Title: Reengineering Account Opening in Bermuda

1. Project Charter Title: Reengineering Account Opening in Bermuda Prepared by: Crystal PageChampion: Matthew Welch Key Stakeholders: John Baxter,Fiona Broadhurst, Bruce Law, Sharon Smith, Jonathan Dunlop, TBD in Private Banking, Sharon Swan, Dwayne Outerbridge Currently, account opening commonly results in delays and frustration for clients and Relationship Managers (internal and external to Bermuda). The management of incoming funds for unopened accounts is not only a business risk, but is also very time consuming. In some cases, we are unable to process trades on behalf of the clients until several weeks after the initial documentation was received. The length of time required to open accounts is providing a negative client experience and exposure to operational losses. (Do we have quantifiable data on the length of time, negative client satisfaction, and exposure to op risks?) Reengineering the account opening process now is critical to avoid costly rework (how much?), and operational risk (how much?) related to incoming funds without accounts to manage them in. This project is required to ensure we continue to generate and retain new business. Without a streamlined account-opening process we are at risk (how much risk?) of losing the confidence of not only clients, but also internal and external staff who are referring business to GPB. Creating a simple and efficient process that supplies all necessary information to prospective clients and staff on the first account-opening attempt will instill confidence in all parties involved and enable staff to service new account properly. The elimination of rework, time invested in tracking the application status and managing funds before the account is officially open will result in tangible savings for the bank. This project will also minimize the risk of incurring any operational loses by ensuring accounts are open in a timely manner for clients to begin trading. The emphasis in the first phase of the project will be to clean up the account-opening process to incur savings and avoid losses, whereas subsequent project phases will focus on facilitating cross-selling within the Bank of Bermuda and with other HSBC entities in an attempt to increase revenues for the bank. (move this paragraph to project scope below) This is good, but remember that the business case should provide data that knocks the socks off of senior leadership---and provide the CLEAR impetus as to why we need to do this project NOW. If you have the data, add more quantifiable impact so that it is “crystal” clear why we need to do this! Phase 1: Streamline the account-opening workflow process to: 1) Reduce defects by 50% 2) Increase staff knowledge on account-opening requirements, process and supporting systems (by how much? This will be hard to measure unless we consider being trained as the metric..) 3) Reduce cycle time of the process by X% 4) Increase client satisfaction by X% 5) Reduce operational risk exposure by X% Phase 2: Facilitate cross-selling within different business lines internal and external to Bermuda(by how much?) Phase 1 Define Tollgate 11/10/2006 Measure Tollgate TBD Analyse Tollgate TBD Engineer Tollgate TBD Control Tollgate TBD As we discussed Crystal, we probably need to start with the envisioned end date for this phase and work our way back from that. If Phase 1 needs to be implemented by EOY 06, we need to adjust the dates accordingly. Metrics - Need to obtain metrics on average # days for account opening (by client / account type), percent success / failure / error rate We will need to develop a metric for every goal we have in the project, so we will have minimally 5 metrics: 1) Reduce defects by 50% 2) Increase staff knowledge on account-opening requirements, process and supporting systems (% trained, certification, etc.) 3) Reduce cycle time of the process by X% 4) Increase client satisfaction by X% 5) Reduce operational risk exposure by X% • Initiatives to streamline account-opening in various HSBC areas have been pursued and their successes and issues will be considered as part of this project. • If possible, consider the high-level process view of this process---and let’s try to establish boundaries around what Phase 1 will be addressing, and what Phase 2 will be addressing. For example, does the scope of this project start when a client is initially contacted? Where will it end? At the establishment of an account? Those become our boundaries or fences that will keep our team focused on the right things… • Scope: • From process step A to process Step G • Out of Scope: • Account-opening activities prior to completion of the documentation, payment of stamp duty, invoicing and payment of fees, management of incoming funds prior to account-opening. • Team Selected:Joanne Tucker, Gary Burrows Sara Line-Burns, Dwayne Outerbridge, Sharon Swan, Jonathan Dunlop, Kim Roberts, Stella Elliott, Sharon Smith, Shea-Tai Smith, Laura Bardgett, DOCO team in Bermuda and other Private Bank jurisdictions. (How much time do you need from each member? I would try and estimate how much time you will need each week (25%, etc.) This helps them to manage their own bandwidth, removes “surprises”, and communicates expectations early on for commitment…) • Aids: Support from business heads to ensure staff availability and commitment, shadowing Geneva DOCO team on usage of BIMAS screens. (Technology?) • Barriers:Resource allocation from the business side. • Existing systems are a constraint – the solution needs to fit the systems and new eCRM will not be available for awhile. (Do we have a mitigation plan/idea on how we will need to address this barrier?)

2. Project Charter - Completion Guide Title:Team Name - Descriptive Prepared by: MBB/BB Name Champion: Senior Executive business leader and project sponsor Key Stakeholders:Those key individuals or constituent groups that will be affected by or can impact the success of the project Describe what is wrong: “The Pain” When and where do problems occur? Size and impact of problem. Use specific business metrics. Would customers be happy if they know we are working on this? Why is project worth doing? What process is being improved? Why is it important to do now? What are the consequences of not doing? How does this fit within the business or process priorities? Define the improvement objective for Critical to Quality. Start with a verb -- Reduce, Eliminate, Control, Increase Tends to start broadly -- Should include measurable target. Should NOT prescribe solution. Discuss project milestones and dates, including reference to DMAIC or IDEaS phases. Discuss key dependencies and other matters that affect project execution. Metrics: Specify the primary and secondary metrics for the project Have you checked elsewhere?: Was/Is there a similar project elsewhere in HSBC What did you find? Summarise the lessons learned from other similar projects and how they can be used in this project. Scope: What are the boundaries of the process? What is out of bounds for the project? (Helps establish and maintain focus.) Team Selected: Who will need to be on the team? Who else might be needed? Resources other than money?) Aids: What will help this project be successful? Barriers:What will hinder the success?