Client Case Studies Improving Financial Performance Through

Transcription

Client Case Studies Improving Financial Performance Through Employee Development
Eric Wittekiend
Strategic Consultant
Raddon Financial Group
Rebecca Oeltjenbruns Performance Partner
Center For Practical Management
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© 2013 Fiserv, Inc. or its affiliates.
www.raddon.com | 800.827.3500
Who is Raddon Financial Group?
 Raddon Financial Group (RFG) is a
strategic business unit of Fiserv Inc.
 RFG has provided research-based
solutions to the financial services
industry since 1983 and is the principal
consulting division of Fiserv.
 We offer a unique blend of strategic
analysis, industry expertise and
consulting solutions to help financial
institutions gain a competitive
advantage and improve performance
with sustainable and measurable
results.
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Decisions Based on Fact, Not Opinion
Over 25 years
of consumer
research
trends
Loyalty
Benchmarks
from 300K
Annual Surveys
87 Annual
Seminars with
3,300 Attendees
6,000+ Branch
Profiles
Benchmarks
from 45 MM
Accts & 13 MM
Households
Industry Product
and Channel
Benchmarks
RFG’s
Business
Intelligence
Product &
Customer
Profitability
Norms
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Center for Practical Management
ourstory
The Center for Practical Management transforms the way people manage. It is our mission to
partner with clients serious about releasing employee potential. Our system is:



Easy to deploy
Unique to each client and
Produces measurable results
ourprinciples
Practical Management is based on these fundamental principles:




Organizational performance is a result of individual accomplishments
Individual accomplishments are dependent upon clearly communicated expectations
Accountability ensures consistent use of expected behaviors
Skill development efforts must be reinforced in a systematic manner
ouroutcomes
The benefits of the Practical Management System are universal, no matter the company size or
industry:




