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Case study - International Card Corporation

Improvement and recognition of individual and team performance in international credit card corporation

This case study relates to the implementation of AOM in an International Card Corporation (referred to as ICC) that took place between November 2003 and July 2004.

Scope

		Back-office pilot department comprising 120 Full Time Equivalent (FTE) staff.
		Action: 6-day diagnostic followed by full 13-week implementation.

Initial situation

I don't have a view of how many people we have at any one time, and I certainly don't know how many we need.

The Operations Director managed a department serving customers and establishments from across Europe. Teams worked officially in seven languages - and had capabilities in at least seven more. Managers of this astonishingly diverse environment did not feel fully in control. Costs were high. In-house capacity was kept high to meet customer needs, with agency staff regularly used. Managers believed there were wide variations in productivity, but could not measure how great they were, or see by how much they could be improved.

ICC wanted to maintain high levels of customer service, while making staff more flexible, particularly by learning skills across teams. It wanted to assess, improve and recognise individual and team performance, using clear measures in agreed performance plans.

Project launch

ICC asked for an initial diagnosis of the underlying issues. Over a four-week period, consultants worked with operations managers to identify the extent of performance variation within their teams.

Operations managers identified the limitations of existing time management tools. In some teams, more than 50% of time was accounted for in a single category containing projects, sickness, training and other activities. The statistical analysis and the gap between existing tools and best practice suggested productivity could increase by at least 10-15%. Based on these results, the business decided to implement. ICC agreed to launch a pilot with the aims of improving Operations Management methods, increasing control and achieving a 13% increase in productivity.

The implementation

The 13 week improvement programme began with an intensive 4-day Simulation Training course. The off-site training built team manager understanding and buy-in, with the added benefit of being supported by departmental manager participation throughout.

After completion of the off-site training, progress was fast:

		Clear productivity measures were set up by week 3.
		A regular planning and review cycle were set up by week 6.
		Monthly planning was set up by week 8.
		Quarterly planning was set up by week 10.

By the end of the implementation, in weeks 12 and 13, all team managers had constructed a long-term plan of performance improvement, and were able to demonstrate the steps they had already taken. Throughout the implementation, internal subject matter experts communicated with team managers, acted as a reference point for questions and led planning and review meetings.

Issues faced

Some staff were initially reluctant to record their work and time. The joint team therefore emphasised positive and engaged communication. Subject matter experts - usually team managers - were briefed to act as liaison points. Staff were invited to attend planning meetings, to make clear that there were no secrets about the methods or aims. Team managers were briefed and given 'Key Messages' to use in team huddles with their staff. The departmental manager participated fully in communicating to staff, through the department newsletter, and through a whole department briefing.

Some initial reluctance turned to acceptance and enthusiasm. Staff saw feedback from the system after as little as 2-4 weeks. They became fully engaged in reviewing task timings and setting team targets.

How important was the software?

The software used in the implementation - Workware™ 2.5 - provided the tool for managers to implement what they'd learned on the training course, and the methods taught during implementation. Workware installed easily on managers' desktop computers and, with IT department support, an SQL server-based version was installed after 6 weeks. The server-based version allowed all teams' results to be consolidated and departmental plans to be prepared.

What other aims were addressed during the implementation?

Productivity was not the only important target. For some teams, it was much more important to deliver cash savings, through reduced write-offs and increased recovery of balances owed. In these teams, productivity measures were used by managers as capacity planning information. The team noticeboard displayed cash savings figures - planned and actual - and the team were given targets primarily focused on recoveries.

Long-term results achieved

The results achieved exceeded expectations:

		After 2 months, ICC had achieved a 4% reduction in month-on-month staff costs for equal output.
		After 3 months, training was completed.
		After 4 months, ICC had achieved much greater control and a productivity increase of more than 20%, easily beating the 13% productivity improvement target.
		Team managers were much more engaged in their new roles than before.
		The recoveries team recorded cash saved significantly above plan.
		Staff members found the new working environment and targets much more meaningful. From expressing frustration with previous management system they welcome the accuracy of the new performance measures.

How does the implementation fit into the longer-term plan for the organisation?

The 120 FTE pilot was followed by a further successful implementation in another department of 130 FTE. ICC is now considering migrating to the web-based version of the software (Workware 5), which would enable a world-wide roll-out across three continents.

Other case studies

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National Australia Bank

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