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www.ing-presentations.intranet Biography Marc Eckenhuijsen Smit

When Marc started his banking career 25 years ago at the front office of a Large Dutch General Bank, he soon found

himself redesigning the request form for commercial loans. Why? He thought it was incredible that commercial employees

like himself could only spend 20% of the time available on commercial activities. Most of the time front office personnel

spent was on getting right what initially went wrong. There was no adopted work standard, so he created one.

Streamlining the application process led to fewer iterations with Risk Management and therefore delivered a more

predictable outcome to the customers and increased commercial time available at the same time. Two years later the

bank rewarded his initiative with the company quality price of the year.

Many more initiatives and 12 years later Marc was given the opportunity to speed up the learning curve from the entire

banking organization and in 2005 he became Director Branch Operations & Change. Since then Marc was responsible for

over 100 process optimizations throughout the company and became Operational Excellence Transformation lead (Lean

Six Sigma Champion) within ING Netherlands. To support the transformation, Marc created a strong support organization

with over 35 Lean Six Sigma Black belts, 10 operational intelligence consultants and a strong BPM function.

One of Marc’s many lessons

People have a tendency to hear what they want to hear. Company-wide transparency on relevant operational

performance facts is one of the crucial elements to start the wheel of continuous improvement and to start moving

from unconsciously incompetent to consciously incompetent and further up.

The Operational Performance Management team currently gives insight in the end-to-end

operational performance from all the key processes of the organization. The facts they

deliver are crucial for the regular performance dialogues between the COO, the value chain

managers and team sessions at the work floor. They are fueling continuous learning, and

are essential in becoming and staying a high performing organization.

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A matter of facts

Operational Performance Management at ING NL

Marc Eckenhuijsen Smit

Director Operational & Change Intelligence at ING Bank NL

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www.ing-presentations.intranet ING Bank at a glance

About ING Bank

• ING Bank is part of ING Group, a global financial institution of

Dutch origin. Since January 2011, ING Bank has been operating

as a stand-alone company under the umbrella of ING Group. The

Group is working towards a full separation of Banking and

Insurance businesses by the end of 2013.

• ING Bank is a large international player with strong established

positions in the Northern European markets of the Benelux,

Germany and Poland, and a presence in other Western European

and developed markets, including the US and Canada. It has key

positions in Central and Eastern European markets, including

Romania and Turkey.

• ING is a leading Commercial Bank in the Benelux and CEE and

has strong global franchises in Specialized Finance and Financial

Markets. Our global clients are supported through an extensive

network in more than 40 countries.

Retail Banking

• ING Bank is the # 2 bank in the Netherlands and # 4 in Belgium

Offering services directly when possible, with advice when

needed

• Continuous focus on execution and process improvements to

improve client experience and lower costs

• ING Direct is among the world’s leading direct banks with almost

16.7 million customers and EUR 336.2 billion in total client

balances.

Income and results Underlying income 2011: €15,854m (2010: €16,816m)

Underlying net result 2011: € 3,384m (2010: €4,242m)

Number of employees and customers

ING Bank has 68,000 employees worldwide

We have around 37 million customers in over 40 countries

Strategy 2012 – 2015 ING Bank globally

• By 2015 we want to be a strong predominantly European focused

bank with a low risk balance sheet.

• Our Commercial Banking business will continue to play a leading

role in the Benelux and Central and Eastern Europe.

• We want to selectively evolve our ING Direct franchises into

mature banks.

3

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www.ing-presentations.intranet ING Bank Netherlands

Key Characteristics • 2007- 2012 ING Bank and Postbank merged into new ING Bank

• Strong in market penetration (8,90 million customers)

• Nr 2 Bank in Netherlands

• 28.000 employees

• Strong centralised footprint and internet base (4 million customers on line)

• Branches: 273

• Net result 2011: €1,100/m

Market characteristics: • Mature Market => Customers are in the lead => Service is key

Measurement => Net Promoter Score

• Mature Market => Price competitive => Operational Excellence = necessity

Measurement => First Time Right/Throughput time and Cost/Income Ratio

4

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www.ing-presentations.intranet

2008 - 2009 2010 – start 2011

Base camp Show potential

Camp 1 Gaining

control

Improvements

(LSS)

