INTRODUCTORY OVERVIEW - The Lab Consulting...Inefficient business processes and customer over-service typically represent three-quarters of the Class I opportunity and benefit. Inefficient

OVERVIEWINTRODUCTORY

Non-Technology Business Improvement:A Self-Funding Approach

© Lab Consulting Partnership, Inc. • All Rights Reserved IO.161027A

A Misbelief Hides Valuable Improvements: “Our Business Is Unique”

Opportunity: Non-Technology Improvement® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Describes The Lab’s Template Based Advantage® for implementing valuable, overlooked Non-Technology Improvements

Methodology: Self-Funding Business Improvement® . . . . . . . . . . . . . . . . . . . . . . . .12

Outlines The Lab’s two-phased, Self-Funding Business Improvement work plan for reducing Virtuous Waste®

The Activity Cube: How It Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Describes how The Lab’s Activity Cube calculates and reconciles four essential views of operations – and why that’s essential

Knowledge Work Industrialization® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Understand how two-thirds of knowledge workers’ activities can be “industrialized” to recover the business value lost to Virtuous Waste

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Non-Technology Improvement: Representative examples of analysis, insights and related improvement barriers

Table of Contents

“Uniqueness,” The Skyline Analogy

• Every city’s skyline is unique

• But buildings are comparable

• And most components are similar: doors, fixtures and more

Improvement Implications

• Every business is unique

• But operations are comparable

• And most improvements are similar: root causes, benefits and more

• 75% require no technology (page 10)

The Lab helps clients implement these similar, non-technology, business improvements.

Improvement Templates

The Lab’s database of improvement templates (pages 3 & 4) helps clients:

• Find more improvements

• Accelerate benefits

Describes The Lab’s Template-Based Advantage® for implementing valuable, overlooked Non-Technology Improvements

Opportunity

1

© Lab Consulting Partnership, Inc. • All Rights Reserved IO.1610272

The Lab’s Unconventional Approach

Popular Improvement Methods

The most effective improvement methodologies require no technology:

• Six Sigma

• Lean Improvement

• Lean Six Sigma

• Kaizen Methods

• Total Quality Management

• Quality Function Deployment

• Voice of the Customer

• and others

The Lab’s templates and project approach incorporate the most valuable aspects of these methods.

Virtuous Waste

Corrective work activities widely mis-perceived as unavoidable, valuable effort (page 5).

Differences Reasons

Non-Technology Improvement®

Roughly 75% of business operations improvements:

• Require no new technology

• Are similar and repetitive

• Resemble a “long tail”

1

Template-Based Advantage®

The Lab’s templates take advantage of similarities:

• Find more improvements

• Achieve more benefits

• Accelerate results

2

Self-Funding Business Improvement® – Guaranteed

All businesses have similar, overlooked improvements:

Virtuous Waste3

Three Fundamental Differences vs. Conventional Management Consulting


The Lab’s Database of Improvement Templates

Improvement Templates

Organization-based:

Broadly applicable to many companies and industries.

Industry-specific:

Unique to particular business segments and industries.

The Lab Maintains Templates in Two Major Groups

– Finance Close/Reporting

– Accounts Payable

– Treasury Operations

– Cost Allocation

– Budgeting

– Payroll

– Fixed Assets

– Tax Accounting

• Finance

• Human Resources

• Marketing

• Information Technology

• Legal

• Compliance

• Internal Improvement

• Risk

• Training

• Field Sales & Support

• Customer Service

• Contact Centers

Supply Chain Operations

• Product Development

• Order Management

• Procurement

• Materials Management

• Production

• Distribution

• Quality Management

Support Groups General Line Groups

Organization-Based Templates Industry-Specific Templates

• Financial Services

• Telecommunications

• Business & Consumer Services

• Utilities

• Health Care

• Leisure & Hospitality

• Media Services

• Oil & Gas, Energy

• Technology & Communications

• Retail Sales

• Health Sciences

• Automotive & Transportation

• Chemical & Natural Resources

• Consumer Packaged Goods

• Industrial Products & Appliances

• Food Production & Processing

• Print & Mail

• Paper & Packaging

Services Supply Chain

– Insurance

– Banking

– Broker/Dealer

– Investment Management

– Mortgage Banking

– Consumer Finance

¡ Retail Branches

¡ Business Lines

¡ Back Office


Template Descriptions

Broadly Defined

The Lab defines “templates” broadly, from business process maps through implementation work plans.

The Lab’s Six Categories of Improvement Templates

Business Process Map Templates

The Lab maintains activity-level business process maps for thousands of organization-based and industry-specific processes.

Benchmarking Metrics/Key Performance Indicators (KPIs)

The Lab has more than 10,000 quantitative measures (metrics) covering processes, operations and organizations.

Improvement Opportunities

The Lab documents and catalogs thousands of commonly recurring, activity-level operating improvements.

Capacity Models (Activity Cube)

Quantitatively link work activities to volumes, input and output to track productivity and forecast resource needs.

ACTIVITY

C U B E

Best Practices, or “Leading Practices”

Use The Lab’s Leading Practices to evaluate your operational capabilities. Go “out-of-industry” for valuable practices.

Implementation Work Plans

Standard “modules” define implementation tasks, time frames and milestones. Plans are configured for each client’s needs.


Template-Based Advantage: Massive, Activity-Level Improvement

5

The Lab’s Tactics Identify Virtuous Waste Activities

Conventional Tactics Overlook Virtuous Waste Activities

Virtuous Waste Defined

Tangible waste is an obvious improvement opportunity and conventional methods target its reduction.

• Scrap

• Returned goods

• Idle time

But intangible waste is not obvious and conventional methods overlook it.

• Incorrect orders

• Customer over-service

• Sales downtime

The avoidable work activities that correct intangible waste are mis-perceived as “virtuous.”

• Saving revenue

• Serving customers

• Helping the sales force

The Lab’s term for these mis-perceived, avoidable work activities:

Virtuous Waste

The cost of this waste erodes 20% of earnings for the Fortune 500 (page 30).

Organization-based scope

• Select group(s)

– Business

– Organization

• Broadly analyze groups

– Business processes (end-to-end)

– Organization capacity (wall-to-wall)

Single-focus teams

Teams pursue only non-technology improvements

Micro-targeted

• Hundreds of small improvements

• Non-technology (all)

• Near term (<6 months)

Issue-based scope

• Select improvement issue(s)

– Generate improvement “long list”

– Focus on a few – most valuable

• Deeply analyze issues

– Root causes

– Implications

Multi-focus teams

Teams pursue all improvements: technology, strategic, non-technology

Macro-targeted

• A few major improvements

• Technology-driven (90%)

• Long term (>12 months)

Wall-to-Wall Process Mapping

Brainstorming & Flip Charts

The Lab’s Tactics: “Long Tail”Conventional Tactics: “Big Rocks”


Template-Based Advantage: Massive, Activity-Level Improvement

“Long Tail” Capability

The Lab’s template-based advantage makes it feasible to...

• Document

• Implement

...hundreds of activity-level improvements in months.

Activity ImprovementsAffect Each Job Position

The Challenge

Virtuous Waste activities are pervasive, but overlooked.

• Full impact is “invisible”

• Root causes: “unavoidable”

• Remediation is “heroic”

Organizational CapacityCumulative Impact

40%

The Reward

Virtuous Waste consumes 25-40% of organizational capacity.

• Operational rework

• Sales “downtime”

• Customer “over-service”

Recoup and RedeployCapacity Model Needed

The Solution

The Lab’s methods recoup wasted capacity in 6 months.

• Full positions

• No “fingers and toes”

• Clients redeploy employees


Frequently Asked Questions: Internal Teams

An Unusual Fact

Roughly two-thirds of The Lab’s new client relationships originate with internal improvement teams.

Conventional consultants compete with, or displace, internal teams.

The Lab’s improvement templates incorporate proven methodologies: Lean Six Sigma, Voice of the Customer, Benchmarking, Leading Practices, Business Process Mapping and others.

What methodologies does The Lab use?

Any & all that work.A

Q

A

Q Doesn’t The Lab find the same improvements?

No.

The Lab’s improvement templates identify 3-5x more Non-Technology Improvements than even the best internal teams.

Internal teams today face unprecedented demand for rapid results and increasingly valuable business benefits. The Lab helps internal teams achieve these capabilities.

Why would an internal team involve The Lab?

More improvements, benefits & speed.A

Q

A

Q Does The Lab replace internal teams?

Never.

Internal teams provide roughly two-thirds of our new client introductions. The Lab can transfer templates to internal teams to increase effectiveness.


Early-Stage Checkpoints Reduce “Launch Risk”

Self-Funding Guarantees Reduce “Performance Risk”

Fixed-Price ProposalsThe Lab’s proposals are based on our labor costs. The scope is collaboratively and frugally designed with clients.

Compatibility CheckpointDuring the first two weeks, clients may cancel the Phase I engagement for any reason and receive a full refund of fees.

Opportunity CheckpointIf The Lab discovers that a self-funding improvement opportunity is unavailable, we will provide a full refund by week number two.

WEEK #2

CH E C K P O I N

T

PROPOSAL

Phase I: Analysis & DesignThe Lab will deliver a set of “quick hit” Class I Improvements with financial benefits that exceed the Phase I fees and expenses. These can be implemented by client staff without The Lab.

Phase II: ImplementationIf an improvement program we implement fails to deliver savings at least equal to our fees in the first year, The Lab will continue working without charge until it does or refund the difference.

The Lab’s Philosophy: Eliminate Risk for Clients

Low Risk by Design

The Lab’s fixed-price proposals, checkpoints and self-funding, money-back guarantees reduce risk for clients.


Root Causes of Virtuous Waste

Typical Sources of Class I Improvement

Benefits Concentration

Inefficient business processes and customer over-service typically represent three-quarters of the Class I opportunity and benefit.

Inefficient Business Processes• Typically 25–40% of business process

work steps represent Virtuous Waste.

– Rework

– Over-service

• 75% of these tasks can be eliminated

– In six months

– Without technology

Under-Managed Capacity• Failure to document, quantify and manage

work tasks and organizational capacity.

– Inaccurate forecasts

– Staffed for peaks

Measurement Imbalance• Over-emphasized metrics:

– Volume

– Revenue

• Under-emphasized metrics:

– Productivity

– Quality

– Unit Cost

– Customers

Over-Served, Mis-Served Customers, Markets• Organizations squander costly efforts

on the wrong priorities:

– High priorities are under-served

– Low priorities are over-served

• Markets are similarly mis-served

55%

15%

10%

20%


Class I Improvement

The Lab’s term for non-technology reduction of the root causes of Virtuous Waste that erode value in multiple categories:

• Rework

• Sales downtime

• Service issues

– Over-service

– Under-service

– Mis-service

• Intervention

• Cycle time delay

• Errors

• Misperception

The Lab’s Terminology: “Class I” Means Non-Technology

Class I® Improvements Outnumber Class II® by a 3-to-1 Margin

Class I Means No Technological, Strategic or Regulatory Change

Technology

No

Yes

Class I

Class II

Product/Service

No

Yes

Business/

Distribution Strategy

No

Yes

Physical

Infrastructure

No

Yes

Regulatory

No

Yes

Class I Improvements

Technology neutral

Class II ImprovementsTechnology dependent

75%

25%


Improvement Opportunities by Implementation Timeframe

Class I, Non-Technology Improvement: Near-Term

Rapid Results

Most improvements can begin implementation immediately.

Even large-scale implementation projects can be completed in 6 months.

Timeframe Complexity Technology

35% Immediate Low None (1–2 months)

43% Secondary Moderate None

(3–6 months)

22% Long Term Varies Minor, Major (6+ months)

35%

22%43%

Immediate ActionClass I

Long TermClass II

SecondaryClass I

11

MethodologyOutlines The Lab’s two-phased, Self-Funding Business

Improvement work plan for reducing Virtuous Waste®

12


Two-Phased, Self-Funding Approach to Implementation

Implementation: The Lab’s Core Business

The Lab’s teams work full time, on site, with client executives, managers and front-line employees to implement improvements and document results.

Indicates self-funding performance guarantee, Phase I and Phase II.

Indicates client decision point for Phase II Implementation Launch.

LEGEND

Identify improvements, develop a business case and a self-funding implementation work plan

Duration: 6 to 8 Weeks

Develop an improvement business case• Ledger-line-item financial detail

• Work-group-level operating detail

Draft an implementation work plan• Self-funding, non-technology

• Client-prioritized, multi-objective

• Immediate launch

Deliver supporting documentation• Process maps, “Current-State”

• Benchmarks, leading practices

• Detailed improvement opportunities

Implement improvements, achieve payback and sustain ongoing improvement

Duration: 4 to 6 Months

Launch Immediate Action improvements• Simple operations changes

• Lead time: 6-8 weeks

Install Non-Technology improvements• Complex process change

• Lead time: 3-6 months

• Capacity model development

Optimize Future State processes• Job position/skills realignment

• Management Operating Reports (MORs)

• Desk-level standards (Placemats)

Phase I: Analysis & Design Objectives Phase II: Implementation Objectives


Self-Funding Business Improvement: From “Start to Finish”…

Analysis & Design, Phase I

Phase I is the business equivalent of a wall-to-wall X-Ray or CT scan of operations.

Templates help document end-to-end business processes at an activity level of detail, creating an unprecedented, consensus-driven, fact-based view of improvement opportunities.

Combined with the ledger-line detail of the business case, the Phase I findings and documentation create an almost irresistible, organizational groundswell for action toward change.

Obtain commitment from an executive who can

ensure success. Identify the organizational scope.

Non-Disclosure AgreementThe Lab signs client NDAs without edits.

Process Map CoverageThe Lab’s templates map 80% of the organizational scope at the activity level.

Organization Charts – ExistingThe Lab reviews charts to identify a frugal analytical scope for Phase I.

Client Time Requirements (Page 16)The Rule of Thumb: No more than one hour per client employee each week.

Analysis Design WorkshopThe Lab meets with clients to jointly finalize Phase I scope.

Self-Funding Work Plan & Benefits CaseThe Lab’s non-technology implementation plans are typically complete and self-funded in 6 months.

Project Development Phase I: Analysis & Design – 6 to 8 Weeks

Project Sponsorship

S T E P 1

Detail the “frugal analytical footprint” to deliver the greatest benefit for the organizational scope.

Proposal Design

S T E P 2

Analyze and benchmark performance data, map

processes and document improvements.

Operations Analysis

S T E P 3

Document improvement benefits in a self-funding business case. Design

the implementation plan.

Benefits Case & Work Plan

S T E P 4

CONTRACT NDA

PROPOSAL IPROPOSAL II


…An Unconventional “Engineering/Construction” Approach

Implementation, Phase II

Phase II resembles a construction project more than a conventional management consulting engagement.

Operational “change orders” (PIRs) rapidly align hundreds of activities with customers’ top priorities and the most valuable sources of revenue. Lower-value tasks are eliminated or reduced.

Just like a construction project, progress is tangible and measurable daily.

Phase II: Implementation – Typically 6 months

Establish a “lather, rinse, repeat” cycle for installing

changes. Monitor and refine new processes.

Improvement Implementation

Model organizational capacity and reconcile to newly-standardized processes, work products and

required activities.

Capacity Reconciliation

Develop desk-level job instructions (“Placemats”)

to standardize work methods and document goals.

Desk-Level Standardization

Create concise visual management dashboards to measure performance

against goals.

Performance Tracking

S T E P 5 S T E P 8S T E P 7S T E P 6

Process Improvement Records (PIRs)Consolidate activity-level improvements into manageable groups with these operational “change orders.”

Redesign Jobs & OrganizationsStandardize and document job tasks and accountability. Redesign job positions & organizations as required.

Implementation CycleBegin installation of change with small groups of PIRs. Review, refine and continue this “lather, rinse, repeat” cycle.

Desk-Level Guides – PlacematsDefine easy-to-follow performance goals to ensure productivity and reduce variance.

Capacity Model – Activity Cube (Page 20)Use the Activity Cube to reconcile workload and staff needs. Generate goals & reports: productivity, quality and service.

Management Operating ReportsDesign simple area reports – typically 5-7 metrics – of operations performance: units, volumes, backlog, errors.

1

23

PLACEMAT

PIR

Indicates self-funding performance guarantee, Phase I and Phase II.

Indicates client decision point for Phase I & Phase II Launch.

LEGEND


1 Applicable for projects covering a total of 250–2,000 employees.

2 Process Map Fair—a group review of maps.

Week 2Week 1 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8

WO

RK

AC

TIV

ITIE

SC

LIEN

T TI

ME

20 1.0

20

20 1.0

20 20

10 2.0

24

12 2.0

24

12 2.0

16

8 2.0

16

8 2.0

1

2

3

4

5

6

7

Description

LogisticsStartup

InterviewsData Analysis

Process MapsCurrent State

OtherAnalysis

ImprovementWork Plans

Business CaseFinancials

Final PresentationImplementation Plan

60

0.3200

MAP FAIR2

Client Staff Individuals

Client Staff Time(Hours per Individual)

Total Client Hours(per Week)

Week-by-Week Work Plan Detail1

Phase I Work Plan; Minimal Client Time Is Required

More Templates, Less Time

The Lab’s templates reduce the time required from clients to develop findings and documentation.

The Analysis and Design phase is designed to use the client’s time both frugally and effectively.


1 Applicable for projects covering a total of 250–2,000 employees.

Client Participation Tasks, Time Requirements1

Conduct Interviews, Existing Data Analysis

Finalize Implementation Plan

Week One Week Two Week Three Week Four Week Five Week Six Week Seven Week Eight

Map Business Processes, Develop Findings & Validate Improvements

Phase I: Client Activities – Description

Brief Access vs. Duration

In Phase I, client-participants contribute their time in brief increments, typically in sessions lasting less than 60 minutes.

Brief, informal access to clients is more valuable than lengthy periods of contributed time.

Internal Perception Interviews

• 45-60 minutes each

• Informal, confidential

• Semi–structured

Existing Data Assessment

• Prior analysis, reports

• Existing process maps

Process Map Development (3 steps)

1. First Draft – Two-hour session per map develops “skeleton” work flow (1-2 client staff)

2. Refine/Validate – Multiple, brief reviews add detail (15-30 minutes each review)

3. Map Fair – Group validation of maps and improvements

Benchmarks, Leading Practices & Customer Interviews

• Data gathering, observations

• Findings review and validation

Financial & Operational Benefits

• Financial validation

• Performance goals

• Timeline, Milestones

Implementation Planning

• Resource needs

• Sponsorship


Multiple Objectives — Six-Month “Break-Even” Point

Labor SavingsAchieve and sustain 20-30% labor savings

Revenue ProductivityIncrease uptime (selling tasks) for producers

Service ImprovementReduce customer over-service

Operational StandardizationLimit needless variation and rework

12-month paybackTypically 2-5x investment

Project break-evenThe Lab has ‘Self-Funded’

Maximumout-of-pocket

Implementation Month

1 2 3 4 5 6 7 8 9 12

Improvement Objectives Projects “Self-Fund” by Month 6

Phase II Improvement Objectives & Self-Funding Payback

Typical Milestones

Each work plan is unique, but several characteristics are common to every implementation:

• Rapid completion (6 months or less)

• Rapid break-even (6 months or less)

• Substantial payback (2–5x by month 12)

The Activity CubeDescribes how The Lab’s Activity Cube calculates and reconciles

four essential views of operations – and why that’s essential

19


ACTIVITY CUBE

I

II III

IV

The Lab’s Activity Cube: How It Works

Why Reconciliation Matters

Unless organizational capacity is allocated and reconciled with work product volumes, business processes and work activities, benefits are:

• General, not specific

• Fragmented, “fingers and toes”

• Soft dollar, not hard dollar

• Not sustainable

“The Cube” Reconciles Four Views of Operations

I. Organization View: Provides the baseline of organization capacity – net available work time. It is compiled in the Activity Cube and generates three additional, reconciled “views” of capacity.

