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Adding value through Shared Services

Adding value through Shared Services. December 3, 2011. Agenda. ICICI Prudential- an introduction. Business case & challenges. Vision, drivers & scope. Adding services- transition methodology. Impact delivered. Agenda. ICICI Prudential- an introduction. Business case & challenges.

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Adding value through Shared Services

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  1. Adding value through Shared Services December 3, 2011

  2. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Adding services- transition methodology Impact delivered

  3. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Adding services- transition methodology Impact delivered

  4. ICICI Prudential - product suite Young and single Married Married with young children Married with grown Up children Retired • Mortgage insurance • Children’s education • Savings for child’s marriage • Retirement provision • Health insurance • Children’s higher studies • Mortgage insurance • Health care • Retirement planning • Home purchase • Pure protection (health + life) • Wealth creation for long term • Post-retirement living expenses - Annuities • Medical expenses Savings for Wealth creation Age 55+ Age 40-55 Age 25 - 30 Age 30-35 Age 35-40 Products catering to every stage of life

  5. Recognition Best leading private player – Life CNBC TV 18 Awards 2011 Insurance company of the year award India Insurance Awards 2011 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

  6. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Adding services- transition methodology Impact delivered

  7. Organization Goals Functional Goals Project Need Business Objectives Shared services- business case Increased presence & distribution Meeting demands of scale Stakeholder servicing Targeting Expansion Scaleable, Standardized, error free processes Cost Saves Enhanced Company & Employer Brand Increased management bandwidth Technology/ self service – reduce manual intervention Improved Process delivery

  8. Organizational challenges Employee Customer Competition Challenges Govt. policies & regulator Economic environment Distribution

  9. Current challenges • Increased competition in private space • Market leader getting more aggressive • Continued volatility in equity markets Environment Insurance Industry • Decline in new business • Higher policies in force • New product features requirement • Distributors: Lower earnings • Increased participation by the regulator

  10. Current challenges Customers • Changing consumer preference: risk /reward • Affected by market fluctuations • Demand faster turn around & self service • Self service & communication • Comprehension of income • Compliance support Distribution • On boarding experience • Increased managerial spans • Productivity based manpower release • Space rationalization • Control on discretionary spends Employees

  11. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Adding services- transition methodology Impact 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

  13. 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

  14. Scalability Shared Services Processes Compliance Speed of Delivery Admin. Burden Efficiency Cost Reduction Shared Services drivers • Shared Services objectives: • Better quality • Variable delivery cost • Predictable delivery • Improving CSAT • Organization compliance

  15. Process hierarchy Resources: 36 FTE , 24 vendors

  16. Customer/ Statutory agencies Employees/ Vendors Shared Services Process & Technology Currently serving • Employees : 13000+ • Alumni: 100000+ • Outsourced staff : 3000 + • Branches: 1000+ • Active Vendors: 7500 + • Advisors: 120000+ • Customers: 100000 + pm Numbers as at September, 2011

  17. Optimize 2010 - 2011 Stabilize 2008- 2010 Consolidate 2007 - 2008 Technology Technology • • Policies Policies HR Operations HR Operations • • KPI Tracker KPI Tracker • • On On - - Boarding Boarding • • Peoplesoft Peoplesoft • • Payroll Payroll Employee Employee Employee • • C&B Execution C&B Execution • • Full & Final Full & Final Regional HR Regional HR • • Relocation Relocation Regional HR Regional HR • • Resignations Resignations • • ???? ???? • • On On - - Boarding Boarding • • Discrepancies Discrepancies • • Salary Salary Regional HR Regional HR • • Code Code • • PIP PIP • • Letters Letters • • Governance Governance • ’ ’ • • Benefits Benefits Line Manager Line Manager • • Full & Final (F&F) Full & Final (F&F) • • Leave Leave • • PIP PIP Helpline Helpline • • Payroll Queries Payroll Queries • • Governance (11/ 07) Governance (11/ 07) Shared services today • Service delivery channels enhanced, as needed • Takeover of Accounts payable from Finance • Selected processes transferred to relevant delivery channels • HRSS concept & strategic • direction unveiled • Winner of “IPRU Best Quality process” ICICI Group • Takeover of Sales rewards redemption from Sales support • Fully functioning shared services organisation implemented Pre-Shared Services Project • Takeover of Taxation & compliance from Finance • HR Operations transferred to Central Servicing • Winner of IPRU “Best Prax” award • Top 5 “Quality Process” ICICI Group • Takeover of policy holder payouts from Service

  18. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Adding services- transition methodology Impact delivered

  19. Process Walkthrough Exploring alternatives Process Priority Mapping & Documenting Final solution identification Gap & solution identification Transition methodology Volume of transactions per month No. of on rolls & support staff Average time per transaction Exceptions, existing & future issues Key drivers • Person dependent processes • Low levels of automation • Quality & timeliness of MIS • Multiple/no vendors • Scalability issues • Executive time in transactional activities Transition and change management for implementation

  20. Project Approach 1. Process Prioritization 3. Process Mapping 2. Process Walkthrough 4. Fishbone Analysis 6. Process Re design 5. Brainstorming for Solutions 8. Control through Metrics 7. Automation for scalability

  21. Solutioning process transition 100% vendor = 2.5 times internal cost Decision: Hybrid shared services 1. Project Team Structure with workstreams 5. Determining TATs , metrics & owners for all processes Project Implementation Stages Stage 1 Formation of Shared Services Team and Change Mgmt. 2. Categorization of activities with activity location Stage 2 Reducing manual intervention with process improvement/ automation Creating dashboard to track metrics 3. Vendor Evaluation on SWOT & Cost

  22. Agenda ICICI Prudential- an introduction Business case & challenges Vision, drivers & scope Process transition methodology Impact delivered

  23. Employee Impact delivered - employee • Technology • Policies • KPI Tracker • Peoplesoft • Shared Services • On-Boarding • Payroll • C&B execution • Full & final • Relocation • Etc. • Regional HR • Resignations • Discrepancies • Regional HR • On-Boarding • Salary • Code • Letters • Regional HR • PIP • Governance • Benefits • Line Manager • Full & Final (F&F) • Leave • PIP Post On-Boarding • Helpline • Payroll Queries • Governance

  24. Impact sustained Review with Function Heads HR process Metrics identified Finance process Sales process Review with Leadership Operations process Owners Identified. Targets provided Shared Services process Sustained Improvement: RAG Tracking RAG: Key Features RAG Definitions Objectivity in tracking • Green : >98% • Amber : 98-91% • Red : <91% Ease of review Single metric score Defect scores linked to owner KPI’s Over 100 key metrics reviewed with functional heads & Snr. Mgmt.

  25. Key benefits • Economies of scale • Leverage scale to drive lower per unit cost Economies of place • Centralization • Disaster recovery • Talent pool Value add service • Reporting • Policy consulting • Joint business programs 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

  26. Thank you

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