GENPACT Process Reengineering Growth Enabler

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GENPACT Process Re-engineering Growth Enabler
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Agenda

• GENPACT Overview
• GENPACT Re-engineering
• GENPACT Re-engineering Product Offering

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Genpact10 years in business with a global
footprint

• 30 nationalities, 25 languages spread across
  nine countries
• One quality/service culture worldwide
• Flexibility and ability to move work between
  locations

One of the Original Six Sigma Beta Site for GE
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Genpact Has Strong Presence In Its Chosen
Verticals
Financial Services
Manufacturing
Services
Retail Wholesale Insurance Investment Manageme
nt
Discrete Process Auto Others (Retail, CPG)
Logistics Technology Media Others (Airlines,
eCommerce)
11,000 EmployeesCredit application evaluation,
customer support, lead generation, financial
modeling, research, portfolio management, agent
services, actuarial analysis, underwriting
support, claims processing, policy admin, risk
management
8,900 EmployeesSupply chain services,
forecasting planning, sourcing (direct
indirect), equipment monitoring, field services
support, logistics support, research and analytics
4,200 EmployeesContract management, pricing
analysis, marketing services, sales force
training, asset monitoring, information management
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Our Horizontal Service Areas
Finance Accounting
Procure to Pay, Order to Cash, Record to Report,
Gen. Acct., Hire to Retire, Treasury Tax
5,700 FTEs
Sales Marketing Analytics
Market Research, Database Marketing, Credit
Risk Modeling, Pricing Analysis, CRM
1,500 FTEs
Customer Service
Online/ Inbound Customer Care, Account
Management, Contract Management
3,700 FTEs
Financial Services Collections / Ops
Risk Mgmt, Underwriting, Booking/Funding, Cash
Applications, Collections
3,300 FTEs
Supply Chain Procurement
Procurement Services, Logistics Support, Vendor
Support Mgmt, Spend Analysis
1,300 FTEs
Aftermarket Services
Field Engineering Services, Warranty Repair
Support, Parts Dispatch Services
1,000 FTEs
Transaction Services
Application Processing, Claims Processing,
Document Mgmt, Billing Services, Order Mgmt
1,200 FTEs
Information Technology Services
IT End-User Computing and Remote Infrastructure
Management
2,400 FTEs
Enterprise App Svcs Program Mgmt
Design, Implementation Support Solutions in
ERPs, CRMs, Content Development
1,900 FTEs
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Genpact Is An Employer Of Choice

• Selective Hiring (6 of All Applicants)
• Targeted Recruitment
• Pre-employment Testing
• Competency/Cultural Assessments
• Pre-Hire, Post Offer Orientation
• High Retention (2X Industry Average)
• Robust Performance Rating System
• Retention Modeling Programs
• Metrics-based compensation
• Flexible Work Arrangements
• Best-in-Class Medical Benefits
• Leadership Interactions
• Training Investments 8 million / yr
• Attractive Career Paths (2,500 in Programs)
• In-house Career Opportunities
• Professional/Industry Certifications
• Education_at_Work MBA/CPA
• STAR/Buddy/Reward Programs

Ranked 3rd in the Best Companies to Work For
in India Survey (2005)
Ranked 9 Best Managed Global Outsourcing
Vendor. The analyses covers People Practices as
the key assessment area.
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Genpacts Process Re-Engineering Offering
Our Focus

• Bring value to potential strategic customers
  through power of Process Excellence
• Deliver business impact and continue to deepen
  Relationship and increase customer confidence

Our Strength

• We differentiate by offering Best Practices
  through our experience with customers from
  diverse industries
• Re-engineering Optimal blend of Lean / Six
  Sigma customized for your needs
• Productivity gains through Process Improvements
  offer sustainable financial benefit
• Reengineering offering can be leveraged to
  solidify the long-term virtual captive
  relationship
• DNA (2000 Certified GB / BBs / MBBs / QLs , 180
  Lean Coaches , 400 Six Sigma Projects, 2500
  Lean Improvements)

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Genpacts Process Re-Engineering Product Offering

