Bringing Agile To Operations

Steven Odgers, CSO Transformation LeadAustralia & New Zealand Banking Group Limited

10 October 2019

Public Document

OUR DISCUSSION TODAY

• What problem are we trying to solve for Operations at ANZ ?

• Why does an ‘agile at scale’ model make sense ?

• What are the key changes ?

• Why is autonomy important ?

• Early days … but what is the outcome so far ?

• What is the role of AOM/Workware? How is it different ?

BRANCHES ACCOUNT OPENING

CUSTOMER ENQUIRIES COMPLAINTS

OPERATIONS - responsive enough to customers or frontline ?

WHEREIS MY

TRANSACTION?

NO-ONEGOT BACK TO ME!

WE’RE

WAITINGON MORE INFORMATION

COLLECTIONSSERVICINGLENDING

• ~5,000 employees (of 45,000 total employees at ANZ)• >125 specialist operations teams• 5 locations supporting Australia – Australia, India, China, Philippines, NZ

3

specialist functions

multiple locations

specialist functions

multiple locations

specialist functions

multiple locations

specialist functions

multiple locations

OUR ‘LIGHTHOUSE’ MODEL - agile at scale, high autonomy

Chapters cover the end-to-end small business customer value chain

LighthouseCustomer Value Team 1

Customer Value Team 2

Customer Value Team 3

Customer Value Team 4

Customer Value Team 5

Customer Value Team 6

On-boarding CollectionsAssessment ServicingVariationsFulfilment

Customer Value Lead – accountable for overall customer outcomes

Chapter Lead – functional expert, ensures capability build and quality, including compliance

Governance Lead – identifies and mitigates and credit & operational risks

Performance Lead – enables and reports on ongoing performance improvement (customer outcomes)

Production Coach – ensures active resource planning and capacity management to inform team decisions

Agile Coach – enables cultural shifts required, focused on agile ceremonies/tools & autonomous behavior

Customer Alignment Coach – supports resource/workflow alignment, people admin 4

teams aligned to frontline

teams aligned to frontline

objectives & Key Results shared with

frontline

objectives & Key Results shared with

frontline

BUSINESS OWNERS ‘LIGHTHOUSE’ – 30+ customer value teams

5

Business OwnersLead

Performance Lead

Agile/behavioural coaching Support to enable behavioural

and culture change

SA / WA / NT

5 Teams~60 FTE

~7 Chapter Leads

NSW/ACT

8 Teams~102 FTE

~10 Chapter Leads

VIC/TAS

8 Teams~102 FTE

~10 Chapter Leads

DevelopmentPool

1 x Lead2 CVTs

~25 FTE~2 Chapter Leads

QLD

6 Teams~68FTE

~7 Chapter Leads

Ongoing support from Centres of Excellence Capacity Management Quality Capability Development Credit Control Reporting Governance Continuous Improvement

Roles per region1 x Customer Value Lead ~60-120 FTE

1 x Customer Align. Coach ~60-120 FTE

Chapter Leads max ratio 1:10Business Execution Lead

EscalationsLead

Business Governance Lead/s

Business Owners Lighthouse

SPECIALIST

Health

Agri

AN INTEGRATED SYSTEM – agile at scale in operations

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• Plan, Sync, Share• Commit• Meet customer

expectations

Daily CVT HUDDLES

3 week CHANGE TRAIN …• Small, regular,

iterative, changes

TEAM RULES• Team agreements• Caring for each other• Continuous improvement

Weekly & Ad-hoc SUPER HUDDLES

• Priorities – what & why• Observe, sense, respond• Alignment• Call out issues

• Retrospectives• Learning from mistakes• Teaching each other

KNOWLEDGE WORKERS

SPEAK UP & OPENNESS• Safe to share thoughts,

ideas, feedback

• Regular, open ops & frontline interaction• Caring for customers and each other• Continuous improvement & learning

2 Week FRONTLINE RETROS

• Autonomous & aligned change decisions

• Set/agreed change priorities

• Minimise bureaucracy

TRAFFIC LIGHTS

• Capacity planning• Alignment• Resourcing

Daily LH planning HUDDLES

• Dynamics, process, throughput

3 week CVT RETROS

CELEBRATE PROGRESS

PURPOSE, ICARE VALUES,PRINCIPLES

• Our “True North”• How we work together• Behaviour / ways of

working

Our highest priority is to provide an outstanding service to our Customers by quickly case managing their requests “end to end”. We develop

cross-functional skills, …go beyond our “functional

knowledge”… Better me, better you, better us

• Focused on end-to-end customer outcomes

• Customer, team & frontline feedback

• % Improvement on own customer outcome score

MEASURES OF SUCCESS

“PERSONAL BEST”• Agree what to learn next• Use skills learned• Celebrate/reward new skills• Regular 1:1 skills coaching• Growth Mindset

Our Customer

CULTURAL CHANGE – towards freedom with accountability

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WE SERVE THE BEST INTERESTS OF OUR

