Integrating Government Service Channels February 11 th , 2003 Ottawa, Ontario, Canada

1. Integrating Government Service Channels February 11th, 2003 Ottawa, Ontario, Canada

2. Integrating Government Service Channels Agenda • @BMO: Client Expectations • @BMO: Channel Integration • @BMO: Observations • Question Period Slide 1 2

3. @BMO: Client Expectations Background • At BMO, full scale channel integration began about 2 years ago in the Retail & Business bank. • Up to that point, channels came together organizationally near the top of the Bank. • Channels were supported by the Product groups as opposed to a separate Channel Management function. BMO Channels • Face-to-face, Telephone & Internet Slide 2

4. @BMO: Client Expectations The Facts • Customers are looking for anytime, anywhere, anyhow service. • A customer will use multiple channels to manage their financial affairs. • A customer will use multiple channels for a single transaction. BMO Mantra • “One Business Multi-channel” Slide 3

5. @BMO: Client Expectations The Implications • BMO needed inter-operability across all customer channels in to meet increasing customer expectations. • BMO needed a more co-operative work environment across all channels to deliver on those expectations. BMO Mantra • “Seamless Client Experience” Slide 4

6. @BMO: Client Expectations The Challenges • Customer “ownership” culture. • Prioritizing investment opportunities across all channels. • While “good customer service” and “client choice” were critical to our success, we needed our staff to promote self-serve channels and we needed our customers to use self-serve channels. BMO Strength • Strong customer service culture Slide 5

7. Integrating Government Service Channels Agenda • @BMO: Client Expectations • @BMO: Channel Integration • @BMO: Observations • Question Period Slide 6

8. @BMO: Channel Integration At BMO, channel integration was required across 2 separate dimensions • Integration within a channel • Consolidation of internet channel management • Optimization of call centres • Integration across channels • Aligned our People programs across channels • Developed a shared Technology platform across channels • Aligned our Processes across channels • Re-engineered our Change & Communication processes Slide 7

9. @BMO: Channel Integration Internet Channel Management • Management of the internet channel was scattered across various product and marketing groups within the bank. • There was no single group responsible for the centralized planning and development of the channel for our retail and business customers. • To address the problems, we consolidated the various subgroups into an Internet Channel Management function responsible for: • Channel strategy • Channel development • Channel management • Group now works with the individual product groups to implement their strategies. Slide 8

10. @BMO: Channel Integration Contact Centre Optimization • Within the Bank, there were multiple call centres or help desks supporting various product groups and market segments within the Retail and Business bank. • Each of the contact centres had their own management infrastructure, people programs, technology and processes. • To streamline operations, we consolidated our customer-facing call centres into a single Direct Banking Division responsible for: • Retail Banking sales & service for the internet and telephone channel • Business Banking sales & service for the internet and telephone channel • Centralized outbound sales • The Direct Banking Division became an equal partner with the 5 geographic divisions across the Bank. Slide 9

11. @BMO: Channel Integration Alignment of People Programs across channels • Aligned the Performance Management systems across channels. • Base pay • Incentive pay • Performance Measurement system (ie: sales and service measures and targets) • Identified career paths that encouraged staff to consider opportunities in other channels. • Developed a cross-channel referral programs that rewarded co-operation across channels. • Provided cross-channel learning opportunities. Slide 10

12. @BMO: Channel Integration Alignment of Technology across Channels • Implemented a common technology infrastructure across our entire distribution network – Pathway Connect. • 1,128 sites;19,960 workstations • We are currently implementing a common CRM tool across the entire distribution network. This system will enable: • Shared workflow across channels • Shared customer contact history across channels • Shared customer solutions and opportunities across channels • Shared calendaring across channels • 50 % complete; fully implemented by March 2004 Slide 11

13. @BMO: Channel Integration Alignment of Processes across Channels • At the start of 2002, we moved accountability for process design much further down in the organization and into a new organization group – Integrated Channel Management. • Responsible for process design across the face-to-face, telephone and internet channels for both Retail and Business customers • Responsible for a common process framework across all channels • Responsible for shared process libraries • We have already seen considerable benefits from the new organization. Greater synergy and leverage on new initiatives and better decision-making. • Major focus for 2003 and 2004 is to re-engineer our cross-channel and cross-product processes. At BMO, People and Technology changes were key enablers to successful process changes. Slide 12

14. @BMO: Channel Integration Change & Communication • Moved to centralized co-ordination of all change initiatives • Implementation of all changes scheduled centrally – Traffic Controller • Restricted access to the front line for all Headquarters functions • Streamlined communications to the front-line across all channels • Collapsed all channel specific communications into a single cross-channel monthly “Action Guide” – One Source • Developed a common intranet site across channels – One Source Online • Implementing a Roles-based portal in 2003 Slide 13

15. Integrating Government Service Channels Agenda • @BMO: Client Expectations • @BMO: Channel Integration • @BMO: Observations • Question Period Slide 14

16. @BMO: Observations • Everyone in the organization needs to “buy-in” to an integrated approach to channel management. • At BMO, linking channel integration to customer needs NOT organizational needs was critical. • Overcoming the client ownership culture is difficult. • Get People and Technology right and everything else will follow • Common people programs • Common technology platforms Slide 15

17. @BMO: Observations • It is NOT necessary to provide the same functionality on all channels • Customers prefer certain channels for certain services. Listen to your customers - this makes it much easier to prioritize future investments. • Moving accountability for process design and investment planning lower down in the organization was critical. It made investment prioritization and decision-making much easier. Slide 16

18. Integrating Government Service Channels Agenda • @BMO: Client Expectations • @BMO: Channel Integration • @BMO: Barriers and Opportunities • Question Period Slide 17