Fred Goodwin
Group Chief Executive
Slide 3
First Active
Offer
z
Cash offer of €6.20 per share
z
Values First Active at €887 million
z
Recommended by First Active Board
z
Accretive to RBS earnings
Slide 4
First Active
Branch Network
First Active
Slide 5
First Active
Branch Networks
90
Branches
First Active
Ulster Bank
Slide 6
First Active
First Active
Branches
Customers
Market shares
– Mortgages
– Savings accounts
– Personal loans
51
335,000
12%
3%
1%
Slide 7
First Active
Ulster Bank
Republic of Ireland
First Active
122
51
506,000
335,000
3%
4%
3%
9%
7%
14%
12%
3%
1%
–
–
–
Branches
Customers
Market shares
– Mortgages
– Savings accounts
– Personal loans
– Personal current accounts
– Credit cards
– SME accounts
Slide 8
First Active
Ulster Bank +First Active
Republic of Ireland
Branches
Customers
Market shares
– Mortgages
– Savings accounts
– Personal loans
– Personal current accounts
– Credit cards
– SME accounts
173
approx 800,000
15%
7%
4%
9%
7%
14%
Slide 9
First Active
Mortgages
Market
Ranking
Irish Life and Permanent
#1
Ulster Bank + First Active
#2
Bank of Ireland
#3=
AIB
#3=
Slide 10
First Active
Savings Accounts
Market
Ranking
AIB
#1
Bank of Ireland
#2
Irish Life and Permanent
#3=
Ulster Bank + First Active
#3=
Slide 11
First Active
Ulster Bank
1H03
First Active
1H03
€191m
€34m
Loans to customers
€14.9bn
€7.6bn*
Customer deposits
€12.9bn
€3.9bn
Profit before tax
* Gross of securitisation of e2.7bn
Slide 12
First Active
Strategy
z Retain First Active and Ulster Bank brands and branch
networks
Cost Savings
z Combine technology, processing activities, central functions
z Leverage Group functions
z Lower funding costs
Revenue Benefits
z Strengthen Ulster Bank’s mortgage offering
z Broaden First Active’s product range
Fred Goodwin
Group Chief Executive
Slide 14
Group Structure
CUSTOMERS
• Coutts
• Adam
• NatWest Offshore
• RBSI
• Direct Line
• Churchill
• NIG
• International
Wealth
Management
RBS
Insurance
•
•
•
•
•
•
•
•
RBS Cards
NatWest Cards
RBS Advanta
Joint Ventures
DLFS
Lombard Direct
Direct Bank
Internet Platform
Retail
Direct
• Personal
• Small Business
• RSA
RBS
• Personal
• Small Business
• NW Life
NatWest
• Large Corporates - RBS
• Mid Corporates and
Commercials-RBS/NW
• Treasury - RBS
• Greenwich Capital (US)
• Lombard
• Angel Trains
• Specialist Businesses
CBFM
MANUFACTURING
Technology
Operations
Services
• Personal
• Business
• Corporate
Ulster
Bank
• Personal
• Business
• Commercial
Citizens
Slide 15
Group Employees
Employees
31 Aug 2003
Corporate Banking and Financial Markets
Retail Banking
Retail Direct
Manufacturing
Wealth Management
RBS Insurance
Ulster Bank
Citizens
Centre
Group Total
16,100
30,000
7,000
21,200
5,500
19,600
4,500
13,800
1,700
119,400
Slide 16
Group Operating Profit
2002
£m
Corporate Banking and Financial Markets
Retail Banking
Retail Direct
Manufacturing
Wealth Management
Direct Line Group
Ulster Bank
Citizens
Central items
3,203
3,019
701
(1,682)
432
355
244
766
(587)
Group operating profit
6,451
Slide 17
Group Structure
CUSTOMERS
• Coutts
• Adam
• NatWest Offshore
• RBSI
• Direct Line
• Churchill
• NIG
• International
Wealth
Management
RBS
Insurance
•
•
•
•
•
•
•
•
RBS Cards
NatWest Cards
RBS Advanta
Joint Ventures
DLFS
Lombard Direct
Direct Bank
Internet Platform
Retail
Direct
• Personal
• Small Business
• RSA
RBS
• Personal
• Small Business
• NW Life
NatWest
• Large Corporates - RBS
• Mid Corporates and
Commercials-RBS&NW
• Treasury - RBS
• Greenwich Capital (US)
• Lombard
• Angel Trains
• Specialist Businesses
CBFM
MANUFACTURING
Technology
Operations
Services
• Personal
• Business
• Corporate
Ulster
Bank
• Personal
• Business
• Commercial
Citizens
Slide 18
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
Mark Fisher
Chief Executive, Manufacturing
Slide 20
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work
z
More to come
Slide 21
What is Manufacturing?