CUSTOMERS SO COMMUNITIES THRIVE

NEW WAYS OF LEADING

PURPOSE & PRINCIPLES - for the ways we work together

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Our highest priority is serving customers …

Delivering timely, quality outcomes, including end-to-end case management

Supporting each other and enhancing interactions with frontline

We care for everyone’s wellbeing & motivation

Embodying ANZ’s ICARE values

A culture we’re proud of

Continuously learning & improving by actively reflecting and adapting our work practices, building our knowledge, nurturing relationships and using new tools and experiences

Highly autonomous & highly aligned

Free to act, engage all of our capabilities and deliver better customer outcomes

Improving value for customers as the primary measure of success -measure accurately, often, informed by direct feedback from colleagues, frontline and customers

“Better me, better you, better us”Actively developing cross-functional skills, asking for help from team mates and going beyond our “functional knowledge” to continuously improve how we meet our customers’ needs

WE SERVE THE BEST INTERESTS OF OUR

CUSTOMERS SO COMMUNITIES THRIVE

CONTINUOUS IMPROVEMENT – empowerment with clarity

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‘Go’ zone

examples:

• Improve team rosters to ensure all busy periods are well covered

• Transfer and loan/borrow resources

• Team-building exercises and interaction activities

• Improve team ‘Huddle' format, frequency, content, etc.

• Updates to ‘Huddle’ Board design

• Priority for skills attainment by team members (with support from Chapter Lead)

• Improvements determined by Business Owner Lead as ‘quick win’ and ‘just do it’ ideas

• Actions for customers that do not increase risk or financial loss

‘Get approval first’ zone

• Key controls, segregation of duties, changes to standard letters

• Conducting agile ceremonies – e.g. retros, daily ‘huddles’

• Explicit links/alignment with frontline teams

• Risk policies

• Minimum allocation of people to collections and service calls

• Un-winding of autonomy

• Tools/registers used to monitor/track leave, work allocation, etc.

‘Stop & check’ zone

• Lighthouse purpose/vision/values

• Kanban Limits i.e. WIP queue limits

• Role changes e.g. who does what

• Agenda and minimum frequency for ‘Huddles’

YOUR DECISION self-managed in your teamNo pre-approval required

JOINT DECISION MAKINGdiscussion & alignment required inside and outside your team

INFLUENCE KEY OUTCOMESformal risk/compliance/ legal/policy owner assessments required

CONTINUOUS IMPROVEMENT – cross-skilling is at the heart

OUR PROGRESS – early indications on key measures of success

11

Small Business Customers

Customer Outcomes Matter Most

38%faster time to “approval in principle”

27%faster time to

final loan decision

21%faster ‘time to cash’

21%Fewer transfers for service requests

46%delay in speed to

answer service calls

2%Longer time taken to

resolve customer issues

Customer Servicing

- 44%Gap to target

customer outcomes

-14%Fewer customer

outcomes for Sep

510152025

Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19

Average Customer Outcome Score (CVT) Baseline Target

Loan Origination

PROGRESS – significant simplification

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From … To …

60+ role types 10 role types (converging to 6 over time)

7+ channels for frontline to submit servicing requests 1 automated frontline servicing channel (re-purposed)

low transparency for frontline on service requests full transparency

18 Credit Approval Discretion (CAD) types 6 progressive CADs

>100 user access profiles 10 user access profiles

ANZ’S USE OF AOM – history & approach for lighthouse

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In operation since 2007 1,700+ teams on Workware 10,000+ staff use RTM to

record stats 30+ champions

ActiveOps principles:1. Keep plans “In sight, in mind”2. Prevention better than cure3. Actions speak louder than words4. Use it or lose it (capacity)5. Strive for the best possible

Shift focus from Productivity to Outcomes 

(remove NVA tasks)

CUSTOMER at the center

of everythingwe do Do it right the first

time to avoidre‐work

Shift in focus from individual to team

SHORT INTERVALCONTROLCROSS SKILLING 

and better use of available capacity

Team member‐ledCheck‐in meetings 

& huddles

Data‐based decisions

via Workware  Analytics & WorkwareConnect

From 400+ core tasks to 20 customer outcomes

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Benefits of customer outcomes vs core tasks:

‐ Simplification & transparency

‐ Understanding variation in performance

‐ Increased accountability towards the team goal and the customer

‐ Continues to leverage ActiveOps principles

‐ Increased focus on team vs individual goals

‐ Transferable skills & opportunities which do not exist in the conventional model

Performance Lead

Team Manager

Lighthouse Lead Production Coach*

Day to Day operating rhythm

Measures of Success  & 

Performance

Capacity Management

Chapter Lead*

Coaching & Development

* Team members with additional capacity planning skills

1) Decentralised Leadership Roles 2) Simplified Core Tasks

ANZ’S USE OF AOM – differences in our lighthouse model

THANK YOUQuestions ?