• End to End Process
• Understand and document complete process
• Process vs Function
• Outside in using process output metrics
• Effectiveness Efficiency
• Speed of delivery
• Quality of delivery
• Cost per transaction
• Culture Deployment
• Creating a process improvement culture
• Deploy support in sustaining business impact
• Risk Governance
• Controllership
• Zero Surprises

Process diagnostic Understand Metrics Redesign
Process
Specific Challenge Understand defects Change
behavior
Business Impact
Lean Training Six sigma training Change Management
Internal Audits SOX Advisory Fraud Risk Services
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Governance Service Offerings

• Perform risk assessment
• Design business processes and controls

• Full Scope Audits
• Standardized service delivery
• Independent reporting to Audit Executive

Internal Audit

• Support in SOx scoping
• Process documentation/ Risk control matrix

• Support in project management

SOx Advisory

• Evaluate compliance with statutory requirements

Regulatory Compliance

• FSA, HIPPA, AML, FCPA etc

• SOx IT Controls testing
• SAS 70 documentation / testing

• Information security solutions
• Service continuity solutions

IT Risk Management

• Develop and define business processes,
  procedures/ policies
• Revenue risk management

• Process awareness/ change management workshops
• Cost management solutions

Business Process Improvement
Do not do independent attestation
Dedicated Team for Substantive Analytic Support
for Onsite Audit
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Process Re-engineering Deployment
Institutionalize Quality

• Change Management
• Knowledge transfer
• SWAT teams

High
Trainings

• Leadership development
• Six Sigma workshops
• Lean workshops

Lean Six Sigma
Value to the Customer

• Metric Improvement
• Improve efficiency
• Cost Reduction/Revenue Uplift

BPMS

• Metric Identification
• Dashboard
• Reporting

Value Add/ Non-Value Add

• Project Scoping
• Process Mapping
• Baseline

Low
Activity
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Nine Step Re-engineering Methodology
Design New Process
Current State Assessment
New Process Sign-Off
3
1
2
4
6
7
8
9
5
T
T
Plan Implementation
New Process Design
Additional Checks Balances
Baseline Operating Metrics
Process Mapping
Identify improvements opportunities
Project Charter
Best in class benchmarking
Biz Case and Sign-off
Understand As Is Process
Identify improvement opportunities design To
Be Process
Final Recommendations Implementation plan

• Define project
• Identify stakeholders
• Build comm. plan
• Understand process
• Identify customers suppliers
• Identify process inputs/outputs
• Understand process metrics
• Map process

• Brainstorm sessions with ops team
• Identify VA/NVA process steps
• Map process /identify bottlenecks
• Identify digitization opportunities
• Identify process defects/rework
• Baseline process metrics
• (if data available)

• Consolidate data
• Summarize findings
• recommendations
• Review draft report-out with
• project lead
• Get business sign-off
• Final Report out

Project Tollgate Review
Project Tollgate Review
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Process Improvement Framework
Process
People
Reduce Process Variation Increase
Standardization Reduce Non Value Add
Improve Efficiency Consolidation
Opportunities Leveraging Geographic Spread
Quick Hits
Customer Genpact Strategic Assessment
Six Sigma
Lean
Improve Platform Effectiveness Consolidation
Opportunities Roadmap for Reducing Platforms
Standardization of Policy Policy Best
Practices Global Bench marking
Technology
Policy
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Judicious mix of tools for robust solutions
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Partnering With the Customer to Create an
Improvement Roadmap
Fix And Keep Strategy
Ship And Fix Strategy
Fix And Ship Strategy

• Critical core process
• Risk/Compliance issues
• Max. opportunity to save on-site
• Not manually intensive
• Skewed effort/benefit relationship

• Broken process
• High Complexity
• Fixes critical to make it off-shorable

• De-couple
• Manually Intensive
• Savings Opportunity high
• Level of Standardization
• Proximity Requirements

Mid Term BPO
Immediate BPO
Immediate BPO
Out-source
Mid Term Re-engineer
Mid Term Re-engineer
Mid Term BPO
Opportunity Size (L/M/H) Low Medium High
Re-engineer
Immediate Re-engineer
Immediate Re-engineer
Just- Do- Its
High
Medium
Low
Complexity