Manufacturing
Technology
Group Technology
– IT Operations
– IT Development
Operations
Account
Management
Telephony
Lending
Payments
Services
Group Purchasing
Other support units
Slide 22
Group Technology
z
3,800 staff
z
Locations
– Edinburgh
– London
– Dublin
z
Role
– IT Operations
– IT Development
z
Scope
– Group wide
Slide 23
Account Management Operations
z
5,000 staff
z
15 centres (Customer Service Centres)
z
Role
– Opening and closing accounts
– Standing orders and direct debits
– Customer accounting
z
Scope
– NatWest Retail Banking
– RBS Retail Banking
– CBFM
– Coutts/Adam & Co
– Offshore Banking
– Tesco Personal Finance
Slide 24
Account Management Operations
Bolton Customer Service Centre
Slide 25
Telephony Operations
z
3,700 staff
z
13 centres
z
Role
– Inbound customer requests to call centres
– Support branch telephony
z
Scope
– NatWest Retail Banking
– RBS Retail Banking
– Tesco Personal Finance
Slide 26
Lending Operations
z
3,800 staff
z
15 centres
z
Role
– Mortgage processing
– Retail lending
– Security for lending
– Debt recovery
z
Scope
– NatWest Retail Banking
– RBS Retail Banking
– CBFM
– Tesco Personal Finance
Slide 27
Payment Operations
z
3,000 staff
z
17 centres
z
Role
– Coins, notes, cheques
– BACS, CHAPS, SWIFT payments
– ATMs
z
Scope
– NatWest Retail Banking
– RBS Retail Banking
– CBFM
– Coutts/Adam & Co
– Offshore Banking
– Tesco Personal Finance
Slide 28
Group Purchasing
z
1,000 staff (110 Purchasing, 890 Facilities Management)
z
Locations
– Edinburgh
– London
z
Role
– Group centre of excellence for purchasing
– Facilities and logistics management
z
Scope
– Group wide
Slide 29
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work
z
More to come
Slide 30
What Does it Deliver?
Need to Support Multiple Brands
Slide 31
What Does it Deliver?
Need to Support Multiple Distribution Channels
z
Branches
z
ATMs
z
Telephone
z
Internet
z
Mail
Slide 32
What Does it Deliver?
Challenge
z
Maximise efficiency and flexibility,
whilst supporting multiple brands and channels
Slide 33
What Does it Deliver?
Solution
z
Single platform, multi-brand/channel
Slide 34
Single Platform, Multi-Brand/Channel
z
Single IT system
– Banking engine
– Payments engine
– Cards engine
– Desktop engine
z
Common
– Processes
– Management
– Infrastructure
Slide 35
Single Platform, Multi-Brand/Channel
Turning Size into Scale
z
Aggregation gives size
z
Aggregation with single platform
and common processes gives scale
Bringing
z
Economies of scale
z
Benefits of specialisation
Slide 36
Scale
z
So far today...