III. Work Product View:Work products are the output of business processes. These enable unit-based management of operational efficiency and effectiveness.

II. Business Process View:The Lab’s business process maps deliver activity-level detail of processes and organization capacity.

IV. Activity-Based View: The activities on the business process maps help calculate the resources devoted to business processes and work products. Activities average less than 15 minutes each. The Lab uses a directory of 20 universal work activities.

Links and reconciles operating work activities to business processes, work products and the organization (job position).

• Business Process • Work Product • Activity-Based


The Lab’s Process Maps Link Activities to Organization Capacity

End-to-End – Account Maintenance

Account Maintenance

1

2

3

4

5

New Account OpeningEnrollment of ServicesAccount MaintenanceStatements ProcessingClose/Restrict/Dormant Accounts

New Account Opening

Initiates Account Opening Request

Client 1.1

Verify if Existing Client by Client Information

Record

Account Opening Officer

1.3

Client Information Record Exists?

Validate Client Information

Account Opening Officer

1.6

Gives client “Personal Information New/

Existing” form

CAO 1.7

Does client have all required documents?

Leaves branch and retrieves documentation

Client 1.11

Reviews documents and IDs and determines

whether they’re sufficient

CAO 1.14

Are documents sufficient?

No

Return to branch with revised set of documents

Client 1.13

Photocopies ID’s and documents

CAO 1.17

Complete “Personal information New/

Existing” form for client

Client 1.19

Client can complete form prior to seeing the CAO

Yes Yes

No

Review form for completeness

CAO 1.21

Inform client that Account Manager will complete

account opening

CAO 1.22

Notify account manager that the client would like

to open an account

CAO 1.23

If an AM is busy, the client can wait up to an hour to open an account

Begins account opening process with client

AM 1.25

AM available?

Waits for AM to be available

Client 1.24

New client?

Create customer master

AM 1.27

Search for client’s account details

AM 1.26

Review and update customer master

AM 1.28

Customer Master

NameAddressOccupationID infoRisk Rating

Search for client’s name and check whether his or

her name is on the list

AM 1.29

AML System

Is client’s name on the list?

Confirms whether the person on the list is the

same person as the client

AM 1.30

Complete checklist to ensure all documents are

present

AM 1.31

Verify ID’s and client information is accurately

entered

OSO 1.33

Enter information from client’s application into

client’s account

AM 1.36

Write account number into an account card

AM 1.34

Order new debit card

AM 1.37

Client Pick Up and Activate Card

Client 1.39

No

Can a decision be made?

Forward client information to AMLFIU for further investigation

AM 1.32

AMLFIU investigates and makes decision Approved?

Inform client of final decision via phone

AM 1.35

Provide client with account number

AM 1.38

Yes

AML System

Yes

No

Yes

No

Yes

Yes

No

No

Yes

No

Send Documents through Courier Bags

Branch 1.2

Review Documents

Agent 1.5

Documents in Good Order?

Send Documents Back to Branch

Agent 1.9

Enter Application on System

Agent 1.10

Correct/Send Documents

Branch 1.8

Verify and Authorize Account

Agent 1.12

Errors in Processing Contact Processor

Agent 1.15

Correct Error

Agent 1.16

No(99%)

Yes(1%)

Yes(<5%)

Clear Courier Bag

Agent 1.4

Perform AML Check

Agent 1.18

Archive File

Agent 1.20

In returning packages BAA verifies the information

No(>95%)

Enrollment of Services

Client wants to enroll in NetBank

Client 2.1

Completes forms at home

Client 2.3

Print forms at home?Client goes to local

branch

Client 2.2

Client meets with account officer

Lending Officer 2.4

Client provides KYC documents

Lending Officer 2.5

Client completes enrollment

Lending Officer 2.6

Branch forwards completed application to NetBank Administrator

Lending Officer 2.7

Home Computer

Yes

No

Review Documents

Agent 2.8


Send Documents Back to Branch

Agent 2.9

Enter Application on System

Agent 2.12


Branch 2.10

Verify and Authorize Enrollment

Agent 2.13

Errors in Processing Contact Processor

Agent 2.14

Correct Error

Agent 2.15

No(5-20%)

Yes(80-95%)

Yes(<5%)

For EC and DC are digital documents

Log Documents on File

Agent 2.11

Send Welcome Email to Client

Agent 2.16

No(>95%)

For SMS services client get a Text instead of email

Client receives account setup confirmation

Client 2.19

Receives successful activation email and confirms password

Client 2.22

NetBank

Client receives secure email

Client 2.17

Login with information from email

Client 2.18

Setup Personal Verification Questions

(PVQs)

Client 2.20

Accept User Agreement

Client 2.21

NetBankNetBank

Present pertinent Documents

Client 3.1

Confirm documents received are in good

order

CSR 3.4

Photocopy documents/identification

CSR 3.5

Execute Amendment of Account

CSR 3.6

Process financial transaction

CSR 3.39

T24

Generate agreement forms/deal slips, user

signs

CSR 3.7

Commit transaction

CSR 3.8

Amend account on additional services

CSR 3.11

Generate Forms

CSR 3.12

Sign Forms

Client 3.13

Destroy old ATM cards

CSR 3.14

Submit forms for replacement services

CSR 3.15

Commit Record

Manager 3.16

T24 T24T24

1. Amend Account

Retrieve CIF and verify signing authority

CSR 3.17

Access close account version

CSR 3.18

Input particulars to close account

CSR 3.19

T24 T24

Is account balance zero?

Generate deal slip, client signs

CSR 3.21

Process debit/credit to account

CSR 3.20

T24

Yes

No Commit Transaction

CSR 3.22

Back end processing

Is joint holder a new client?

Accept pertinent documents from client

(2 IDs required)

CSR 3.29

Accept only 1 form of ID from each client

CSR 3.31

Access amend account Menu

CSR 3.32

T24

Amend account details, append joint holder info

CSR 3.33

T24

Generate agreement

Generate agreement

CSR 3.34

T24

Generate agreement

Commit transaction

CSR 3.35

T24

Create new customer record for joint holder

CSR 3.30

Yes

No

Reactivate account

(Non financial)

CSR 3.38

Does the client have a financial transaction?

No

Yes

Generate deal slip/form, client signs

CSR 3.40

Generate agreemt

Commit transaction

CSR 3.41

T24 T24 T24

Does Client know account number?

Perform Customer Search Function and Verify Identification

CSR 3.2

ID Verified? No

Verify ID and retrieve account information

CSR 3.3

T24

T24

No

Yes

Yes

Capture/Scan Signature

CSR 3.9

Manager Authorizes transaction

MCC/AMCC 3.10

Additional Services Include:Credit CardsRoytrinATM CardsEtc.

T24T24

Retrieve CIF and verify signing authority

CSR 3.24

Review Documents

CSR 3.25

Customer Approves and Signs transaction

CSR 3.26

Commit Transaction

CSR 3.27

Authorization by Manager

MCC 3.28


MCC 3.36

Update CIF if applicable

CSR 3.37

Approve and authorize in T24

MCC 3.23

T24


MCC 3.42

T24 T24

T24

Required documentation varies if permanent or temporary address change

Existing Client?

New Account Opening

Client completes enrollment form

Customer 2.24

Customer wants to open an investment account

Client 2.23

Client meets with branch staff

CSR/Lending Ofc/FP

2.25

Staff reviews enrollment form

CSR/Lending Ofc/FP

2.26

Is the enrollment form accurate?

Staff reviews and scans KYC information

CSR/Lending Ofc/FP

2.27

Client determine how they want to fund the

investment

CSR/Lending Ofc/FP

2.28

Authorizes an account transfer

CSR/Lending Ofc/FP

2.30

Funds account with cash

CSR/Lending Ofc/FP

2.29

Submits form to Roytrin

CSR/Lending Ofc/FP

2.31

Yes

No

No

Yes

Statements Processing

Receive Request from Front Office

Special Ops

5.14

Account Closure?

No

Yes

Submit Request to Special Operations

Front Office

5.13

Acknowledge Receipt of Request

Special Ops

5.15

Email

Email

Email

Close Pershing Customer Account

Special Ops

5.16

Pershing/NetX360

Edit & Pend Close in NetX360

Special Ops

5.17

Pershing/NetX360

Verify Transaction

Special Ops

5.18

Pershing/NetX360

Close TTCD Customer Account

Special Ops

5.19

TTCD-Depend

Prepare Letter & Supporting Documents

Special Ops

5.20

TTCD-Depend

Verify Transaction

Special Ops

5.21

TTCD-Depend

Sign & Forward to TTCD

Special Ops

5.22

TTCD-Depend

Receive and Verify Letter/Documents on

Depend

TTCD 5.26

TTCD-Depend

Account Restriction?

No

YesAcknowledge Receipt of

Request

Special Ops

5.23

Email

Restrict Customer Account

Special Ops

5.24

Approve Restriction

Front Office

5.25

NBOS

Update Dormant Account List from Front Office

Special Ops

5.27

Review and Update Dormant Account List

Special Ops

5.28

Determine Type of Account

Special Ops

5.29

1. Pershing2. TTCD 2. TTCD

1. Pershing

Edit Account

Special Ops

5.30

Verify Edits from Processing Agent

Special Ops

5.31

Pershing/NetX360

Pershing/NetX360

Prepare Letter and Supporting Document

Special Ops

5.32

Forward for Signing to Supporting Officer

Special Ops

5.33

Sign & Forward Documentation to TTCD

Special Ops

5.34

Verify & Update Documents on Depend

TTCD 5.35

TTCD-Depend

Update Package for Client

Special Ops

5.36

Forward Package to Client

Special Ops

5.37

File Documentation

Special Ops

5.38

Send Request through mailbox

Branch 3.43

Receive and Review Documents

Agent 3.45


Process Request

Agent 3.47

Send Documents Back to Branch/Client

Agent 3.46


Branch 3.44

No(5-20%)

Yes(80-95%)

Client can also send a secure mail through their Netbank account

Verify Request

Agent 3.48

Processing in Good Order?

Roll Back to Processor

Agent 3.49

File Request

Agent 3.51

Correct Request

Agent 3.50

No

Yes

Account MaintenanceAlternate ChannelsOn Branch

Investment

Print Statements

Data Output 4.1

Get Statements from Data Output

Agent 4.2

Send Processed Statements to Mail Room

Agent 4.4

Drop Statements on Processing Machine

Agent 4.3

Sort Mail According to Region

Agent 4.5

Create Posting Form

Agent 4.6

Arrange Boxes for Pick Up (Postal Office)

Agent 4.7

Close/Restrict/Dormant Accounts

Create case for client to be demarketed

CFR 5.1

Review CFR minutes to verify demarket decision

AML Officer

5.2

GCM

Global Case Manager

Email in-market compliance team to liase with branches to confirm

client’s products & services

AML Officer

5.3

GCM

Response received? Prepare exit letter

AML Officer

5.4

Send to in-market team

AML Officer

5.5

Mail to client

Branch 5.7

Did client close account?

Notify branch to close client’s account

LCO 5.11

Close account and mail client funds via draft

Branch 5.12

Notify branch to mail letter to client

LCO 5.6

Is mail returned?Contact client via email,

phone or alternate address

Branch 5.8

Yes

No

Update case

LCO 5.10

Notify client that account must be closed

Branch 5.9

No

Action evaluated on case by case basis. Account could be closed or restricted

If account is restricted and client does not take action after a number of days, account will be closed

Yes

Outlook Yes

Was client successfully

reached?

Has a “few days” elapsed?

No

Yes

Yes

No

No

Research overdrawn account information

ARM 3.59

Initiate T24 query of all accounts with overdrawn

excess

CSR 3.52

Receive daily overdrawn and past due reports and

sign in agreement

ARM 3.57

T24

T24

Initiate T24 query of all delinquent loans

CSR 3.53

T24

Export data into Excel

CSR 3.54

Excel T24

Filter data to include only relative information and

sort by RM

CSR 3.55

Excel

Data filters exclude <0ANG Excess and Insurance Products

Print out reports for each RM

CSR 3.56

Excel

Begin Item Level Review Process

ARM 3.58

Determine resolution path

ARM 3.62

Double Bookings, Credit Card Payments and Payment utility payments can be reversed by RCBShould a transaction

be reversed?

Reach out to appropriate group to reverse

transaction

ARM 3.60

T24

Perform Account to Account Transfer

CSR 3.63

Deposit Currency into Account

CSR 3.64

Reverse Clearing Cheque

Cur TSC 3.65

No

Yes

1. Account Transfer

3. Reverse Clearing

2. Deposit Currency

Submit TAR for temporary modification

CSR 3.66

4. Temp. Modification

Document resolution steps, status of excesses

and review with supervisor

CSR 3.67

Follow-up with next day reporting to ensure

resolution of excess.

CSR 3.68

Contact Customer via Phone

ARM 3.61

Facilities can be called every two days, overall withdrawn is generally once a week.

Dollar value greater than X will be transferred to collecions.

Business Banking Account Excess

Demarket ClientClose/Dormant

Client Front Office

Back Office

Back Office

Front Office

Client

Transaction Bank/Teller ATM Netbank ROLG ROLB SMS Tellerphone

Interim Statements

‐ Receive immediate hard copy‐ Fee varies by market

N/A

Immediate and Free‐ Not real‐time, potentially detailed transaction updates‐ Does not include name or address on the statement for record verification.

‐ Immediate and Free‐ Real‐time but is unreliable


N/A N/A

Balances

‐ Immediate real time balance‐ Free

‐ Customer needs ATM card‐ Real time

‐ Immediate and Free‐ Not real‐time, potentially detailed transaction updates



‐ Immediate and Free‐ Real‐time but SMS is unreliable

‐ Immediate and FreeReal‐time

Alternate Channel Options

1. Account Transfer2. Deposit Currency3. Reverse Clearing

4. Temp. Modification

1. Amend Account2. Close Account

3. Change Address4. Add Joint Holder5. Activate Account

2. Close Account

3. Change Address

4. Add Joint Holder

5. Activate Account

T24 T24

1. Enroll NetBank2. Investment Account

3. Account Maintenance

1. Enroll in NetBank

2. Investment Account

Alternate Channels

3. Account MaintenancePersonal & Business (Except TT)

Business TT

End of Day

Initiate Excess Resolution Process

StatementsPrepared

Mode:

Effect:

Cause: NIGO

Customer Satisfaction

Daily:NIGO: Wrong Data

Netbank: Credit Card balances are not up to date and can have a 2 day lag in reporting decreasing customer confidence in Netbank and RBC tracking capabilities.I.063

St Lucia: 3.3 – 3.41 AM / SAM completeSt Lucia: 3.3 CSR gathers info and forwards to CAO or AM to completeGrenada: Maintenance requests performed by AM

St Lucia: Lend Off / AM do this to add joint holder

St Lucia: Lend Off / AM do this

St Lucia: Lend Off / AM do this to add joint holderAntigua: AM / SAM performs

St Lucia: Generally client completes form with A/C officerSt Maarten: Completed by BSO 1.19 – 1.21Curacao: AM SAM fills out info directly into T24 client does not complete a form

St Lucia: Done by A/C officerAruba: CSRCuracao: Whoever opens the account makes copies not necessarily the CAO

St Lucia: Done by A/C officerCuracao: Activity usually performed by SAM/ AM

St Lucia: Done by A/C officerSt Kitts: Appointments required to open accounts

St Kitts: Performed by AM / SAM / MCCSt Maarten: Performed by CAO

St Kitts: New account file passed to BSO for post audit

St Kitts: Risk rate client -Medium & High risk forms are sent to Compliance Mailbox for investigation and / or approval

St Kitts: Performed by AML officer; TT to update case

St Kitts: Performed by CCO (Country Compliance Officer)

St Kitts: via registered mailTT: Dormant accounts done by service delivery

St Kitts: Performed by CCO (Country Compliance Officer)

St Kitts: Close account and retain draft and letter on file

Grenada: ROL/G set up occurs at branch

Grenada: Add joint holder – account must be closed and reopened

Grenada: RIBS excess report auto-generatedAntigua: ARM not CSR

Grenada: Demarketing client comes from 1) high risk/unusual pattern 2) suspicious activity report (could be filled out by CSR) 3) adverse reports/press (e.g. name of drug dealer on news matches with a RBC client)

Grenada: Opportunity to cross sell products such as ROL/G and ATM cards

Grenada: Explain process to client 1) Expect email from ROL suport team 2) Provide client with manual and walk through steps to access ROL

St Maarten: Done by CSR not tellers

Grenada: Agree

Antigua: Post review process occursAruba: ATM is ready to pick up after 4 working days

Antigua: Full report sent to Market Head by ARM each morning – not filtered

Antigua: ARM not CSRAruba: ARM / RMCuracao: TAR is submitted by the RM- Business Banking

Antigua: Proof Clerk not Cur TSCAruba: Reversing Clearing cheques done by Transfer teamCuracao: No TAR for Personal Banking

Antigua: Zero tolerance for excesses – excesses not allowedAruba: CSR /ARM / RMCuracao: Documenting the Excess is performed by the RM and discussed with the Team Lead

St Maarten: 2.4 to 2.7 CSR performsTT: Also CSR or CAOCuracao: Activity usually performed by CSR Complex- Completing of Netbank application

St Maarten: BSO authorizes accountTT: No deal slip needed to be generated while balance is zeroCuracao: Request for changes on account also received via Call Centre and performed by the TSC

St Maarten: BSO authorizes account

St Maarten: BSO authorizes accountAruba: Aruba BB authorized by MSS (Manager Sales Support)

St Maarten: BSO authorizes account

St Maarten: Completed by AOO 1.25 – 1.29

TT: Some requests are made via contact center over the phone. The request are then send to RBCC-TT-TSC letter request generic mailbox. Satisfied request are sent to branch for collections

TT: Branch employees can confirm whether statement for a specific period was made out, they can also verify what statements where generated on account

TT: Once corrected should go back to verification agent for recheck

TT: T24 doesn't show signatures, not entered on accountAruba: Amend account and change address done by Ops SupportCuracao: Scanning of signature for main branch and Business Banking is done at TSC

TT: Amend the CIF to be able to access closure and A/CCuracao: Close account is done by Service delivery for Business Banking clients

TT: Agent -Business Representative Retail

TT: No longer applicable, client get package CAO, client completes and delivers package, CAO verifies, CSR opens at EODTT: Drop off system now in place for account opening, these are no longer done by S/AMAruba: Accounts opened by appointment only, not walk-in; AM join appointment to cross-sell NetBank, POS, ATM, Night Deposit, Lending opps)

TT: TSC only verifies accounts, changes are made and authorized by branch

TT: A/C (TSC) does not enter application on system

TT: CAO no longer account opening officer

BAH: Credit card statements are printed by IT and forwarded to SDCuracao: Travel Card statement generated and processed in TSC this is done monthly

BAH: Statements are manually sorted as there is no OMR

BAH: In-house courier will deliver to local post office. Cayman and TCI sent via FedEx

BAH: N/A to SD CaymanAruba: Role clarification as 5.13 - CSR performs account close for inactive or at Client request

BAH: N/A to SD Cayman

BAH: N/A; E2E is branch.

