Top 6 Steps to Increase Workforce Utilization With Special Guests From IH Mississippi Valley CU

• Welcome and Introductions

• Revenue Per Year, Per Employee

• Workforce Utilization (WFU) Management Approach

• The 2011 Workforce Utilization Study

• A Closer Look – IH Mississippi Valley Credit Union

• Review Steps to Increase WFU Percentages

• Open discussion including Q&A session

• Gordon A. Williams IV, FMSI EVP Business Development

• Barb Reed, IHMVCU Regional Manager

• Kim Brozovich, IHMVCU Branch Manager

• W. Michael Scott, FMSI President/CEO

• Chad Davis, FMSI Marketing Manager

The measurement of an employee’s productive time against hours available/paid per their intended role.

• Example: The amount of time a teller spends processing transactions on the teller line.

Difference in other industries and FIs can be caused by outdated staffing models where workforce utilization numbers are often below 72%.

Vast majority of FIs are not closely managing WFU

through detailed monthly analysis reports.

• A recent study by Celent estimates that just 3%

of North American FIs use WFU solutions.

Pick the one you think looks best…or if you want something completely different

Impact of managing and scheduling with Performance Management Information, like the workforce utilization percentage.

• Can lead to significant expense management enhancements • FMSI’s recommended benchmark is a WFU of 75% or higher. • Processing Hours ÷ Available/Paid Hours = Workforce Utilization %

• Are you currently utilizing workforce utilization reporting in the branch environment?

– Yes

– Yes, but on a limited basis

– No

The following is a workflow demonstrating the process of preparing “monthly” WFU reports.

The 2011 study encompasses over 10,000 financial services employees at over 1,000 branches from March 2011 through May 2011.

68% reduction in EWFW via better scheduling that led to the following retail branch improvements: • 39% increase in Productivity (TPH) • 26% decrease in Labor Cost per Transaction

figure 2.1 figure 2.2

The below charts represent the difference in non-volume/idle time hours between three groups in the FMSI WFU Study.

28% Non-Volume/ Idle Time

18% Non-Volume/ Idle Time

36% Non-Volume/ Idle Time

• What percentage of time would you estimate your tellers spend on non-volume activities?

– 50% plus

– 40-49%

– 30-39 %

– Less than 30%

Standard Performers—FMSI Client—WFU 78.7%

Low Performers - FMSI Client — WFU 54.8%

We began working with The Teller Management System™

in 2009. Our goals were to:

• Better understand our staffing needs • We looked to improve our productivity • Improve and simplify scheduling procedures • Reduce labor costs • Review hiring practices (full-time versus part-time) • Maintain and improve service levels

Monthly Excess Labor Cost

Situation Prior to TMS

• We staffed to the number of windows that were available • Focused on availability of the branch staff

Implementation Timeline

• We began receiving FMSI reports December of 2008. • In February of 2009, we provided our staff with an

opportunity to practice and participate in TMS online training courses

• Rollout in March of 2009 included several face-to-face training sessions

• June of 2009 rolled out Scheduler Training.

Initial TMS Management Approach

• Managing to the transaction per hour (TPH) metric—recommended levels

• Enhancing scheduling approach with online scheduler • Staffing with more part-time help • Bringing tellers in at a later time • Tellers leaving early on slower days of the week.

Ongoing TMS Management Through Workforce Utilization Percentage

• Coaching with workforce utilization percentages • Better understanding of employee activity

Jan Feb March April May June July August September October

79% 80% 86% 78% 73% 78% 79% 80% 82% 81%

October 2011 Results

• Improved Service • Reduction in operating expense

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Determine what is the most successful approach to execute your workforce optimization initiative: • Manage the project through internal resources • Outsource this function to a professional and specialized company that excels in this topic, such as FMSI.

Step 2 — WFU Guideline with Branch Staff

• A coaching discussion with teller supervisors/ managers to set expectations they have about their role. • Does your data indicate the expectations of how each role should be utilizing time? • Outline clear expectations for platform staff to focus on sales activities and not teller transactions.

• What are the tellers doing when they are not processing teller area transactions? • Is it work that adds value to the organization, branch, and/or customers/members? • Am I scheduling my employees as efficiently as possible to meet the volume needs? • Does the actual WFU percentage meet your expectations for that employee or that specific position/role?

Financial institutions will increase the WFU percentage through better forecasted scheduling to historic volume trends and traffic flow needs.

Streamline or reallocate some of the teller line ancillary responsibilities that may be taking too much time and keeping the tellers away from their primary role.

Non-Volume/ Idle Time Related Activity

Volume Related Activity

The use of part-time tellers to handle the durations of higher transaction volume will reduce excess waiting for work (EWFW) time; or the idle time tellers are waiting to process transactions.

• Significant gap in the revenue per year, per employee gap in FIs compared to other industries. • Caused by a lack of focus on both optimizing staff utilization and proper

scheduling. • As you improve your WFU percentage through better scheduling, your

non-volume related activity and idle time will go down and your volume related activity will go up.

• Make more informed personnel, scheduling, and

branch hours of operation decisions.

• Effectively manage towards better service level needs

of account holders.

Image of good service (ladies on image of FMSI video cover)

• It is now more important than ever for bank and credit union management to pay closer attention to their staffing levels.

• Labor cost savings associated with a focused and dedicated workforce optimization program for teller-lines has become too great to ignore. • Utilize comparative performance data/benchmarking of other FIs to see how you compare.

Average Labor Cost per Transaction – Consisting of Nationwide Financial Institutions of All Sizes

Financial institutions that implement an initiative that

helps them validate and manage teller labor costs – will achieve great indefinite cost savings.

FMSI has assisted over 600 financial institutions nationwide in optimizing their branch networks through applying Actionable

business intelligence from the analysis of transaction data.

– Learn more at www.fmsi.com, or call 770.619.3443