– 3.5m cheques and credits processed
– £38m dispensed from ATMs
– £100m of Streamline payments acquired
– £127bn of CHAPS payments made
– £89m of mortgage lending drawn down
– 18,900 Standing Orders and Direct Debits set up
– 5,210 accounts opened
– 132,700 telephone calls answered
Slide 37
Specialisation
z
Our core business
z
Operational specialisation
– Systems architecture
– Business process design
– Change capability
– Operations management
– Improvement capability
z
Supporting specialisation
– Property, purchasing, security
Slide 38
Single Platform, Multi-Brand/Channel
z
Scale
z
Specialisation
Enable us to
z
Support income growth
z
Improve efficiency
Slide 39
Support Income Growth
£m
20,000
RBS Group Income
18,000
16,000
14,000
12,000
10,000
8,000
1999
* 1H03 annualised
2000
2001
2002
2003*
Slide 40
Improve Efficiency
FTEs
25,000
Manufacturing Headcount
20,000
15,000
10,000
5,000
0
1999
2000
Published headcount per statutory accounts
2001
2002
1H03
Slide 41
Improve Efficiency
FTEs
25,000
Manufacturing Headcount
Showing Transfers from Other Divisions
20,000
15,000
10,000
5,000
0
1999
2000
Published headcount per statutory accounts
2001
2002
1H03
Slide 42
Improve Efficiency
4,000
Account Management Operations
Accounts per FTE
3,000
2,000
1H02
2H02
1H03
Slide 43
Improve Efficiency
12,000
Lending Operations
Accounts per FTE
8,000
4,000
1H02
2H02
1H03
Slide 44
Improve Efficiency
15,000
Payments Operations
Payments per FTE
10,000
5,000
1H02
2H02
1H03
Slide 45
Improve Efficiency
%
60
RBS Group Cost:Income Ratio
50
40
1999
2000
2001
2002
Cost:income ratios calculated after netting operating lease depreciation against rental income
1H03
Slide 46
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work
z
More to come
Slide 47
Making it Work
z
Management processes
z
Managing costs
z
Knowing where to draw the line
z
People
Slide 48
Management Processes
z
Short lines of communication
z
Fast clock speed
– Quick decisions
– Issue resolution
z
Centralised
– Communications
– HR
– Finance
– Risk
Slide 49
Managing Costs
z
Manufacturing focuses on improving efficiency
z
Other divisions focus on improving income
z
No allocation of shared costs
z
No disputes over internal transfer pricing
Slide 50
Knowing Where to Draw The Line
z
Not a simple rule
z
Entrepreneurial flair takes precedence
z
Exploit centres of excellence
z
Understand what is truly core
z
Understand where value can be added
z
Manage risk
Slide 51
Knowing Where to Draw The Line
Example: Direct Line / Churchill
z
Integrate IT operations
z
Separate IT development
– RBS Insurance centre of excellence
– Manufacturing integration skills
z
Integrate purchasing, property and security
z
Separate customer sales call centres
Slide 52
People
z
21,200 FTE
z
Diverse workforce
z
HR strategy
– Performance management
– Reward by specialisation and location
– Leadership
– Talent management
Slide 53
People
Voluntary Attrition
%
14
12
10
8
2001
* Annualised
2002
1H03*
Slide 54
People
Manufacturing 2003 v UK Financial Services Norm*
Workload and stress
Communication
Employment security
Management leadership
Customer focus and quality
Training and development
Total reward
Performance management
Job satisfaction and engagement
Co-operation and working relationships
Employee involvement
Work organisation and efficiency
Management practices
Image and competitive position
+0
* Percent difference between scores
Survey by International Survey Research, 1st quarter of 2003
+5
+10
+15
%
Slide 55
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work?