BAH: Royal Online process differs for business bankingAruba: Alternate Channels Enrollment Services; currently no ability for Clients to print forms at homeCuracao: Client needs to fill this in at the bank no opportunity to do this at home

Aruba: CSR Complex

Aruba: Manager reviews all documents; Docs are scanned and sent to electronic banking via email. Client is advised 3 days turn around to open

Aruba: All is done manually on paper

Aruba: Screening Clients from other banks done by Ops Support

Aruba: "Investment" Process; N/A

Aruba: CSR's also review overdrawn list for non-borrowing Clients

Aruba: ARM or RM 3.56 – 3.61

Aruba: Admin & control of documents done by Ops Support; Currently CSR is closing inactive and dormant accounts on T24. Ops dept. is involved to receive/file documents

Curacao: Business Banking non lending performs the input of new accounts

Curacao: Business Banking non lending sends EED/ AMC requests to Caribbean when required for account opening

Curacao: This only if scoring proves to be a high risk client

Curacao: Before account is opened it has to be reviewed / controlled by the BSO team and then authorized

Curacao: Document management signing authority updates performed by TSC for Business Banking

Curacao: TSC Load activated dormant accounts, report, and review forms received from the front office if all documents are in place 3.37 – 3.41

Curacao: ARM can also perform

Curacao: Depending on client to be exited / demarketed legal department is engaged to review exit letter then on to Compliance

Mode:

Effect:

Cause: Reducible

15 MinsProcessing Delay

Daily:Reducible: Complexity

Account maintenance requests (e.g., address changes) are received by tellers, who then leave their desks to find an account manager to complete the request. The need for an account manager adds as much as 15 minutes to the transaction.I.001

Mode:

Effect:

Cause: Incomplete

Twice a MonthRisk

Monthly:2Incomplete: No Audit

Penalties for branches that fail to adhere to compliance are low. Branches therefore have little incentive to integrate new compliance procedures into their operations and can undermine the company's AML efforts.I.015

Mode:

Effect:

Cause: Reducible

Processing Delay


Account maintenance activities require submission templates for each type of account changed. Changing just the last name on an account can require 7 account changes and 7 separate supervisor signatures and authorizations in T24.I.035

Mode:

Effect:

Cause: Eliminable

Low customer satisfaction

Eliminable: Over Work

NetBank access can be reset only by contacting sales personnel at the branch. The limitation ties up sales personnel in non-sales activities and simultaneously decreases customer satisfaction.I.144

Mode:

Effect:

Cause: Reducible

Processing Delay

Weekly:Reducible: Frequency

ROLB does not allow for remote ID validation. All password reset/account lockout requests must therefore be performed manually.

II.231

Mode:

Effect:

Cause: Not Arrive


Monthly:Not Arrive: Lost in Transit

SMS services uses local phone providers. Network issues among these providers cause text messages to be delayed or never delivered.

II.200

Mode:

Effect:

Cause: Not Pass Review


Weekly:Not Pass Review: Internal Error

About 15% of customers who have an account switched to another type are incorrectly processed. These processing errors can cause service fees to be misapplied to the account and thereby reduce client satisfaction.II.056

Mode:

Effect:

Cause: Reducible

60%Unbalanced Workload

Daily:Reducible: Frequency

NetBank passwords cannot be retrieved unless all 5 security questions are answered correctly. The complexity contributes to NetBank administrative activities, which account for more than 60% of inbound calls in the Curacao contact centre.

II.062

Mode:

Effect:

Cause: Reducible

1 HourProcessing Delay


Account amendment changes must be applied individually to each product that a customer has. A simple name change can require as many as 5 change forms and extend processing times by as much as 1 hour.I.065

Mode:

Effect:

Cause: Eliminable

Processing Delay

Weekly:Eliminable: Parallel

Processing

Account maintenance actions require duplicate approvals: one of the hard copy form and a subsequent authorization step within T24. This duplication adds unnecessary, low-value work and extends cycle times.I.066

Mode:

Effect:

Cause: Reducible

Processing Delay


T24 does not enable the use of an ATM card to search for a customer's account. Because of this limitation, customers must maintain two documents that could be consolidated into one.II.067

Mode:

Effect:

Cause: Reducible

QuarterlyLow productivity

Quarterly:Eliminable: Over Work

The process to add signatories to a personal account requires the account to be closed and re-opened. This inability simply to update the information adds 1 hour of processing time.II.436

Mode:

Effect:

Cause: Eliminable

Low productivity

Daily:Eliminable: Over

Work

The zero tolerance policy includes documentation and resolution of accounts with $.01 overdrafts. ARMs estimate that 50% of their daily activities are related to excess reporting and resolution activities.I.264

Mode:

Effect:

Cause: No Process Plan

Rework

Monthly:No Process Plan: No Plan

The NetBank process for third-party transfers does not allow for upfront validation of the receiving account. Poor validation procedures contribute to failed transfers and wires that require significant manual intervention to be corrected. I.248

Mode:

Effect:

Cause: Reducible



NetBank does not allow for remote ID validation. All password reset requests must therefore be performed manually.

II.166

Mode:

Effect:

Cause: Reducible



ROLB cannot make international payments or transfers. This limitation forces customers to use other means to complete these transactions and thereby reduces satisfaction levels.II.171

Mode:

Effect:

Cause: Reducible


Monthly:Reducible: Frequency

NetBank, ROLB and ROLG do not allow interbank transfers. This limitation inconveniences customers and hinders more widespread adoption of them as alternate channels.I.239

Mode:

Effect:

Cause: Not Routine


Weekly:Not Routine: Scope

Error

ROLB access can be reset only by contacting sales personnel at the branch. The limitation ties up sales personnel in non-sales activities and simultaneously decreases customer satisfaction.I.230

Mode:

Effect:

Cause: Reducible

Missed revenue opportunity


NetBank Bill Pay only allows payments to authorized billers. This limitation prevents customers from using the service to pay more of their bills and thereby decreases satisfaction levels.I.173

Mode:

Effect:

Cause: Reducible

Processing Delay


All non-T24 transactions are keyed manually. Manual entry dramatically increases the opportunity for data errors and requires an excessive amount of time to perform.II.175

Mode:

Effect:

Cause:

No standard procedure is in place to ensure that ATMs do not run out of receipt paper. Customers become uncomfortable and less likely to use this alternate channel when they do not receive a record of their transaction.I.224

Mode:

Effect:

Cause: Reducible

DailyLow productivity

Daily:Eliminable: Over Work

Royal Online balances do not show pending items, steps or holds. The lack of such information needlessly increases inbound branch traffic for basic inquiries.II.437

Mode:

Effect:

Cause: No instructions

MonthlyKnowledge gap

Monthly:No Instructions: Not

Available

No documented process is in place to write-off overdrawn inactive accounts or to transfer them to the collections team. Loans are therefore written off based on personal discretion and do not appear on any tracking reports.I.434

Mode:

Effect:

Cause: Below Plan


Daily:Below Plan: No

Metrics

Reports on accounts without a signature on file are not available to branch employees. Limited distribution of the reports hinders maintenance of account signatures, and the lack of a signature on file can add more than 30 minutes to a transaction.

I.050

Mode:

Effect:

Cause: Not Arrive

Processing Delay

Not Arrive: Unsent

Letters are sent to clients whose accounts are about to be demarketed, but they are not initially contacted directly by phone. Poor notification can extend the demarketing process and present additional risk to the bank.I.016

Mode:

Effect:

Cause: Eliminable


Monthly:Eliminable: Over

Work

Royal Online accounts that are dormant for 3 months or longer are closed. To reactivate the account the client must visit a branch, an inconvenience that discourages clients from using this service.I.179

Mode:

Effect:

Cause: No Instructions


Monthly:No Instructions: Out

of Date

Clients are not notified when their documents on file are about to expire; they find out only when they arrive and meet with a relationship manager. Poor notification forces clients to retrieve updated documents and make a repeat visit to the branch.I.189

Mode:

Effect:

Cause: NIGO



Account holds are unreliable and ignored for some accounts. Some customer service representatives spend as much as 1 hour searching for the account officer in T24 or reaching out by phone, email or office communicator for inquiries.I.074

Mode:

Effect:

Cause: No instructions

MonthlyKnowledge gap

Monthly:No Instructions: Not

Available

The process to close zero-balance accounts incorrectly closes accounts that should not be processed. The lack of standardized thresholds in the process generates 2 hours of rework to handle accounts that were erroneously closed.I.435

Mode:

Effect:

Cause: Reducible



ROLB lacks a mobile banking app. The limitation hinders customer adoption of ROLB as an alternate channel.

II.234

Mode:

Effect:

Cause: Eliminable

Unbalanced Workload

Daily:Eliminable: Over Work

Customer service representatives (CSRs) have experienced poor SMS service functionality and are therefore reluctant to recommend the service to customers. This reticence reduces the use of SMS service and increases inbound CSR transaction volume.

II.046

Mode:

Effect:

Cause: Reducible


Monthly:Reducible: Variance

NetBank has a variety of offerings across the Caribbean. The inconsistency in the products complicates establishment of a uniform strategy or market.I.238

Mode:

Effect:



Quarterly:No Process Plan: No

Plan

Despite providing a client with an RBC asset, no report covers use or customer profitability. This limitation prevents more thorough understanding of how the asset is performing or predicting its maintenance cycle.I.245

Mode:

Effect:

Cause: Reducible

Processing Delay


Alternate channels are a focus for Trinidad, but no signs or marketing campaign materials are visible in the branches. Lack of such material hinders any effort to draw the customer to the alternate channels.I.289

Mode:

Effect:

Cause: Reducible


Monthly:Reducible: Complexity

NetBank requires as much as 2 weeks to set up an account. The extended cycle time increases both the barrier of entry for clients to use alternate channels and branch volume.I.073

Mode:

Effect:

Cause: NIGO

2 hoursRework

Daily:40% of VolumeNIGO: Wrong Data

40% of all incoming Royal Online applications have errors (e.g., incorrect account numbers or country). Poor inbound data quality forces those applications to be sent back and requires 2 hours of rework per day.I.083

Mode:

Effect:

Cause: Reducible


Weekly:Reducible: Variance

Cycle times in the front office to correct applications vary from the same day to weeks. This wide variation in cycle times severely reduces client satisfaction.I.095

Mode:

Effect:


Processing Delay

Quarterly:Reducible: Duration

Marketing and the back office exhibit poor communication during client enrollment campaigns. The lack of adequate coordination can extend processing time 100% beyond the service level agreement.I.102

Mode:

Effect:

Cause: Reducible


Daily:1Reducible: Complexity

During conversion of the T24 file for NetBank into the Excel spreadsheet, the beneficiary information does not fully populate. Looking up this information and manually entering it to complete the transaction costs processors about 1 hour per day.II.119

Mode:

Effect:

Cause: Eliminable

Low customer satisfaction


Customers can enroll in NetBank only in the branch. The limitation forces them either to schedule an appointment or wait for an available customer service representative, both of which tend to decrease satisfaction levels.I.143

Mode:

Effect:

Cause: Reducible

Processing Delay

Monthly:Reducible: Complexity

The client enrolment process for online services in The Bahamas is self-authorized by the processor, but for Trinidad the verification officer authorizes. The additional step in Trinidad increases enrollment times.I.194

Mode:

Effect:

Cause: Reducible

Processing Delay


During the online enrolment process in The Bahamas, clients are asked to select services, rather than being automatically enrolled in all. This step causes the majority of errors that occur during the online enrollment process. I.199

Mode:

Effect:

Cause: Reducible



Despite a strategy to increase migration to the ATM channel, the bank has added or increased fees for all transaction types. The higher fees have hindered channel adoption and customers' willingness to test them.I.221

Mode:

Effect:

Cause: Eliminable

Rework

Daily:Eliminable: Error

Correct

46% of Curacao call centre tickets are related to NetBank inquiries. Low performance and high levels of errors increase the inbound volume of claims and extend SLAs.I.254

Mode:

Effect:

Cause: Eliminable

Extended Cycle time

Eliminable: Error Correct

The CBRT Resolution officer has a standard SLA of 2 days to solve issues, but SLAs for escalations range from 5 to 45 days. The lack of a standard SLA for escalations leaves customers uncertain of the status and severely reduces satisfaction.

I.154

Mode:

Effect:

Cause: Not Processable

Processing Delay

Daily:Not Processable:

Capacity Issue

New accounts cannot be completely created during a single client visit. Extensive forms, input into T24 and additional system processing steps force the customer to return another day to complete the process.I.043

Mode:

Effect:

Cause: Reducible

DailyRework

Daily:No Instructions: Lack

of Detail

Document requirements are unclear by jurisdiction and type of account (lending or business) for account maintenance. The lack of clear standards causes customers not to have required documents and therefore generates additional meetings.

I.428

Mode:

Effect:

Cause: NIGO


Daily:NIGO: Missing Data

New accounts in small Curacao branches are frequently filed without signatures uploaded into T24. More than 200 accounts lack a signing authority on record, which can extend customer transactions by 1 hour.I.049

Mode:

Effect:

Cause: NIGO

DailyRework

Daily:15 MinutesNIGO: Missing Data

Customer master information is not updated consistently. The outdated information is found during other transactions and increases that transaction time by 15 minutes or more as a result of correcting the information.I.430

Mode:

Effect:

Cause: NIGO

1 Hour Per ApplicationRework

Daily:90% of VolumeNIGO: Wrong Data

Documentation for 90% of new accounts is not in good order. Correcting the documentation requires ~60 minutes of rework per application.I.086

Mode:

Effect:

Cause: Reducible


Daily:Reducible: Duration

Clients must wait for an available account manager to open an account. Depending on the account manager's availability, clients can wait as long as 1 hour to complete the process.I.181

Mode:

Effect:

Cause: Below Plan

Missed SLAs

Monthly:Below Plan: No

Metrics

Business Service Support Compliance may take as long as 3 weeks to verify an account opening request. No clear SLA, however, has been established, and the long wait times frustrate clients, who do not know what to expect.I.192

Mode:

Effect:

Cause: Eliminable

Direct monetary impact to client


The CBRT Leasing officer must balance several spreadsheets weekly related to principle payments, interest payments and rates for vehicles. This manual process requires 8-10 hours of work per week.II.153

Mode:

Effect:

Cause: Reducible

Rework

Daily:5% of VolumeReducible: Variance

5% of all signature cards came from an unauthorized person or used an incorrect authorization format. These cards must be returned, thereby creating rework during review.I.085

Mode:

Effect:

Cause: Reducible


Daily:20 minutesEliminable: Over

Work

The fields on four alternate channel enrollment forms currently in use are 80% identical. The duplication increases processing times, and the complexity limits adoption of alternate channels.I.431

Mode:

Effect:

Cause: Reducible


Daily:1 hourEliminable: Over

Work

The new account opening process requires client interaction with 3 employees. The cumbersome process adds as much as 1 hour to the overall account opening process.I.432

Mode:

Effect:

Cause: Eliminable

Rework

Weekly:Eliminable: Error

Correct

Sales personnel are required to follow up on failed transactions. This responsibility diverts their time and attention away from more valuable sales activities.I.249

Mode:

Effect:

Cause: Reducible

Rework


14% of Business Banking account balances are in excess and require time-intensive follow-up activities to bring current. This manual process diverts time and attention from more valuable activities.I.252

Mode:

Effect:

Cause: Reducible

Processing Delay

Daily:Reducible: Variance

Some CAOs do not have printers located nearby. Customers are left unattended and new customers are not triaged for several minutes while documentation is printed and retrieved.II.068

Mode:

Effect:

Cause:

Account opening procedures are inconsistent across regions. Responsibilities vary and activities can be owned by an account opening officer, a customer service representative or an AM, depending on region.I.561

Mode:

Effect:

Cause:

The signature upload process is inconsistent across regions. Some regions complete signature uploads while the customer is waiting, but others rely on back office support to complete signature uploads.I.566

Mode:

Effect:

Cause: NIGO



Client signature is required for account opening, but many signatures have been lost or not uploaded by RBC. This loss of required security data submitted by customers severely undermines customer confidence in RBC to maintain secure information.

I.271

Mode:

Effect:

Cause: NIGO

Processing Delay

Daily:15 MinutesNIGO

Up to 4% of the signature cards are rejected because of incorrect information (e.g., account number or client name). Incorrect information adds at least 15 minutes of rework after the cards are sent back.I.103

Mode:

Effect:

Cause: Not Processable

1-3 daysProcessing Delay

Weekly:Not Processable:

Operator Skill

Personal Banking supports account opening for Barbados business banking, but staff are not fully trained in business requirements. Misunderstood applications as a result of inadequate training generate rework and extend cycle time by 1-3 days.

I.306

Mode:

Effect:

Cause: NIGO

DailyRework

Daily:NIGO: Incomplete

The process to upload a signature for an account is disconnected from the account creation process and completed by another department. The fragmented process leaves ~5% of accounts without a signature on file.I.425

Mode:

Effect:

Cause: NIGO

DailyRework


Account opening application documents are complex, multiple-page documents. The complexity generates errors, and as many as 90% of applications require rework.I.426

Mode:

Effect:

Cause: Reducible


Daily:1-2 HoursEliminable: Over

Work

ARMs and RMs are burdened by as much as 2 hours of administrative work daily. The excessive administrative work, which could be shifted to a centralized team, reduces the time available to accommodate ad hoc sales appointments.I.427

Mode:

Effect:

Cause: Plan Not Followed

30 minsProcessing Delay

Daily:Plan Not Followed:

Backlog

An estimated two-years' backlog of paperwork has not been scanned for signatures. The excessive backlog results in accounts that lack a signature on file, which adds more than 30 minutes to simple transaction processing.I.270

Mode:

Effect:

Cause: NIGO

Increase Inbound Volume

Monthly:NIGO: Missing Data

Interim statements produced by NetBank lack names or addresses, which are often needed by the client for verification purposes. Missing information in alternate channel interim statements increases inbound client volume for interim statements.I.060

Mode:

Effect:

Cause: Reducible

Unbalanced Workload

Quarterly:Reducible: Frequency

Customers complain that they have not received quarterly statements in the mail. As a result they request interim statements in the branches, thereby increasing branch volume.I.071

Mode:

Effect:

Cause: Reducible


Quarterly:Reducible: Frequency

Branch employees cannot verify whether a quarterly statement was sent to a customer. The inability to verify these statements causes RBC to waive fees for interim statement requests.I.070

Mode:

Effect:



Quarterly:No Process Plan: No

Plan

RBC Merchant Services provides company assets to customers to process credit card payments. They do so, however, without a background or credit check to determine customer trustworthiness and thereby put RBC assets at risk.I.244

Mode:

Effect:

Cause: Reducible

Rework


At the end of the month as much as 44% of Business Banking accounts have excess balances in amounts less than 25 currency units. No grace period is applied, and personnel must contact each account for resolution.I.253

Mode:

Effect:

Cause: Reducible


Monthly:1Reducible: Frequency

T24 loses the capability to print interim statements about one day per month. The T24 functionality problems prevent branches from serving customers and force customers to repeat branch visits.II.072

Mode:

Effect:

Cause: NIGO


Monthly:NIGO: Wrong Data

Alternate channel balances are unreliable and lack sufficient information to serve clients needs (e.g., the ability to see accurate information; use of the statements to verify ID). The limitations prevent increased use of alternate channels.II.069

Mode:

Effect:

Cause: NIGO



Credit Card balances are not up to date and can have a 2-day lag in reporting. The delay undermines customer confidence in both NetBank and RBC tracking capabilities.II.063

Mode:

Effect:

Cause: NIGO

Processing Delay

Daily:NIGO: Incomplete

Signatures are not vigilantly maintained. Missing signature transactions therefore recur for the same account even after laborious search methods.I.047

Mode:

Effect:

Cause: Reducible



When a signature is not on file, AMs/MCCs contact the customer by phone to confirm a transaction in lieu of verifying a signature. This unapproved procedure increases the risk of fraudulent transactions.I.272

1.001LP

Prioritize errors on documentation so that customers/branches are only contacted in the event that the error requires customer/branch signature/additional information in one request.

