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ENTERPRISE WORKFORCE OPTIMIZATION: The Evolution of a Continuous Improvement Culture June 2014 May 1, 2014 LCN-937349-060214 Lincoln Financial Group is the marketing name of Lincoln National Corporation and its affiliates. 2014 Lincoln National Corporation
ENTERPRISE WORKFORCE OPTIMIZATION Agenda Lincoln Financial Group Overview Continuous Improvement Journey Workforce Optimization Project Desktop and Process Analytics Performance Management Workforce Management Next Steps Panel Discussion 3
LINCOLN ENVIRONMENT Enterprise Fortune 250 company offering a diverse range of financial services and solutions Led by over 8,000 employees Four core lines of business Annuities Operation Led by 500 employees Approx. $13 billion in annual annuity sales Over $100 billion in Assets Under Management *Values as of 6/2014 4
THE V S OF OUR ANNUITY BUSINESS Volume $117B AUM, 1M contracts, $1B sales per month, $100M Mondays, 1M+ inbound calls, 3.7M in force transactions, 5.7M pieces of correspondence Velocity fast, 70%+ same day Variation in product (150), distribution and processing solutions. Straight Through Processing applications encompass 75,000 variations Volatile changing business and processing mix, spikey with the market, product changes, news Visible investors and industry are watching. Patented solutions The 6 th V your choice when the other Vs don t all work together: Vodka? Vacation? Vacancy?
Living in Different Realities. 2008 87% 92% 61% 88% 78% 88% Annuities uncover a huge disconnect between Leadership and the Frontline 30% 50% 43% 47% I don t think that very many employees on the floor have any idea what senior management s goals and objectives are Annuities Leadership Frontline Source: 2008 Mindsets and Behaviors Mirror Workshop 6
Living in Different Realities. 2008 87% 92% 61% 88% 78% 88% Annuities uncover a huge disconnect between Leadership and the Frontline 50% 43% 47% 30% Instead of focusing on people s weaknesses, we need to look at their strengths Annuities Leadership Frontline Source: 2008 Mindsets and Behaviors Mirror Workshop 7
Living in Different Realities. 2008 87% 92% 61% 88% 78% 88% Annuities uncover a huge disconnect between Leadership and the Frontline 50% 43% 47% 30% We need to feel like we have a voice in the changes and can offer resolutions for issues Annuities Leadership Frontline Source: 2008 Mindsets and Behaviors Mirror Workshop 8
A Time for Change 2008 In response, Annuities created a widescale, cross-functional program which came to be called 9
It Started with a Vision Development of Purpose 2008 Cross functional team created a compelling Vision for the organization Communication 2008 Socialization of the Annuities Vision Coffee with Nancy video messages Communication Matrix for Managers Linkin Lincoln Coaching and Development 2008 HR Policy Review Thinkin Lincoln Career Path Roadmaps Manager Accountability Meaningful 1 on 1 s By 2009, Annuities experienced positive change in the areas of focus I am happy to work in an environment that has a vision and not just a mandate to get the work done 10
It Started with a Vision Development of Purpose 2008 Cross functional team created a compelling Vision for the organization Communication 2008 Socialization of the Annuities Vision Coffee with Nancy video messages Communication Matrix for Managers Linkin Lincoln Coaching and Development 2008 HR Policy Review Thinkin Lincoln Career Path Roadmaps Manager Accountability Meaningful 1 on 1 s By 2009, Annuities experienced positive change in the areas of focus Communication has gotten a lot better recently. You can really tell that a lot of effort has been made to make this better 11
It Started with a Vision Development of Purpose 2008 Cross functional team created a compelling Vision for the organization Communication 2008 Socialization of the Annuities Vision Coffee with Nancy video messages Communication Matrix for Managers Linkin Lincoln Coaching and Development 2008 HR Policy Review Thinkin Lincoln Career Path Roadmaps Manager Accountability Meaningful 1 on 1 s By 2009, Annuities experienced positive change in the areas of focus Senior Leadership is seeking input and responding to that input with action 12
The Vision Gained Momentum Leadership & Development 2009 / 2010 Self-Development Breaking Barriers Manager Availability Career Development and Mentoring Job Shadowing Motivation & Communication 2009 / 2010 Team Building Games Friendly Competitions Flair Communication Role Monthly Launchpad Wooden Nickels Work Environment 2009 / 2010 Work Distribution Staffing Models Scheduling By 2011, positive employee engagement was the new normal I appreciate all that Annuities Senior Leadership does. We have been informed every step of the way through this difficult economy 13
The Vision Gained Momentum Leadership & Development 2009 / 2010 Self-Development Breaking Barriers Manager Availability Career Development and Mentoring Job Shadowing Motivation & Communication 2009 / 2010 Team Building Games Friendly Competitions Flair Communication Specialist Role Wooden Nickels Work Environment 2009 / 2010 Work Distribution Staffing Models Scheduling By 2011, positive employee engagement was the new normal The goals and vision are clear, and I d like to see that continue. It s reassuring to know that we are on the right track/well positioned in the marketplace 14