z
More to come
Slide 56
More to Come
Interim Results, August 2003
Slide 1
Further Efficiency Improvement
Outlook
z
Further progress expected
z
Continue to centralise Manufacturing, where appropriate
z
Eliminate duplication, simplify processes
z
Projects under way
Slide 57
More to Come
z
Continue to improve efficiency
z
Continue to support income growth
z
Achieve further consolidation
z
Support acquisitions
Slide 58
Continue to Improve Efficiency
Examples
z
Image and Workflow
z
Customer query management system
z
Fraud management
– Automated profiling
– Automated ‘Know Your Customer’
z
E-enabled internal processes
– Routine reports on screen
– Self service HR and training
Slide 59
Continue to Support Income Growth
Examples
z
Product development
z
Sales and pipeline management
z
Quicker, easier account opening
z
Removing work from Corporate Relationship Managers
Slide 60
Achieve Further Consolidation
Mortgages
z
Build new Group mortgage platform
z
RBS and NatWest plus
– One Account
– Direct Line Financial Services
– Lombard Direct
– Coutts
– Ulster
Slide 61
Achieve Further Consolidation
Technology
z
Consolidate IT operations on to Group single platform
– Direct Line
– Churchill
– Ulster
– Coutts
– The One Account
– Direct Line Financial Services
– Lombard Asset Finance
– RBS Commercial Services
Slide 62
Achieve Further Consolidation
Other Initiatives
z
Complete RBS branch back office centralisation
z
Consolidate back offices
– Lombard Asset Finance
– RBS Commercial Services
z
Consolidate Group collections and recoveries
z
Centralise printing
Slide 63
Support Acquisitions
z
Scaleable platform
– IT
– Process
– Organisation
z
Proven integration capability
z
Early involvement
Slide 64
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work
z
More to come
Slide 65
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
John White
Director, Group Technology
Slide 67
What is Manufacturing ?
Manufacturing
Technology
Group Technology
– IT Operations
– IT Development
Operations
Account
Management
Telephony
Lending
Payments
Services
Group Purchasing
Other support units
Slide 68
Group Technology
z
NatWest IT integration
z
Results of IT integration
z
More to come
Slide 69
NatWest IT Integration
Challenge
z
Integrate NatWest on to RBS operating platform
– Technology
– Business processes
Slide 70
NatWest IT Integration
NatWest Bid Presentation, November 1999
Sl ide 62
Clear Business Plan
Common Products
From
To
Products
Processes
Platform
Creating
Creat ing aa
New
New Force
Force
in
in Banking
Banking
Slide 71
NatWest IT Integration
Decisive and Fast Mobilisation
z
Confirmed target platform in first 30 days
z
Cancelled 472 projects
z
By end 2000:
– 2,200 headcount on Integration
– Common Financial Markets, Risk Systems and General Ledger
Slide 72
NatWest IT Integration
Integration Approach
Scale RBS systems
Migrate customer-facing systems early
Convert customer and accounting data for migration
in one weekend
2000
2001
2002
u
Slide 73
NatWest IT Integration
Scale RBS Systems
z
Scale RBS systems by a factor of 5
z
Consolidate the network
z
Create a single development capability
Slide 74
NatWest IT Integration
Migrate Customer-Facing Systems Early
Jul 2001
12.6 million credit cards
Nov 2001
3,500 ATMs
Dec 2001
1.0 million internet customers
Dec 2001
1,650 branches - converted hardware
Jul 2002
29,000 card merchants
Slide 75
NatWest IT Integration
Convert Customer and Accounting Data
in One Weekend
Prove full data
conversion
4 months elapsed
Prove Day 1
operation
Prove Day 2
onwards
Repeat at full volume
until perfect
Final conversion
7 October 2002
Slide 77
NatWest IT Integration