1.332LP


1.338LP


1.339LP


1.367LP


1.366LP


1.380LP


1.390LP


1.509LP


1.517LP


1.320LP


1.328LP


1.346LP


1.506LP


1.341LP


1.351LP


1.396LP


1.412LP


1.417LP


1.418LP


1.422LP


1.505LP


1.507LP


1.508LP


1.424LP


1.424LP


ChevronFRONT OFFICE

CORP. CLIENT

BACK OFFICE

The Lab’s Activity-Level Process Maps Organization Capacity: Activity-Level

Activity n

Clear Courier Bag

ASA 1.3

Activity 1

Initiate Request to Open Account

Corporate Client 1.1

Activity 3

Clear Courier Bag

ASA 1.3

Activity 2

Verify existing client status; check client information record

Account Opening

Rep.1.3

SwimlaneC. The Lab’s Universal

Work Activities1. Receive: Electronic File2. Receive: Email3. Receive: Phone Call4. Receive: Physical Copy5. Review: Prepare6. Review: Preview7. Review: Validate8. Review: Decide9. Review: Terminate10. Perform: Update11. Perform: Correct12. Perform: Create13. Perform: Enter14. Perform: Move15. Attend: Meeting16. Attend: Communication17. Send: Electronic File18. Send: Email19. Send: Phone Call20. Send: Physical Copy

1,200 Employees (Needed)

B. Organization Capacity: Virtuous Waste Activity1

No Benefit AvailableReducible ErrorsExcess CapacityInconsistent ProceduresNon-Standard WorkReducible Inbound VolumeBuilt-In Rework

364 Employees 23% Virtuous Waste Activity

A. Organization Capacity: Net DeductionsPaid Time Off (PTO)LunchBreaksTrainingMeetingsEOD ActivitiesOffline (Various)

1,757 Employees (Total) 193 Employees (Deduct)

1,564 Employees (Net)

1,757 Total Employees

REPRESENTATIVE EXAMPLE

Note: 1 Identifies only the Virtuous Waste targeted for removal by the client-designed work plan. See page 5 for more on Virtuous Waste.

Activities from Process Maps


I. Organization View

The Activity Cube’s 4-Way Match Reconciles Organization Capacity

Processes Employees

1. Sales – Contact Center 291

2. Sales – Channel 1 262

3. Sales – Channel 2 243

4. Product Fulfillment 229

• Core Products 140

• Other Products 89

5. Payments Processing 124

6. Other Processing 51

Total Capacity by Process: 1,200 Employees

Organization: 1,757 Total Employees

Total Net Capacity by Organization Chart: 1,564 Employees1 Needed Capacity (See Views II, III and IV): 1,200 Employees

23% Capacity (Virtuous Waste Activity): 364 Employees2

ACTIVITY CUBE

I

II III

IV

IV. Activity-Based 20 Total Universal Work Activities

Receive Freq FTEs

1. Electronic File 123 39

2. Email Message 30 23

3. Phone Call 23 57

4. Physical Copy 103 149

Review Freq FTEs

5. Prepare 15 42

6. Preview 42 26

7. Validate 42 26

8. Decide 83 68

9. Terminate 96 52

Perform Freq FTEs

10. Update 20 47

11. Correct 34 46

12. Create 76 93

13. Enter 67 80

14. Move 69 97

Attend Freq FTEs

15. Meeting 120 74

16. Communication 89 23

Send Freq FTEs

17. Electronic File 102 11

18. Email Message 105 63

19. Phone Call 122 45

20. Physical Copy 289 139

Total Capacity by Activities: 1,200 Employees

1. Product A 91K 267

2. Product B 71K 108

3. Product C 68K 100

4. Product D 0.7K 99

5. Product E 1.0K 61

6. Product F 17K 57

7. Statement Batch 366K 56

(116 Total Work Products)

Total Capacity by Work Product: 1,200 Employees

Products Volume Employees

REPRESENTATIVE EXAMPLE3. Operations • 51 Employees

• Core . . . . . . . . . . 42• Claims. . . . . . . . . . 9• Other

1. Sales & Distribution • 937 Employees• Channel 1 . . . . . . . . . . . . . . 790• Channel 2 . . . . . . . . . . . . . . 147

2. Service • 576 Employees• Client Service . . 442• Contact Center. . 134

. . .. . .. . .

. . .

. . .

Note: 1 Net of capacity deductions for Paid Time Off (PTO), Training, etc.2 Identifies only the Virtuous Waste (page 5) targeted for removal by the client-designed work plan.

III. Work Product View II. Business Process View


Marketing Effectiveness

Operating Reports: By Process, Organization & Work Product

Management Dashboard• Campaign ROI

– Campaigns– Events

• Overall positions– Market share– Brand awareness

Marketing Operations Performance

Operations Dashboard• Tracks volume and:

– Productivity– Unit cost– Service– Quality

• Compares actual performance to targets

Area: OverallLocation: OverallManager: Overall

Week Starting Date: 1-Feb-16

Data Filters

*Max of seven consecutive days can be selected at a time.

Overall (unit of measure) Sum/Avg Required Target Difference from Target Required Trend Current Trend Trend Compliance % Change from Last

Period Previous Average Selected Dates Average Monday Tuesday Wednesday Thursday Friday Saturday Sunday

VOLUME 1-Feb-16 2-Feb-16 3-Feb-16 4-Feb-16 5-Feb-16 6-Feb-16 7-Feb-161 Offered Calls (calls) Sum 30456 33% -1% 40,956 40,415 70,471 61,446 50,531 46,100 42,996 7,336 4,0262 Handled Calls (calls) Sum 30372 32% -1% 40,777 40,241 70,211 61,169 50,315 45,884 42,789 7,312 4,0083 Handled Calls (Inbound) (calls) Sum 23127 38% -2% 32,367 31,828 55,489 48,988 40,057 35,842 33,385 5,889 3,1494 Transferred Calls (calls) Sum 1798 214% -5% 5,928 5,653 10,499 8,965 7,085 6,274 5,833 629 2855 Handled Calls (Outbound) (calls) Sum 3785 61% -2% 6,202 6,087 11,165 8,687 7,245 7,138 6,783 992 6016 Handled Calls (Internal) (calls) Sum 486 100% -5% 1,019 970 1,853 1,525 1,249 1,101 957 79 267 Handled Calls (Unknown) (calls) Sum 559 143% 14% 1,188 1,355 1,704 1,969 1,764 1,803 1,664 352 2328 Abandoned Calls (calls) Sum 56 210% -3% 179 174 260 277 216 216 207 24 189 Total Handle Time (hours) Sum 2730.0 103% -3% 5,715.0 5,533.9 10,371.7 8,685.1 6,857.4 6,075.2 5,687.5 703.5 357.310 Total Handle Time (Inbound) (hours) Sum 2455.1 103% -3% 5,127.8 4,973.7 9,157.9 7,779.9 6,235.4 5,482.3 5,131.1 683.3 345.911 Total Engagement Time (hours) Sum 1531.0 96% -3% 3,107.7 2,999.0 5,286.4 4,619.9 3,790.9 3,381.7 3,158.8 496.5 258.812 Total Hold Time (hours) Sum 464.8 125% -2% 1,063.2 1,046.6 2,069 1,655 1,271 1,128 1,068 92 4213 Total Wrap Time (hours) Sum 459.4 102% -3% 956.9 928.1 1,802 1,505 1,174 972 904 95 4514 Total Handle Time (Outbound) (hours) Sum 600.0 -29% -4% 448.3 428.6 915.2 633.8 489.4 481.3 451.1 18.6 10.9

PRODUCTIVITY15 Occupancy Rate (percentage) Average 85% -11% -6% 80% 75% 92 % 83 % 72 % 67 % 65 % 52 % 35 %16 Shrinkage (percentage) Average 15% -100% 0% 0%17 Sign In Percentage (percentage) Average 100% -5% -1% 96% 95% 95 % 94 % 96 % 96 % 96 % 96 % 98 %18 Handled Calls per CSR (calls / CSR) Sum 8.8 157% -1% 22.9 22.6 44.7 39.9 32.9 30.2 29.8 28.7 18.219 Handled Calls per CSR (Inbound) (calls / CSR) Sum 7.12 154% -2% 18.4 18.1 35.9 33.0 27.9 25.1 24.6 25.6 15.820 Handled Calls per CSR (Outbound) (calls / CSR) Sum 1.674 107% -2% 3.5 3.5 7.4 6.1 5.2 5.2 5.2 4.2 3.321 Handled Calls per Scheduled Hour (calls / h) Average 7.2 -21% -5% 6.0 5.7 6.4 6.0 5.5 5.2 5.1 5.2 3.922 Handled Calls per Scheduled Hour (Inbound) (calls / h) Average 5.48 -18% -6% 4.7 4.5 5.1 4.8 4.4 4.1 4.0 4.2 3.023 Handled Calls per Scheduled Hour (Outbound) (calls / h) Average 1.34 -36% -6% 0.9 0.9 1.0 0.9 0.8 0.8 0.8 0.7 0.624 Average Handle Time (AHT) (seconds / call) Average 388.3 27% -2% 505 495 532 511 491 477 479 346 32125 Average Handle Time (AHT Inbound) (seconds / call) Average 459 23% -1% 570 563 594 572 560 551 553 418 39526 Average Engagement Time (seconds / call) Average 286 19% -2% 346 339 343 340 341 340 341 303 29627 Average Hold Time (seconds / call) Average 87 36% 0% 118 118 134 122 114 113 115 56 4828 Average Wrap Time (seconds / call) Average 86 22% -1% 106 105 117 111 105 98 97 58 5229 Average Handle Time (AHT Outbound) (seconds / call) Average 155 64% -3% 260 253 295 263 243 243 239 68 65

CUSTOMER SERVICE30 Abandoned Calls Rate (percentage) Average 2% -74% 0% 0.5% 0.5% 0.4 % 0.5 % 0.5 % 0.6 % 0.6 % 0.4 % 0.6 %

QUALITY31 Transfer Rate (percentage) Average 9% 91% -3% 18% 18% 19 % 18 % 18 % 18 % 17 % 11 % 9 %32 Average Agent Score (percentage) Average 92% -1% 0% 91% 91% 91 % 92 % 92 % 90 % 91 % 91 % 95 %33 Schedule Adherence (percentage) Average 91% -2% -1% 90% 90% 89 % 89 % 90 % 90 % 90 % 93 % 95 %

Call Center Management Dashboard

Metric Selected DatesTarget Trend Selected Dates vs. Previous Averages

Daily View

Dates

2/1/2016

2/2/2016

2/3/2016

2/4/2016

2/5/2016

2/6/2016

2/7/2016

Call Type

Inbound

Internal

Outbound

Unknown

Call Center

_Rhq

Corona

Fulton

Lowry

CSR Location

Home

Office

Team

Abigail Pulido

Adrian Hutt

Andrea Lopez

Annette Bronson

Antoine Jacobs

April Hale

Brando Campos

Ops Manager

Alice Holmes

Cindy Rupert

Dylan Deshazier

Heather Avila

Kathleen Stone

Keith Dineen

Kenneth Bailey

Employee Name

Aaja Austin

Aarika Scott

Aaron Cayabyab

Aaron Hairston

Abdisamad Hussein

Abraham Leon-Alvarez

Abril Howard

Operations Dashboard

BManagement Dashboard

Chief Marketing OfficerEnterprise Marketing • Employees: 707

Vice Pres. of CommunicationsEmployees: 245

Campaigns, Development & Mgmt

Targeted Marketing

Real Time Marketing

Creative Services

Media Strategy Effectiveness• Overall• By Area

Operations• By Area• By Employee

For each area, detail as indicated Business Marketing Planning

Employees: 85

Personal Markets

Marketing Operations

Retail/Wholesale

Strategy Initiatives

AB

Global Brand/Customer ExpEmployees: 183

Sponsorship Support

Customer Experience

Innovation Trends

Environment & Community

Corporate Brands

AB

Enterprise Customer DataEmployees: 194

Analytic Services

Targeting & Measurement

Enterprise Customer Info

Enterprise Advanced Initiatives

AB

Management Dashboard



Data Filters










Daily View

Dates

2/1/2016

2/2/2016

2/3/2016

2/4/2016

2/5/2016

2/6/2016

2/7/2016

Call Type

Inbound

Internal

Outbound

Unknown

Call Center

_Rhq

Corona

Fulton

Lowry

CSR Location

Home

Office

Team

Abigail Pulido

Adrian Hutt

Andrea Lopez

Annette Bronson

Antoine Jacobs

April Hale

Brando Campos

Ops Manager

Alice Holmes

Cindy Rupert

Dylan Deshazier

Heather Avila

Kathleen Stone

Keith Dineen

Kenneth Bailey

Employee Name

Aaja Austin

Aarika Scott

Aaron Cayabyab

Aaron Hairston

Abdisamad Hussein


Abril Howard

Operations Dashboard

B

A

A

REPRESENTATIVE EXAMPLE


The Activity Cube Generates Capacity & Management Reports

Organization View (Net Capacity)

Work Product

View (Volumes)

Business Process View (Activity Workflows)

Activity View (Observed, Validated Times)

Placemats (Job Guides – Standardization)

• Serves as “dashboard”• Defines job-level detail• Sets expectations (metrics)• Reports against metrics

6 of 6Spring 20XX | po.E2E.ImpApproach.FSO1.Insurance | © Lab Consulting Partnership, Inc.

3. Work Products and Business Metrics

Work Products

• LifeApplications

• DisabilityProducts

• AnnuityProducts

• Broker/DealerInvestments

Business Metric Target

Volume (Agent productivity)

• 2.5to4.0Lifepoliciesissuedpermonth

Quality - % In Good Order:

• AgencyBaseline:20%withtargetat80%

• UWBaseline:73%withtargetat90%

Daily Staffing

Analyst Productivity

• 7-8applicationsperFTEperday

Unit Cost

• 35%reductionbasedonNOGOreductiontarget

Service - Cycle Time

• Reduce4-5daysofcycletimeforNOGOapplications

1. Overview: New Business Processing Key Activities by Participant

7. New Lean Visual Management Tools

Agents/Assistants

• Prospect• Contact• SelectProduct

– FactFind– Illustration– Quote(UWorXRAE)

• Selectcorrectform(s)• Complete/submitform• Follow-up

– AttendingPhysicianStatement(APS)and/orparamed

– NOGOs– Other(Payment,etc.)

New Business Analyst (NBA)

• Reviewsandscrubsapps– Quickfix– Agent-clientcontact

• Enterstrackinginto“mill”• Dataentersorscans/sends

apptooffshoredataentry• Postentryscrub• Sendstomgt.forreview• Trackmilldatatoclosecase

– Requirements(APS,etc.)– Bottlenecks(NOGO,etc.)– Notifications(Issued,etc.)

Agency Management

• Performssuitabilityreview– Clientneeds– Package– Accuracy

• Setsservicestandards• ProvidesreportstoAgents

– Issued-Not-Paid– Pending– NOGOs– Cycletime

• Trainsacrossgroupsonprocess

Underwriting/Shared Service

• ReviewforIGOanduploadsapplication

• Performlevel2analysisanddetailede-review

• Sendpersonalhistoryresults• RequestAPSifrequired• Follow-uponfinancial,

interview,examresults• NotifyNBAonNOGOs• Decide(ifdeclined,review

re-insuranceoption)• Issueordeclineandnotify

2. Average Agency Organization

New Business Support Agency staff Sales

Ops Manager

(1)

NewBusinessManager

(1)

NewBusiness Analyst

(5-7)

Agent Managers

(8)

Agents/ Producers

(120)

Personal Assistants

(60)

4. New Application Processing

Ag

en

cy

Pa

ram

ed

ica

l V

en

do

r

Off

sho

re

Gro

up

(I

nd

ia)

Un

de

rwri

tin

gS

ha

red

S

erv

ice

s

Agent Agency NBA

• Receiveapplications• PerformLifeapplicationScrubbing/processing

• IsApplicationNOGO?

Offshore Group (India)

• DataCollection• Review/ErrorReporting;IsitNOGO?

Underwriting

• ApplicationReview• IssueorDeclinePolicy• OrderandReviewAPS(ifnecessary)

Shared Services

• DistributionofPolicy to Agent

• Addresspayment• Reviewfor1035

Agency NBA

• Askedtocheckparamed?

Paramedical Vendor

• VendorSetsAppointment

• ParamedicalProcessing

Agency NBA

• ReviewSuitabilityandcheckifsuitable

Agency NBA

• Scandocuments• SubmitscantoOffshoreGroup

Agency NBA

• Check“Mill”for- Outstandingrequirements

- Decisionrequired- Issued-NotPaid

• Sendnotifications

Agency NBA (ACP)/Agent

• Collectadditionalpost-IssuerequirementsfromAgent/Client

No

Yes

YesYes

No No No Yes

Yes

Yes

No

5. Case Management Leading Practice Installation

Application Processing• Trainagentsandassts.oneFormsand

SmartOfficepre-population• RequireXRAEtoautomaterisk

assessment• Educateagentsandstaffonleading

practice illustration tools• SupportAPSresolutiontoissuecase

quickly• Expediteparamedschedulingandfollow-

up• UseNOGOpreventioninstructionplacemat• Remove“false”NOGOsthatcreaterework

The“Mill”TrackerandReportingTools• Rolloutstandardmillwithrequiredand

optionalfields• Createmillusageroutinestoreduce

NOGOsandcasecycletimes• CreateanddistributestandardIssued-Not-

PaidandPendingreports

Work Level Management and Performance Improvement Tools• Alignagentstoacross-trainedanalyst,with

aback-up• Consolidateactivitiestoonepositionto

reducerework• Segmentagentsbyperformancefor

targetedsupportlevel• IntroduceCapacityModel-work

forecastingtool• LinkMilltodailyhuddletohelpevenout

theworkamongstaff• Implementquarterlysurveytomeasure

satisfactionlevels

Agency-UnderwriterNotificationRoutines• NBAfollowupwithUWtoissue,whenno

outstandingrequirements• NBAfollowupwithagentonobtainingbank

draftdata,postissue• NBAfollowupwithagentonUWdecline

Capacity

Model

6. Standardized Agent Feedback - MOR Routine

NBAforwardsIssued-Not-PaidandPendingReportsfromUnderwritingtoSalesManagerwhomeetswithSalesAgent

NBAcompletesNOGOandcycletimeintracker.NBA/OperationsmanagersforwardreportstoSalesManager,whoreviewswithAgent

NBA, Sales Manager

NBA, NBA Manager, Sales Manager

Weekly

Monthly to Quarterly

Activty Accountable Frequency

Standard “Mill” Tracker

Case Manager Case Status Agent Name 1 GDC Split 1[Dollars]

Customer Name[Last Name, First Name]

Underwriter Name[Last Name, First Name] Case # Policy Origination Application Received

with Funds

Face Amount[Input Check or Transfer

for Annuity]Annual Premium

Line of Business[List "Other" in General

Comments]

Policy Type[List "Other" in General

Comments]

Policy Duration [Years - primarily for Term]

Date of Client Signature

Date Received in Agency

Date Released to Underwriting Date Case Issued IGO / NOGO General Comments

[Free Form Text]

Eileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGOEileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGOEileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGO

• ExpeditesCasetoIssue

NOGO and Cycle Time MOR

• Providesfeedbackonerroranddelayrootcauses

Service Level Surveys

• AssessesservicelevelattainmentusingQualtrax

• ReviewNOGOplacemat• Submitapplication• ReviewParamedplacemattocheckifParamedisrequired?

Detailed Instruction Sheets

• Providesbasicinstructionstosimplifyprocess

March 26, 2014© Lab Consulting Partnership, Inc.es.sgo1.13.32.09.Placemat.14032620 of 28

Placemat H-1: NOGO Prevention Guide for Standard Life Application

Page 1 Page 3 Page 4Policy Number

Application for Life InsuranceCompany (Check the appropriate ONE.) Metropolitan Life Insurance Company General American Life Insurance CompanyNew England Life Insurance Company MetLife Investors USA Insurance CompanyMetLife Investors Insurance CompanyThe Company indicated in this section is referred to as "the Company".

