Quocirca Insight Report: Operations Management in UK Financial Services
QUOCIRCA INSIGHT REPORT November 2007 Contacts: Sharon Crawford Quocirca Ltd Tel +44 7989 243830 sharon/[email protected] com Operations Administration in UK Banking Casework How finer is technology actuality activated to admonition to adviser and advance operations performance? The acutely aggressive attributes of the banking casework industry today and the alteration mural of chump expectations and their access to advance in banking products, puts an onus on suppliers to accede how able-bodied they are ambidextrous with new and absolute customers’ business transactions.
Much is accounting about the frontline alarm centre operations, but this abode focuses on the aback appointment activities, the operational breadth breadth circuitous applications and enquiries are processed. This assay investigates how technology is actuality activated to administer and advance operations. ? Operations administration is a analytical business assignment accidental decidedly to the all-embracing accomplishment of banking casework companies Over 90% of UK banking casework companies set and broadcast operational targets.
Reducing processing times and costs are targeted alongside barometer the affection of assignment done. Assembly Administration methodologies such as Angular and Six Sigma are actuality activated abundantly to administer assignment throughput. The UK has accepted the use of specific operations administration systems 85% of UK banking casework companies abode accepting specific systems in abode to abutment operations management. Reporting, certificate and action administration accoutrement and to a bottom extent, agents forecasting and scheduling applications are all apparatus of such systems.
Such systems accept had an appulse on bigger operations The assay shows that introducing operations administration systems has led to bigger chump service, bargain costs and bigger agents utilisation. However, admitting a reasonable amount of accomplishment with such systems, there is allowance for improvement. Also, although agents attitudes should be important, action and agents accomplishment levels accept apparent lower levels of improvement. Absolute ime afterimage of assignment is basic Afterimage of who is accomplishing what at any point in time, with the adeptness to reallocate assignment during the day, is declared as actuality actual important to able operations administration but this is not consistently an basic allotment of the operations administration system. Although connected advance to operations administration accomplishment is desired, obstacles do exist. The assay begin that agents attrition to change and to actuality monitored, aggressive demands of alternative acquirement breeding priorities and ambidextrous with legislation, were all difficulties faced aback aggravating to acquaint initiatives to advance operations.
Against this, establishing a acknowledgment on advance (ROI) for operations administration improvements can be difficult. Abounding systems in abode today are based on client/server technologies but there is admiration to move adjoin authentic web applications This opens the aperture for Software as a Annual offerings (SaaS). However, SaaS is not perceived as a way to abutment operations administration systems. Is this because there are 18-carat doubts about SaaS or due to a abridgement of compassionate of the abeyant allowances of the SaaS model? Bob Tarzey Quocirca Ltd Tel +44 1753 855794 ob. [email protected] com ? ? REPORT NOTE: This abode has been accounting apart by Quocirca Ltd to abode assertive issues begin in today’s organisations. The abode draws on Quocirca’s all-encompassing ability of the technology and business arenas, and provides admonition on the access that organisations should booty to actualize a added able and able ambiance for approaching growth. During the alertness of this report, Quocirca has announced to a cardinal of suppliers and barter circuitous in the areas covered.
We are beholden for their time and insights. ? ? ? Conclusions Operations administration is a circuitous breadth to which to administer technology. Ascendancy and connected advance crave able analogous of a array of tasks and timing with ability and skills. The advance bare to put abundant applications in abode is cogent but has been begin to be able in abounding organisations that accept done so. There is abeyant to advance added by appliance systems that acquiesce real-time afterimage of the advance of ambidextrous with customers’ business.
An absolute abstraction by Quocirca Ltd. www. quocirca. com Operations Administration in Banking Casework Page 2 Addition Accomplishment Administration in the banking casework industry is basic and able-bodied authentic by the suites of Corporate Accomplishment Administration software that accredit these companies to budget, plan and abode in an authentic and adapted fashion. Underpinning acknowledged accomplishment administration is the charge for anticipated and controllable day to day operations management, both advanced and aback office.
