Meeting the operational process governance needs of the regulator, whilst identifying opportunities for operational improvements...

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The Challenge:

Enterprise wide capture and documentation of operational processes and implementation of an evidence based auditable governance process to ensure process understanding is confirmed and change control is managed effectively to meet the needs of the regulator whilst supporting the identification operational opportunities for improvement…

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Under the regime of the newly formed Financial Conduct Authority (FCA) all organisations who held a licence to provide consumer credit (catalogue companies) were downgraded to interim permissions with the requirement to demonstrate they met the ‘fit for purpose’ criteria that would result in the award of ‘full permissions’.

 

One of the requirements was the ability to demonstrate that the Senior Management Arrangements, Systems & Controls (SYSC) are fully documented, understood and applied. It was assumed that this was a straightforward requirement, however on completion of a high-level walk through (discovery) it was identified that the majority of departmental and enterprise process documentation was outdated, poor, or non-existent. It was also identified that cross-departmental handovers were often poor with strong evidence of a silo mentality in approach.

 

The Requirement:

Based on the evidence provided relating to enterprise documentation of processes, the PLC board requested a project to be delivered with the core focus of identification and documentation of all business processes using a consistent approach, and control of business processes whilst implementing appropriate governance to ensure application, adherence, understanding and maintenance, identifying possible opportunities for process improvement, within four months…

 

The Approach & Deliverables

To enable successful delivery, a team of Business Analysts were engaged to support the Transformation Lead and the designated SME’s in identifying, capturing and documenting all business processes in alignment with the FCA and PLC requirements.

 

Stakeholder and Business Engagement:

• Engaged with Stakeholders to ensure that the requirements including management and SME support and associated timelines relating to the initiative were clear and understood, in alignment with the Responsibility, Accountability, Consulted and Informed (RACI) matrix.

• Delivered communications plan and communications including ‘reason why’, status updates, get involved and how to guides etc.

• Implemented review and sign-off procedures in alignment with RACI Matrix

 

Document Content, Control and Repository

It was agreed that all processes would capture ‘the roles and associated steps required to complete a specific process within an operational area’ as both workflow ‘Visio’ maps and tabled documents.
 

• Centralised Document Repository (SharePoint) including agreed naming convention and version control with clear processes relating to updates, change, sign off. All made accessible for quality and process confirmation audits.

• Read and Understood process for all staff who are involved in the application of the process or had a need to understand the process to confirm and date stamp ‘read and understood’ 

• Check and Confirm quality process implemented to confirm ‘individual, team and departmental’ ability to effectively carry out and understanding of the process, this was also used to support implementation of ‘skills matrix’

• Training Materials the documentation was used to support the development of training materials to ensure materials aligned to process

• Process Review Cycle implementation of a tabled series of ‘check’ events that required a periodic review of each process by the change team to identify if there are further opportunities for improvement and that all associated checks are in place.

 

Capture and Document Processes

• A series of departmental workshops and process observations implemented utilised to capture:

• Documentation of existing process to demonstrate ‘the roles and associated steps required to complete a specific process within the operational area.

• Focus on identification of ‘regulatory’ gaps for priority address.

• Identification of possible opportunities to improve the process including ‘quick wins’.

• Linkage of each process across the relevant departments.

 

Next Steps

On completion and approval of the documentation of the processes as required, the following approach and improvements were made; the opportunities as highlighted throughout the documentation process were investigated to determine the size and impact of the opportunities if they were made more efficient to support prioritisation. The priorities for improvement were addressed as follows:

 

Priority 1: Regulatory process gaps addressed

• Review and revision of ‘Complaints’ process including redress, aligned with requirements of the FCA including the implementation of ‘Respond’ (Aptean) complaints management platform that enables improved ‘case management’ and capture of complaint types, themes, trends all enabling actionable insights and root cause analysis.
   

All ‘quick wins’ and ‘operational improvements’ were presented to the change board for agreement of high-level prioritisation.

 

Priority 2: Quick Wins

Agreed that a series of quick wins to be delivered to support and improve employee engagement and incremental operational improvements

• Identified and implemented a series of ‘quick wins’ e.g. remove duplication efforts e.g.

  • Agreeing and sharing ‘best practices’ across team and department.

  • Implement auto file updates, cut & paste to remove manual keying and improve accuracy of data transfer.

 

Priority 3: Operational Improvements

• The change board agreement for prioritisation of opportunities identified were based on a mixture of high-level opportunity and a path of least resistance to enable accelerated results and demonstration of a ‘hearts & minds’ approach to change.

 

Benefits

• Process Library: End to End Business Processes documentation

  • Library clearly documented and categorised enterprise, department and sub categorised:

    • Core: ‘How we deliver’ clear identification of value generation

    • Support: ‘Making Delivery Possible’

    • Management: Measurement of Results, Departmental KPIs, Budgeting, Regulatory Compliance

• Target Operating Model ‘Gap Analysis’ support

  • Image of risks and opportunities across the entire enterprise

  • Linked processes to Customer Journeys and supported identification of ‘effort’ overlaid with ‘Voice of the Customer’ platform

  • Provided insight for IT to provide support in process optimisation enabled through existing platforms

  • Supported identification of requirements for future people, process and technological solutions.

• Improved staff engagement

  • Staff survey demonstrated that the value and objectives of the ‘change & transformation team’ was highly valued and needed.

  • Over 50% of future hires into the department (full-time and secondment) came from internal applicants vs. previous external hires only.

• Making ISO possible…

  • Underpinned long term vision/need to achieve ISO 9001 or Financial Service standards

 

Priority 3 projects included:

• Value Stream Mapping of Buying & Merchandising resulting in excess of 50,000 hours per annum saved through waste removal 

• Driving an 18% reduction in Customer Service inbound contacts, whilst effectively balancing Customer & Business needs, through the delivery of improved online ‘customer contact' and 'help' pages - concept to delivery in 6 weeks.

• 20% improvement in productivity (Customer Service & Financial Collections) through improved operational management and staff engagement unlocked through best practice, process amendment, test & learn.

• Improved ‘returns’ and ‘high-value’ returns process resulting in improved Customer Journey and 17% reduction in process touch times and circa 70% post return damages of high value goods.

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