For Additional Insureds please complete the Additional Insureds Supplement form.First Name Middle Name Last Name

Permanent Address City State Zip

Country of Legal Residence Date of Birth E-Mail Address

Primary Phone Number Alternate Phone Number Preferred Time to Call From To Sex

Place of Birth Social Security or Tax ID Number Earned Annual Income Net Worth

U.S. Driver's License If not licensed, please indicate other form of ID: Passport Government Issued Photo ID Issuer of ID ID Number Issue Date (if any) Expiration Date (if any)

Name of Employer Employer City State Zip Position/Duties

NON U.S. CITIZENS ONLY - Country of Citizenship Green Card/Visa Type Expiration Date

Country of Permanent Residence ID Number Years in the U.S.

Complete ONLY if the Owner is NOT the Proposed Insured.OWNER - TRUST / BUSINESS ENTITY - Name of Entity Tax ID Number Trustee / Owner State

Trust Business Entity Charity Qualified Pension Plan Complete the appropriate required form(s).OWNER - OTHER INDIVIDUAL First Name Middle Name Last Name


Country of Legal Residence Citizenship Social Security or Tax ID Number Date of Birth Phone Number

E-Mail Address Earned Annual Income Net Worth Relationship to Proposed Insured

Please indicate form of ID: U.S. Driver's License Passport Government Issued Photo IDIssuer of ID ID Number Issue Date (if any) Expiration Date (if any)

Check if ownership should revert to Insured upon Owner and Contingent Owner’s deaths.

ENB-7-07-MA

SECTION II - About the Owner

SECTION I - About the Proposed Insured

AMPM PMAM FemaleMale

1 of 7 (07/07) eF

Does the Proposed Insured or Owner have any existing or applied for life insurance or annuities with this or any other company? Proposed Insured Yes NoOwner Yes NoIf YES, please provide details of any existing or applied for Life Insurance on the Proposed Insured only.

Company Amount of Insurance Year of Issue StatusExisting Applied ForApplied ForExistingExisting Applied ForExisting Applied ForIn connection with this application, has there been, or will there be with this or any other company any: surrender transaction; loan; withdrawal; lapse; reduction or redirection of premium/consideration; or change transaction (except conversions) involving an annuity or other life insurance? If YES, complete Replacement Questionnaire AND any other state required replacement forms or 1035 exchange forms.Yes No

If Proposed Insured is financially dependent on another individual, indicate individual providing support:Spouse Child Parent OtherAmount of insurance on individual providing support. Existing Insurance Insurance Applied ForIf Proposed Insured is a minor, are all siblings equally insured? Yes NoIf NO, please provide details:

PREMIUM PAYORProposed Insured Owner (If NOT the Proposed Insured.) Other (Complete the box below.)

Other Premium Payor Name Social Security or Tax ID Number Relationship to Proposed Insured or Owner

Reason this Person is the Payor


PAYMENT MODE (Check the appropriate ONE.) Billing Mode: Annual Semi-Annual QuarterlyMonthly Draft per Debit Authorization (See next page.)Monthly Draft per Existing Electronic Payment Number

Special Account: Government Allotment Salary Deduction List Bill If Special Account, provide Employer Group Number (EGN) or List Bill Number

INITIAL PAYMENT Method of Collection:Amount Collected with Application Initial Premium by Electronic Funds Transfer (Must be at least a monthly amount.)Check (Must be at least 1/12 of an annual premium.)SOURCE OF CURRENT AND FUTURE PAYMENTS (Check ALL that apply.)Earned Income Savings LoansUse of Values in another Life Insurance/Annuity Contract Other

ENB-7-07-MA

Mutual Fund/Brokerage Account Money Market FundCertificate of Deposit

SECTION V - About Existing or Applied for Insurance

SECTION VI - About Payment Information

3 of 7 (07/07) eF

DEBIT AUTHORIZATION Available only if the bank account holder is the Owner and/or Proposed Insured. All others please complete the Electronic Payment (EP) Account Agreement form.The undersigned (“I”) hereby authorize the Company with whom I am completing this application to initiate debit entries through Metropolitan Life Insurance Company to the deposit account designated below, at the Financial Institution named below, using the Automated Clearing House. I authorize: 1. Monthly recurring debits; AND 2. Debits made from time to time, as I authorize. This authorization is to remain in full force and effect until the Company has received written notification from me of its termination at such time and in such manner as to afford the Company and the Financial Institution a reasonable opportunity to act on it.Monthly Debit Date: Issue Date of the PolicyDebit Date on the of each monthBank Account Type: Checking Savings

Bank Routing Number Bank Account Number

Name of Financial Institution

Note: Please attach a voided check or deposit slip to Section IX - Additional Information.We cannot establish banking services from starter checks, cash management, brokerage, or mutual fund checks. We cannot establish banking services from foreign banks UNLESS the check is being paid in U.S. Dollars through a U.S. correspondent bank (the U.S. correspondent bank name must be on the check).

Use Section IX - Additional Information if necessary.1. Within the past three years has the Proposed Insured flown in a plane other than as a passenger on a commercial airline or does he or she have plans for such activity within the next year? Yes No If YES, please complete a separate Aviation Risk Supplement form for the Proposed Insured.2. Within the past three years has the Proposed Insured participated in or does he or she plan to participate in any of the following? Yes No Underwater sports - SCUBA diving, skin diving, or similar activities Racing sports - motorcycle, auto, motor boat or similar activities Sky sports - skydiving, hang gliding, parachuting, ballooning or similar activities Rock or mountain climbing or similar activities Bungee jumping or similar activities If YES, please complete a separate Avocation Risk Supplement form for the Proposed Insured.3. Has the Proposed Insured traveled or resided outside the U.S. or Canada within the past two years; or does he or she plan to travel or reside outside the U.S or Canada within the next two years? NOTE: That a "YES" answer may result in higher rates or in a denial of coverage. If YES, please provide details.

Yes No

Past Future Duration (weeks) Cities and Countries Purpose

4. Has the Proposed Insured EVER used tobacco or nicotine products in any form (e.g., cigars, cigarettes, cigarillos, pipes, chewing tobacco, nicotine patches, or nicotine gum)? If YES, please provide details. Yes No

Product(s) Frequency / Amount Date Last Used

ENB-7-07-MA

SECTION VII - General Risk Questions

4 of 7 (07/07) eF

• CountryofResidence-MetLifeneedsthecountryandnotcounty.

• Preferredtimetocallshouldbefilledin(e.g.,4:00pmEST–8:00pmEST).

• PlaceofBirth–HomeOfficeneedsState.

• NameofEmployer-Ifnotemployedoutsidethehome,fillinchild,student,homemaker,retiredforthe“Positions/Duties”slot.

• Zipcodeforemployer.

• Earnedincomeandnetworth–Mustbeincludedforbothinsuredandownerifapplicable.

Page 2For additional Beneficiaries, use Section IX - Additional Information.Check here if the Owner is the Primary Beneficiary. For Primary or Contingent Beneficiaries who are NOT the Owner, complete the table below.

Beneficiary Type Name (First, Middle, Last) Date of Birth Relationship to Proposed Insured Social Security Number (Optional) Percentage of Proceeds (if not equal)PrimaryPrimaryContingentPrimaryContingentCheck here to include all living and future natural or adopted children of the Proposed Insured as Contingent Beneficiaries. (Name all living children above.) If a Custodian is acting on behalf of a minor Beneficiary listed above, please use Co-Owner/Contingent Owner and UTMA Designations Supplement form. Federal law states that if someone with special needs has assets over $2,000, they may lose eligibility for government benefits. Check the desired coverage(s).

Universal Life Variable Life Product Name

Face Amount*

Riders and Details

Coverage Continuation (UL only) Disability Waiver:Specified PremiumMonthly Deduction (VUL only)Death Benefit OptionDefinition of Life Insurance:Guideline Premium TestCash Value Accumulation TestPlanned PremiumYear 1Years 2 toYears to (UL only)

Whole LifeProduct Name

Face Amount*

Riders and Details

Disability WaiverDividend Options:Paid-Up AdditionsOther, please specify:

Automatic Premium Loan Requested

Term LifeProduct Name

Face Amount*

Riders and Details

Disability Waiver:Convertible Non-Convertible

For a full list of riders and options, please consult with your Producer. Note: Some riders may require supplement forms to be completed. For Variable Life products, please complete the Variable Life Supplement form. * If Face Amount is equal to or exceeds $1,000,000, please complete the Personal Financial Information form.

ADDITIONAL OPTIONSOne Time (Single) Payment Amount 1035 Exchange Amount Requested Policy Date Save Age

POLICY OPTIONSAlternate Policy: Product, Face Amount and DetailsAdditional Policy: Product, Face Amount and DetailsGroup Conversion Only Group Conversion Alternative } Please complete the Group Conversion Supplement form for either choice.

ENB-7-07-MA

SECTION IV - About Proposed Coverage

SECTION III - About the Beneficiary / Beneficiaries

2 of 7 (07/07) eF

• PlanofInsurance–ForTermplans,specifynumberofyears,10,15,20,30.

• PlanofInsurance–EVUL,HomeOfficeneedsdeathbenefitoption,definitionoflifeinsurance,plannedpremium(modalpremium).

• PlanofInsurance–GAUL,needsdeathbenefitoption,definitionoflifeinsurance,plannedpremium(annualamount),#ofyearspayableandsubsequentpremiumamount.

• Ifgroupconversionorgroupconversionalternative,markappropriateboxandfilloutGroupConversionSupplement.

• SectionV,existingorappliedforinsurance-confirmbothinsuredandownerboxesaremarked.

• Provideamountofinsuranceandyearofissue,markboxforexistingorappliedfor.

• Iftheproposedinsuredisfinanciallydependentonanotherindividual,filloutthegraybox(homemaker,child,etc.).

• SectionVI–Markboxforpremiumpayer.

• SectionVI–Ifchoosinginitialpremiumbyelectronicfunds,youmustfillin“amountcollectedwithapplication.”

• Iftheapplicanthasanexistingorpreviouspolicythatneedstobeexchangedorreplaced,verifytheappropriateboxischeckedandreplacementquestionnaireisfilledout.

• DebitAuthorization–Markboxforeitherissuedateorspecifydebitdatefordraft,checkboxforeithercheckingorsavings.HomeOfficeneedsavoidcheck(willnotacceptdepositslip).

• DebitAuthorization-Ifaccountholderisotherthantheinsuredorowner,aseparateEPformmustbecompletedandsignedbytheaccountholder.

• SectionVII-Ensurecustomerunderstandsquestions,andanswerstheriskquestionscorrectly.Ifanyanswersare“Yes”,donotforgettofillouttheaviationandavocationsupplementaryforms.

Note: Utilized for Case Management Initiative #9

Issued-Not-Paid Report

Offer Made Data Provided: 21-‐MarIssued Not Paid Data Provided: 21-‐Mar

Office ARIZONA FIN ASSOC

Agent Count Premium $ Avg of Days Since Issue/Offer Outstanding Reqs Insured Name Underwriter Rating ClassDAVID TELLES

ISSUED -‐ NOT PAID 1 $24,659 9 0214017902 1 $24,659 9 0 HOFFPAUIR, EDGAR KATHY GARCIA ELITE/PREF PLUS

OFFER MADE 2 $6,028 8 6214023267 1 $4,269 2 3 WILLIAM CHILDERS KASIE FREAUF -‐214023200 1 $1,759 13 3 MAGDALENA CHILDERS KASIE FREAUF -‐

AARON KHAFIOFFER MADE 1 $21,376 1 3

214018545 1 $21,376 1 3 MEIR GUL KATHY GARCIA -‐

PAUL MCGHIEISSUED -‐ NOT PAID 1 $10,699 4 0

214017919 1 $10,699 4 0 REYNOLDS, PATRICK KATHY GARCIA RATED

THOMAS BROOKSOFFER MADE 2 $8,933 11 8

214019299 1 $6,904 9 5 ROBERT KINGSBURY MARSHA FOX -‐214019307 1 $2,029 13 3 TRACEY KINGSBURY MARSHA FOX -‐

JOHN JACOBSOFFER MADE 1 $8,839 17 3

213230102 1 $8,839 17 3 PAUL GUESS MICHAEL BAUCOM -‐

ROBERT SHULTSISSUED -‐ NOT PAID 2 $2,981 15 0

214011079 1 $2,578 23 0 MEALEY, TEDDY CHRISTINA HENDERSON RATED214022414 1 $403 7 0 SHIPLEY, BARBARA KASIE FREAUF STANDARD

OFFER MADE 4 $5,515 3 9214020497 1 $2,364 6 2 EUTIMIO SCHAMBER JENNIFER HALSO -‐214019962 1 $2,145 3 3 THOMAS CONRAD KATHY GARCIA -‐214029168 1 $514 2 2 CASHAE DAVIS JACKIE LAI -‐214029158 1 $493 1 2 JAMAL COOPER JACKIE LAI -‐

HOWARD RUBINISSUED -‐ NOT PAID 1 $2,400 28 0

214014406 1 $2,400 28 0 RIDGES, BRADLEY KASIE FREAUF STANDARDOFFER MADE 5 $5,795 6 13

214027094 1 $2,765 3 5 MACARIO GALVAN CHRISTINA HENDERSON -‐214027095 1 $1,249 7 2 JACLYN GALVAN CHRISTINA HENDERSON -‐214029152 1 $672 6 2 HUNTER LIKINS KATHY GARCIA -‐214029160 1 $566 6 2 JERA LIKINS KATHY GARCIA -‐214029154 1 $543 6 2 KAYA LIKINS KATHY GARCIA -‐

ALFRED MATT JR.OFFER MADE 4 $7,520 14 8

214018624 1 $2,207 23 2 KEN BEVINS JACKIE LAI -‐214018647 1 $2,114 15 2 RICHARD MATTHEWS KATHY GARCIA -‐214027904 1 $1,639 3 2 MARIN FILIP JACKIE LAI -‐214018671 1 $1,560 13 2 LU ANN MATTHEWS KATHY GARCIA -‐

JENNIE LAMISSUED -‐ NOT PAID 1 $759 3 0

214021925 1 $759 3 0 NGUYEN, BICHTHUY JACKIE LAI STANDARDOFFER MADE 4 $6,471 13 13

214007995 1 $4,968 1 4 LAN NGUYEN CHRISTINA HENDERSON -‐214012595 1 $784 2 3 DIEM-‐TRANG TRAN MARSHA FOX -‐214012591 1 $607 36 3 TOAN NGUYEN MARSHA FOX -‐214019977 1 $112 13 3 TONY TRAN JENNIFER HALSO -‐

RYAN GREEN

Outstanding Applications: Offer Made & Issued Not Paid

• ExpeditesIssuedCasestoPay

Capacity Model-MOR

Area: New Business Analysts 3/28/14

Loc Los Angeles 3/10/14

Mgr The Lab

Emp 12

Dates Jan 2014 - Dec 2014

ACT. NO. ACTIVITY UNIT OF MEASURE FREQUENCY VOLUME DAILY

VOLUME KVI TIME [mins]

STD HOURS

% OF STD HOURS ACTIVITY COMMENT

1. Annuities application processing and scrubbing Application Monthly 50 2.37 1.Yes 5.50 0.22 1%

2. Annuity: Reading/responding to case message Case Message Monthly 499 23.74 Non-KVI 1 1.77 0.70 4%

3. Annuity: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 25 1.19 Non-KVI 1 2.58 0.05 0%

4. Annuity: NOGO research Item Monthly 46 2.21 Non-KVI 1 3.22 0.12 1%

5. Annuity: NOGO related communication Item Monthly 46 2.21 Non-KVI 1 1.97 0.07 0%

6. Annuity: Notify agent on cases paid/ placed Application Monthly 50 2.37 Non-KVI 1 1.00 0.04 0%

7. Annuity: Submit and Coordinate Suitability Review Application Monthly 40 1.90 Non-KVI 1 3.90 0.12 1%

8. Annuity -‐ Check logging onto AOC -‐ Inbound Checks Monthly 5 0.24 Non-KVI 1 2.57 0.01 0%

9. Faxing/Imaging pages back into the case if missing Application Monthly 7 0.33 Non-KVI 1 17.50 0.10 1%

10. Annuity -‐ Processing of AOC -‐ Inbound Checks Monthly 200 9.52 Non-KVI 1 12.50 1.98 12%

11. Life Application -‐ processing and scrubbing Application Monthly 185 8.83 2.Yes 10.37 1.53 9%

12. Life Application: Reading/ responding to case message Case Message Monthly 2782 132.48 Non-KVI 2 1.73 3.83 23%

13. Life Application: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 185 8.83 Non-KVI 2 2.58 0.38 2%

14. Order Paramedical Item Monthly 93 4.42 Non-KVI 2 2.28 0.17 1%

15. Paramedical Follow-‐up Call/ Discussion Monthly 185 8.83 Non-KVI 2 2.45 0.36 2%

16. APS Follow-‐up Call/ Discussion Monthly 121 5.74 Non-KVI 2 5.70 0.55 3%

17. Preliminary Applications Application Monthly 9 0.44 Non-KVI 2 2.00 0.01 0%

18. Life: Case Scanning and Submission Application Monthly 278 13.25 Non-KVI 2 5.25 1.16 7%

19. Life: Check item in scan and image bin Application Monthly 278 13.25 Non-KVI 2 2.57 0.57 3%

20. Life: Check if issued cases are paid Application Monthly 0 0.00 Non-KVI 2 0.33 - 0%

21. Life: NOGO research Item Monthly 93 4.42 Non-KVI 2 3.22 0.24 1%

22. Life: NOGO related communication Item Monthly 93 4.42 Non-KVI 2 1.97 0.14 1%

23. Life: GOSC red/green edit resolution Item Monthly 93 4.42 Non-KVI 2 1.00 0.07 0%

24. Life: Mill Data Input and Application Tracking Item Monthly 185 8.83 Non-KVI 2 1.78 0.26 2%

25. Life: Print and file cases paid/ placed Application Monthly 185 8.83 Non-KVI 2 1.00 0.15 1%

26. Life Suitability Review Application Monthly 185 8.83 Non-KVI 2 3.90 0.57 3%

27. Life check scanning and depositing -‐ Inbound Checks Monthly 176 8.39 Non-KVI 2 2.57 0.36 2%

28. Disability Application processing and scrubbing Application Monthly 2 0.11 3.Yes 20.00 0.04 0%

29. DI: Data Collection Case Message Monthly 2 0.11 Non-KVI 3 10.00 0.02 0%

30. DI: Reading/ responding to case message Call/ Discussion Monthly 34 1.61 Non-KVI 3 1.73 0.05 0%

31. DI: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 2 0.11 Non-KVI 3 2.58 0.00 0%

32. DI: NOGO research Item Monthly 0 0.01 Non-KVI 3 1.00 0.00 0%

33. DI: NOGO related communication Item Monthly 0 0.00 Non-KVI 3 1.97 - 0%

34. DI: Suitability review Application Monthly 2 0.11 Non-KVI 3 3.90 0.01 0%

35. DI: Pring and file cases paid/ placed Application Monthly 2 0.11 Non-KVI 3 1.00 0.00 0%

36. DI: Check scanning and depositing Checks Monthly 1 0.03 Non-KVI 3 2.57 0.00 0%

37. Brokerage Application Processing and Scrubbing Application Monthly 57 2.74 4.Yes 3.50 0.16 1%

38. B-‐D Nogo Research Item Monthly 29 1.37 Non-KVI 4 1.00 0.02 0%

39. BD: Reading/ responding to case message Case Message Monthly 287 13.68 Non-KVI 4 1.73 0.40 2%

40. BD: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 115 5.47 Non-KVI 4 2.58 0.24 1%

41. Brokerage NOGO communication Call/ Discussion Monthly 29 1.37 Non-KVI 4 1.07 0.02 0%

42. Brokerage Suitability Review Application Monthly 57 2.74 Non-KVI 4 1.78 0.08 0%

43. Brokerage -‐ check scanning and depositing -‐ Inbound Checks Monthly 57 2.74 Non-KVI 4 2.57 0.12 1%

44. B-D: Log sheet tracking and reporting Application Monthly 57 2.74 Non-KVI 4 5.00 0.23 1%

45. Third Party Application Processing and scrubbing Application Monthly 30 1.41 5.Yes 5.45 0.13 1%

46. Third Party NOGO Research Item Monthly 15 0.70 Non-KVI 5 3.22 0.04 0%

47. Third Party NOGO Communication Item Monthly 15 0.70 Non-KVI 5 1.97 0.02 0%

48. Third Party Application Submission Application Monthly 30 1.41 Non-KVI 5 5.25 0.12 1%

49. Third Party B-‐D and VA Suitability Review Application Monthly 30 1.41 Non-KVI 5 3.90 0.09 1%

50. Term Conversions [Data Collection] Application Monthly 10 0.48 6.Yes 10.00 0.08 0%

51. Policy Change [Data entry] Application Monthly 10 0.48 7.Yes 10.00 0.08 0%

52. Generation of eLeads Application Daily 2 2.00 8.Yes 15.00 0.50 3%

53. Research of eLead polciies Application Daily 4 4.00 Non-KVI 8 10.00 0.67 4%

16.9

2.4

KVI 1: Annuities application processing and scrubbing 3.4

86.3

8.8

KVI 2: Life Application - processing and scrubbing 10.3

70.3

0.1

KVI 3: Disability Application processing and scrubbing 0.1

64.2

2.7

KVI 4: Brokerage Application Processing and Scrubbing 1.3

27.7

1.4

KVI 5: Third Party Application Processing and scrubbing 0.4

17.2

0.5

KVI 6: Term Conversions [Data Collection] 0.1

10.0

0.5

KVI 7: Policy Change [Data entry] 0.1

10.0

2.0

KVI 8: Generation of eLeads 1.2

35.0

Daily Volume of KVI 1: KVI 4: Brokerage Application Processing and Scrubbing

Composite Time per (1) KVI 1: KVI 2: Life Application - processing and scrubbing

Daily Hours Required by KVI 3

Daily Volume of KVI 1: KVI 5: Third Party Application Processing and scrubbing

Daily Volume of KVI 1: KVI 7: Policy Change [Data entry]

