The impact of CBN change programme on Customer Service delivery

1. The impact of CBN change programmeon Customer Service delivery Presentation at the capacity building workshop held at Gate Way Hotel Ijebu Ode, Ogun State, April 9th 2008.

2. Outline • Objectives of this presentation • Vision, mission ,mandate of CBN • Role of CBN in service delivery • CBN change programme • Impact on Customer service delivery • Some of the benefits to customers • Challenges • Questions & Answers

3. Objective • Discuss CBN change programme and how it impacts on Customer service delivery • Expose CBN to participants

4. Our Vision To be one of the most efficient and effective of the world's central banks in promoting and sustaining economic development • Mission Statement To be proactive in providing a stable framework for the economic development of Nigeria through the effective, efficient and transparent implementation of monetary and exchange rate policy and management of the financial sector

5. Mandate • Ensure monetary and price stability; • Issue legal tender currency in Nigeria; • Maintain external reserves to safeguard the international value of the legal tender currency; • Promote a sound financial system in Nigeria; and • Act as banker and provide economic and financial advice to the Federal Government

6. The role of CBN in service delivery ( needs vs want) • The role of CBN is to render CENTRAL BANKING SERVICES. This implies offering a wide array of services to both internal and external customers. • In satisfying Customers, CBN will have to separate between needs and want. • A need (must have) • A want (desire) is what the CUSTOMER SPECIFICALLY ASKS FOR, or the manner in which S/HE desires our offering. • Our primary RESPONSIBILITY is to find these out by asking the CUSTOMERS and those connected to HIM/HER how best to serve them.

7. Needs vs want (cont’d)) • Meeting Customer's needs presupposes that we focus on them in determining those needs. • It is our responsibility to: • Properly establish THE NEED from our Knowledge of the Customer's Business/Industry. • Find out how they want those needs met. • Remain close all through the life time of the customer.

8. The Change ProgrammeProject EAGLES In order to further sustain and enhance its performance in these areas, in 1999, the Bank commenced a reengineering programme code named Project EAGLES with the overall aim of repositioning and reinventing the CBN for sustainable improvement of overall – E - Efficiency A - Accountability G - Goal orientation L - Leadership E - Effectiveness S - Staff motivation

9. CBN Core Values

10. What is great service to customer? Our definition in CBN is Responding promptly and accurately to customer requests in such a way that each customer feels valued,respected, and understood

11. Implementation of the Change Programme The implementation of the Change Plan is a technology-driven enterprise transformation of the CBN, characterized by the following: • Systematic and deliberate organisation-wide migration towards strategic objectives • An integrated approach that aligns strategy, process, people and technology • Fundamental and far-reaching changes to organisation culture, attitudes and processes • IT driven vs Manual • Performance driven vs tenure driven • Individual accountability vs collective responsibility • Leadership by example vs top-down directives • Customer drivenvs internal process driven

12. Strategy

13. Strategy simply means The alignment of processes, resources, and organizational structure to maximize benefits to various stakeholders

14. Balanced Scorecard Balance score card a strategy tool At the highest level, the Balanced Scorecard is Aframeworkthat helps organizations translate strategy into operational objectives that drive bothbehaviorand performance.

15. Financial Perspective How do we look from a financial point of view Customer Perspective Internal Business Process Perspective How do we look to our customers and other stakeholders? Vision and Strategy What must we excel at? Innovation & Learning Perspective Policy & Regulation Perspective How do we continue to improve and create value? How do we ensure that our policies and regulations are effective? The CBN Balanced Scorecard Model The basic framework for the CBN Performance Management System is the Balanced Scorecard model which translates the Strategy into objectives that drive both behavior and performance from various perspectives: The classic Balanced Scorecard typically has four perspectives or areas of focus However, the CBN Balanced Scorecard consists of five critically important perspectives – a Policy perspective to reflect it’s role as policy-maker

16. Process

17. Process Redesign The Change programme has led to the fundamental re-design of many core business and key support processes to achieve significant improvements in efficiency, effectiveness and the quality of service delivery.

18. ……Process Redesign • Redesigning business processes to leverage new technologies and improve efficiency • Redesign of business processes for all Business Units (departments and branches) in the Bank • Roles were re-defined based on the new processes while new departmental organisation structures and job descriptions were also done • The work tools required to enable the new processes were procured and distributed • Staff deployment and end-user training. This has ensured the placement of the right people in the right position with the right tools • Skills upgrade and training of end-users was given appropriate attention • Process training • Computer appreciation training • Application specific training • Technical training

19. …some examples • Introduction of standardised currency boxes for processing helped reduce multiple checks on the cash received and helped in reducing currency processing time • Implementation of a team structure for the Banking Supervision Department which has improved the supervisory efficiency of the Bank by ensuring that specific teams take ownership of particular institutions • Institution of shorter turn-around time for rendering feedback to examined institutions has helped improve customer satisfaction as Banks now know the outcome of a regulatory visit and the regulator’s verdict on its financial health within a shorter timeframe

20. ….more examles • Service Level Agreements (SLAs) between departments • Customer Relation Division in CBOD • Branches to serve as Front Offices

21. … fallout • The CBN Annual Controllers’ Conference held late last year had as its theme: “PROMOTING EFFECTIVE AND EFFICIENT CUSTOMER SERVICE DELIVERY: THE ROLE OF CBN BRANCHES”. • At the end of the conference, the Branch Controllers had as part of their communiqué, a resolution that the Bank must be more customer-focused. • Indeed the Deputy Governor Operations challenged the Branch Controllers to produce a document, a charter, on “Customer Service Delivery” for the Bank.