• Apply process selection tools to determine
  approach (Fix Keep / Ship Fix / Fix Ship)
• Leverage Genpacts process improvement tools to
  retained and transitioned processes

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Two Primary Re-Engineering Engagement Types Offer
Different Value Propositions
Structured Re-Engineering Engagement

• Advantages for customer
• Re-Engg. Leader manages engagement teams
• Minimal work disruption
• Identify, prioritize improvement areas
• Robust recommendation
• Resources compliment the process improvement
  program

• Characteristics
• Pyramid structure leverages expert resources
• Customer provides charter and data to
  Re-Engineering team
• Team provides recommendations
• Short duration - work driven by Re-Engineering
  team
• Leverages industry experience

Re-Engg. Team
Customer org.
VP
PL
PL
PL
R1
R2
R3
R4
R5
Collaborative Re-Engineering Engagement

• Characteristics
• Project selection and execution facilitated by
  Re-Engineering team
• Re-Engineering team provides customer teams with
  training, guidance, and tools
• Longer duration - work driven by customer team
• Leverages process expertise

• Advantages for customer
• In-house domain process excellence expertise
• Identify, prioritize improvement areas
• Works as a change agent
• Knowledge resource for best practice
• Helps support strategic initiatives
• Can help deploy lean sigma, train people, support
  program

Customer team
Re-Engg. Team
PL
Expert
R1
R2
R3
R4
R5
Firms typically focus on one type of engagement
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Banking Case Studies
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GENPACT Experience in Banking Processes
of Projects
Business Impact Achieved
Project Areas
25 increase in Straight Through Processing of
trades. Over 55 action items identified for
long-term process improvements.
1 (US)
End to End Equity Derivatives processes
Root causes and solutions for 75 of Fixed Income
breaks identified. Reduced time on breaks from 40
mins to 20 mins per transaction. Improved claims
mgmt with clients, yielding productivity of 6
FTEs.
2 (US)
Client Settlements and Account Servicing
Corporate Actions Dividend/ Interest payments
40 reduction in Fixed Income breaks.Root causes
and solutions for 80 of Equities breaks
identified. Reduced defects for processing of
manufactured dividends by 8.
2 (US), 1 (EMEA)
Straight Through Processing improved from 29 to
80.15 productivity increase.
1 (Global)
Prime Brokerage
1 (US, EMEA)
Collateral Management
In progress
Finance Controllership and Audits
1 (Global)
In progress
Quick Hits to reduce defects in trade execution
by 50.Cycle time reduced from 60 mins to 25
mins.
1 (EMEA)
Futures
Reduced breaks by 63. Improved First Pass Yield
from 82 to 95.
2 (EMEA)
Stock Loans
Identified improvement areas for faster
settlementsand commission payments.
1 (Global)
FX Warrants
1 (EMEA)
In progress
Exchange Traded Funds
Improved cash flow of USD 600 MM p.a.and FTE
avoidance of USD 2 MM p.a.
1 (EMEA)
Cash Management
Over 25 Complex End to End Key Projects
Undertaken With Measurable and Realized
Business Impact
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Improve wire transfer cycle time and accuracy
Background
Process Improvement Actions

• Major US bank
• Case Study pertains to improving cycle time and
  accuracy for wire Transfer process covering all
  lines of business and 15 departments

• Setup
• Wire contract redesign 6 pages to 1 page
• Error proofed contracts info directly uploaded
  to database
• PINS sent through online banking channels
• Transaction
• Error proofed front end - eliminate thousands of
  ABA corrections and gt90 international wire
  payment corrections every month
• Online Banking
• New initiation channel to ease wire transfers for
  a significant portion of personal retail and
  small business customers
• Center of Excellence
• Centralized team for handling all backroom
  activities helps build wire expertise,
  standardize customer experience