Daily Hours Required by KVI 6Composite Time per (1) KVI 1: KVI 6: Term Conversions [Data

Collection]

Composite Time per (1) KVI 1: KVI 3: Disability Application processing and scrubbing

Daily Hours Required by KVI 4Composite Time per (1) KVI 1: KVI 4: Brokerage Application

Processing and Scrubbing

Daily Volume of KVI 1: KVI 6: Term Conversions [Data Collection]

Daily Hours Required by KVI 5Composite Time per (1) KVI 1: KVI 5: Third Party Application

Processing and scrubbing

ACTIVITY LIST - New Business Analysts

Daily Volume of KVI 1: KVI 2: Life Application - processing and scrubbing

Daily Volume of KVI 1: KVI 3: Disability Application processing and scrubbing


Revised Date:

Date Compiled:

Compiled By:

Total Daily Hours RequiredDaily Volume of KVI 1: KVI 1: Annuities application processing and

scrubbing

Composite Time per (1) KVI 1: KVI 1: Annuities application processing and scrubbing


Daily Volume of KVI 1: KVI 8: Generation of eLeads


Composite Time per (1) KVI 1: KVI 7: Policy Change [Data entry]


Composite Time per (1) KVI 1: KVI 8: Generation of eLeads

• Providesagencystaffforecastingtool

• FactFindingandCaseDesign

•Use XRAE for risk, price estimate

3 of 39March 25, 2014

© Lab Consulting Partnership, Inc.

es.sgo1.13.32.09.Bridge.Agency.140325

Reporting Provides Visibility on an Individual Level, Showing Variance between Agents

NOGO Rates Vary between Agency Sales Directors (ASD), Ranging from 33% to 60%

New Business Life Application Tracking Shows High Level Root Cause Error Areas Driving NOGOs

Life Application NOGO Rate by Agents Reporting to Robert Piscatelli(Feb. 3 - Mar. 21, 2014)

Bridge Financial Life Application NOGO Error Detail(Feb. 3 - Mar. 21, 2014)

Bridge Financial Life Application Tracker Raw Data(Feb. 3 - Mar. 21, 2014)

Life Application NOGO Rate by ASD(Feb. 3 - Mar. 21, 2014)

Bridge Financial: MetLife Proprietary Life Application Tracking

Raw Data Tracker Allows for Simple Filtering by Agency Sales Director and Specific Agent to Identify Detail behind NOGOs

0

10

20

30

40

50

60

70

80

Piscatelli, Robert No Manager Kliss, Elena Begun, Robert

Num

ber

of A

pp

licat

ions

ASD

2133%

4267%

1739%

2761%

2760%

1840%

3251%

63 44 4563

3149%

NOGO

IGO

0

3

6

9

12

15

Fiore,Braken A

Francis Jr.,Robert Eros

Stuart,Diane

Howe,Philip

Banks,Keith

Vitale,Peter

Viglione,Francis

Rafferty,Thomas

Alberico,Matthew J

Perinelli,Michael J

Rozzi,Matthew

Num

ber

of A

pp

licat

ions

Agent

750%

327%

873%

120%

480%

3100% 2

100%

480% 1

20%1

100%1

100%1

100%1

100%1

100%

750%

11 5 5 3 2 1 1 1 1 114

NOGO

IGO

0

5

10

15

20

25

30

Err

or C

ount

Application Section/Location

Total = 96 Errors

27

20

17

14

6

4 43 1

28%

21%

18%

15%

6%

4% 4%3% 1%

SupplementalForms

Section V:About Existingor Applied for

Insurance

Section IV:About Proposed

Coverage

Section I:About Proposed

Insured

Section III:About the

Beneficiary

Section VI: Payment

Information

Section VII: General Risk Questions

Section VIII: PersonalPhysician

Section II:About the

Owner

Note: Part of Brooklyn office tracking files missing from last two weeks of data

Source: New Business Life Application tracker





PlacematAgency Support Group

Agent

ClientCo

6 of 6Spring 20XX | po.E2E.ImpApproach.FSO1.Insurance | © Lab Consulting Partnership, Inc.

3. Work Products and Business Metrics

Work Products

• LifeApplications

• DisabilityProducts

• AnnuityProducts

• Broker/DealerInvestments

Business Metric Target

Volume (Agent productivity)

• 2.5to4.0Lifepoliciesissuedpermonth

Quality - % In Good Order:

• AgencyBaseline:20%withtargetat80%

• UWBaseline:73%withtargetat90%

Daily Staffing

Analyst Productivity

• 7-8applicationsperFTEperday

Unit Cost

• 35%reductionbasedonNOGOreductiontarget

Service - Cycle Time

• Reduce4-5daysofcycletimeforNOGOapplications

1. Overview: New Business Processing Key Activities by Participant

7. New Lean Visual Management Tools

Agents/Assistants

• Prospect• Contact• SelectProduct

– FactFind– Illustration– Quote(UWorXRAE)

• Selectcorrectform(s)• Complete/submitform• Follow-up

– AttendingPhysicianStatement(APS)and/orparamed

– NOGOs– Other(Payment,etc.)

New Business Analyst (NBA)

• Reviewsandscrubsapps– Quickfix– Agent-clientcontact

• Enterstrackinginto“mill”• Dataentersorscans/sends

apptooffshoredataentry• Postentryscrub• Sendstomgt.forreview• Trackmilldatatoclosecase

– Requirements(APS,etc.)– Bottlenecks(NOGO,etc.)– Notifications(Issued,etc.)

Agency Management

• Performssuitabilityreview– Clientneeds– Package– Accuracy

• Setsservicestandards• ProvidesreportstoAgents

– Issued-Not-Paid– Pending– NOGOs– Cycletime

• Trainsacrossgroupsonprocess

Underwriting/Shared Service

• ReviewforIGOanduploadsapplication

• Performlevel2analysisanddetailede-review

• Sendpersonalhistoryresults• RequestAPSifrequired• Follow-uponfinancial,

interview,examresults• NotifyNBAonNOGOs• Decide(ifdeclined,review

re-insuranceoption)• Issueordeclineandnotify

2. Average Agency Organization

New Business Support Agency staff Sales

Ops Manager

(1)

NewBusinessManager

(1)

NewBusiness Analyst

(5-7)

Agent Managers

(8)

Agents/ Producers

(120)

Personal Assistants

(60)

4. New Application Processing

Ag

en

cy

Pa

ram

ed

ica

l V

en

do

r

Off

sho

re

Gro

up

(I

nd

ia)

Un

de

rwri

tin

gS

ha

red

S

erv

ice

s

Agent Agency NBA

• Receiveapplications• PerformLifeapplicationScrubbing/processing

• IsApplicationNOGO?

Offshore Group (India)

• DataCollection• Review/ErrorReporting;IsitNOGO?

Underwriting

• ApplicationReview• IssueorDeclinePolicy• OrderandReviewAPS(ifnecessary)

Shared Services

• DistributionofPolicy to Agent

• Addresspayment• Reviewfor1035

Agency NBA

• Askedtocheckparamed?

Paramedical Vendor

• VendorSetsAppointment

• ParamedicalProcessing

Agency NBA

• ReviewSuitabilityandcheckifsuitable

Agency NBA

• Scandocuments• SubmitscantoOffshoreGroup

Agency NBA

• Check“Mill”for- Outstandingrequirements

- Decisionrequired- Issued-NotPaid

• Sendnotifications

Agency NBA (ACP)/Agent

• Collectadditionalpost-IssuerequirementsfromAgent/Client

No

Yes

YesYes

No No No Yes

Yes

Yes

No

5. Case Management Leading Practice Installation

Application Processing• Trainagentsandassts.oneFormsand

SmartOfficepre-population• RequireXRAEtoautomaterisk

assessment• Educateagentsandstaffonleading

practice illustration tools• SupportAPSresolutiontoissuecase

quickly• Expediteparamedschedulingandfollow-

up• UseNOGOpreventioninstructionplacemat• Remove“false”NOGOsthatcreaterework

The“Mill”TrackerandReportingTools• Rolloutstandardmillwithrequiredand

optionalfields• Createmillusageroutinestoreduce

NOGOsandcasecycletimes• CreateanddistributestandardIssued-Not-

PaidandPendingreports

Work Level Management and Performance Improvement Tools• Alignagentstoacross-trainedanalyst,with

aback-up• Consolidateactivitiestoonepositionto

reducerework• Segmentagentsbyperformancefor

targetedsupportlevel• IntroduceCapacityModel-work

forecastingtool• LinkMilltodailyhuddletohelpevenout

theworkamongstaff• Implementquarterlysurveytomeasure

satisfactionlevels

Agency-UnderwriterNotificationRoutines• NBAfollowupwithUWtoissue,whenno

outstandingrequirements• NBAfollowupwithagentonobtainingbank

draftdata,postissue• NBAfollowupwithagentonUWdecline

Capacity

Model

6. Standardized Agent Feedback - MOR Routine

NBAforwardsIssued-Not-PaidandPendingReportsfromUnderwritingtoSalesManagerwhomeetswithSalesAgent

NBAcompletesNOGOandcycletimeintracker.NBA/OperationsmanagersforwardreportstoSalesManager,whoreviewswithAgent

NBA, Sales Manager

NBA, NBA Manager, Sales Manager

Weekly

Monthly to Quarterly

Activty Accountable Frequency

Standard “Mill” Tracker

Case Manager Case Status Agent Name 1 GDC Split 1[Dollars]

Customer Name[Last Name, First Name]

Underwriter Name[Last Name, First Name] Case # Policy Origination Application Received

with Funds

Face Amount[Input Check or Transfer

for Annuity]Annual Premium

Line of Business[List "Other" in General

Comments]

Policy Type[List "Other" in General

Comments]

Policy Duration [Years - primarily for Term]

Date of Client Signature

Date Received in Agency

Date Released to Underwriting Date Case Issued IGO / NOGO General Comments

[Free Form Text]

Eileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGOEileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGOEileen Figueroa Agency Pending Simon, Daniel 557.00$ Soulouque, Pierre Smith 214026133 MetLife Initial Draft 100,000$ 893$ Annuity Term 15 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Courrejolles, Ivan 3,711.00$ Lopez, Lilian Smith 214025343 MetLife Check 500,000$ 3,286$ Annuity Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Jackie Litchmore Agency Pending Higgins, Glenrick 252.00$ Lawrence, Roan Smith 214026209 MetLife Initial Draft 500,000$ 442$ Annuity Term 20 02/06/14 02/08/14 02/09/14 02/20/14 IGOJackie Litchmore Agency Pending Higgins, Glenrick 165.00$ Lawrence, Jamar Smith 214026213 MetLife Initial Draft 25,000$ 282$ Life Whole 02/06/14 02/08/14 02/09/14 02/20/14 NOGODaniela Rivera Agency Pending Share Brennan, Amy 184.00$ Lorenzo, Alberto Smith 214026241 MetLife None 500,000$ 204$ Life Term 10 02/06/14 02/08/14 02/09/14 02/20/14 NOGOJackie Litchmore Agency Pending Cabrera, Ariel 1,625.00$ ZAMPIERI, ALDO Smith 214026250 MetLife Check 500,000$ 1,273$ Life Term 15 02/06/14 02/08/14 02/09/14 02/20/14 IGODaniela Rivera Agency Pending Palmer, Ted 1,985.00$ Perez, Phil Smith 214026514 MetLife None 1,000,000$ 3,009$ Broker Dealer Term 20 02/06/14 02/08/14 02/09/14 02/20/14 NOGOEileen Figueroa Agency Pending Price, Christopher 33,106.00$ Gomez, Ricardo Smith 214026776 MetLife None 5,004,000$ 32,370$ Broker Dealer MFFS 02/06/14 02/08/14 02/09/14 02/20/14 NOGO add'l GLT20Ismaetha Emile Agency Pending Zhang, Janet Lu 1,443.00$ Sooknanan, Chris Smith 214026793 MetLife Initial Draft 1,000,000$ 1,443$ Broker Dealer Term 30 02/06/14 02/08/14 02/09/14 02/20/14 IGO

• ExpeditesCasetoIssue

NOGO and Cycle Time MOR

• Providesfeedbackonerroranddelayrootcauses

Service Level Surveys

• AssessesservicelevelattainmentusingQualtrax

• ReviewNOGOplacemat• Submitapplication• ReviewParamedplacemattocheckifParamedisrequired?

Detailed Instruction Sheets

• Providesbasicinstructionstosimplifyprocess

March 26, 2014© Lab Consulting Partnership, Inc.

es.sgo1.13.32.09.Placemat.14032620 of 28

Placemat H-1: NOGO Prevention Guide for Standard Life Application

Page 1 Page 3 Page 4Policy Number

Application for Life InsuranceCompany (Check the appropriate ONE.) Metropolitan Life Insurance Company General American Life Insurance Company

New England Life Insurance Company MetLife Investors USA Insurance CompanyMetLife Investors Insurance Company

The Company indicated in this section is referred to as "the Company".

For Additional Insureds please complete the Additional Insureds Supplement form.

First Name Middle Name Last Name


Country of Legal Residence Date of Birth E-Mail Address

Primary Phone Number Alternate Phone Number Preferred Time to Call From To Sex

Place of Birth Social Security or Tax ID Number Earned Annual Income Net Worth

U.S. Driver's License If not licensed, please indicate other form of ID: Passport Government Issued Photo ID

Issuer of ID ID Number Issue Date (if any) Expiration Date (if any)

Name of Employer Employer City State Zip Position/Duties

NON U.S. CITIZENS ONLY - Country of Citizenship Green Card/Visa Type Expiration Date

Country of Permanent Residence ID Number Years in the U.S.

Complete ONLY if the Owner is NOT the Proposed Insured.

OWNER - TRUST / BUSINESS ENTITY - Name of Entity Tax ID Number Trustee / Owner State

Trust Business Entity Charity Qualified Pension Plan Complete the appropriate required form(s).OWNER - OTHER INDIVIDUAL First Name Middle Name Last Name


Country of Legal Residence Citizenship Social Security or Tax ID Number Date of Birth Phone Number

E-Mail Address Earned Annual Income Net Worth Relationship to Proposed Insured

Please indicate form of ID: U.S. Driver's License Passport Government Issued Photo ID

Issuer of ID ID Number Issue Date (if any) Expiration Date (if any)

Check if ownership should revert to Insured upon Owner and Contingent Owner’s deaths.

ENB-7-07-MA

SECTION II - About the Owner

SECTION I - About the Proposed Insured

AM

PM PM

AM

Female

Male

1 of 7

(07/07) eF

Does the Proposed Insured or Owner have any existing or applied for life insurance or annuities with this or any other company? Proposed Insured Yes No

Owner Yes NoIf YES, please provide details of any existing or applied for Life Insurance on the Proposed Insured only.

Company Amount of Insurance Year of Issue Status

Existing Applied For

Applied ForExisting



In connection with this application, has there been, or will there be with this or any other company any: surrender transaction; loan; withdrawal; lapse; reduction or redirection of premium/consideration; or change transaction (except conversions) involving an annuity or other life insurance?

If YES, complete Replacement Questionnaire AND any other state required replacement forms or 1035 exchange forms.

Yes No

If Proposed Insured is financially dependent on another individual, indicate individual providing support:

Spouse Child Parent Other

Amount of insurance on individual providing support. Existing Insurance Insurance Applied For

If Proposed Insured is a minor, are all siblings equally insured? Yes No

If NO, please provide details:

PREMIUM PAYORProposed Insured Owner (If NOT the Proposed Insured.) Other (Complete the box below.)

Other Premium Payor Name Social Security or Tax ID Number Relationship to Proposed Insured or Owner

Reason this Person is the Payor


PAYMENT MODE (Check the appropriate ONE.)

Billing Mode: Annual Semi-Annual QuarterlyMonthly Draft per Debit Authorization (See next page.)Monthly Draft per Existing Electronic Payment Number

Special Account: Government Allotment Salary Deduction List Bill

If Special Account, provide Employer Group Number (EGN) or List Bill Number

INITIAL PAYMENT Method of Collection:Amount Collected with Application Initial Premium by Electronic Funds Transfer (Must be at least a monthly amount.)

Check (Must be at least 1/12 of an annual premium.)

SOURCE OF CURRENT AND FUTURE PAYMENTS (Check ALL that apply.)

Earned Income Savings Loans

Use of Values in another Life Insurance/Annuity Contract Other

ENB-7-07-MA

Mutual Fund/Brokerage Account Money Market Fund

Certificate of Deposit

SECTION V - About Existing or Applied for Insurance

SECTION VI - About Payment Information

3 of 7

(07/07) eF

DEBIT AUTHORIZATION Available only if the bank account holder is the Owner and/or Proposed Insured. All others please complete the Electronic Payment (EP) Account Agreement form.

The undersigned (“I”) hereby authorize the Company with whom I am completing this application to initiate debit entries through Metropolitan Life Insurance Company to the deposit account designated below, at the Financial Institution named below, using the Automated Clearing House. I authorize: 1. Monthly recurring debits; AND 2. Debits made from time to time, as I authorize. This authorization is to remain in full force and effect until the Company has received written notification from me of its termination at such time and in such manner as to afford the Company and the Financial Institution a reasonable opportunity to act on it.Monthly Debit Date: Issue Date of the Policy

Debit Date on the of each month

Bank Account Type: Checking Savings

Bank Routing Number Bank Account Number

Name of Financial Institution

Note: Please attach a voided check or deposit slip to Section IX - Additional Information.

