Executive briefing-jason-millett-westpac

24 May 2010

Transforming the Bank to place customers

at the centre of everything we do

Jason MillettGeneral Manager, P&O Strategy & ExecutionWestpac Banking CorporationMay 2010

Transforming banks to be customer centricJason Millett – Westpac Banking Corporation24 May 2010

Addressing customer needs is about ‘getting the basics right’

• Reliable delivery of products and services

• Consistent experience across channels and platforms

• Easy and simple to do business with

• Single and insightful view of information

• Flexible and responsive to requests

Typical Customer Service Needs


Driving Principles

Most recommended

financial services company

To be the leading financial services company in Australia and New Zealand

Meet most customer

needs

Most skilled and engaged

people

Global leader in

sustainability

Highest returns in

sector

Operating as ‘One Team’

Focus on core markets

Strong local businesses Shared valuesEasy to do

business with

Westpac’s Customer Oriented Strategy

Source: WBC Group Update Dec 2009

Vision

Assessedby

Westpac’s ‘customer centric’ strategy focuses on directly fulfilling customer needs


• Westpac Local: The Bank Manager is back

• St. George: Greater regional focus while increasing distribution presence and reach

• Shift decision making and focus to front line

• Increased training, coaching and mentoring

• Pervasive cultural change, fundamentally improving customer focus

Source: WBC Investor Discussion Pack Nov 2009

1Customers

at the centreStrong local businesses2

• St. George: Australia’s leading regional bank ‘Big enough; Small enough’

• Westpac Brand: Strong, safe, local, responsible

• Leading ‘Institutional’brand

• Continue to deliver on merger synergies

• Build sales force productivity

• Process redesign and simplification

3More choices for customers

Sustained gains4

Westpac’s strategy is delivered by four complimentary initiatives


Customer satisfaction Customer advocacy

Product oriented Distribution oriented

Siloed business unitsOne team

(accountable, collaborative, aligned, integrated)

Predominantly 1 brand Multi-brand

Bank centric Integrated financial services

Traditional banks The Westpac Group

Becoming ‘customer centric’ requires a significant shift of mindset


Infrastructure

Product

Distribution (Sales & Service)

•Proactive lead generation tools•Single view of the customer•Integrated multi-channel origination & servicing

•Single source of truth for customer data

•Digitised documents

•Reliable and robust systems•Secure perimeter•Effective email & collaboration platforms

Operations

Customer Information

•Straight through processing

•Automated workflow, decisioning and document management

•Flexible and modular systems

•Customer based product solutions

•Dynamic pricing capability

There are several key target capabilities implied by a ‘customer centric’ focus


Design requirements from the customer’s perspective (CCD)

Develop a clear technology strategy aligned to the business strategy

Ensure reliable and robust technology services are provided

Streamline customer fulfilment processes to be easy to do business with

Manage performance by measurable metrics

Systematically identify, prioritise and implement opportunities to ‘delight’

1

2

3

4

5

6

There are six key considerations to enable a ‘customer centric’organisation


Business requirements

Technology solution

Customer process & interfaces

Design

1. Business process defines the experience

2. Technology drives the business process

3. Customer experience / design is an overlay

Current State Future State

Start Start HereHere

The CCD approach should ensure that we start to

address our business problem through the

needs of the customer.

= Desirability

= FeasibilityViability =

Design requirements from the customer’s perspective (Customer Centric Design)

1


We have created Design Personas to inform us of the customer experience

What?

Design Personas are representations of our typicalcustomers

Personas are relevant across Brand & Market Segmentation

Christopher WilkinsonOrganised &

Ambitious


Ambitious

Insight into the behavioral, social, emotional and motivational attributes of our customers or end users

Design Personas are representations of our typicalcustomers

Design Personas are created for any User – Customer and Staff

They represent larger audience groups based on contextual inquiry research & stakeholder knowledge

We use Design Personas to -

inform design decisions in relation to any project in the organisation

reduce risk by creating a balanced view of customer and remove personal bias through development

ensure that real user inform the design, even without being present

ensure we understand the typical behaviours and motivations of our customers

Capture the needs of the customer for all channel experiences –current gap for product experience

Design Personas are used to ensure that everyone understands the customer and who they are designing the solution for.

