Improving Business Performance Trust and Junior Staff

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Improving Business Performance -Trust and Junior
Staff
Michael McCabeUlster Bank Group
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Improving Performance

• Discussion Points
• 1. Universal Performance Triangle
• 2. Types of Change.
• 3. Operational Inefficiency Suffering
• 4. Unleashing - The Trust Link
• 5. Unleashing - High Level Steps
• 6. Unleashing - Some Example Results
• 7. Possible Next Steps / Discussion

1 - 4 Paint a Scene
5-7 Tackle The Issue.
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1. Universal Performance Triangle.
The Business Environment
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1. Universal Performance Triangle.
The Business Environment
1. Trust
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1. Universal Performance Triangle.
The Business Environment
1. Trust
2. Knowledge
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1. Universal Performance Triangle.
3. Performance
The Business Environment
1. Trust
2. Knowledge
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2. Improving Performance - Strategically
Operationally.
Current Performance
Future Improved Performance
Strategy
Operations
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2. Improving Performance - Strategically
Operationally.
Current Performance
Future Improved Performance
Strategy
Structure
Channels
Prod. / Serv. Range
Big IT
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2. Improving Performance - Strategically
Operationally.
Current Performance
Future Improved Performance
Operations
Process
Waste
Improving Standards
Small IT
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2. Improving Performance - Strategically
Operationally.
Current Performance
Future Improved Performance
Strategy
Operations
Operational Performance
Management Science _________________ Trust /
Knowledge
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2. Improving Performance - Why Bother?
Because
Give me More Man

• Customers
• Shareholders
• Employees

Expect more
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3.Yet, Oper. Efficiency Suffers

• Telecommunications
• Infrastructure we do not need.
• Deal Processing / Settling
• Timing delays, wrong pricing.
• Payment Operations
• Paying too much unneeded activity.
• Information Distribution
• Incorrect audiences unsuitable vehicles
• The Basic Basics
• Forms, Reports, ..

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3. Yet, Oper. Efficiency Suffers

• Significant Cost
• Inefficiency typically ranges from 5 to 30.
• Newer businesses 5-15 levels
• Older more bureaucratic businesses 10-30
  levels

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3. Yet, Oper. Efficiency Suffers

• Translate the Inefficiency Numbers
• Revenue 40M
• Costs 30M
• Profit 10M
• Assume
• 5 day to day operational inefficiency
• 50 of this inefficiency can be eliminated

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3. Yet, Oper. Efficiency Suffers

• Translate the Inefficiency Numbers
• Revenue 41.00M 2.5 up
• Cost of Sales 29.25M 2.5 down
• Profit 11.75M 17.5 up

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3. Yet, Oper. Efficiency Suffers

• Translate the Inefficiency Numbers - Service
  Organisation
• Budget 10M
• Service Unit Cost 4,000
• Service Units 2,500
• Assume
• 5 day to day operational inefficiency
• 50 of this inefficiency can be eliminated

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3. Operational Efficiency Suffering

• Translate the Inefficiency Numbers
• Budget 10.00M The Same
• Service Unit Cost 3,900 Down2.5
• Service Units 2,631 Up 5.2

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4. Unleashing in Ulster Bank
Current Operations
Unleashing Approach
Trust a Key Input
Knowledge Know-how Experience.
Improved Operations
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4. Unleashing Approach - The Trust Link!

• Generic Management View of Staff
• They are underperforming
• They cant do the job properly
• Definitely need pushing to improve.

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4. Unleashing Approach - The Trust Link!

• Generic Management View of Staff
• They are underperforming
• They cant properly do the job
• Definitely need pushing to improve.
• Generic Staff View of Management
• Theres Another Agenda
• They act as if were stupid
• We must be careful - dont fall into a trap.

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4. Unleashing Approach - The Trust Link

• Who are Managers?
• Used to know specifics
• Dont spend enough time with staff. Stay too much
  in offices.
• Afraid to say I dont know
• Dont have the full picture

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4. Unleashing Approach - The Trust Link!

• Who are Staff?
• Now familiar with specifics
• Can see plenty of opportunities
• Are afraid to share / be open
• Not really asked for views
• Not treated as part of team
• Dont have the full picture

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild
• Significant business change - trust being bashed

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild
• Significant business change - trust being bashed
• Lower trust - more hoarding of operational
  knowledge

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild
• Significant business change - trust being bashed
• Lower trust - more hoarding of operational
  knowledge
• Greater trust - greater sharing of views / ideas

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild
• Significant business change - trust being bashed
• Lower trust - more hoarding of operational
  knowledge
• Greater trust - greater sharing of views/ ideas
• Trust must lead to benefits - for all. Maybe
  includes financial.

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4. Unleashing Approach - Trust Under Siege

• Trust dropping - need to rebuild
• Significant business change - trust being bashed
• Lower trust - more hoarding of operational
  knowledge
• Greater trust - greater sharing of views/ ideas
• Trust must lead to benefits - for all. Maybe
  includes financial.
• Encourage / facilitate co-operation

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5. Unleashing - High Level Steps.
1. Kick-Off Session
2. List Props.
3. Define Probs. Solns.
4. Elim. Props.
5. Research Props.
6. Modify Props.
7. Prepare Presn.
8. Distrib. Matl.
9. Make Presn.
10. Follow- Up
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5. Unleashing Approach - Summary

• Participating Operational People
• Listened to.
• Permitted to research
• Given credit.
• Other Operational People
• Involved in Research
• Given credit participate in decision-making
• Senior Management
• Acknowledge dont know all the questions and
• Admit dont have all the answers
• Listen, support drive implementation

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6. Unleashing Approach - Some Example Results

• Scrap Unnecessary Report - K Tens
• Telephony Charges - K Hundreds
• Alarm System Phonecalls - K Hundreds
• Telephony Infrastructure - K Hundreds
• Unnecessary Subscription - K Tens
• Unnecessary Process Steps - K Lots

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7. Possible Next Steps - for you!

• Decide - if there is any interest?
• Accept - modest resources to progress.
• Believe - will complement other initiatives, not
  compete.
• Accept - is low key and will involve people not
  normally involved in driving change
• Convince yourself - would be good for morale
  bottom line performance.

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Any Comments or Questions?