Measurable changes in management skills
Improved employee satisfaction
Increased member retention
Higher productivity
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Case Study #1 Improving Performance by Developing Employees
• A $1.7B south central FI with 32 branches
• Credit union executives, newly placed in critical positions, were intent on improving the financial performance of the organization through:
– Increased Retail Sales (loans, checking and credit cards)
– Referrals – Member Satisfaction
• Executives quickly recognized that achieving these goals would require more than simply training front‐line staff to be more sales oriented
• Rather, it would require an enterprise‐wide initiative to managing performance. Engaged all employees ‐ from CEO to Janitor ‐ in management practices that:
– Improved Communication
– Clarified Expectations
– Focused on balanced feedback for more effective interactions with members and colleagues ©2012 Open Solutions Inc. Raddon Financial Group (RFG) is a business unit of Open Solutions Inc.
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Case Study #2 Improving Performance by Developing Employees
• $390 million Northeast FI operating 13 Branches
• While already a top performer in many different areas, credit union executives recognized the organic growth opportunities within the franchise and were intent on improving the financial performance of the organization through:
– Increased loans
– Increased checking – Driving profitable HHs
• Executives quickly recognized that achieving these goals would require more than simply training front‐line staff to be more sales oriented
• Rather, it would require an enterprise‐wide initiative to managing performance. Engaged all employees in management practices that:
– Improved coaching and communication
– Clarified expectations
– Focused on balanced feedback for more effective interactions with members and colleagues © 2013 Fiserv, Inc. or its affiliates.
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The Objective – Improve financial performance through deepening relationships and improving member satisfaction
Low Impact
High Impact
Relationship Selling
Opportunity Identification
Product Pusher
Order Taker
Low Resource Involvement
High Resource Involvement
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The Strategy – an Enterprise Wide Engagement Performance
Management
Relationship
Management
Service
Excellence
Referral
Excellence
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Performance Management
• Best practices to clarify the results, activities and behaviors that create performance excellence across the entire organization
• Evaluate quantitative and qualitative performance
• Identify both performance strengths and improvement opportunities
• Create individual action plans that drive results
• Follow‐up on action plan progress to ensure accountability and success
• Maximize individual performance through collaborative coaching
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Relationship Management
• Effective prospecting and targeting of relationship opportunities
• Best practice planning and communication strategies for outbound calls to earn appointments
• Need‐focused member interviews, capturing critical member data in an organized manner
• Routine follow up to expand member relationships
• Proactive collaboration with business partners to create diversified member relationships
• Manage time efficiently and effectively
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Service Excellence
• Best practice referral process for back office, support staff and tellers
• Handle interruptions in a professional manner
• Handle difficult situations in a member focused manner
• Best practices for specific defining moments, including:
• Transferring a call
• Placing a caller on hold
• Taking a phone message
• Leaving a voice mail
• Sending and responding to email messages
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Referral Excellence
• Best practice Service Process for in‐person and telephone contact for Call Center Representatives and Tellers
• Understand types of financial needs
• Recognize and respond to need clues
• Clarify and confirm potential member needs
• Collaborate with business partners to make member‐
focused referrals
• Revisit the member and confirm satisfaction
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Business Areas Addressed
Retail
Business
Wealth Management
Contact Center
Corporate
Operations
Branch
In Store
Commercial
Small Business
Investment
Private Banking
Telephone
Web
Executive Management
Administrative
Back Office
Information Technology
Case Study #1 – Financial Performance Improvement through Sales Culture Transformation
 All six credit union’s key metrics improved in the first six months
•
•
•
•
Exceeded goal for Return on Assets and Efficiency Ratio
Loan origination volume increased 106%; new checking accounts by 46%;
new credit cards by 118%
Increased average balances per household by more than $500
Increased Member and Employee Satisfaction
$90,000,000
$82,358,400
$80,000,000
$70,000,000
$60,000,000
$53,626,338
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$30,410,626
$29,847,433
$15,177,771
$9,906,735
$0
Auto
Consumer
Mortgage
Volume 5 Months Prior Year
Volume 5 Months Current Year
©2012 Open Solutions Inc. Raddon Financial Group (RFG) is a business unit of Open Solutions Inc.
The Details - Sustainable Success
©2012 Open Solutions Inc. Raddon Financial Group (RFG) is a business unit of Open Solutions Inc.
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Case Study #2 ‐ Selecting Key Performance Metrics:
Dec‐10 Dec‐11 Aug‐12 Sep‐12
1) HH Loan Pen
2) Avg Loan Bal
3) Checking Pen
4) Profitable HHs
5) Profit New HHs
45.6%
46.4%
46.3%
46.4%
Peer
Avg
Hperf
Goal
Range
41.2%
40.5%
45.4%
47.4 to 51%
2013
Goal
Mnthly
Goal
47.4%
0.1%
$15,924 $15,856 $15,987 $16,068 $18,879 $20,458 $26,969 $16,5k ro $18k $16,500
$29
66.9%
68.8%
70.0%
69.8%
n/a
58.6%
n/a
70 to 75%
71.0%
0.1%
29.7%
33.2%
34.8%
36.6%
30.8%
30.4%
40.6%
39 to 41%
40.0%
0.2%
46.6%
46.5%
48.3%
50.4%
n/a
n/a
n/a
n/a
49.0%
n/a
Definitions and Calculations
1) % of all HHs with a funded loan (funded loan HHs/total HHs)
2) Average loan balance of loan HHs (total loan balance/total loan HHs)
3) Checking penetration of retail HHs (retail checking HHs/retail HHs)
4) % of HHs that are profitable (HHs that are A, B or C/total HHs)
5) % of new HHs that are profitable after their 3rd month
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48.0%
HH Funded Loan Penetration
$16,500
47.5%
$16,300
47.0%
$16,100
46.5%
$15,900
46.0%
$15,700
Actual
71.0%
Average HH Loan Balance
Actual
Goal
Retail HH Checking Penetration
39.0%
Goal
Overall Profitable HHs
38.0%
70.5%
37.0%
36.0%
70.0%
35.0%
69.5%
34.0%
Actual
53.5%
51.5%
49.5%
47.5%
45.5%
43.5%
41.5%
Goal
Profitable New HHs
Actual
Actual
Notes April onsite
Funded loan pen
Average loan bal
Checking pen
Profitable HHs
Profitable new HHs
Actual
46.6%
$16,001
70.1%
35.2%
50.3%
Goal
46.8%
$16,241
70.3%
37.9%
49.0%
Goal
Notes
trending nicely
lost large participation loan
purge in Jan? trending nicely
average profit up $56 since Oct
trending nicely
Goal
Case Study: Managing “E” HHs Through Outbound Calling
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Results:
 Thru end of 2012
• 18,419 (91%) of E’s had been retained
• 23% (4,573) had moved up in profit category
• 10% (2,032) had become profitable
Accelerating Onboarding Results
What Our Employees Say…
MSR - has presented tools that have made me more
comfortable offering credit union services to our members.
Things like the capability statement, the outbound call planner
have given me an easier approach when calling members. The
High gain questions, behavioral job description, and the
meeting planner is a great guide when a member is in the
office as well as when speaking with them over the phone.
Over all I feel that Practical management has offer extremely
helpful information
Teller - has helped me listen more for needs clues when the
member is in front of me. Also a better understanding on how
to link need/feature/benefit with the member.
TS - has allowed me to have a more structured coaching
session. This allows me to track progress and have the
employee take accountability for their progress.
AM -has given MSR’s more structure to have better interaction
with our members. The behavioral job description outline is a
great tool to aid our MSR’s with our member interactions
What Our Employees Say…
RM - It has made us be more prepared when speaking with the
members. It makes us feel more organized. The “outbound”
planner is what we use the most and it helps controls the calls
TS - Being new to the supervisor side, I believe it has given me
structure and helped me plan my steps toward goals. Each
employee will be different and working with them and getting
the input on what will help them is great. Employess will feel
good about their role in the progress they make.
MSR - Practical Management has been an outstanding tool
and guide to follow. It is very self explanatory and just requires
consistency. It is a great way to stay organized and remember
certain events and things that have happened with the
prospect/member. It helps in the preparation stage of the call
so that the member knows that I am knowledgeable and
confident in what I am telling them. It helps the process go
smoothly to get a clear outcome in the end. It is an awesome
guide for future use to refer back to when needed.
MSR - When opening new accounts PM has really allowed me
to hone in on the member’s needs and get them the right
product for them. I see a lot of appreciation from the members
that I take the time to do that instead of pushing the “hot”
product for the month which is what they comment they are
used to at other “banks”.
The Keys to Success
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Active use of weekly activities by managers at all levels
Accountability to individual action plans
A balanced approach to coaching
Executive buy-in and commitment
Our Ongoing Journey with Both Clients
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Improving product knowledge
Ongoing reinforcement activities
Manager led clinics
Product knowledge drill card process
Routine touch‐bases
Quarterly progress review and planning sessions
Advanced individual coaching
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Thank You
Contact Information
Eric Wittekiend
RFG Strategic Consultant
ewittekiend@raddon.com
800.827.3500 ext. 6504
Rebecca Oeltjenbruns
Center For Practical Management
Rebeccao@cf‐pm.com
419‐296‐1664
► Need ideas, recommendations or solutions to improve marketing results? Contact RFG for our unique blend of industry expertise, strategic analyses, objective intelligence and MCIF solutions. ► www.raddon.com
► www.theraddonreport.com
Raddon Financial Group
701 East 22nd Street, Suite 400
Lombard, IL 60148

Client Case Studies Improving Financial Performance Through

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