CASE STUDY [UTILITIES & MINING] Lumo Energy

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1 CASE STUDY [UTILITIES & MINING] Lumo Energy

2 Lumo Energy is owned by Snowy Hydro Limited, one of Australia s largest and oldest renewable energy generators, and operates in Victoria, New South Wales, South Australia and Queensland. Business Benefits 25% reduction in contacts per customer 50% reduction in ombudsman complaints 21% reduction in customer churn 44% increase in Net Promoter Score Increased employee engagement scores Enhanced reporting capability When Lumo Energy won the Outstanding Innovation Category at the Global Business Excellence Awards, the judges said: Lumo Energy has transformed its business with a new governance process program. Using the Promapp solution, it has standardized 600 processes, cut duplication and generated more collaboration throughout the company. The results are astounding. Lumo Energy has seen a 25% reduction in contacts per customers, a 50% reduction in ombudsman complaints and a 21% reduction in customer churn. Implemented in conjunction with a change management plan, Promapp has done the trick and given the company s communications and processes a common feel, and vastly increased employee engagement scores. But it wasn t always this way.

3 The key challenge. Attempting to document all Lumo Energy s business processes was a problem-ridden project, resulting in a substantial amount of money and time being wasted. Due to the pace of change, high staff turnover (and resultant ownership issues) all they had to show for their efforts was dust collecting on the 50 completed processes in ring-binder folders. This meant the executive leadership had no confidence in process documentation and needed a different model of capturing and then improving their processes. Copyright Promapp Limited

4 Lumo chose Promapp because it promotes consistent process delivery, staff collaboration and ownership of aligned processes for the whole organization. Importantly, it s also simple to use. How Promapp helped. With a renewed focus on process mapping standards, a business improvement function was created. Lumo quickly established an Executive Process Improvement Forum which agreed on a process governance policy and approach, and drives Lumo s Lean Six Sigma improvement program. The process governance policy set targets for coverage, utilization, accuracy and continuous improvement. Lumo needed a tool to support business process management and help them achieve process governance targets. They involved the business in developing requirements and knew they wanted something centralized, that was simple to use and collaborative. Lumo chose Promapp because it promotes consistent process delivery, staff collaboration and ownership of aligned processes for the whole organization. Importantly, it s also simple to use.

5 The implementation. There were two aspects to Lumo s implementation model. The first was the decision to group the processes by function, and not business unit. Many processes were shared by multiple departments who believed they did things differently, but actually didn t. They needed staff to think in terms of what we do, not what business unit I m in, and encouraged them to step outside their silos. The aim was to achieve simplicity and a consistent customer experience with less effort, while encouraging collaboration across the business. The second aspect was to drive business ownership by getting business owners to prioritize the program and set aside resource to capture processes. Strong leadership buy-in was critical, a role that was filled by the Executive Process Improvement Forum. This meant high engagement early on, rather than the project-led approach which had failed previously at Lumo. Implementation was successful, with the publication of around 500 processes in the first 12 months and a high degree of engagement which was monitored and driven through utilization measures and communication activities. Many processes were shared by multiple departments who believed they did things differently, but actually didn t.

6 Positive outcomes. First and foremost, Promapp gets teams reading, using Lumo s quality assessment team also love Promapp. Now and improving processes. all their agents have a clear and consistent source of truth for their quality assessments, which has resulted in Capturing processes in Promapp - and actually using improved quality results. them - contributed directly to some fantastic business results. This included a Net Promoter Score increase of Lumo reached a point where Promapp was really 44%, rising to 13% from -31%. Energy retailers typically central to the business. People throughout the business measure around -25%. Together with significantly actually ask: How do I document this in Promapp? and reduced ombudsman complaints, Lumo also achieved I have a new intranet page, can I link to some material greater collaboration across the business, meaning a more in Promapp? and even This is a great tool. I wish I had inclusive culture. something like this at my previous place! Having a single source of truth for the business has made processes consistent for everyone, and enabled the ability to consistently iron out the kinks in a process. Now all their agents have a clear and consistent source of truth for their quality assessments, which has resulted in improved quality results. Copyright Promapp Limited

7 About Promapp At Promapp, we believe that expressing and managing process knowledge simply is crucial to sustaining an ongoing culture of process improvement. With Promapp s intuitive cloud-based BPM software, used by hundreds of organizations worldwide, anyone can create, navigate and change business processes. Sign up for a 30-day free trial or join an intro webinar to see Promapp in action. Connect with us. promapp.com AUCKLAND SYDNEY MELBOURNE Eden 3, 16 Normanby Road Mt Eden Auckland 1024 New Zealand T 0800 PROMAPP T Martin Place, Level 14 Sydney NSW 2000 Australia T T Bourke Street, Level 2 Melbourne VIC 3000 Australia T AUSTIN SAN FRANCISCO LONDON Domain Blvd 3rd Floor Austin TX United States T T + 1 (512) Embarcadero Center 8th Floor San Francisco CA, United States T T +1 (415) Waterhouse Square 138 Holborn London EC1N 2SW United Kingdom T T +44 (2) Copyright Promapp Limited