Slide 78
NatWest IT Integration
Summary
z
A single platform in 942 days - 5 months ahead of target
z
40,000 people trained
z
Minimal impact on customers
z
Significant contribution to NatWest cost savings
Slide 79
NatWest IT Integration
z
Financial Services Technology Awards 2002:
– Winner best use of IT in Retail Banking
– Winner best systems integration project
z
Financial News Awards 2003:
– Winner best systems integration project
z
British Computer Society IT Professional Awards 2003:
– Winner financial services category for Business Achievement,
for the IT Integration Programme
– Winner flagship award for business achievement,
for the IT Integration Programme
Slide 80
Group Technology
z
NatWest IT integration
z
Results of IT integration
z
More to come
Slide 81
Results of IT Integration
z
Single IT platform
z
Know our systems and processes
z
Excellent systems availability
z
Assured disaster recovery
z
Experienced change capability
Slide 82
Single IT Platform
z
8 mainframe computers
– Single sysplex (operate as one)
– Over 16 billion instructions per second
z
Single network
– Supporting 95,000 connected PCs
z
Branches, ATMs, telephone, internet for multi-brands
Slide 83
Know Our Systems and Processes
z
We understand
– the architectures
– the applications
– the business processes
– the data and data structure
Slide 84
Excellent Systems Availability
Key System
Availability (%)
100.00
Oct 02
Conversion
99.95
99.90
99.85
99.80
99.75
Industry Standard
99.70
99.65
Dec
99
Jun
00
Jun
01
Jun
02
Aug
03
Slide 85
Assured Disaster Recovery
z
Industry leading recovery capability
z
Regularly tested
z
Live operations managed from disaster recovery site
Slide 86
Experienced Change Capability
Group Executive
Management Committee
Technology Integration
Directorate
Programme Implementation
Boards
z
Tried and tested management approach
z
Across businesses, across functions
z
Approach will be used to manage change in future
Slide 87
Experienced Change Capability
Acquisitions
z
Experienced technology due diligence team
z
Project management skills leading multiple and
complex programmes
z
Capability to deliver benefits
Slide 88
Group Technology
z
NatWest IT integration
z
Results of IT integration
z
More to come
Slide 89
More to Come
Achieve Further Consolidation - Technology
S lid e 5 7
Achieve Further Consolidation
Technology
z
Consolidate IT operations on to Group single platform
– Direct Line
– Churchill
– Ulster
– Coutts
– The One Account
– Direct Line Financial Services
– Lombard Asset Finance
– RBS Com mercial Services
Slide 90
More to Come
Achieve Further Consolidation - Direct Line/Churchill
z
Migrate Direct Line IBM platform on to the RBS single
platform
– Save 120 jobs
– Improve resilience and disaster recovery
z
Migrate Churchill applications and data to Direct Line
– On the RBS single platform
– Save further 130 jobs
Slide 91
More to Come
Delivering Change for the Business - Examples
z
New mortgage platform
z
Image and workflow
z
New processes
– Web-enabled finance and HR
– Account opening
Slide 92
More to Come
In Addition, Deliver New Technologies
z
Introduce Extensible Mark-up Language (XML)
– Enables more re-use of data and transactions
z
Move to Broadband network
– Variable bandwidth using IPVPN
(Internet Protocol Virtual Private Network)
– “Pay as you go”
Slide 93
Group Technology
Summary
z
Integration: a success
z
Single platform
– Reliable
– Flexible
– Scaleable
z
Change capability
– Support organic growth
– Support acquisitions
Slide 94
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
Ed Smith
Director, Group Purchasing
Slide 97
What is Manufacturing?