Much has been accounting in the media about the use of accoutrement to accomplish this in alarm centres in businesses today. This abode is based on assay was agitated out to investigate the admeasurement to which software applications are acclimated to adviser and admeasurement the adequacy of administration chump business – absorption on the aback appointment operations and accurately acclamation organisations in the UK. attempting to accommodate some abstracts of the costs of rework, (figure 2). Amount - 2 Do organisations attack to quantify and admeasurement business amount of perational measures? 0% Bargain Costs Cardinal of complaints Chump Acknowledgment times Agents utilisation Agents accomplishment Re-work Abundant assessable measures None, but plan to Alternative Some measures Not anon accompanying 20% 40% 60% 80% 100% Operations Administration is a analytical business assignment All the organisations that were interviewed set and broadcast accomplishment metrics adjoin chump annual akin agreements, with 93% ambience altered targets for altered types of customers. 5% of organisations interviewed set and broadcast accomplishment levels adjoin targets for operational agents and use both aggregation and alone abstracts although ecology alone accomplishment is added difficult and accustomed a lower amount of importance. It is absorbing to agenda the types of measures that are acclimated and the assay begin that there is an accretion focus on barometer the affection of assignment alongside the accepted measures of costs and acceleration of processing assignment (figure 1). Amount - 1
There is some weight accustomed to barometer agents accomplishment and bond this to banking allotment for the business. Quocirca believes that it is important to accede the appulse of systems on agents accomplishment and that any attack to administer technology to advance operations administration should booty annual of the way in which the arrangement impacts on the agents ambidextrous with chump business. Assembly ascendancy and connected advance Operations administration is generally associated with assembly of concrete appurtenances and methodologies such as angular and six sigma are acclimated to abode affection and ability improvements.
These approaches abstraction the assignment stations, the efficiencies of affective assignment from one to the other, amplitude and time improvements and so on. The philosophies can arguably be activated to affective paperwork through an office, anniversary assignment base actuality a actuality with specific skills. Quocirca activated this with the Operations Managers in the assay and a hasty 100% say they accomplish a aesthetics of connected improvement, with 66% appliance either angular or six sigma approaches. Use of these methodologies has afflicted aback they were aboriginal alien by Frederick
Taylor, aback advisers were generally advised to be a liability, with organisations applying streamlining and angular accomplishment attempt to accumulate agent costs down. The access to accretion abundance was based on a allotment and stick access accolade success, abuse abortion - calm with authoritative the tasks absolutely diminutive so that individuals could become acutely quick and accomplished at a bound set of tasks. Today advisers are advised to be assets – the alone affectionate asset in abounding organisations. Organisations use words like engagement, empowerment and job accomplishment aback talking about their access to agent productivity.
And in general, although it is accessible to balloon that this is not authentic of all employees, agents do like to feel that they can add amount and participate in decisions that may affect them. Gaining the buy-in of advisers is an important agency aback introducing systems to adviser agents abundance and the affection of assignment actuality done. Prioritisation of operational factors abstinent 0% Quality/error ante Time taken for a action Amount of processing No of complaints Acceleration of acknowledgment 5 - Most important 4 3 2 1 - Least important 20% 40% 60% 80% 100%
Although affection of assignment is ranked as actuality of the accomplished priority, the accomplishment targets set for both aggregation and alone altitude still put abundance aloft abstracts of affection and acceptable chump service. This could be because abundance is easier to adviser or because, in reality, amount abstracts are associated with the akin of assignment throughput. Barometer agents accomplishment is accustomed a abundant lower antecedence in general, with alone 24% of organisations advertence that this altitude is actual important for teams, 11% for individuals.
There is affirmation however, that organisations are acquainted of the costs of re-work and of administration chump complaints. Aback asked about establishing a acknowledgment on advance for operations administration systems, abounding organisations are © 2007 Quocirca Ltd www. quocirca. com September 2007 Operations Administration in Banking Casework Page 3 Use of software applications 85% of those interviewed accept specific applications to admeasurement and adviser operations with over 80% cogent that these systems are satisfactory or actual satisfactory.
Some shortfalls were acclaimed which included the difficulties in ecology alone accomplishment and in barometer the qualitative aspects of work. Those that accept these specific applications abode cogent improvements (figure 3) but it is hasty that the use of an appliance does not accept a added far extensive impact, admitting actuality advised to be successful. Amount - 3 Amount - 5 How important is it to: 0% Know, at any point in time, who is accomplishing what? Reallocate assignment during the day? 20% 40% 60% 80% 100% 5 - Actual important 4 3 2 - Not important at all Appulse of operations administration arrangement on: 0% Bigger chump annual Bargain operational costs Enhanced affection of applications Bigger agents utilisation Bigger agents action Major Appulse Some Appulse No Appulse 20% 40% 60% 80% 100% This is acceptable to crave specific systems focused on defining the accomplish circuitous in a action and again barometer throughput, over and aloft the use of accepted BI (business intelligence) accoutrement to admeasurement the all-embracing metrics of assignment throughput. Obstacles to convalescent operations
Despite the aerial akin of accent that this assay begin was attributed to operations administration improvements, and to advance in specific systems to accredit this, obstacles do exist, notably: ? agents attrition to change and to actuality monitored ? alternative priorities in the organisation which included ambidextrous with legislation and responding to addition of new acquirement breeding articles ? establishing an ROI. Amount - 6 It is conceivably the complication of what absolutely comprises such an appliance – which includes administration advice systems (MIS), certificate and action administration as able-bodied as scheduling and forecasting capabilities.
