Transcript Implementing the Capability Maturity Model for Quality at ANZ

Bridging IT implementation with
ANZ’s organisational culture
Presentation to AFR 3rd Annual Banktech Summit
7 November 2002
Peter Dean
Head of Technology, Personal Banking & Wealth
Australia and New Zealand Banking Group Limited
Agenda
• The ANZ approach
– Strategy
– Technology focus
• Aligning IT with ANZ’s culture
– People
– Customers
– Processes
– Infrastructure
• IT Case Study:
ANZ’s approach to project management aligning IT with ANZ’s culture.
• Key achievements
Page 2
ANZ’s Strategy
Organic
out-performance
•
•
•
•
Extend specialisation
Grow customer numbers
Increase share of wallet
Drive productivity
Portfolio
reshaping
•
•
•
•
Invest in high growth areas
Build specialist capabilities
Exit weak positions
Risk reduction
Transformational
moves
Breakout
culture
• Step changes in positioning
• Creating new growth options
• Proactively shaping industry
• Create the ‘Bank with a
Human Face’
• Build strong commitment to
our people
• Promote team performance
and cultural transformation
Page 3
Our targets
• Revenue growth
materially
higher than
expense growth
• Take business
units to
sustainable
leadership
positions
• Build a range of
strategic options
ANZ’s Technology Focus
Putting technology to work to:
• Provide our customers with a personalised, consistent
experience
• Empower our customers and our people with real time
information access and online applications via web-based
technology, anywhere and anytime
• Ensure our technology is robust, flexible and cost effective
• Aggressively reduce costs, improving productivity,
benchmarking, increasing ‘straight-through’ processing,
simplifying and automating administrative functions
• Provide low-risk, high-efficiency & state-of-the-art payment
capabilities
Page 4
Agenda
• The ANZ approach
– Strategy
– Technology focus
• Aligning IT with ANZ’s culture
– People
– Customers
– Processes
– Infrastructure
• IT Case Study:
ANZ’s approach to project management aligning IT with ANZ’s culture.
• Key achievements
Page 5
Initial Strategy (1998) – provided focus
to align IT with ANZ’s culture
Customers (BU) People
Process
Infrastructure
1998: Inward focused, low satisfaction, weak process, complex infrastructure
• Little BU focus
• Poor
understanding
of business drivers
• Service levels
poorly understood
• Leadership
weaknesses
• High staff
turnover: 18%
• Many cultures
• Poor disaster
recovery
• Inconsistent
architectures
• Poor project
management &
methodology
• Billing of services
incomplete and
inaccurate
Page 6
• Inflexible, high
cost technology
• 15 data networks
• 6 core systems
• Many different
platforms
Customers - Commitment to focus
technology on business unit objectives
Average SLA for major systems
Average - 1999
Average - 2000
Average - 2001
Clear alignment between
Technology & Business Units
Service level
agreements in
place for each
Business Unit
Detailed billing
to Business
Units for IT
services
Customer survey/ feedback process
on 6 monthly basis. Linked to
individuals’ performance measures.
Electronic timesheet capture for IT
project tracking, reporting & billing
Page 7
People - Skilled & committed
Management
tertiary
qualifications
policy
Breakout cultural
transformation
workshop
Online training
courses
pcs@home:
heavily subsidised
packages for staff
to acquire PC’s
Half yearly staff
survey with
action teams to
address issues
raised
eVouchers
provided free to
staff to choose
reading
materials
Page 8
Process – designed to improve execution
capability
Project in a Box
• ‘Best of breed’ project
management tools
• Central repository for all project
reporting
• Open access to all users
Capability Maturity Model
• Significant productivity &
quality improvements
• CMM
Project management training
• Generic training courses tailored
with ANZ specific content & latest
Project in a Box tools
Continuous improvement
programme
• Driving real culture change
• Series of workshops for all staff
• Resulted in significant cost
savings
Page 9
– Australia
Partial level 2 certification
- 1st Australian Bank
– Bangalore, India
level 4 certification
Reengineering in a Box
• Standard tools,
templates & process for
re-design of business
processes
Infrastructure - Commitment to
rationalisation & standardisation
Core Systems
1998:
6 major
systems
2001
IP network
1998
Hogan
CBS
Multiple data
networks
- Single IP Network
provides universal
connectivity
- Simpler systems & platforms
reduce cycle times
Servers & Desktops
1998
2000
Platforms
1998
2002
8+ major
platforms
2002
Platform Focus
Eg,W2K, UNIX, MVS
- Greater ability to leverage new
technologies
- Lower hardware, software
licence fees & support costs
- Provide all staff with best
tools possible
- Low cost of ownership
through standard solution
Page 10
Initial IT strategy (1998) – where are
we in 2002?