Manufacturing
Technology
Group Technology
– IT Operations
– IT Development
Operations
Account
Management
Telephony
Lending
Payments
Services
Group Purchasing
Other support units
Slide 98
Group Purchasing
Challenge
z
Deliver NatWest purchasing integration benefits and
create leading edge purchasing capability in RBS
Slide 99
Group Purchasing
z
Building capability
z
Doing deals
z
Changing the game
z
More to come
Slide 100
Building Capability
z
Global purchasing
– Clear leadership
– Overcome resistance by demonstrating savings
z
Flexibility
– Single global deals
– Regional deals
– Small, local deals
Slide 101
Building Capability
z
People
z
70% new external recruits
Slide 102
Doing Deals
z
Aggregation
z
Agility
z
Hard bargaining
Slide 103
Doing Deals
Aggregation
z
Leverage absolute volume
z
Standard specification
Example
z
Combined demand for office supplies and paper
– Citizens acquisition of Mellon
– Pennsylvania versus Rhode Island suppliers
– 36% saving
Slide 104
Doing Deals
Agility
z
Close monitoring of volatile markets
z
Rapid decision making
Example
z
UK electricity supply
– Worked closely with supply market
– Captured market low point
– 33% saving
Slide 105
Doing Deals
Hard Bargaining
z
Classic purchasing technique
z
Excellent negotiation skills
z
Opportunistic
Example
z
Mobile phones
– 3 suppliers reduced to 1
– Short window of negotiation
– 31% saving
Slide 106
Changing the Game
Breakthrough Deals
z
Marketing and media
z
Cheque books
New Route to Market
z
Reverse Auctions
Slide 107
Changing the Game
Breakthrough Deals
z
Marketing - media buying
– All brands across Group
– Single supplier
– Benchmarked quality and service improvement
– 20% saving
Slide 108
Changing the Game
Breakthrough Deals
z
Print - cheque books
– Standardised design format with individual brand identity
– Supplier consolidation (3 to 1)
– Re-designed key processes with suppliers
– Long term, strategic, Group wide deal
– 40% saving
Slide 109
Changing the Game
New Route to Market - Reverse Auctions
z
Internet based electronic auction
– Hosted by independent third party
– Multiple suppliers pre-qualify to bid
– Bid downward to win the business
– Can see competing bids
“RBS run the largest reverse auction programme of
any Financial services organisation in the world”
FreeMarkets 2003
Slide 110
Changing the Game
New Route to Market - Reverse Auctions
z
Example - Direct Mail Campaigns
– 18 suppliers pre-qualified to bid
– 2 hour bid process
– 668 bids received - over 30 bids per supplier
– 35% saving
Slide 111
Reverse Auctions
Example: Direct Mail
Price
11.00
11.16
11.33
11.50
12.06
12.23
12.40
12.56
Time
11.00
11.16
11.33
11.50
12.06
12.23
12.40
12.56
Slide 113
More to Come
Slide 114
More to Come
“RBS are leaders in Purchasing and Supplier management
within the Global Financial Services Sector”
AT Kearney 2003
RBS Target 2004
C
RBS 2003
Average in Financial
Services
B
A
Procurement Procurement Strategic
Strategy
Organisation Purchasing
A= Good industry standard
Transaction Performance Human Resources
Management Management
Management
B= Strong performer
C= World class
Slide 115
More to Come
z
Supplier development
– Fewer, better suppliers
z
e Procurement
– Streamlining our ‘purchase to pay’ processes
z
Exploit reverse auction opportunities
z
Consolidate Churchill and other acquisitions
z
Keep ‘doing the deals’
Slide 116
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
Mark Fisher
Chief Executive, Manufacturing
Slide 118
What is Manufacturing ?
