Group strategic overview

Transcription

1 Group strategic overview MMI s client-centric journey Dieter von Staden Slide No 01 Agenda Strategy development Strategy execution Slide No 02 1

2 Strategy development Where to play and how to win Roger L Martin Slide No 03 Strategy development Environment Strategic response Slide No 04 2

3 Environment Delivering on promises Inadequate provision Only 29% of retirees can maintain their standard of living (Sanlam Benchmark survey) >50% of SA pensioners can t cover monthly costs (The Times) Around a third of SA baby boomers have no formal provision for retirement (Old Mutual) SA disability cover shortfall of R11.1 trillion (True South) SA life cover shortfall of R7.3 trillion (True South) Slide No 05 Environment Lack of trust Date Slide No 08 3

4 Environment Lack of trust Date Slide No 08 Environment Lack of engagement Slide No 08 4

5 Environment Regulatory changes and trends Slide No 09 Environment Economic weakness and pressure on consumers Power shortages are hampering a recovery from the slowest growth since a 2009 recession, and the weak economy is exacerbating unemployment Sunday Times, May 2015 Slide No 10 5

6 Environment A new type of consumer Date Slide No 08 Source: Accenture Environment Technology advances digital era Date Slide No 08 6

7 Environment Technology advances digital era Date Slide No 08 Environment Business ecosystems and platforms Increasingly, businesses operate in complex, dynamic, and adaptive ecosystems. The fundamental boundaries that have specified the relationships and interactions of most businesses are rapidly blurring and dissolving (Eamonn Kelly) Together, the diverse participants of ecosystems create, scale and serve markets beyond the capabilities of a single organisation (Eamonn Kelly) Business platforms can help create and capture new economic value and scale the potential for learning across entire ecosystems (John Hagel) Slide No 14 7

8 Environment Innovation 62% of respondents said business strategy is largely or totally dependent on innovation Innovation survey, The Economist and Accenture For MMI Core to our Vision and Purpose One of our Values Key Enabler Slide No 15 Strategic response Three strategic focus areas Growth Increased focus on growth required by tough conditions Client-centricity Excellence Required to deliver on client-centricity Merger provides foundation for growth Strategic response to new consumers, lack of trust, technology advances and fairness regulations Strategic response to tough environment and onerous regulations Slide No 16 8

9 Strategic response Strategic focus area: Client-centricity Find out what your clients need and want then structure your products and services to solve their problems Ranjay Gulati Slide No 17 Strategic response Client-centricity Move closer to clients Become obsessed with clients Segment your client base Develop an in-depth understanding of client needs Identify and solve clients problems Become client relational value leaders Create a superior client experience Build trust Define your purpose Enhance financial wellness Slide No 18 9

10 Strategic response Client-centric Vision and Purpose Vision To be the preferred lifetime financial wellness partner, with a reputation for innovation and trustworthiness Purpose To enhance the lifetime financial wellness of people, their communities, and their businesses Slide No 19 Strategic response Strategic focus area: Growth Growth is never by mere chance, it is the result of forces working together James Penney Slide No 20 10

11 Strategic response Growth Collaboration Vested in client-centricity Geographical diversification Existing client base New clients Slide No 21 Strategic response Strategic focus area: Excellence Excellence is not a skill. It is an attitude Ralph Marston Slide No 22 11

12 Strategic response Excellence Product design Client experience design Client experience execution Efficiencies Slide No 23 Strategic response Enablers Synonyms Allow, give the means, equip, empower, make able, fit, make possible, facilitate, make happen Slide No 24 12

13 Strategic response Enablers Flexible and modular systems Business ecosystems Data analytics Innovation Collaborative and client-centric culture Slide No 25 Agenda Strategy development Strategy execution Slide No 26 13

14 Strategy execution Strategy without execution is hallucination Forbes Slide No 27 Strategy execution MMI Strategy Map 14

15 Strategy execution MMI Operating Model Segment and Channel Businesses Metropolitan Retail Momentum Retail Corporate and Public Sector International Client Engagement Solutions Financial Wellness Wellness and Rewards Safety and Education Big Data and Client Analytics Partner Management Group-wide Functions Products and Solutions Business Centres of Excellence Investments and Savings Life Insurance Legacy Book Health Short-term Insurance Payment solutions Group Finance Balance Sheet Management (BSM) Brand and Corporate Affairs Strategic HR and Transformation Risk Management Chief Operating Officer Slide No 29 Strategy execution Restructuring for client-centricity 15