22. Information Technology (IT)

23. …IT The various technology elements put in place enables CBN to effectively drive it’s core operations and transactional processing, better position the Bank to drive ongoing industry reforms and produce outcomes that support its core mandates

24. Examples of IT driven customer service improvements tools The CBN engaged the services of Accenture to manage the configuration, deployment and integration of fairly complex IT business applications, hardware, communication networks and security systems, by over 10 reputable IT companies (local and offshore), within an aggressive timeline, to enable the vision of the CBN “to be one of the most efficient and effective world's central banks…” • Implemented Electronic Financial Analysis and Surveillance System(eFASS )application to improve the surveillance and supervision of the banking industry • Implemented T24 Banking Application to improve the banking operations of the CBN • Implemented Real Time Gross Settlement System(RTGS) application to improve the efficiency of the payments system, especially of large value transfers • Implemented Oracle ERP Application to improve the internal operating efficiency of the CBN • Implemented Enterprise Management & Security (EMS) system to manage the complex IT services and to provide a secure processing environment • Implemented best-in-class IT Infrastructure to enable high quality service delivery and improved operating efficiency

25. …IT BCIS • In addition, there is an ongoing implementation of Business Continuity and Implementation Strategy (BCIS) an enterprise Business Intelligence framework • It will provide a capability to quickly and effectively recover from an incident therefore enhancing operational effectiveness and ensuring the Banks trusted relationship with its stakeholder’s remains

26. People

27. A corporate performance management system, which provides for a systematic way of managing customer relationships on a larger scale, has been institutionalized in the Bank.

28. Business etiquette Attitude as tool for achieving customer satisfaction Team building as a reinforcing instrument for service delivery. Emotional intelligence Personal values Ethical decision making Managing personal finance Staff empowerment through learning and growth – specialized training like service magicSelf service through Enterprise Resource Planning (ERP)Communication and Culture change-Change champions Networks across the Bank Ethics Officers Networks across the BankProfessionally trained Counsellors for each Business UnitsCode of Business Ethics and Conduct (COBEC) Committee re-orienting staff in:-

29. Some benefits to customers • Friendlier interaction at entry points • Professionally trained Graduate receptionists • Best in class physical reception area • Professionally trained physical security • Improved quality of service delivery - Less errors in input and workflow • Convenient access to timely and accurate information through various and appropriate channels • Less bureaucracy in processes in customer facing Business Units • Reduced levels of manual interventions • Payment system - Cheque clearing

30. …Some more benefits • Consolidation-So far the number of banks has reduced from 89 to 24 healthier and stronger banks • Cheque/clearing Standardisation which cheque printers were accredited and standard features were made mandatory on cheques to curtail forgeries

31. … more benefits The Bank has introduced the Destination Inspection Scheme (DIS) to replace the Pre-shipment Inspection Scheme (PSI) that had been in place since 1979. This has reduced the circle time for import transactions, thus facilitating trade between Nigeria and its trading partners.

32. What CBN is doing and Next steps in customer service delivery Implementation of Customer Contact Center Technology • Certified Contact Center Manager • Enquiries and complaints • Data warehouse of inquiries/complaints • Analysis of complain to remedy them • Service magic training (on going) for all customer facing staff and eventually the entire staff of the Bank

33. …..next steps cont • Meeting between PIT, QCT, SERVICOM Institute/Consultants to streamline issues and transits SERVICOM Unit to CBOD or HRD • Launch SERVICOM • Training Collaboration between CBN Learning Center and SERVICOM Institute

34. Challenges faced • Changing the mindset of internal/external customers • Initial slow attainment of appropriate corporate culture • Business Continuity plan - Now we have the framework and trained staff-1st Central Bank in the World to have certified professional in this field- another 20 to form the nucleus for risk base supervision( RBS) in DMB • Reliable telecommunication services • Constant electric power supply in all locations

35. Some of the CBNCustomer service Soft skill essentials

36. Customer Service • Greet customers pleasantly with a smile • Show respect to the customer • Know and can explain CBN policies to customers • Help customers • Speak to customers in a courteous and clear manner • Respond promptly to customer inquiries • Give customers full attention.

37. CENTRAL BANK OF NIGERIA is always …..

38. Conclusion Participants Involvement

39. Conclusion This presentation has examined, the CBN change programme as an initiative with heavy flavour on improvement of the standard of customer service delivery The change programme has impacted on our strategy, processes, tools and people as customer service focal point. These have nurtured all CBN staff to be sensitive to their customers through respect and courtesy during every encounter

40. References • The CBN change Programme slides presentations • CBN reform documents • COBEC documents