Manufacturing
Technology
Group Technology
– IT Operations
– IT Development
Operations
Account
Management
Telephony
Lending
Payments
Services
Group Purchasing
Other support units
Slide 119
Operations
Focus on Two Issues
z
Telephony
z
Image and workflow
Slide 120
Telephony
z
3,700 people
z
13 centres
z
70 million calls per annum
z
Inbound calls
– NatWest Retail Banking
– RBS Retail Banking
– Tesco Personal Finance
z
Call patterns
– Morning and afternoon peaks
– Monday and Friday peaks
– Month end peaks
Slide 121
Telephony
z
Top 5 calls
– Balance enquiries
– Statements and cheque books
– Inter account transfers
– Standing orders and direct debits
– Queries
Slide 122
Customer Satisfaction 2001
MORI Inter Bank Market Comparison - Telephone Handling
RBS
NatWest
20
30
Average of monthly customer satisfaction survey results for 2001
Very satisfied customers
40
50
Slide 123
RBS Telephony Model
z
Customer choice
– Branch
– Call centre
z
Customer choice
– Human agent
– Automated
z
Ownership
z
Your Money Magazine
– Best Direct Banking Provider 2001, 2002 and 2003
Slide 124
NatWest - Old Telephony Model
z
Designed to minimise cost
z
Telephone lines to branches removed
z
Single national number
z
Compulsory Automated Voice Response
z
Lack of ownership
Slide 125
NatWest - New Telephony Model
z
Step 1: Automated Voice Response now optional
z
Step 2: Better trained staff take ownership
z
Step 3: Option to phone branch
z
Step 4: Dedicated branch support teams
Slide 126
Outcome - Customer Choice
Automated Choice
45%
Branch
8%
Customer Service Adviser
47%
Slide 128
Customer Satisfaction
Slide 129
Customer Satisfaction
Inter Bank Market Comparison - Telephone Handling
RBS
NatWest
20
30
40
50
NOP FRS customer satisfaction survey results - June 2003 spot figures
Very satisfied customers
60
Slide 130
Operations
Focus on Two Issues
z
Telephony
z
Image and workflow
Slide 131
Paper Driven
Slide 132
Image and Workflow
What is it?
z
Image
– Electronic picture of paper item
– Single central store
z
Workflow
– Electronic routing to operator
– Management of progress
Slide 133
Image and Workflow Implementation
Step 1 - Remove the Paper
z
Pilot Liverpool Customer Service Centre now
z
Glasgow Customer Service Centre by Christmas
z
All Customer Service Centres by 1H04
z
Key high volume Payments Centres
z
Train over 5,000 staff
z
Early benefits
– Remove paper
– Load balancing
Slide 134
Image and Workflow Implementation
Step 2 - Increase Functionality
z
During 2H04
z
Integration with core systems e.g:
– Back Office
– Signature images
z
Electronic feeds from:
– Fax
– e-messages
– Internet banking
z
Access to information from other units
Slide 135
Image and Workflow Implementation
Slide 136
Image and Workflow Implementation
Step 3 - Process Automation
z
Add intelligent character recognition
– Computer reads forms
– Process by process redesign
z
Automatic routing
z
Automatic signature verification
z
Pre-filling data fields in core system
z
Straight through processing
Slide 137
Image and Workflow
Benefits
z
Significant efficiency improvement
– Process specific
– Straight through processing up to 95% improvement
– Free form letter circa 10% improvement
z
Higher quality of service
– No lost items
– Greater accuracy
Slide 138
Image and Workflow
Benefits
z
Workload balancing
– Intra centre
– Inter centre
– Across Manufacturing
z
More specialisation
z
Contingency
Slide 139
Image and Workflow
Customer Benefits
z
Faster turnaround times
z
Higher quality, fewer errors
z
Greater “connectedness” of organisation
– Progress tracking
– Query resolution
Slide 140
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
Slide 141
Manufacturing
z
Manufacturing
Mark Fisher
z
Group Technology
John White
Coffee
z
Group Purchasing
Ed Smith
z
Operations
Mark Fisher
z
Conclusion
Mark Fisher
Questions & Answers
Slide 142
Manufacturing
z
What is Manufacturing?
z
What does it deliver?
z
Making it work
z
More to come
Slide 143
Conclusion
Manufacturing Delivers
z
Single platform, multi-brand/channel
– Scale
– Specialisation
z
Common processes
z
Enable us to
– Support income growth
– Improve efficiency
Slide 144
More to Come
z
Projects under way
– Simplify processes
– Improve products
– Improve customer service
– Continue to roll-out Manufacturing
… more to come
Questions & Answers
Fred Goodwin
Mark Fisher