Group strategic overview
MMI’s client-centric journey
Dieter von Staden
11 June 2015
Slide No 01
Agenda
Strategy development
Strategy execution
11 June 2015
Slide No 02
1
Strategy development
“Where to play and how to win”
Roger L Martin
11 June 2015
Slide No 03
Strategy development
Environment
Strategic response
11 June 2015
Slide No 04
2
Environment
Delivering on promises
Inadequate provision
• Only 29% of retirees can maintain
their standard of living (Sanlam
Benchmark survey)
• >50% of SA pensioners can’t cover
monthly costs (The Times)
• Around a third of SA baby boomers
have no formal provision for
retirement (Old Mutual)
• SA disability cover shortfall of
R11.1 trillion (True South)
• SA life cover shortfall of
R7.3 trillion (True South)
11 June 2015
Slide No 05
Environment
Lack of trust
Date
Slide No 08
3
Environment
Lack of trust
Date
Slide No 08
Environment
Lack of engagement
11 June 2015
Slide No 08
4
Environment
Regulatory changes and trends
11 June 2015
Slide No 09
Environment
Economic weakness and pressure on consumers
“Power shortages are
hampering a recovery from
the slowest growth since a
2009 recession, and the weak
economy is exacerbating
unemployment”
Sunday Times, May 2015
11 June 2015
Slide No 10
5
Environment
A new type of consumer
Date
Source: Accenture
Slide No 08
Environment
Technology advances – digital era
Date
Slide No 08
6
Environment
Technology advances – digital era
Date
Slide No 08
Environment
Business ecosystems and platforms
“Increasingly, businesses operate in complex, dynamic, and
adaptive ecosystems. The fundamental boundaries that have
specified the relationships and interactions of most businesses
are rapidly blurring and dissolving” (Eamonn Kelly)
“Together, the diverse participants of ecosystems create, scale
and serve markets beyond the capabilities of a single
organisation” (Eamonn Kelly)
“Business platforms can help create and capture new economic
value and scale the potential for learning across entire
ecosystems” (John Hagel)
11 June 2015
Slide No 14
7
Environment
Innovation
“62% of respondents said business strategy is
largely or totally dependent on innovation”
Innovation survey, The Economist and Accenture
For MMI
• Core to our Vision and Purpose
• One of our Values
• Key Enabler
11 June 2015
Slide No 15
Strategic response
Three strategic focus areas
Growth
Client-centricity
Required to deliver
on client-centricity
Increased focus on
growth required by
tough conditions
Merger provides
foundation for
growth
11 June 2015
Excellence
Strategic response to
new consumers, lack
of trust, technology
advances and
fairness regulations
Strategic response to
tough environment
and onerous
regulations
Slide No 16
8
Strategic response
Strategic focus area: Client-centricity
“Find out what your clients need and want…
then structure your products and services to
solve their problems ”
Ranjay Gulati
11 June 2015
Slide No 17
Strategic response
Client-centricity
•
•
•
•
•
•
•
•
•
•
Move closer to clients
Become obsessed with clients
Segment your client base
Develop an in-depth understanding of client needs
Identify and solve clients’ problems
Become client relational value leaders
Create a superior client experience
Build trust
Define your purpose
Enhance financial wellness
11 June 2015
Slide No 18
9
Strategic response
Client-centric Vision and Purpose
Vision
To be the preferred lifetime financial wellness partner,
with a reputation for innovation and trustworthiness
Purpose
To enhance the lifetime financial wellness of people,
their communities, and their businesses
11 June 2015
Slide No 19
Strategic response
Strategic focus area: Growth
“Growth is never by mere chance, it is the result
of forces working together”
James Penney
11 June 2015
Slide No 20
10
Strategic response
Growth
•
•
•
•
•
Collaboration
Vested in client-centricity
Geographical diversification
Existing client base
New clients
11 June 2015
Slide No 21
Strategic response
Strategic focus area: Excellence
“Excellence is not a skill. It is an attitude”
Ralph Marston
11 June 2015
Slide No 22
11
Strategic response
Excellence
•
•
•
•
Product design
Client experience design
Client experience execution
Efficiencies
11 June 2015
Slide No 23
Strategic response
Enablers
Synonyms
Allow, give the means, equip, empower, make able, fit, make
possible, facilitate, make happen
11 June 2015
Slide No 24
12
Strategic response
Enablers
•
•
•
•
•
Flexible and modular systems
Business ecosystems
Data analytics
Innovation
Collaborative and client-centric culture
11 June 2015
Slide No 25
Agenda
Strategy development
Strategy execution
11 June 2015
Slide No 26
13
Strategy execution
“Strategy without execution is hallucination”
Forbes
11 June 2015
Slide No 27
Strategy execution
MMI Strategy Map
14
Strategy execution
MMI Operating Model
Segment and Channel
Businesses
Metropolitan Retail
Momentum Retail
Corporate and Public Sector
International
Client Engagement
Solutions
Products and Solutions
Business
Financial Wellness
Wellness and Rewards
Safety and Education
Big Data and Client Analytics
Partner Management
Centres of Excellence
Investments and Savings
Life Insurance
Legacy Book
Health
Short-term Insurance
Payment solutions
Group-wide Functions
Group Finance
Balance Sheet
Management
(BSM)
Brand and
Corporate
Affairs
Strategic HR and
Transformation
Risk
Management
