Transcript Overview of business - National Academy of Indian Payroll

Adding value through
Shared Services
December 3, 2011
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Adding services- transition methodology
Impact delivered
2
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Adding services- transition methodology
Impact delivered
3
ICICI Prudential - product suite
Young and single
Married
Married with young
children
Married with grown
Up children
Retired
• Mortgage
insurance
Savings for
Wealth creation
Age 25 - 30
• Home
purchase
• Children’s
education
• Pure
protection
(health + life)
• Savings for
child’s marriage
• Wealth
creation for
long term
Age 30-35
• Retirement
provision
• Health
insurance
Age 35-40
• Children’s
higher studies
• Mortgage
insurance
• Health care
• Retirement
planning
Age 40-55
• Post-retirement living
expenses - Annuities
• Medical expenses
Age 55+
Products catering to every stage of life
4
Recognition
Best leading private player – Life
CNBC TV 18 Awards 2011
Insurance company of the year award
India Insurance Awards 2011
Life Insurance company of the year award
India Insurance Awards 2011
Award for Excellence in Cost Management
ICWAI Awards 2010
Rated iAAA for claims paying ability
By ICRA Limited
5
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Adding services- transition methodology
Impact delivered
6
Shared services- business case
Business
Objectives
Targeting
Expansion
Enhanced
Company &
Employer
Brand
7
Organization
Goals
Increased
presence &
distribution
Functional
Goals
Meeting
demands of
scale
Cost Saves
Increased
management
bandwidth
Improved
Process
delivery
Project
Need
Stakeholder
servicing
Scaleable,
Standardized,
error free
processes
Technology/
self service –
reduce manual
intervention
Organizational challenges
Employee
Customer
Competition
Challenges
Economic
Govt. policies &
regulator
environment
Distribution
8
Current challenges
Environment
Insurance
Industry
9

Increased competition in private space

Market leader getting more aggressive

Continued volatility in equity markets

Decline in new business

Higher policies in force

New product features requirement

Distributors: Lower earnings

Increased participation by the regulator
Current challenges
 Changing
Customers
consumer preference: risk /reward
 Affected
by market fluctuations
 Demand
faster turn around & self service
 Self
Distribution
service & communication
 Comprehension of income
 Compliance support
 On
boarding experience
 Increased managerial spans
Employees
 Productivity
 Space
rationalization
 Control
10
based manpower release
on discretionary spends
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Adding services- transition methodology
Impact delivered
11
Shared Services vision


Our vision symbolizes :
Our motivation to partner functions across the
organization
 Our scope to influence organization policy &
practices
 Our philosophy of benchmarking and implementing
world class, “next practices”
 Our ability to create multi skilled resources that value
add to core functions
12
Achieving the vision
●
Larger influence on business leadership & decisions
●
Creation of domain over process experts
●
Talent pool for multi skilled fungible resources
●
13
Creation of centre of excellence
Shared Services drivers
Scalability
Shared Services objectives:
● Better quality
● Variable delivery cost
Shared Services
Processes
● Predictable delivery
● Improving CSAT
● Organization compliance
Cost Reduction
14
Process hierarchy
Shared Services processes
Expense
Operations
HR
Operations
Customer
Operations
• Refunds
• Policy benefits
• Health & death claims
• Doctor payouts
• Hospital payouts
• Group payouts
• Foreclosures
• Hold & exception
management
• Funding &
reconciliation
• Claims intimation &
• Accounts payable
• Accounts receivable
• Contractual payouts
• Rent
• Mobile
• Petty cash
• Consultant payouts
• Sales commercial
• Advisor
commission
• Sales reward
redemptions
• Temp management
• Expense provisioning &
• Employee Onboarding
• Antecedent &
background checks
• Payroll & taxation
• Benefits
administration
• Employee interface
• Peoplesoft mapping
• Employee database
management
• Space management
• PIP/governance exit
funding
• Staffing
• Staffing
• Employees : 10
• Employees : 7
• Vendors : 3
• Vendors : 9
• Staffing
• Employees : 9
• Vendors : 9
15
Resources: 36 FTE , 24 vendors
assessment
Taxation &
Compliance
• TDS compute & file
• Work contract tax
• Forex management
• Statutory filings
• Direct tax
• Profession tax
• Labour welfare
• Contract labour
• Statutory bonus
• ESIC
• TDS certificates
• Employee
• Advisor
• Vendor
• GL reconciliation
• Staffing
• Employees : 10
• Vendors : 3
Currently serving