3

2

Set objective

• Measure customer transactions in the VC

• Delivery guarantee dashboards in VCs 1

• Service guarantees and delivery guarantees

• Get recognition for success

• Build knowledge LSS and OM

• Experiment with architecture

• Work with LSS tools

• Use of architecture

• Initiatives out of VC-steering

• Continuous improvement

• Further use of architecture

• Training line management in LSS / VC steering+

• Focus on investments and savings

Measurement

4

• Measure team performance

• Start to plan performance management

• Meet E2E VC performance

• Start E2E planning

• Build uniform, flexible reports across VCs

• Build tool with real-time, cascading in-sights

• Introduce VC-steering method

• Governance, clear vision and performance dialog VC steering

• OM and E2E VC management

• Broaden target audience towards entire VC

• Obtain sponsors, create awareness

• Recognize and share best practices

• Governance, compensation focus on output

• Continuous Improvements is part of daily work

Q1 – Q3 2011 Q4 2011 – Q2 2012

Our journey until now: from Base camp in 2008 to Camp 3 Now! Phasing of our Operational Excellence journey

Unconscious

incompetence Conscious

incompetence

Conscious

competence

Unconscious

competence

End state Continuous

improvement

• Clear and smart strategy for every one

• Empowered workforce

• E2E and fact based

• Strong performance dialog

• Quality is dominant driver. Time and money derivative

• 100% transparency

Camp 2 Deliver on

promise

Camp 3 Ownership on

output

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Guideline

www.ing-presentations.intranet To bring Operational Excellence to the “next level” cooperation within and between value chains is needed

Sense of urgency around the consequences of

silo management must have set ground …

…and skills & willingness have to be

created to cooperate around value

creation

6

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www.ing-presentations.intranet We’ve facilitated this with E2E steering through a proprietary method: Customer Value Chain Steering (Dutch: Klant Keten Sturing)

KPI-Tree

“Regarding the Organizational hierarchy

related and influencable KPI’s that

endorses the vision.”

4

Yearly

Monthly

Weekly

Daily

Vision Meeting

Value chain

End-to-end processes

Channel/Back Office

AGENDA

- Subject 1

- Subject 2

- Subject 3

Performance dialogue incl. meeting structure

“Efficient, short, highly frequent control moments in

which the effects of ATTITUDE AND BEHAVIOR on

performance and continuous improvement become

visible.”

6

Roles and

responsibilities

“All value chain stakeholders acknowledge their

CONTRIBUTION to the performance and act on it. “

3

Proces-

step 1

Proces-

step 2

Proces-

step 3 KP

I

KP

I

KP

I

KP

I

Mission and vision 2

“Relevant PROCESSES for the customer needs and

its following GOALS form the scope of its mission

and vision. “ Customer 1

“Customer need is the

starting point for

sustainable VC steering”

Dashboards “ Representable, Up to

date STEERING and

MANAGEMENT

INFORMATION for

monitoring the

performance, a starting

point for continuous

improvement.”

5

Sustainable implementation VC-steering demands

customer centricity

7

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www.ing-presentations.intranet One of the maturity steps we had to take

