David McGown

RAA Group CFO

Program Owner, Business Improvement

Lean Business System Conference

Sydney 16 March 2016

RAA Business Improvement Program

‘Creating a Culture Ready for

Continuous Improvement’

• 680,000 Members

• SA Iconic Brand

• Strong Retail Network

• Range of Products & Services

• ‘Serve our Members’

Clear Vision – Why Business Improvement?

Why are we doing this?• We want to make things simpler and easier for each other and our Members• Business Improvement is a Green Light project that will run for three years

How will this benefit our staff?• It will get rid of rework, doubling up, time consuming processes and frustrations• Ownership and involvement – staff will have a say on what and how processes are improved• Internal customer service (understanding and responsiveness) will improve

How will this benefit our members?• It will help us get things right the first time, meaning happier members• It will help us identify budget savings and areas for new investment

Lean Principles

ProcessUnderstanding our key processes and our

Value Streams

EfficiencyStreamlining our processes to become

more efficient – working smarter

NeedsMeeting our Member’s/Customer’s needs

Continuous Improvement

Always in pursuit of perfection

ValueAdding value to our Members and

our Customers

Requisite Enterprise

Setting up our People to Succeed

• Organisation Development concept developed by Elliott Jaques

• +40 years of research, across different industries

• RAA since 2008

• Organisation design with three main steps:

• Right structure

• Right people in the right roles

• Managers accountable for using the right managerial

practices

• Solid Foundation for our BI Program

© 2015 The Working Journey

© 2015 The Working Journey

Requisite Enterprise simply is….

Structure: design for effective delivery

Leadership: consistent processes across RAA

Capability:

fill roles with capability that can perform

© 2015 The Working Journey

Organisational Sequence

Intent

Strategy

Structure

Roles

Systems

People

Leadership

Performance

CEOIntergrater

RE BI

© 2015 The Working Journey

Allows you to design, fill and lead your organisation in order to maximise effectiveness and minimise risk in delivery of plans.

• Roles are clear and meaningful

• Structure allows leaders to provide genuine value to their people

• Roles filled with people who have the capability to deliver

• Consistent processes across the organisation

• Fair processes and procedures

• Teamwork geared around achieving outcomes

Requisite Enterprise

© 2015 The Working Journey

• People who will be engaged in their work

• Greater or renewed trust within the organisation

• Natural creativity and innovation

• A much stronger management model

• Your people in flow with work challenges

• Resilience and Sustainability in the face of change

• And….the work of the organisation delivered!

Follow these principles with Business

Improvement will get…

Requisite Enterprise – Roles in Business Improvement

© 2015 The Working Journey

QUALITY(Frontline)

SERVICE(Team Leaders)

PRACTICE(Senior Mgrs)

STRATEGIC DEVELOPMENT

(Executive)

- Voice of the Member/Customer- Notice better and simpler ways to do things

- Prioritise and Deliver Quick Wins- Work with Senior Manager on fundamental improvements

- Prioritise and Implement high impact initiatives- Set up business areas to enable a BI culture

- Setting the BI Strategy- Where does RAA want to be in the future

RAA Approach to Business Improvement

Why? Principles

Training

Engagement

ToolsCentre of Excellence

Initiatives/Results

Continuous Improvement

Maturity Level Assessment

AutonomousDeploy Way of Life

Business Improvement Program Approach

Cycle Time

Members

Financial

Community

Financial

MembersStrategic

Link

Communication

Key Wins

Lean Training

Governance

Why?

Fabric of Organisation

Strategic Link

Communication

Quick Wins

Build The Base

How Do We Measure Program Success?

• Maturity Level Improves

• MySay Survey Results

• NPS/Member Satisfaction

• Initiative Outcomes

• Serve Our Members

• Building Capacity

• Bottom Line Impact

Where are we?

Cycle Time

Members

Financial

Community

Financial

Members

Year 1 Year 2 Year 3 - 5 5+ Years

REACTIVE DEPLOY AUTONOMOUS WAY OF LIFE

Set StrategyStandard Approach

to PICI - Throughout Organisations

Built Into Daily Habits

• Build the Base

• Train Staff• Tools• Thinking• Approach

• Initiatives

• Quick Wins

• Engage Staff

• Strategy Clear -Why?

• Specialist in the Business

• Training

• 2nd Round of Initiatives

• Further Quick Wins

• Behaviour KPI’s

• Major Process Renewal

• Organisation Trained in BI

• Continuous Improvement

• Processes Much Stronger

• Behaviour Driving Outcomes

• Best Practice Management

• External Training

NOW AIM

Staff Engagement – the challenge

Cycle Time

Members

Financial

Community

Financial

Members

Staff Engagement

Communication

• Senior Manager

Workshops.

• iConnect Newsletter

monthly updates.

• More Visual Management

Tools in place.

• Practical Problem Solving

Management purposes

Training

• All Exec attend Lean

Leadership training

• All Senior Managers trained

• RAA Board Presentation

Shared goals

Accountabilities

• Clear BI accountabilities

agreed/ documented.

• Performance documents

updated to reflect BI targets

Process Analysis

Targets

• Exec have set Maturity Target

• Exec have set business level

targets to meet Maturity Target

• Training targets set

• Initiative targets set

Staff Engagement Across the Business

Cycle Time

Members

Financial

Community

Financial

Members

Staff Newsletter

Staff Videos

Posters Icons

Executive Visual Board

Cycle Time

Members

Financial

Community

Financial

Members

Visual Management Across

the Business

Business Improvement Wins

• 40% reduction in Claims cycle time

• Battery Jobs Process – Serve our Members better

• Secure Services improved profitability

• Procurement savings by buying better

• Improvements in Retail Contact Centre – building

capacity that has resulted in positive bottom line impact

• Program has ensured Net Promotor Score and Member

Satisfaction remains high.

• Program has delivered $1m YTD savings, with another

$600k still to come.

Business Improvement Strategic Hierarchy

Cycle Time

Members

Financial

Community

Financial

Members

Supported by

Benefits

Program Goals

Strategic Goals

Vision StatementServe Our Members

Financial PeopleMembers Community

Serve Our Members

Building CapacityBottom Line

Impact

Quality Flexibility Cycle TimeFinancial

Performance

Reporting

Pro

gram

R

ep

ort

ing

Framework Culture Initiative Outcomes

Pro

gram

D

eliv

era

ble

s

Governance

Tools

Maturity Level

Training

Communication/Awareness

Bu

sin

ess

Be

ne

fit

EASY Difficulty to Implement DIFFICULT

Best Bets

Greenlight/Transformation

DeferQuick Win

· These are identified as improvement initiatives

· These types of initiatives support Lean Thinking

· Each Initiative needs to identify Benefit

· Possible for initiative to hit more than one Benefit

· FOCUS on OUTCOME (not necessarily number of

activities)

Cycle Time

Members

Financial

Community

Financial

Members