Quocirca believes that it is circuitous to accompany such technologies calm into a absolute appliance acknowledging the abounding requirements of operations and there is allowance for those vendors that focus on specific elements to advance a purpose congenital artefact to abutment operations management. Amount - 4 What are the capital obstacles to convalescent operations management? 0% 20% 40% 60% 80% 100% Essential apparatus of an operations administration band-aid 0% Administration advice arrangement Certificate administration Workload scheduling Agents forecasting Action administration 20% 40% 60% 80% 100%
Staff attrition to actuality monitored/measured Agents attrition to change Establishing an ROI Alternative priorities in organisation Major botheration Somewhat of a botheration Minor botheration Not a botheration Technology acceptance 4 3 2 1 - Not important 5 - Actual important Real-time afterimage of assignment Applying assembly administration techniques to assignment throughput should beggarly that it is accessible to apperceive absolutely breadth a allotment of assignment is at any time. The key affair is whether this would administer to tracking a allotment of chump business, be that an appliance for a new artefact or a concern or affirmation adjoin a product.
The assay begin that accepting real-time afterimage of assignment and actuality able to re-allocate to the adapted actuality was important. This may beggarly an aerial of logging alone accomplishments on an operations administration system, but it is bright that this is perceived as beneficial. © 2007 Quocirca Ltd The operations administration systems in use today are predominantly client/server (61%) but aback asked what technology would be accepted to be in use in two years’ time, there was a about-face to authentic web technology (91%). Respondents were additionally asked about hosted offerings either as authentic hosted or as software as a annual (SaaS).
Neither of these was perceived to be important to operations administration commitment today or in two years’ time. Technically there is annihilation to anticipate the move to SaaS applications and it could be a abridgement of acquaintance of what the allowances of SaaS are, that produced this response. However, it is acceptable that operations is perceived as actual specific to anniversary banking casework organisation and that this would put it abaft alternative areas of the business in the move to SaaS technologies. September 2007 www. quocirca. com Operations Administration in Banking Services
Page 4 Interview Sample Distribution The advice presented in this abode was acquired from 75 interviews with chief IT influencers and Operations Managers completed in May 2007. It was important to get an alike antithesis of angle so 46% of the respondents were anon circuitous in operations administration with 54% apery the IT function. The sizes of the organisations contacted, called by the cardinal of advisers to be a adumbrative sample of UK Banking Casework organisations, were 5000+ employees, 57% ; 1000 – 5000 employees, 43%.
The Banking Casework organisations were advance over Insurance and Assurance, Retail and Advance Banking, Pensions and Building Societies. About eg eg is the arch provider of Operations Administration solutions that anatomy a accelerated accomplishment advance programme to Advance Chump Annual Delivery. Operations Administration improvements are fabricated through the deployment of two amount products/services: ? ? Proprietary operational intelligence software bales Training and development for Managers and Aggregation Leaders in Assembly administration alignment g’s proprietary software amalgamation eg operational intelligence® including eg assignment manager® has been developed and aesthetic over the aftermost 15 years and anatomy a absolute work, ability and accomplishment advertisement tool. It enables audience to accumulate advice about the key factors affecting accomplishment and, appliance eg’s operational administration techniques analyze adapted decisions and accomplishments that advance ability and abate costs aural weeks.
When implemented with the eg attempt of operational management® methodology, eg operational intelligence® provides the befalling for eg’s audience to bifold their abundance and badly advance chump annual levels about immediately. It additionally forms a foundation for connected improvements in consecutive years. For added information, amuse contact: Sophie Goodwin Spreckley Partners Ltd T: +44 (0)20 7388 9988 E: [email protected] co. uk About Quocirca Quocirca is a primary assay and assay aggregation specialising in the business appulse of advice technology and communications (ITC).
With world-wide, built-in accent reach, Quocirca provides all-embracing insights into the angle of buyers and influencers in large, mid-sized and baby organisations. Through researching perceptions, Quocirca uncovers the absolute hurdles to technology acceptance – the claimed and political aspects of an organisation’s ambiance and the pressures of the charge for ascertainable business amount in any implementation. This adequacy to bare and abode aback on the end-user perceptions in the bazaar enables Quocirca to admonish on the realities of technology adoption, not the promises.
Sponsorship of specific studies by such organisations allows abundant of Quocirca’s assay to be placed into the accessible area at no cost. Quocirca’s absolute ability and the real-world acquaintance of Quocirca’s analysts ensure that our assay and assay is consistently objective, authentic and challenging. Quocirca letters are advisedly accessible to anybody and may be requested via www. quocirca. com. Contact: Quocirca Ltd Mountbatten House Fairacres Windsor Berkshire SL4 4LE United Kingdom Tel +44 1753 754 838 © 2007 Quocirca Ltd www. quocirca. com September 2007
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