Team 6

00-01-00

TIJD: 15:00

TEAM KPIs Realisatie Target

Gemiddelde aanwezigheid % 85% 80%

Gemiddelde beschikbaarheid % 86% 80%

Gemiddelde productiviteit % 101% 100%

T.E. % 87% 80%

T.T.E. % 74% 80%

Kwaliteit input (FTR) % 89% 83%

PLANNING REALISATIE

TOTAAL UREN WERK GEPLAND uren 104,40

UREN WERK GEREALISEERD uren 105,55

NOG TE DOEN uren -1,15

BESCHIKBAAR PRODUCTIE UREN uren 3,60

PROGNOSE REALISATIE J

Operational Management - LEAN

Value chain 2. Cards januari 2011

Proces 2.01 Aanvraagproces creditcards ALLE KANALEN (inclusief fulfilment) Owner

Vorige Huidige Vorige Huidige

1. Doorlooptijd - Aantal binnen de norm 4.468 6.633 ≤ 11 kal.dgn

2.1 Aantal - Nieuwe instroom E2E 7.929 11.118

2.1.1 Aantal - Nieuwe instroom - call E2E 2.688 3.659

2.1.2 Aantal - Nieuwe instroom - internet E2E 1.876 2.876

2.1.3 Aantal - Nieuwe instroom - kantoren E2E 2.033 3.011

2.1.4 Aantal - Nieuwe instroom - mail E2E 1.332 1.572

2.2 Aantal - Onderhanden werk E2E 246 128

2.3 Aantal - Uitstroom E2E 5.973 8.867

3.a. Uitval - Totaal aantal uitval (absoluut) E2E 1.710 2.123

3.b. Uitval - Totaal uitval (relatief tov uitstroom) E2E 21,6% 19,1%

3.1 Uitval - Aantal uitval door afwijking Output kwaliteit E2E A1

3.2 Uitval - Aantal uitval i.v.m. terug naar klant E2E 1.286 1.565

3.3 Uitval - Aanvraag komt nooit aan bij einde proces 131

3.3.1 Uitval - Aanvraag komt nooit aan bij einde proces - Zwart gat 131

3.3.2 Uitval - Aanvraag komt nooit aan bij einde proces - Onbruikbare aanvraag

3.3.3 Uitval - Aanvraag komt nooit aan bij einde proces - Overige redenen

Vorige Huidige Vorige Huidige

1. Doorlooptijd - Aantal binnen de norm 100,0% 100,0% ≤ 1 wdg

2.1 Aantal - Nieuwe instroom 7.929 2.876

2.1.1 Aantal - Nieuwe instroom - call 2.688

2.1.2 Aantal - Nieuwe instroom - internet 1.876 2.876

2.1.3 Aantal - Nieuwe instroom - kantoren 2.033

2.1.4 Aantal - Nieuwe instroom - mail 1.332

2.2 Aantal - Onderhanden werk - -

2.3 Aantal - Uitstroom 6.219 8.995

3.a. Uitval - Totaal aantal uitval (absoluut) 1.710 1.565

3.b. Uitval - Totaal uitval (relatief tov uitstroom) 21,6% 54,4%

3.1 Uitval - Aantal uitval door terugsturen naar eerdere afdeling 424

3.2 Uitval - Aantal uitval i.v.m. terug naar klant 1.286 1.565

3.3 Uitval - Aanvraag komt nooit aan bij einde proces 131

3.3.1 Uitval - Aanvraag komt nooit aan bij einde proces - Zwart gat 131

3.3.2 Uitval - Aanvraag komt nooit aan bij einde proces - Onbruikbare aanvraag

3.3.3 Uitval - Aanvraag komt nooit aan bij einde proces - Overige redenen

YtD

Jane Lobbrecht

NPS Score

Klachten #

Nieuwe metingenYtD Prognose YtD

OI DashboardPeriode (maandnummer - jaar)

Prognose YtD

E2EMetingen volledige maand

Klantnorm

COMetingen volledige maand

Norm CONieuwe metingen

1.2. E2E - Doorlooptijd van afgewezen aanvragen in kalenderdagen

0

100

200

300

400

500

600

700

800

900

1000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 >30

aanta

llen

huidige maand

vorige maand

1.1. E2E - Doorlooptijd van toegewezen aanvragen in kalenderdagen

-

500

1.000

1.500

2.000

2.500

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 >30

aanta

llen

huidige maand

vorige maand

2.1. CO - Doorlooptijd van verwerkte aanvragen in kalenderdagen

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 >15

aanta

llen

huidige maand

vorige maand

2.2. CO - Ouderdom onderhanden werk in kalenderdagen

-

0

0

1

1

1

1

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 >15

aanta

llen

huidige maand

vorige maand

Service Guarantees: VC in control

Scan je klant!

Scan your customer! – Individual Customer

measurement

From steering on TTE to

monthly steering on E2E

VC…

...from monthly steering

on E2E VC to weekly and

daily performance

dialogues based on

customer experience.

Spot On

Scan your Customer!

8

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Guideline

www.ing-presentations.intranet Performance dialogues are moments of insight

The power of one single point of truth on operational data has been proven successful.

1. Dashboards must give correct

data (single point of truth)

2. Lay-out and presentation have to

encourage use

3. All value chain members have

access to information

4. Users can make their own ‘what

if’-analyses

5. Paperless makes data place

independent

6. Constant check on redundancy

of data

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www.ing-presentations.intranet

Product Portal gives critical insight to start analysing process performance

Bizmap

Indicators

Graph

Appendices

Information

Action list and

Analysis

1

2

3

4

5

6

1

2 3

4

5

6

10

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www.ing-presentations.intranet Different views possible by using the Bizmap

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www.ing-presentations.intranet

12

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www.ing-presentations.intranet Portal Process level – example

SIPOC

Action list

& Analysis

Information

Channels

Indicators

Gauge

1

2

3

4

5

6

2

3

4 5 6

1

7

Graphic 7

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www.ing-presentations.intranet

Portal Teamlevel gives insight in the daily performance on the floor.

Team,

Cluster &

Proces

Action List

Graphics

(variable)

Indicators

Appendix

Information

1

2

3

4

5

6

2

3 5

6

7

1

8

Gauges 7

Graphics

(DLT + #)

4

8

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Example of a channel report

15