Business Case

• Few million wires p.a. with annual revenues of
  gt200 MM
• Huge variation in cycle time for customer setup
  and transaction
• Goal is to reduce cycle time by gt80 to setup a
  customer within a day and complete a transaction
  within 15 minutes

Key drivers for high cycle time

• Complex setup form leading to errors, rework and
  high cycle time
• Paper intensive process leading to multiple date
  entry for customer set up PINS sent manually to
  customers
• Lack of wire control points in front end leading
  to rework in the back-office
• gt 90 of international wires reworked
• gt 50 of wires corrected for formatting/other
  errors in front end
• Lack of a self serve channel for customers
  leading to customer inconvenience and high cycle
  time
• Fragmented support activities leading to
  inefficiencies and inconsistent customer
  experience

Business Impact

• Potential cycle time reduction by gt 90 error
  rework reduction by gt 75
• Potential for significant customer satisfaction
  impact
• Go GREEN Move to a paperless environment
• Potential gross benefits of 14MM

14 MM benefit, gt 90 cycle time reduction 75
less errors and significant increase in customer
satisfaction
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Account Reconciliations Project
Executive Summary
Process Improvement Actions
Background

• Time to resolve for Open items has a very high
  span, exceeding customer requirements leading to
  potential exposure
• The effectiveness of resolution needed
  improvement as per the customer

• Changed definition of the metric to a wing-wing
  one which is as felt by the customer. Currently
  cycle time measured as time from closing to
  action plan. This was changed to measure days
  from occurrence to resolution
• Leveraged tools unique to each businesss need
  for tracking and resolving open items
• Established a clear escalation process to track
  and publish this data
• Set up a mechanism of more frequent
  reconciliations to ensure volume and value is
  reduced
• Set up a unique target for each business based on
  type of account/segment
• Created a unique end point as target instead of
  total cycle time (Time of occurrence Quartile 1
  days)
• Created a detailed SLA for each business

Business Case

• Very high cycle time to resolve open items
• Lack of a clear, standard process to deal with
  reconciliation items
• There was a need to evaluate whether the metric
  being tracked currently was the right one

Key Problems Identified

• Huge variation across different businesses
• Frequency of doing Recs whether daily or
  monthly was a key driver of volume and extent of
  reconciliations to be done
• Existence of tools vs. no tools was a significant
  driver impacting discovery time and influencing
  number of reconciliation items
• Lack of a clear and formal escalation process was
  a key factor
• Frequency of customer review whether weekly or
  monthly was also a key factor impacting
  reconciliations

Business Impact

• Span for time to resolve reduced by 71
• Cycle time reduction by a third

Business Impact Open items reduced to 1/3rd
value
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Denovo Cycle Time
Brokerage Operations
Business Case
Business Case

• Inconsistent cycle time ( 500 days) in new
  Branch opening process
• Process incapable of meeting the goal of handling
  300 additional capacity a year

• Broken processes and multiple handoffs within
  branches, TA and Financial advisors contributing
  to an increase of cycle time by 50
• No predetermined mechanism to measure
  productivity or accuracy leading to high risks
  for operational losses

Process Improvement Actions

• 8 week assessment 2 day LEAN event with 20
  participants from across the business.
• Identified opportunities to reduce cycle time by
  20
• Eliminated 23 process handoffs and gt 50 of NVA
  Steps
• Determined optimal sequencing of activities based
  on critical path analysis
• Clear guidelines to reduce process
  inconsistencies across different regions

Process Improvement Actions

• Single point of entry for requests, end to end
  processing ownership by processors and designing
  defining metrics
• Elimination of hold time, wait time and
  unnecessary hand offs. Linking processes to
  turn off overlapping steps within the process
  and within departments.
• Increasing span of control, process
  consolidations and cross trainings

Business Impact
Business Impact

• 20 reduction in cycle time
• 21 MM due to revenue acceleration

• 50 reduction in cycle time, FTE reduction 20
• 8 MM potential benefit

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Thank You
Contact Information
P Ramakrishnan Email address Telephone number
Ramakrishnan.p_at_genpact.com
91 98851 70101
www.genpact.com
Confidential. All trademarks appearing herein
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