Employees : 13000+

Alumni: 100000+

Outsourced staff : 3000 +

Branches: 1000+

Active Vendors: 7500 +

Advisors: 120000+

Customers: 100000 + pm
Shared Services
Process & Technology
Numbers as at September, 2011
16
Shared services today
Optimize
Consolidate
2007 - 2008
Stabilize
2008- 2010
2010 - 2011
• Takeover of Accounts payable
from Finance
• HRSS concept & strategic
direction unveiled
• Service delivery channels
enhanced, as needed
• Winner of “IPRU Best
Quality process” ICICI Group
•Selected processes
transferred to relevant delivery
channels
• Takeover of Sales
rewards redemption
from Sales support
Pre-Shared
Services Project
Technology
• Policies
• KPI Tracker
• Peoplesoft
Employee
Regional HR
• On-Boarding
• Salary
• Code
• Letters
Regional HR
• Resignations
• Discrepancies
Regional HR
• PIP
• Governance
• Benefits
Line Manager
• Full & Final (F&F)
• Leave
• PIP
Helpline
• Payroll Queries
• Governance (11/ 07)
17
HR Operations
• On-Boarding
• Payroll
• C&B Execution
• Full & Final
• Relocation
• ????
•
• HR Operations
transferred to Central
Servicing
• Takeover of Taxation &
compliance from Finance
• Winner of IPRU “Best
Prax” award
’
• Takeover of policy holder
payouts from Service
• Fully functioning shared
services organisation
implemented
• Top 5 “Quality
Process” ICICI
Group
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Adding services- transition methodology
Impact delivered
18
Transition methodology
Process
Priority
Process
Walkthrough
Mapping &
Documenting
Gap &
solution
identification
Volume of transactions per month
No. of on rolls & support staff
Average time per transaction
Exceptions, existing & future issues
Exploring
alternatives

Final solution
identification

Key
drivers




Person dependent processes
Low levels of automation
Quality & timeliness of MIS
Multiple/no vendors
Scalability issues
Executive time in
transactional activities
Transition and change management for implementation
19
Project Approach
1. Process Prioritization
2. Process Walkthrough
6. Process Re design
7. Automation for scalability
20
5. Brainstorming for
Solutions
8. Control through Metrics
3. Process Mapping
4. Fishbone Analysis
Solutioning process transition
100% vendor = 2.5 times internal cost
Decision: Hybrid shared services
1. Project Team Structure with workstreams
5. Determining TATs , metrics & owners for all processes
Project Implementation Stages
Stage 1
Formation of Shared Services Team
and Change Mgmt.
Stage 2
Reducing manual intervention with
process improvement/ automation
2. Categorization of activities with activity location
Creating dashboard to
track metrics
3. Vendor Evaluation on SWOT & Cost
21
Agenda
ICICI Prudential- an introduction
Business case & challenges
Vision, drivers & scope
Process transition methodology
Impact delivered
22
Impact delivered - employee
Technology
• Policies
• KPI Tracker
• Peoplesoft
Employee
• Regional HR
• Resignations
• Discrepancies
•
•
•
•
•
Regional HR
On-Boarding
Salary
Code
Letters
•
•
•
•
Line Manager
Full & Final (F&F)
Leave
PIP
•
•
•
•
Regional HR
PIP
Governance
Benefits
Post On-Boarding
• Helpline
• Payroll Queries
• Governance
23
•
•
•
•
•
•
•
Shared Services
On-Boarding
Payroll
C&B execution
Full & final
Relocation
Etc.
Impact sustained
Review with
Function Heads
HR process
Finance process
Metrics
identified
Sales process
Review with
Leadership
Operations process
Owners Identified. Targets
provided
Shared Services
process
Sustained Improvement: RAG Tracking
RAG: Key Features
RAG Definitions
Objectivity in tracking
Ease of review
Single metric score

Green : >98%
 Amber : 98-91%
 Red : <91%
Defect scores linked to
owner KPI’s
24
Over 100 key metrics reviewed with functional
heads & Snr. Mgmt.
Key benefits
Economies of scale

Leverage scale to drive lower per unit cost
Economies of place
Value add service

Centralization
 Disaster recovery
 Talent pool

Reporting
 Policy consulting
 Joint business programs
Operational excellence

Technology enablement

Automation
 Self service
 Data sharing
 Innovative applications
25
Organizational transformation
 Standardization
 Process re-engineering
 Six sigma
 Straight through processing
 Compliance/Business continuity
 Metrics/KPI
Thank you
26