1

How? Why?


These personas are then driven into experience propositions and task models

Design Personas Experience Proposition Task Modelling

• Represents how users achieve their goals, by performing different roles

• Detailed customer requirements


Ambitious


Ambitious

Insight into the behavioral, social, emotional and motivational attributes of our customers or end users

A ‘brief’ from our customers, which is an empirically derived direction for the service / product

1


Technology strategy – priority is reliability and customer experience

2

Stra

tegi

c In

vest

men

t Are

as

Reliability, Efficiency & Effectiveness

• Enhance IT reliability and efficiency • Improve resilience and capacity of Group Data Centres• Optimise supplier relationships

Customer Touch-points• Implement a common Sales & Service Desktop• Launch a new Internet Banking Platform

Product and Processing

• Deposit platform – transition to the next generation of Hogan• Operations Transformation – rollout new operations desktop• Payments – migrate to new platform• Cards Platform – consolidate existing platforms• Wealth – consolidate and improve core platforms• Secured Lending – transform platforms and processes

Enabling Programs• Repository of core customer information• Enhanced Enterprises Services Infrastructure

Cap

abili

ty

Source: WBC Group Update Dec 2009

Develop a clear technology strategy aligned to the business strategy


3

Drivers Of Service Outages

Ensure reliable and robust technology services are provided

Single Point of Failure

Volume Overflow

Hardware Old & Unreliable

Power Problems

Application Instability Downstream

Problems

Process Not Followed

Process Inadequate

BAU Change

Outages


4

Frontline staff: “What I want”• Reliable systems• Access to customer information• Able to complete processes on the spot

Customer Sign-up• Easy account opening

• Simple application forms

• Automated credit decisions

Customer Information• See all of a customer’s products on one screen

• View account history• See application status in all channels

Account Servicing

• In branch

• Customer self-service

Contact Centres• Closed loop feedback

• Agent level NPS• Integrated platform with same functionality as branches

Streamline customer fulfilment processes to be easy to do business with


5

• Net promoter score (NPS)

• Service delivery applications meeting service level agreements

• Project status – green, amber, red

• Number of ‘Severity 1’ incidents and mean time to restore service

• Programme health for end user, network, desktop applications, online

• Outages and number of customers impacted for Online, ATM, call centre

• Number of help desk calls

Some technology metrics that can be used to measure performance include:

Manage performance by measurable metrics


Net Promoter Score is our key measure of customer performance

Recent Customer Experience

Recent Product Experience

Consistent Delivery

Brand Perception

Drivers of Net Promoter ScoreCalculation of Net Promoter Score

5


6

Guys we just need to do it !

Continuous Improvement ProcessConcept

• One employee feedback tool

• For use by all staff - frontline & back office

Key Focus • Product or process ideas that improve the customer and or staff experience

Method

• Suggestions stored & managed centrally

• Monthly steering committee prioritises ideas

• Set scoring system

• Validation by subject matter experts (if required)

Criteria

• Implementation cost (<$250k)

• Implementation time (<12 months)

• Impact on customer, employee, quality, efficiency, revenue and cost

Communication • Ongoing communication with the person who suggested the idea

Looks like this will need a full 12 months

study on it !



6

Continuous Improvement Ideas


Ideas by Group Ideas by Category3124ideas3124ideas


Lessons learned: Technology in a ‘customer centric’organisation

Design requirements from the customer’s perspective (CCD)

Technology strategy

aligned to business strategy

Reliable and robust

technology services

Streamline customer fulfillment processes

Manage performance

by measurable

metrics

Identify, prioritise and

implement opportunities

to delight

• Ensure commitment from all the senior leadership team to drive change

• Communicate a consistent message across all stakeholders

• Develop a program of work that will support a ‘customer centric’ focus

• Instil strong disciplines to focus on the highest value activities

• Uplift workforce capabilities to support the change