than its competition.

• Changing the working conditions &

relations within teams might also be necessary.

• Rewards and appraisals to all employees involved.

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axa

Documents

benefits of axa way

results axa way phase

axa way leader reporting

current priorities

axa s culture

vision company

improvement of processes

selection of project