It Continued with Improvement Socialization 4 th Quarter, 2010 Continuous Improvement (CI) Leadership proposes Shingo Model to Annuities Leadership Overviews and presentations on Operational Excellence delivered to leadership team and managers Assessment 1 st Quarter 2011 CI conducts workshops to assess Annuities against key criteria from Shingo Model with Frontline Associates, Managers, Directors and AVPs Initiative Identification 1 st Quarter 2011 Key initiatives identified: CI Knowledge and Focus Voice of the Customer Measures that Matter Initiatives aligned to Vision@Work Partnering with CI, Annuities adopted key attributes of the Shingo Model for Operational Excellence Source: The Shingo Prize www.shingoprize.org 15
It Continued with Improvement CI Knowledge and Focus 2011 / 2012 CI 101 CBT on CI concepts Yellow Belt training on CI concepts and tools Solution Map tool for Frontline Associates Integration with Ideas@Work Voice of the Customer 2011 / 2012 Personalizing the experience with billboard best practices Voice of the Customer (VOC) flair Customer visuals with Abegail Speech Analytics Pilot Measures that Matter 2011 / 2012 Key metrics aligned to Vision: People Services Solutions Displayed throughout Annuities Partnering with CI, Annuities adopted key attributes of the Shingo Model for Operational Excellence Source: The Shingo Prize www.shingoprize.org 16
Annuities CI Culture Takes Root A passion and commitment to quality CI 101 To Date 100% of Annuities employees Incorporated into Annuities New Hire Onboarding process Available to the enterprise through HR Yellow Belts To Date All Annuities employees earn Yellow Belt 28 business partners trained Green and Black Belts To Date 30 Green Belts 4 Green Belt Candidates 2 Black Belts Looking for Green Belts or CI in our recruiting 17
What is the Impact to Annuities? Employee Engagement Annuities LFG Overall 81% 83% 47% 54% 67% 69% 68% 65% 61% 67% 2008 Employee Survey: Annuities scores below LFG overall Employee Engagement Index Retention Effort Advocacy Passion 18
What is the Impact to Annuities? Employee Engagement Annuities LFG Overall 88% 85% 63% 58% 75% 72% 73% 70% 73% 70% 2012 Employee Survey: Annuities scores above industry benchmark, peers in Shared Services and LFG overall Employee Engagement Index Retention Effort Advocacy Passion + 16% + 8% + 8% + 7% + 12% 19
Voted Fort Wayne s 2013 Best Place to Work 20
CONTINUOUS IMPROVEMENT IS JUST THAT CONTINUOUS! Business Challenges Manual forecasting, scheduling, and planning in Back Office Awareness related to employee activity Visibility into productivity standards Accessibility to performance data Work/life balance Measure process adherence 21
VERINT WORKFORCE OPTIMIZATION CENTER OF EXCELLENCE *Organizational Structure as of 6/2014 22
VERINT WORKFORCE OPTIMIZATION COMPONENTS *Organizational Structure as of 6/2014 23
DESKTOP AND PROCESS ANALYTICS (DPA) Previous State Limited visibility to application usage Messages/edits had to be added through application vendor Process maps designed by management Current State Application and log reports Popup triggers and data propagation Process discovery Future State Coaching toward productive applications and visibility to behavioral changes Triggers for guidance and reminder messages and error reduction Best practices and process adherence 24
PERFORMANCE MANAGEMENT Previous State Standard reporting environment Reports for everything! Monthly employee, team, organizational scorecards Visual organization metrics Current State Introduced My Scorecard Organizational and individual DPA KPI s Productivity and effectiveness KPI s Future State Ease of Access Career Development One stop shop for all KPI s 25
WORKFORCE MANAGEMENT Previous State Schedules Available in Contact Center Not available in Back Office Limited visibility for employees Current State Tracking daily activities Forecasting and schedules (Contact Center) Assigned phone skills/awd queues Future State Optimization Increased visibility Better predictions 26
Expected Benefits Improved employee engagement Quality enhancements Improved customer satisfaction Increased productivity and resource utilization Reduced turnaround times Streamlined processes Reduction in unplanned overtime 27
PANELISTS Nancy Jordan, Senior Vice President Executive Sponsor Scott Bodenhafer, Vice President Executive Business Owner Josh Staller, Tactical Project Manager Desktop and Process Analytics Ryan Krueckeberg, Sr. Business Analyst Performance Management LCN-937349-060214 28
PANEL QUESTIONS (NOT INCLUDED AS PART OF PRESENTATION SLIDE DECK) 1. What other Verint products are you using? 2. Are the members of the project team dedicated? 3. What is your governance model? 4. What order did you rollout each product out? Over what timeframe? Key milestones? 5. What was your communication plan? 6. How did you address Big Brother? 29
PANEL QUESTIONS (NOT INCLUDED AS PART OF PRESENTATION SLIDE DECK) 7. What about training? 8. Has the project impacted your Quality Assurance group? 9. Have you established any goals? 10. Have you realized any ROI to date? 11. Any lessons learned? 12. What are your future plans with DPA? 30