16 Strategy execution MMI Strategy Map Strategy execution Growth strategic focus area Objectives Growth through geographical diversification MMI International Increase value of existing clients Product diversification (Momentum Short-term insurance, Payments solutions) Legacy book Client segmentation and understanding needs Financial Wellness Slide No 32 16

17 November December January February March April May June July August September October November December January February March April New Users Accumulated Users Survivalists Aspirers Traditionalists Strivers Realists Young Futurists Established Enablers Savvy Suburbian Determined Educated Client segmentation INCOME Slide No 33 Financial Wellness take-up 7,000 6,000 5,716 70,000 57,924 60,000 5,000 50,000 4,000 3,000 2,713 3,806 3,650 3,326 3,023 2,746 3,179 3,160 2,421 2,282 2,651 3,124 2,568 2,630 2,314 4,079 3,113 40,000 30,000 2,000 20,000 1,000 10,000 4, New Users Accumulated Users Slide No 34 17

18 Strategy execution Growth strategic focus area Objectives Growth through geographical diversification Increase value of existing clients Increase client base Channel productivity Momentum Consult Group-wide M&A Middle-market business Client segmentation and understanding needs Client Value Propositions Slide No 35 Strategy execution Client-centricity strategic focus area Objectives Increase financial wellness Improve client relationships Integrated Wellness and Rewards capability (Client Engagement Solutions) Slide No 36 18

19 Integrated Wellness and Rewards The Internet of ME Leaders will engage consumers more deeply by creating a personalised experience, without breaching their trust Providing personalised client experiences is a Top 3 priority for v 73% of insurers. Accenture Technology Vision 2015 Survey Slide No 37 Integrated Wellness and Rewards Will combine new technologies Client Engagement Solutions Use business ecosystems With a deep understanding of human behaviour v To help customers become more financially well Using compelling rewards to drive the change. Slide No 38 19

20 Dynamic Client Engagement Solutions Wellness Solutions Rewards Partner Management Client Analytics Solutions that enable clients to live well Financial Wellness Physical Wellness Safety Education Corporate Wellness Platform that rewards clients for living well and being loyal Multiply Spend solution Management of partners who help us meet the needs of our clients Wellness partners Rewards partners Corporate partners Other Solutions that help us gather, manage, protect, understand and use our client data Client Insight Platform Single Client View Advanced analytics Client Engagement Platform (LOB) Client Management System Slide No 39 Understand clients better Solve their needs better Psychographic profile Mental agility Stress levels Social interactions BMI Cholesterol levels Blood Sugar levels Blood pressure Smoke status Spending patterns Insurance portfolio Budget Credit score NB Documents Assets & Liabilities Age Gender Medical questionnaire Activity levels Fitness levels Sleeping patterns Eating patterns Driving behaviour Security status Slide No 40 20

21 Strategy execution Excellence strategic focus area Objectives Improve efficiency Implement the new operating model Legacy book optimisation Centres of Excellence optimisation Channel productivity Slide No 41 Strategy execution Enablers Innovation Focus innovation on the client experience Sustaining innovation Disruptive innovation Slide No 42 21

22 Sustaining innovation MMIgnite MMIgnite MMIgnite PLATFORM REGISTRATIONS PER WEEK (2015 to date) Total: 2,495 Since Sparks launch: 261 Active: 617 ( 25%) Campaign live: Buy-in,Get More and Stay Longer! Sparks Jan Feb Mar Apr SPARKS LEADER Annette Breetzke 71, 035 Sparks! 13 Badges! 4 Active Campaigns PLATFORM ACTIVITY Ideas 1,013 Comments 2,683 Ratings 6,818 PARTICIPATION RATIOS (ideas, ratings, comments) Participation ratio before Sparks: 1/4/1 V.S. Current participation ratio: 1/10/6 Campaigns 45 Tribes Notes ---- The platform since the introduction of Sparks has seen greater extent of Ratings and Comments on the platform Aligning Rewards and Recognition Programs with Leadership Development Start: 29 April End: 24 May Duration: 25 days Ideas: 23 Votes: 441 Comments: 232 Inspiring and activating the youth of South Africa to improve their financial wellness Start: 29 April End: 24 May Duration: 25 days Ideas: 62 Votes: 900 Comments: 392 Sustaining innovation MMIgnite MMIgnite MMIgnite Emergent community The Originals 22

23 Strategy execution Enablers Disruptive innovation In times of change learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists Eric Hoffer Future-proof MMI MMIgnite Specific disruptive innovation focus Slide No 46 23

24 MMI s strategy Thank you Slide No 48 24