Customers
(BU)
People
Process
Infrastructure
2002: Customer focused, positive culture, improving process, simpler infrastructure
• Explicit business
partnership
• High Customer
satisfaction 7.7
(Sep 02)
• Service Level
Agreements
• Customer
Survey/ feedback
process
• Significant
benefits from our
continuous
improvement
program
• Improved Staff
satisfaction to
83%
• IT staff turnover
below 4%
• Training on-line
• Leadership
Development
program
• Performance
culture
• Full DRP in all critical
processes
• 854 staff through
Project Mgt program
• New Processes PiaB, One Team,
CMM, Niku, RAD,
Phased funding,
Outcome
Management
• Technology costs
defined and regularly
reported
• Technology
governance,
standards & policies
• Detailed billing
Page 11
• Tandem, Unix &
AS400
rationalisation
• 2 core systems
• Single IP Network
• Standard Win2000
desktop across
Australia
• Intranet to all but
800 Int’l staff
• Established
strategy for
standardisation
and re-use
Agenda
• The ANZ approach
– Strategy
– Technology focus
• Aligning IT with ANZ’s culture
– People
– Customers
– Processes
– Infrastructure
• IT Case Study:
ANZ’s approach to project management aligning IT with ANZ’s culture.
• Key achievements
Page 12
Situation analysis - What our internal
business customers expect from IT
• IT support of each Business Unit’s strategy and agenda and
elivery of annual Business Unit targets
• Dedicated IT team to meet Business Unit needs
• Maximisation of the return on investment in technology
• Accelerated, high quality, ‘no surprises’ delivery of IT projects
• Substantial increase in output, at reduced cost
• Zero customer impact operating environment
• Increasingly aggressive use of technology in short time
frames
Page 13
Our Project Management Challenge
Situation
Solution
• High demand for professional staff
– Resources increasingly expensive
and limited
– Need to move from traditional
‘technical’ focus to ‘systems &
business integration’ focus
• Complexity of large specialist
organisation
– Projects increasingly need to cover
multiple businesses
• Need to improve project delivery
and build & maintain a project
management culture
– Ensure a ‘no surprises’ culture
Page 14
• Develop high quality
project management
system to better
leverage our existing
project management
capability
Our Approach
To ensure high quality delivery of IT projects, we implemented a two-phased
approach - the Capability Maturity Model (CMM) for software development,
followed by the refinement and enhancement of our project management (PM)
practices
CMM
Began with
pilot of 100
staff
PM
Widespread
deployment
in Australia
Implementation
in India
• Results were meeting expectations within 6 months
• Work has been almost entirely self funding
Page 15
Development
of ANZ’s
Project
Management
practices
Project Management Practices – what
we have done
What
Key attributes
• Improved project delivery
capability
• Evidenced by increase in
projects with green or amber
status
• Improved project
management capability
• Peer reviews, training and
mentoring of project
managers, project review
process
• Better managed the
utilisation of project
management skill sets to
our project portfolio
• More informed of skill levels of
project managers and better
understand current and future
skill requirements
Page 16
Project Management Practices – key
outcomes
• Improved delivery capability
• Professional project management culture
• Appropriate project management skills available for all
project engagements
• Highly developed project management skills and practices
• Improved risk profile for portfolio of projects
• Enhanced compliance to all standards and policies
Page 17
Project Management Practices advantages
For our business
For team members
• Greater flexibility
• Better development of
Project Management career
paths
• Improved exposure and
understanding of ‘project
risk portfolio’
• Increased choice on future
engagements
• More predictable project
start-up and outcomes
• Focussed career
management
• Standard modus operandi
• Mentoring and coaching
from within/ peer support
• Development of the correct
Project Management skill set
for now and the future
• Information forums
• ‘Better and wanted project
managers’ most appropriate
candidate for an
engagement
• Generic measurable Project
Management KRAs
• Participate in project peer
reviews
• Proper management of
Project Management careers
Page 18
Key lessons
Key challenge is change management
 Winning hearts and minds is difficult at outset
 First 6 months is very difficult – needs strong leadership &
experience helps
 Success = excitement = more success
• Do this for tangible, business outcomes
• Use metrics to track progress and lock in results
• Make sure everyone is accountable for the same outcomes –
and use strong incentives
• Strong support for teams with their customers – dates will be
missed early in the program
• Teams go through a ‘valley of despair’ in the early stages and
need help through this
Page 19
Key achievements
• Aligning IT implementation with ANZ’s focus on people,
customers, process and infrastructure has delivered:
– Better outcomes for IT’s business unit customers
– Higher customer satisfaction
– High IT staff satisfaction rate
– High quality, more productive IT staff
– Simpler infrastructure - robust processes supported
by a continuous improvement focus
Page 20
Questions?
Copy of presentation
available on
www.anz.com
Page 22
The material in this presentation is general background information about the Bank’s
activities current at the date of the presentation. It is information given in summary
form and does not purport to be complete. It is not intended to be relied upon as
advice to investors or potential investors and does not take into account the
investment objectives, financial situation or needs of any particular investor. These
should be considered, with or without professional advice when deciding if an
investment is appropriate.
For further information visit
www.anz.com
or contact
Philip Gentry
Head of Investor Relations
ph: (613) 9273 4185
fax: (613) 9273 4091
Page 23
e-mail: [email protected]