11 June 2015
Chief
Operating
Officer
Slide No 29
Strategy execution
Restructuring for client-centricity
15
Strategy execution
MMI Strategy Map
Strategy execution
Growth strategic focus area
Objectives
• Growth through geographical diversification
•
MMI International
• Increase value of existing clients
•
•
•
•
11 June 2015
Product diversification (Momentum Short-term insurance,
Payments solutions)
Legacy book
Client segmentation and understanding needs
Financial Wellness
Slide No 32
16
Determined
Educated
Savvy Suburbian
Young Futurists
Established Enablers
Strivers
Survivalists
Aspirers
Realists
Traditionalists
Client segmentation
INCOME
11 June 2015
Slide No 33
Financial Wellness take-up
70,000
57,924
5,716
6,000
50,000
3,000
4,079
3,806
4,000
40,000
3,650
3,326
3,1793,160
3,124
3,023
2,746
2,651
2,5682,630
2,4212,282
2,314
2,713
3,113
30,000
2,000
20,000
1,000
10,000
4,136
April
March
February
January
December
October
November
September
August
July
June
May
April
March
February
January
December
November
New Users
5,000
60,000
Accumulated Users
7,000
2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2015 2015 2015 2015
New Users
11 June 2015
Accumulated Users
Slide No 34
17
Strategy execution
Growth strategic focus area
Objectives
• Growth through geographical diversification
• Increase value of existing clients
• Increase client base
•
•
•
•
•
•
Channel productivity
Momentum Consult
Group-wide M&A
Middle-market business
Client segmentation and understanding needs
Client Value Propositions
11 June 2015
Slide No 35
Strategy execution
Client-centricity strategic focus area
Objectives
• Increase financial wellness
• Improve client relationships
Integrated Wellness and Rewards capability (Client
Engagement Solutions)
11 June 2015
Slide No 36
18
Integrated Wellness and Rewards
Providing personalised
client experiences is a
Top 3 priority for
The Internet
of ME
73%
v
Leaders will engage
consumers more deeply
by creating a personalised
experience, without
breaching their trust
of insurers.
Accenture Technology Vision 2015 Survey
11 June 2015
Slide No 37
Integrated Wellness and Rewards
Client
Engagement
Solutions
11 June 2015
•
Will combine new technologies
•
Use business ecosystems
•
With a deep understanding of
human behaviour
v
•
To help customers become
more financially well
•
Using compelling rewards
to drive the change.
Slide No 38
19
Client Engagement Solutions
Wellness
Solutions
Rewards
Partner
Management
Solutions that enable
clients to live well
Platform that rewards
clients for living well
and being loyal
Management of
partners who help us
meet the needs of our
clients
Financial Wellness
Physical Wellness
Safety
Education
Corporate Wellness
Multiply
Spend solution
Wellness partners
Rewards partners
Corporate partners
Other
Client
Analytics
Solutions that help us
gather , manage,
protect, understand and
use our client data
Client Insight Platform
Single Client View
Advanced analytics
Client Engagement
Platform (LOB)
Client Management
System
11 June 2015
Slide No 39
Understand clients better
Solve their needs better
BMI
Cholesterol levels
Blood Sugar levels
Blood pressure
Smoke status
Spending patterns
Insurance portfolio
Budget
Credit score
NB Documents
Assets & Liabilities
Age
Gender
Medical questionnaire
Activity levels
Fitness levels
Sleeping patterns
Eating patterns
Dynamic
Psychographic profile
Mental agility
Stress levels
Social interactions
Driving behaviour
Security status
11 June 2015
Slide No 40
20
Strategy execution
Excellence strategic focus area
Objectives
• Improve efficiency
•
•
•
•
Implement the new operating model
Legacy book optimisation
Centres of Excellence optimisation
Channel productivity
11 June 2015
Slide No 41
Strategy execution
Enablers
Innovation
• Focus innovation on the client experience
• Sustaining innovation
• Disruptive innovation
11 June 2015
Slide No 42
21
Sustaining innovation – MMIgnite
MMIgnite
PLATFORM REGISTRATIONS PER WEEK (2015 – to date)
140
120
100
MMIgnite
SPARKS LEADER
Annette Breetzke
Total: 2,495
Since Sparks launch: 261
Active: 617 (≈25%)
80
60
40
71, 035 Sparks!
13 Badges!
Sparks
Campaign live: Buy-in ,Get
More and Stay Longer!
20
0
1
2
3
4
5
6
7
8
9
10
Feb
Jan
11
Mar
12
13
14
15
16
17
Apr
4 Active Campaigns
PLATFORM ACTIVITY
Aligning Rewards
and Recognition
Programs with
Leadership
Development
Ideas
1,013
Comments
2,683
Ratings
6,818
Campaigns
45
Tribes
18
PARTICIPATION RATIOS (ideas, ratings, comments)
V.S.
Participation ratio
before Sparks:
1/4/1
---- Notes ---The platform since the
introduction of Sparks has seen
Current participation greater extent of Ratings and
ratio:
Comments on the platform
Start: 29 April
End: 24 May
Duration: 25
days
Ideas: 23
Votes: 441
Comments: 232
Inspiring and
activating the
youth of South
Africa to improve
their financial
wellness
Start: 29 April
End: 24 May
Duration: 25
days
Ideas: 62
Votes: 900
Comments: 392
1/10/6
Sustaining innovation – MMIgnite
MMIgnite
MMIgnite
Emergent community
The ‘Originals’
22
Strategy execution
Enablers
Disruptive innovation
“In times of change learners inherit the earth, while the learned
find themselves beautifully equipped to deal with a world that
no longer exists”
Eric Hoffer
Future-proof MMI
• MMIgnite
• Specific disruptive innovation focus
11 June 2015
Slide No 46
23
MMI’s strategy
Thank you
11 June 2015
Slide No 48
24