We cannot establish banking services from starter checks, cash management, brokerage, or mutual fund checks. We cannot establish banking services from foreign banks UNLESS the check is being paid in U.S. Dollars through a U.S. correspondent bank (the U.S. correspondent bank name must be on the check).

Use Section IX - Additional Information if necessary.

1. Within the past three years has the Proposed Insured flown in a plane other than as a passenger on a commercial airline or does he or she have plans for such activity within the next year? Yes No

If YES, please complete a separate Aviation Risk Supplement form for the Proposed Insured.

2. Within the past three years has the Proposed Insured participated in or does he or she plan to participate in any of the following? Yes No

Underwater sports - SCUBA diving, skin diving, or similar activities Racing sports - motorcycle, auto, motor boat or similar activities Sky sports - skydiving, hang gliding, parachuting, ballooning or similar activities Rock or mountain climbing or similar activities Bungee jumping or similar activities

If YES, please complete a separate Avocation Risk Supplement form for the Proposed Insured.

3. Has the Proposed Insured traveled or resided outside the U.S. or Canada within the past two years; or does he or she plan to travel or reside outside the U.S or Canada within the next two years?

NOTE: That a "YES" answer may result in higher rates or in a denial of coverage. If YES, please provide details.

Yes No

Past Future Duration (weeks) Cities and Countries Purpose

4. Has the Proposed Insured EVER used tobacco or nicotine products in any form (e.g., cigars, cigarettes, cigarillos, pipes, chewing tobacco, nicotine patches, or nicotine gum)? If YES, please provide details. Yes No

Product(s) Frequency / Amount Date Last Used

ENB-7-07-MA

SECTION VII - General Risk Questions

4 of 7

(07/07) eF

• CountryofResidence-MetLifeneedsthecountryandnotcounty.

• Preferredtimetocallshouldbefilledin(e.g.,4:00pmEST–8:00pmEST).

• PlaceofBirth–HomeOfficeneedsState.

• NameofEmployer-Ifnotemployedoutsidethehome,fillinchild,student,homemaker,retiredforthe“Positions/Duties”slot.

• Zipcodeforemployer.

• Earnedincomeandnetworth–Mustbeincludedforbothinsuredandownerifapplicable.

Page 2For additional Beneficiaries, use Section IX - Additional Information.

Check here if the Owner is the Primary Beneficiary. For Primary or Contingent Beneficiaries who are NOT the Owner, complete the table below.

Beneficiary Type Name (First, Middle, Last) Date of Birth Relationship to Proposed Insured

Social Security Number (Optional)

Percentage of Proceeds (if not equal)

Primary

Primary

ContingentPrimary

Contingent

Check here to include all living and future natural or adopted children of the Proposed Insured as Contingent Beneficiaries. (Name all living children above.)

If a Custodian is acting on behalf of a minor Beneficiary listed above, please use Co-Owner/Contingent Owner and UTMA Designations Supplement form. Federal law states that if someone with special needs has assets over $2,000, they may lose eligibility for government benefits.

Check the desired coverage(s).

Universal Life Variable Life

Product Name

Face Amount*

Riders and Details

Coverage Continuation (UL only)

Disability Waiver:Specified PremiumMonthly Deduction (VUL only)

Death Benefit Option

Definition of Life Insurance:Guideline Premium TestCash Value Accumulation Test

Planned PremiumYear 1

Years 2 to

Years to (UL only)

Whole Life

Product Name

Face Amount*

Riders and Details

Disability WaiverDividend Options:

Paid-Up AdditionsOther, please specify:

Automatic Premium Loan Requested

Term Life

Product Name

Face Amount*

Riders and Details

Disability Waiver:

Convertible Non-Convertible

For a full list of riders and options, please consult with your Producer. Note: Some riders may require supplement forms to be completed.

For Variable Life products, please complete the Variable Life Supplement form. * If Face Amount is equal to or exceeds $1,000,000, please complete the Personal

Financial Information form.

ADDITIONAL OPTIONSOne Time (Single) Payment Amount 1035 Exchange Amount Requested Policy Date Save Age

POLICY OPTIONSAlternate Policy: Product, Face Amount and Details

Additional Policy: Product, Face Amount and Details

Group Conversion Only

Group Conversion Alternative } Please complete the Group Conversion Supplement form for either choice.

ENB-7-07-MA

SECTION IV - About Proposed Coverage

SECTION III - About the Beneficiary / Beneficiaries

2 of 7

(07/07) eF

• PlanofInsurance–ForTermplans,specifynumberofyears,10,15,20,30.

• PlanofInsurance–EVUL,HomeOfficeneedsdeathbenefitoption,definitionoflifeinsurance,plannedpremium(modalpremium).

• PlanofInsurance–GAUL,needsdeathbenefitoption,definitionoflifeinsurance,plannedpremium(annualamount),#ofyearspayableandsubsequentpremiumamount.

• Ifgroupconversionorgroupconversionalternative,markappropriateboxandfilloutGroupConversionSupplement.

• SectionV,existingorappliedforinsurance-confirmbothinsuredandownerboxesaremarked.

• Provideamountofinsuranceandyearofissue,markboxforexistingorappliedfor.

• Iftheproposedinsuredisfinanciallydependentonanotherindividual,filloutthegraybox(homemaker,child,etc.).

• SectionVI–Markboxforpremiumpayer.

• SectionVI–Ifchoosinginitialpremiumbyelectronicfunds,youmustfillin“amountcollectedwithapplication.”

• Iftheapplicanthasanexistingorpreviouspolicythatneedstobeexchangedorreplaced,verifytheappropriateboxischeckedandreplacementquestionnaireisfilledout.

• DebitAuthorization–Markboxforeitherissuedateorspecifydebitdatefordraft,checkboxforeithercheckingorsavings.HomeOfficeneedsavoidcheck(willnotacceptdepositslip).

• DebitAuthorization-Ifaccountholderisotherthantheinsuredorowner,aseparateEPformmustbecompletedandsignedbytheaccountholder.

• SectionVII-Ensurecustomerunderstandsquestions,andanswerstheriskquestionscorrectly.Ifanyanswersare“Yes”,donotforgettofillouttheaviationandavocationsupplementaryforms.

Note: Utilized for Case Management Initiative #9

Issued-Not-Paid Report

Offer Made Data Provided: 21-‐MarIssued Not Paid Data Provided: 21-‐Mar

Office ARIZONA FIN ASSOC

Agent Count Premium $ Avg of Days Since Issue/Offer Outstanding Reqs Insured Name Underwriter Rating ClassDAVID TELLES

ISSUED -‐ NOT PAID 1 $24,659 9 0214017902 1 $24,659 9 0 HOFFPAUIR, EDGAR KATHY GARCIA ELITE/PREF PLUS

OFFER MADE 2 $6,028 8 6214023267 1 $4,269 2 3 WILLIAM CHILDERS KASIE FREAUF -‐214023200 1 $1,759 13 3 MAGDALENA CHILDERS KASIE FREAUF -‐

AARON KHAFIOFFER MADE 1 $21,376 1 3

214018545 1 $21,376 1 3 MEIR GUL KATHY GARCIA -‐

PAUL MCGHIEISSUED -‐ NOT PAID 1 $10,699 4 0

214017919 1 $10,699 4 0 REYNOLDS, PATRICK KATHY GARCIA RATED

THOMAS BROOKSOFFER MADE 2 $8,933 11 8

214019299 1 $6,904 9 5 ROBERT KINGSBURY MARSHA FOX -‐214019307 1 $2,029 13 3 TRACEY KINGSBURY MARSHA FOX -‐

JOHN JACOBSOFFER MADE 1 $8,839 17 3

213230102 1 $8,839 17 3 PAUL GUESS MICHAEL BAUCOM -‐

ROBERT SHULTSISSUED -‐ NOT PAID 2 $2,981 15 0

214011079 1 $2,578 23 0 MEALEY, TEDDY CHRISTINA HENDERSON RATED214022414 1 $403 7 0 SHIPLEY, BARBARA KASIE FREAUF STANDARD

OFFER MADE 4 $5,515 3 9214020497 1 $2,364 6 2 EUTIMIO SCHAMBER JENNIFER HALSO -‐214019962 1 $2,145 3 3 THOMAS CONRAD KATHY GARCIA -‐214029168 1 $514 2 2 CASHAE DAVIS JACKIE LAI -‐214029158 1 $493 1 2 JAMAL COOPER JACKIE LAI -‐

HOWARD RUBINISSUED -‐ NOT PAID 1 $2,400 28 0

214014406 1 $2,400 28 0 RIDGES, BRADLEY KASIE FREAUF STANDARDOFFER MADE 5 $5,795 6 13

214027094 1 $2,765 3 5 MACARIO GALVAN CHRISTINA HENDERSON -‐214027095 1 $1,249 7 2 JACLYN GALVAN CHRISTINA HENDERSON -‐214029152 1 $672 6 2 HUNTER LIKINS KATHY GARCIA -‐214029160 1 $566 6 2 JERA LIKINS KATHY GARCIA -‐214029154 1 $543 6 2 KAYA LIKINS KATHY GARCIA -‐

ALFRED MATT JR.OFFER MADE 4 $7,520 14 8

214018624 1 $2,207 23 2 KEN BEVINS JACKIE LAI -‐214018647 1 $2,114 15 2 RICHARD MATTHEWS KATHY GARCIA -‐214027904 1 $1,639 3 2 MARIN FILIP JACKIE LAI -‐214018671 1 $1,560 13 2 LU ANN MATTHEWS KATHY GARCIA -‐

JENNIE LAMISSUED -‐ NOT PAID 1 $759 3 0

214021925 1 $759 3 0 NGUYEN, BICHTHUY JACKIE LAI STANDARDOFFER MADE 4 $6,471 13 13

214007995 1 $4,968 1 4 LAN NGUYEN CHRISTINA HENDERSON -‐214012595 1 $784 2 3 DIEM-‐TRANG TRAN MARSHA FOX -‐214012591 1 $607 36 3 TOAN NGUYEN MARSHA FOX -‐214019977 1 $112 13 3 TONY TRAN JENNIFER HALSO -‐

RYAN GREEN

Outstanding Applications: Offer Made & Issued Not Paid

• ExpeditesIssuedCasestoPay

Capacity Model-MOR

Area: New Business Analysts3/28/14

Loc Los Angeles 3/10/14

Mgr The Lab

Emp 12

Dates Jan 2014 - Dec 2014

ACT. NO. ACTIVITY UNIT OF MEASURE FREQUENCY VOLUME DAILY

VOLUME KVI TIME [mins]

STD HOURS

% OF STD HOURS ACTIVITY COMMENT

1. Annuities application processing and scrubbing Application Monthly 50 2.37 1.Yes 5.50 0.22 1%

2. Annuity: Reading/responding to case message Case Message Monthly 499 23.74 Non-KVI 1 1.77 0.70 4%

3. Annuity: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 25 1.19 Non-KVI 1 2.58 0.05 0%

4. Annuity: NOGO research Item Monthly 46 2.21 Non-KVI 1 3.22 0.12 1%

5. Annuity: NOGO related communication Item Monthly 46 2.21 Non-KVI 1 1.97 0.07 0%

6. Annuity: Notify agent on cases paid/ placed Application Monthly 50 2.37 Non-KVI 1 1.00 0.04 0%

7. Annuity: Submit and Coordinate Suitability Review Application Monthly 40 1.90 Non-KVI 1 3.90 0.12 1%

8. Annuity -‐ Check logging onto AOC -‐ Inbound Checks Monthly 5 0.24 Non-KVI 1 2.57 0.01 0%

9. Faxing/Imaging pages back into the case if missing Application Monthly 7 0.33 Non-KVI 1 17.50 0.10 1%

10. Annuity -‐ Processing of AOC -‐ Inbound Checks Monthly 200 9.52 Non-KVI 1 12.50 1.98 12%

11. Life Application -‐ processing and scrubbing Application Monthly 185 8.83 2.Yes 10.37 1.53 9%

12. Life Application: Reading/ responding to case message Case Message Monthly 2782 132.48 Non-KVI 2 1.73 3.83 23%

13. Life Application: Live communication with Agent/ UW [Proprietary] Call/ Discussion Monthly 185 8.83 Non-KVI 2 2.58 0.38 2%

14. Order Paramedical Item Monthly 93 4.42 Non-KVI 2 2.28 0.17 1%

15. Paramedical Follow-‐up Call/ Discussion Monthly 185 8.83 Non-KVI 2 2.45 0.36 2%

16. APS Follow-‐up Call/ Discussion Monthly 121 5.74 Non-KVI 2 5.70 0.55 3%

17. Preliminary Applications Application Monthly 9 0.44 Non-KVI 2 2.00 0.01 0%

18. Life: Case Scanning and Submission Application Monthly 278 13.25 Non-KVI 2 5.25 1.16 7%

19. Life: Check item in scan and image bin Application Monthly 278 13.25 Non-KVI 2 2.57 0.57 3%

20. Life: Check if issued cases are paid Application Monthly 0 0.00 Non-KVI 2 0.33 - 0%

21. Life: NOGO research Item Monthly 93 4.42 Non-KVI 2 3.22 0.24 1%

22. Life: NOGO related communication Item Monthly 93 4.42 Non-KVI 2 1.97 0.14 1%

23. Life: GOSC red/green edit resolution Item Monthly 93 4.42 Non-KVI 2 1.00 0.07 0%

24. Life: Mill Data Input and Application Tracking Item Monthly 185 8.83 Non-KVI 2 1.78 0.26 2%

25. Life: Print and file cases paid/ placed Application Monthly 185 8.83 Non-KVI 2 1.00 0.15 1%

26. Life Suitability Review Application Monthly 185 8.83 Non-KVI 2 3.90 0.57 3%

27. Life check scanning and depositing -‐ Inbound Checks Monthly 176 8.39 Non-KVI 2 2.57 0.36 2%

28. Disability Application processing and scrubbing Application Monthly 2 0.11 3.Yes 20.00 0.04 0%

29. DI: Data Collection Case Message Monthly 2 0.11 Non-KVI 3 10.00 0.02 0%

30. DI: Reading/ responding to case message Call/ Discussion Monthly 34 1.61 Non-KVI 3 1.73 0.05 0%

31. DI: Live communication with Agent/ UW [Proprietary]Call/ Discussion Monthly 2 0.11 Non-KVI 3 2.58 0.00 0%

32. DI: NOGO researchItem Monthly 0 0.01 Non-KVI 3 1.00 0.00 0%

33. DI: NOGO related communication Item Monthly 0 0.00 Non-KVI 3 1.97 - 0%

34. DI: Suitability review Application Monthly 2 0.11 Non-KVI 3 3.90 0.01 0%

35. DI: Pring and file cases paid/ placed Application Monthly 2 0.11 Non-KVI 3 1.00 0.00 0%

36. DI: Check scanning and depositing Checks Monthly 1 0.03 Non-KVI 3 2.57 0.00 0%

37. Brokerage Application Processing and Scrubbing Application Monthly 57 2.74 4.Yes 3.50 0.16 1%

38. B-‐D Nogo Research Item Monthly 29 1.37 Non-KVI 4 1.00 0.02 0%

39. BD: Reading/ responding to case message Case Message Monthly 287 13.68 Non-KVI 4 1.73 0.40 2%

40. BD: Live communication with Agent/ UW [Proprietary]Call/ Discussion Monthly 115 5.47 Non-KVI 4 2.58 0.24 1%

41. Brokerage NOGO communication Call/ Discussion Monthly 29 1.37 Non-KVI 4 1.07 0.02 0%

42. Brokerage Suitability Review Application Monthly 57 2.74 Non-KVI 4 1.78 0.08 0%

43. Brokerage -‐ check scanning and depositing -‐ Inbound Checks Monthly 57 2.74 Non-KVI 4 2.57 0.12 1%

44. B-D: Log sheet tracking and reportingApplication Monthly 57 2.74 Non-KVI 4 5.00 0.23 1%

45. Third Party Application Processing and scrubbing Application Monthly 30 1.41 5.Yes 5.45 0.13 1%

46. Third Party NOGO Research Item Monthly 15 0.70 Non-KVI 5 3.22 0.04 0%

47. Third Party NOGO Communication Item Monthly 15 0.70 Non-KVI 5 1.97 0.02 0%

48. Third Party Application Submission Application Monthly 30 1.41 Non-KVI 5 5.25 0.12 1%

49. Third Party B-‐D and VA Suitability Review Application Monthly 30 1.41 Non-KVI 5 3.90 0.09 1%

50. Term Conversions [Data Collection] Application Monthly 10 0.48 6.Yes 10.00 0.08 0%

51. Policy Change [Data entry] Application Monthly 10 0.48 7.Yes 10.00 0.08 0%

52. Generation of eLeads Application Daily 2 2.00 8.Yes 15.00 0.50 3%

53. Research of eLead polciies Application Daily 4 4.00 Non-KVI 8 10.00 0.67 4%

16.9

2.4

KVI 1: Annuities application processing and scrubbing 3.4

86.3

8.8

KVI 2: Life Application - processing and scrubbing 10.3

70.3

0.1

KVI 3: Disability Application processing and scrubbing 0.1

64.2

2.7

KVI 4: Brokerage Application Processing and Scrubbing 1.3

27.7

1.4

KVI 5: Third Party Application Processing and scrubbing 0.4

17.2

0.5

KVI 6: Term Conversions [Data Collection] 0.1

10.0

0.5

KVI 7: Policy Change [Data entry] 0.1

10.0

2.0

KVI 8: Generation of eLeads 1.2

35.0

Daily Volume of KVI 1: KVI 4: Brokerage Application Processing and Scrubbing

Composite Time per (1) KVI 1: KVI 2: Life Application - processing and scrubbing


Daily Volume of KVI 1: KVI 5: Third Party Application Processing and scrubbing

Daily Volume of KVI 1: KVI 7: Policy Change [Data entry]

Daily Hours Required by KVI 6Composite Time per (1) KVI 1: KVI 6: Term Conversions [Data

Collection]

Composite Time per (1) KVI 1: KVI 3: Disability Application processing and scrubbing

Daily Hours Required by KVI 4Composite Time per (1) KVI 1: KVI 4: Brokerage Application

Processing and Scrubbing

Daily Volume of KVI 1: KVI 6: Term Conversions [Data Collection]

Daily Hours Required by KVI 5Composite Time per (1) KVI 1: KVI 5: Third Party Application

Processing and scrubbing

ACTIVITY LIST - New Business Analysts

Daily Volume of KVI 1: KVI 2: Life Application - processing and scrubbing

Daily Volume of KVI 1: KVI 3: Disability Application processing and scrubbing


Revised Date:

Date Compiled:

Compiled By:

Total Daily Hours RequiredDaily Volume of KVI 1: KVI 1: Annuities application processing and

scrubbing

Composite Time per (1) KVI 1: KVI 1: Annuities application processing and scrubbing


Daily Volume of KVI 1: KVI 8: Generation of eLeads


Composite Time per (1) KVI 1: KVI 7: Policy Change [Data entry]


Composite Time per (1) KVI 1: KVI 8: Generation of eLeads

• Providesagencystaffforecastingtool

• FactFindingandCaseDesign

•Use XRAE for risk, price estimate

3 of 39March 25, 2014

© Lab Consulting Partnership, Inc.

es.sgo1.13.32.09.Bridge.Agency.140325

Reporting Provides Visibility on an Individual Level, Showing Variance between Agents

NOGO Rates Vary between Agency Sales Directors (ASD), Ranging from 33% to 60%

New Business Life Application Tracking Shows High Level Root Cause Error Areas Driving NOGOs

Life Application NOGO Rate by Agents Reporting to Robert Piscatelli(Feb. 3 - Mar. 21, 2014)

Bridge Financial Life Application NOGO Error Detail(Feb. 3 - Mar. 21, 2014)

Bridge Financial Life Application Tracker Raw Data(Feb. 3 - Mar. 21, 2014)

Life Application NOGO Rate by ASD(Feb. 3 - Mar. 21, 2014)

Bridge Financial: MetLife Proprietary Life Application Tracking

Raw Data Tracker Allows for Simple Filtering by Agency Sales Director and Specific Agent to Identify Detail behind NOGOs

0

10

20

30

40

50

60

70

80

Piscatelli, Robert No Manager Kliss, Elena Begun, Robert

Num

ber

of A

pp

licat

ions

ASD

2133%

4267%

1739%

2761%

2760%

1840%

3251%

63 44 4563

3149%

NOGO

IGO

0

3

6

9

12

15

Fiore,Braken A

Francis Jr.,Robert Eros

Stuart,Diane

Howe,Philip

Banks,Keith

Vitale,Peter

Viglione,Francis

Rafferty,Thomas

Alberico,Matthew J

Perinelli,Michael J

Rozzi,Matthew

Num

ber

of A

pp

licat

ions

Agent

750%

327%

873%

120%

480%

3100% 2

100%

480% 1

20%1

100%1

100%1

100%1

100%1

100%

750%

11 5 5 3 2 1 1 1 1 114

NOGO

IGO

0

5

10

15

20

25

30

Err

or C

ount

Application Section/Location

Total = 96 Errors

27

20

17

14

6

4 43 1

28%

21%

18%

15%

6%

4% 4%3% 1%

SupplementalForms

Section V:About Existingor Applied for

Insurance

Section IV:About Proposed

Coverage

Section I:About Proposed

Insured

Section III:About the

Beneficiary

Section VI: Payment

Information

Section VII: General Risk Questions

Section VIII: PersonalPhysician

Section II:About the

Owner







PlacematAgency Support Group

Agent

ClientCo

Capacity Utilization Reports

• Provides volume forecasts– Hourly– Daily– Weekly

• Calculates staffing needs• Sets productivity targets

Capacity Model

Management Operating Reports (MORs)

• Tracks volume and:– Productivity– Unit Cost– Service– Quality

• Compares actual to targets



Data Filters










Daily View

Dates

2/1/2016

2/2/2016

2/3/2016

2/4/2016

2/5/2016

2/6/2016

2/7/2016

Call Type

Inbound

Internal

Outbound

Unknown

Call Center

_Rhq

Corona

Fulton

Lowry

CSR Location

Home

Office

Team

Abigail Pulido

Adrian Hutt

Andrea Lopez

Annette Bronson

Antoine Jacobs

April Hale

Brando Campos

Ops Manager

Alice Holmes

Cindy Rupert

Dylan Deshazier

Heather Avila

Kathleen Stone

Keith Dineen

Kenneth Bailey

Employee Name

Aaja Austin

Aarika Scott

Aaron Cayabyab

Aaron Hairston

Abdisamad Hussein


Abril Howard

Management Dashboard

ACTIVITY CUBE

I

III

IV

II


Knowledge Work Factories

Enterprise Level

The Cube “Industrializes” Knowledge Work across the Enterprise

Knowledge Work: Squandered Assets

The business practices and methods – the activities – of knowledge workers represent a form of intangible asset called “competencies.” These knowledge work assets are:

• Highly valuable

• Inconsistent

• Under-productive

The Lab’s Activity Cube increases the consistency and productivity of these assets by enabling application of conventional “shop floor” standardization methods.

The Lab’s Term: “Industrialization of Knowledge Work” (page 26)

Finance

Mfg. Plant Manager

Plant Ops Manager

Production 100Intake Finishing

300

Scheduling

COO Research & Development

Knowledge Work Factories

Manual Labor Plant Equipment Waste, Scrap

Conventional Shop Floor Standardization

Industrial Engineering

Quality Management

Marketing Sales Force

Production 200

Field Sales & Support

Quote-to-Cash

Customer Service

Procure-to-Pay

Contact Centers

Master Data Management

Materials Management

Distribution

Supply Chain Operations

“Upstairs Factories”Plant & Business Level

Knowledge Work

Conventional FactoryPlant Floor Level

Direct Labor

CEO

Business Level

Knowledge WorkIndustrialization®

Understand how two-thirds of knowledge workers’ activities can be “industrialized” to recover the business value lost to Virtuous Waste

26


Perception: Non-Routine WorkCommon perception holds that Knowledge Workers “solve non-routine problems… that require creative thinking.1”

Reality: Repetitious WorkHowever, observations show that two-thirds of Knowledge Workers’ tasks are mundane and repetitious 2,3 – ideal for “industrialization.”

Penalty: Virtuous WasteWithout industrialization, knowledge workers spend 25-40% of their time on avoidable activity – Virtuous Waste. (page 5)

Knowledge Work Tasks2,3

33%non-routine

67%similar,repetitive

Most Knowledge Work Activities (67%) Can Be “Industrialized”

Knowledge Work: Intangible Assets

Knowledge work activities (or competencies) are valuable, overlooked and under-productive assets. This under-productivity erodes 20% of earnings3 (page 30).

Industrialization can recoup these lost earnings.

“Knowledge Work Industrialization”

The Lab’s term for the centralized design and management of work activities to achieve:

• Simplification

• Standardization

• Design for automation

“Our group’s work is unique.”

1 W. Reinhardt, B. Schmidt, P. Sloep and H. Drachsler, “Knowledge Worker Roles and Actions—Results of Two Empirical Studies,” Knowledge and Process Management, 18 (2011): pp 150–174.

2 Ian Brinkley, et al., Knowledge Workers and Knowledge Work (London: The Work Foundation, 2009), p 52.

3 The Lab’s analysis & experience.

“My job is so different every day.”


Intangible Assets: Dominant Value, Under-Productive Spending

Intangible Assets Now Dominate S&P Market Value

Business Spending on Intangible Assets: Under-Productive

Intangible Assets: High Spend, Low Return

U.S. business spends heavily on its intangible assets (or, intangible capital) – more than any other economy. Historically, this spending increased productivity.3

Labor productivity growth remains slow.

Knowledge workers have grown to represent the majority of employees in advanced economies like the U.S.

S&P Market Value1

1975 vs. 2015U.S. Five Year Cumulative Gains2,3,4

Y.E. 2010

19750%

25%

50%

75%

100%

2015

Intangible Assets

Tangible Assets

Intangible Assets

Tangible Assets

40%

16%

12%

8%

0% 10% 20% 30% 40%

Intangible Asset Growth

S&P 500 Total Return

GDP Growth (Nominal)

Labor Productivity

Growth

1 Annual Study of Intangible Market Value, 2015, Ocean Tomo, LLC.

2 K.A. Hassett, R.J. Shapiro, “What Ideas Are Worth: The Value of Intellectual Capital and Intangible Assets in the American Economy,” Sonecon, White Paper, 2011.

3 C. Corrado, J. Haskel, C. Jona-Lasinio, M. Iommi, “Intangible Capital in Advanced Economies: Measurement Methods and Comparative Results,” Institute for the Study of Labor, July 2012.

4 The Lab’s analysis.


Knowledge Work “Competencies”: The Majority of Intangible Assets

Intangible Assets by Category: U.S. Publicly Traded Companies1 Intellectual Property: The Misinterpretation

Most executives believe that patents, trademarks, copyrights and goodwill represent the entirety of intangible assets.

But knowledge work activities comprise over 70%.

Knowledge Work: The “Expense Stigma”

Accounting rules require that valuable knowledge work competencies be recorded as expenses.

Managers view expenses as targets for reduction, not as “assets” needing investment for productivity improvement – industrialization.

That’s why knowledge work organizations are routinely starved for productivity management and investment.

$10.6TCompetencies

2 Types2

$3.9TIntellectual Property• Patents

• Trademarks

• Copyrights73%

27%

1 K.A. Hassett, R.J. Shapiro, Ibid.2 C. Corrado, et al., Ibid.

Legend

Assets on the Balance Sheet

Expenses on the Income Statement

General Competencies• Databases

• Information

• R&D

Firm-Specific Competencies• Knowledge

• Practices of:– Managers– Workers

1 2

(U.S. Total = $14.5 Trillion, 2010)

Knowledge Work Competencies (Activities)


Under-Productive Intangible Assets = Costly Virtuous Waste

Virtuous Waste Reduction: No Technology Needed

• Virtuous Waste costs are “paid” from earnings already generated by the business.

• Reductions in Virtuous Waste costs drop straight to the bottom line – as earnings.

• 75% of Virtuous Waste costs can be eliminated without technology (page 10).

• Improvements that reduce Virtuous Waste can be implemented in six months or less.

1 Excludes service workers (e.g. food, retail, hospitality)

2 Based on The Lab’s experience, analysis and benchmarks

3 $60K annual compensation & benefits4 Based on Fortune 500 P/E of 16;

Source: Fortune Magazine

Measurement Imbalance

Customer Over-Service

55% (1.65M)

20% (0.60M)

15% (0.45M)

10% (0.30M)

Business Process Inefficiency

Under-Managed Capacity

Knowledge Work, Virtuous Waste & The Fortune 500

Virtuous Waste Is Concentrated in Knowledge Work Business Processes

(3 million employees = 100%)

Virtuous Waste Squanders $3 Trillion in Shareholder Value

• 10 million1,2 total knowledge workers are employed in the Fortune 500

• 30 percent of their work activities are avoidable Virtuous Waste

• 3 million3 full-time equivalent workers perform avoidable Virtuous Waste activities

• $180 billion3 is spent on compensation to these Virtuous Waste workers

• 20% of earnings are diverted to this Virtuous Waste compensation

• $3 trillion4 in value to shareholders is lost to Virtuous Waste

More than double the combined market value of Apple, Microsoft and Google was lost to Virtuous Waste in the Fortune 500 during 2015.

2 Virtuous Waste Lost Value

AppendixNon-Technology Improvement: Representative examples

of analysis, insights and related improvement barriers

31


Typical Mismatch of Perceptions: Management vs. Customers

Customer Value Model: Compares Perceptions

Contact Center Example

The Lab’s Customer Value Model (CVM) identifies errors of perception, which produce customer “over-service” or “mis-service.”

Inbound Call Issue

Recent retirees called the ClientCo Contact Center and asked, “When will I receive my first pension check?”

Executives mis-perceived the root cause that generated these retirees’ inbound calls.

“Sooner!”

Customer Needs

Prompt first payment

General information

Courteous service

One-stop shopping

Admin. quality

2.

1.

3.

4.

5.

Management Perceptions

“Sooner!”

ClientCo’s Internal Improvement Team

• ClientCo: “ Retirees want their first check sooner.”

• Purchased a technology upgrade – Cost: $2.7 million– Lead time: 26 months

• The upgrade reduced check issue cycle time by two-thirds.

The Lab’s Customer Value Model (CVM)

• Customer: “ Nobody told me when to expect the first check.”

• ClientCo: “ Retirees never listen. The info is in their pocket folder.”

• Pocket folder – user-unfriendly:

– More than one-inch thick

– 60 loose-leaf pages

• The Lab’s non-technology solution: – Placed Post-it® note on pocket folder – Eliminated 60% of “1st check” inquiries “When?”

Customer Needs

Investment security

Admin. quality

Personalized service

General information

Accessibility

2.

1.

3.

4.

5.

Customer Perceptions

“When?”


Executive Misbeliefs

During interviews, ClientCo senior executives identified their perceptions of the top 5 purchase-related customer needs.

Result: Mis-perceived needs, priorities and satisfaction scores (%).

Improvement Strategy

Executives directed ClientCo’s marketing group to develop a new strategic plan to increase ad revenue, targeting what ClientCo mis-perceives to be their customers’ top three needs.

Market-Level Example (Part I of II): Executive Misperceptions

LEGEND

Indicates a mis-match between management and customer perception.

Indicates a match between management and customer perception.

Indicates a “blind spot” based on ClientCo internal perception of customer needs.

Indicates a “purchase need” targeted as a “high priority” by ClientCo strategy.

Customer Value Model Analysis

ClientCo Perceptions Senior Executives’ Misbeliefs

3 “New” Priorities Already Over-Served

Customer Perceptions “True” Purchase Needs, Priorities

* Management perception of customers’ satisfaction

Customer Needs & Priorities

Quality (of print) . . . . 83%*

Cost/Price . . . . . . . . . 65%

Timeliness . . . . . . . . . N/A

ROI . . . . . . . . . . . . . . . 80%

Customer Service . . . . 74%

2.

1.

3.

4.

5.

Amount of response advertising receives . . . . . . . . 63%

Quality (of advertising operations) . . . . . . . . . . 82%

Amount spent vs. response received (ROI) . . . . 53%

Efficiency in delivering demographic targets . . . . . . 86%

Ability to choose ad position . . . . . . . . . . . . . . . . . 51%

ClientCo’s Response New, Misdirected Sales Strategy

6. Easy to do business with . . . . . . . . . . . . . . . . . . . . 88%

7. Rep’s ability to act as a partner to my business . . . . 93%

11. Portfolio of products & multimedia packages . . . . 110%

New Sales Strategy:

Increasing Ad Sales

1

4

5

A

B

ClientCo’s executive view is poorly aligned with its customers’ purchase priorities...

ClientCo created a “new” strategy for improvement. But it only “doubles down” on 3 existing mis-perceptions (next page).

... and its customers’ perceptions of satisfaction levels (%).


LEGEND

Indicates a mis-match between management and customer perception.

Indicates a match between management and customer perception.

Indicates a “blind spot” based on ClientCo internal perception of customer needs.

Indicates a high-priority “purchase attribute” targeted by ClientCo strategy.

Market-Level Example (Part II of II): Mis-Perceived Market Segments

Customer Perceptions of ClientCo Performance Levels:

Under-Served (-15% or more)

Approximate parity/ minor shortfall (0 – 15%)

Over-Served (+5% or more)

Customers’ Purchase Criteria

1 Amount of response advertising receives

2. Quality of advertising environment

3. Amount spent vs. response received (ROI)

4 Efficiency in delivering demographic targets

5 Ability to choose ad position

6. Easy to do business with

7. Rep’s ability to act as a partner to my business

8. Ability to target by geography

9. Sheer size of overall audience reached

10. Lowest out-of-pocket cost

11. Portfolio of products & multimedia packages

Clie

ntCo

Und

er-S

erve

sCl

ient

Co O

ver-

Serv

es

-37% -51% -37% -35% -26% -37% -47% -18% -44% -46% -30%

-18% -50% 12% 15% 7% +11% -17% -45% 6% +19% -32%

-47% 4% -51% -59% -21% -33% -64% -74% -57% -52% -46%

14% -33% 0% 13% 26% +25% -31% 6% 1% -23% -27%

-49% -32% -51% -64% -37% -67% -58% -54% 12% -63% -53%

12% +33% -50% +5% +7% -19% 10% -36% +1% 4% 13%

7% -28% 8% 7% +7% 2% +8% -31% 1% 0% 4%

4% +100% -35% 14% 13% -51% 9% +20% +20% +6% 10%

+9% 4% -36% -25% 0% +13% +33% +11% 9% 8% N/A

-73% -34% -100% -67% -78% -77% -66% -60% -88% -76% -80%

+10% -63% +22% +6% +36% +300% -37% -37% -37% +99% +16%

ClientCo – Marketplace “Sweet Spot”Top 5 Market Segments; Top 5 Market Criteria

1Dept. Stores

2

Wireless

3Real

Estate

4

Banks

6

Travel

7

Jewelry

8National

Auto

9

Fashion

10Home

Furnishings

5

Discounters

SegmentAverage(1-10)

Customer Value Model Analysis (Cont.)

1

4

5

To succeed, ClientCo must redirect efforts to these under-served customer priorities


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Decision Point: Yes/No

Never sentWrong locationLost in transit

Delayed

Wrong dataExcess dataMissing dataIncomplete

Over serviceScope error

ReworkOver work

Error correctParallel processing

FrequencyDuration

SizeComplexityVariance

Underinvestment

Capacity issue

Out of dateNot availableIncomplete

Lack of detail

Operator skillBacklog

Capacity issue

No planBacklog

Capacity issue


Capacity issue

No metricsOperator skill

BacklogCapacity issue

No auditOperator skill


Internal errorLow quality


Capacity issue

Not Sent

TransitArrive Good

Order

Not Arrive NIGO

Routine

Not Routine

Non-Eliminable

Eliminable

Non-Reducible

Reducible

Meet orExceed Plan

Below Plan

Complete

Incomplete

Instructions

NoInstructions

RelevantInstructions

IrrelevantInstructions

Processable

NotProcessable

ProcessPlan

No ProcessPlan

PlanFollowed

Plan NotFollowed

PassReview

Not PassReview

Transit

INBOUND

35%of Improvements

OUTBOUND

10%of Improvements

“IN SHOP”

The KnowledgeWork Factory

55%of Improvements

ReceiveTransit TransitPerform the Work & Optimize ProcessesEvaluate, Eliminate & Redesign the Work

YES

NO

YES

NO

Causes: Top Four(page 37)

The Lab’s Periodic Table of Business Improvements...


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Decision Point: Yes/No

Never sentWrong locationLost in transit

Delayed

Wrong dataExcess dataMissing dataIncomplete

Over serviceScope error

ReworkOver work

Error correctParallel processing

FrequencyDuration

SizeComplexityVariance

Underinvestment

Capacity issue

Out of dateNot availableIncomplete

Lack of detail


Capacity issue

No planBacklog

Capacity issue


Capacity issue

No metricsOperator skill


No auditOperator skill


Internal errorLow quality


Capacity issue

Not Sent

TransitArrive Good

Order

Not Arrive NIGO

Routine

Not Routine

Non-Eliminable

Eliminable

Non-Reducible

Reducible

Meet orExceed Plan

Below Plan

Complete

Incomplete

Instructions

NoInstructions

RelevantInstructions

IrrelevantInstructions

Processable

NotProcessable

ProcessPlan

No ProcessPlan

PlanFollowed

Plan NotFollowed

PassReview

Not PassReview

Transit

INBOUND

35%of Improvements

OUTBOUND

10%of Improvements

“IN SHOP”

The KnowledgeWork Factory

55%of Improvements

ReceiveTransit TransitPerform the Work & Optimize ProcessesEvaluate, Eliminate & Redesign the Work

YES

NO

YES

NO

Causes: Top Four(page 37)

...Helps Target Predictable Causes & Effects


Improvement Documentation, Root Causes & Effects

A Typical Improvement: DocumentationMethodology: Failure Mode & Effects Analysis (FMEA)

Root Causes & EffectsAverages for All Improvements (Knowledge Work)

I.270

Half of import fees for Accounts Payablegroups have errors; 70% have exceptionsthat require research and resubmission.Poor documentation and errors causerework that consumes 35% of staff time.

Mode:

Effect:

Cause:

NIGOa: Wrong Data

a NIGO = Not in Good Order

50% wrong data70% exception review

4-5 days;35% of staff time

ProcessingDelay

Mandatory fields not identified/enforcedAmbiguous requirements for certain fields

2

CauseThe root cause of the failure

EffectThe adverse consequence of the failure

a. Direct effect of the failureon the work flow

b. Frequency and severityof the effect

2

1

1

95%

0% 5% 10% 15% 20% 25% 30%

All Others

Non-Routine

No Instructions

No Process Plan

Not in Good OrderNIGO

0% 10% 20% 30% 40%

All Others

Reduced Throughput

Poor Customer Service

Unbalanced Work

Processing Delay

Rework 32%

21%

18%

12%

12%

5%

25%

10%

25%

20%

20% 90%

1 Causes: Top FourTotal = 100%

2 Effects: Top FiveTotal = 100%

“Class I” meansNon-Technology

(page 10)

ImprovementNumber

37

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