Post on 25-Feb-2016
description
Aligning Strategy, Execution, and Organization
TPE Management Framework®
Templates for each performance driver
9
… Comprehensive, Complete, Consistent set of Frameworks ….
6 Drivers of Excellence
Portfolio Organizational PerformanceExcellence
Operational
MarketingReputation
Financial
Communication /Knowledge Mgmt
VisionMissionStrategy
Adapt, Innovate,Improve Planning,Objectives
KPI’s
Audit/ControlIntegrity
Mission and Strategic DirectionMission To be the customer’s preferred choice by setting the standard in…………..
Align your mission statement with the Group’s mission
Resulting In: • Gaining market share from ___% to ___%• Sales growth of ___% p.a.• Net profit growth of ___% p.a.• Cost/Income ratio <50%
Through: (Strategic Direction) • Organic growth (complete slide 3 & 4)• Inorganic growth (complete table in slide 6)• Additional partnerships• Fixing unprofitable business units
Please provide further explanation of strategic direction in Slide 4 whereby you can refer to the industry overview, SWOT and competitive analysis outlined in the attachments
Mission and Strategy
Proposed Strategic Direction for 2012-2014Illustrative Draft: Please update this slide with Strategic Direction for your Business Unit
[Please highlight the new/modified items from the previous MTP in a different colour]
retail shops
Mass
Department stores
Businees line (soccer)
Business line (hockey)
shoes
Bags
Own shops
Higher middle
Business (Golf)
Women
Distribution
Direct
Shirts
Apparweil
Grow ??
Selectively enter new segments
Products
Increase focus on ??
Increase market presence
More profitable new products
SME
Customer
Reach
Business
Existing Core of our business
- - - -
- - - -
New Cities
Describe which distribution channel to grow?
Mention existing and future lines of
business
Describe which new segments?
Mention existing and future product
offerings
Further explanation of Strategic Direction
REACH
BUSINESS
PRODUCTS
DISTRIBUTION
CUSTOMER
Please
elabora
te on the plan
ned strate
gic initia
tives fo
r your B
usiness
Unit
highlighted in the previous s
lide
Strategic Priorities
[Please highlight the new/modified priorities from the previous MTP in a different colour]
8. Expand organisational capabilities, including management development
9. Improve Performance Culture
16. Raise $ capital +debt17. Expand value-based
management 18. Strengthen risk mgt19. Improve MIS & Control
Portfolio4. Introduce profitable new
product offerings5. Increase profitable multi-
channel sales6. Develop strategy for
youngsters and women7. Strengthen Customer
Satisfaction
Organisational
Reputation Financial
1. Double digit organic growth
2. Active portfolio management (M&A), including better allocation of capital
2. More and stronger partnerships
13. Increase brand recognition
14. Strengthen compliance
14. Communicate clearly to internal/external stakeholders
• Ensure Integrity, Ethical behavior in all areas
10. Increase efficiency and distributor/customer satisfaction
11. Improve operational risk management
11. Obtain / maintain satisfactory audit rating
Marketing
Operational
PORTFOLIO
Strategic Priorities• Double digit organic growth• Active portfolio management (M&A), including better allocation
of capital (please complete table below)• More and stronger partnerships (please list names in slide 16)
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Portfolio Excellence
Illustrative: Please update this slide with strategic priorities for your Business Unit
Current and/or Potential M&A Deals / Strategic Partnerships Strategic Rationale Estimated Cost
(€mn)Estimated
timingExpected profit impact
(€mn)
Inorganic Growth
MARKETING
Strategic Priorities• Introduce profitable new product offerings• Increase profitable multi-channel sales• Develop strategy for youngsters and women segmentation • Strengthen Customer Satisfaction
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Please note that marketing is the sum of Customer segments, Products and Distribution channels, including their interdependencies. In this section, you should be consistent with the strategic direction as captured in the Spider slide (Page 3-4). If that is self explanatory, reference can be made to these slides and no further explanation is needed.
Marketing Excellence
Illustrative: Please update this slide with strategic priorities for your Business Unit
Customer Segments
• Customer Segments • Lower Middle Income (%)• Middle Income (%)• Higher Income (%)• SME (%)• Other (%)
‘11E ‘12F ‘13F ‘14F
Number of Customers (‘000)
Sales/Customer (€)
Cross sell ratioCustomer Satisfaction <Goals>
Any comments• ………..
Port
Mkt
Org
OpsFin
PerfRep
Service Improvements• ………..
Driver Objectives & Measures
Towards Performance Excellence
Present
Customer Excellence
Sales & Distribution Port
Mkt
Org
OpsFin
PerfRep
Soccer product line:• Shoes• Socks• Shirts• Training clothes• ballls
Sub Total (a)
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Sales & Distribution Excellence
‘11E ‘12F ‘13F ‘14F
Hockey product line• Shoes• Shirts• Training clothes• BallsSub Total (b)
Other Products lines• Shoes• OtherSub Total (c)
Total Sales (a+b+c)
Product Mix
Sales & Distribution Port
Mkt
Org
OpsFin
PerfRep
Soccer products by retail shops• Shoes• Socks• Shirts• Training clothes• etcSub Total (a)
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Sales & Distribution Excellence
‘11E ‘12F ‘13F ‘14F
Hockey products by own shops• Shoes• Socks• Shirts• etcSub Total (b)
Other Products by own shops• Books• Balls• OtherSub Total (c)
Total APE (a+b+c)
Product mix by distribution channel
Port
Mkt
Org
OpsFin
PerfRepProduct
New Products to be launched• New Product [ 1 ] for [ x ] distribution channel• New Product [ 2 ] for [ y ] distribution channel• New Product [ 3 ] for [ z ] distribution channel
Products to be eliminated / lower sales • Product [ 1 ] for [ x ] distribution channel• Product [ 2 ] for [ y ] distribution channel• Product [ 3 ] for [ z ] distribution channel
Product Development Team
Product Development Process
Towards Performance Excellence
Driver Objectives & MeasuresPresent‘11E ‘12F ‘13F ‘14F
Product Excellence
--- --------- ---
---
--- --------- ---
---
Elaborate on current status and future plans
---------
---------
Elaborate on current status and future plans
ORGANISATIONAL Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Organisational Excellence
Strategic Priorities• Expand organisational and personal capabilities• Improve/balance Performance and Ethical Culture
Key HR themes are:• Building organisational capabilities to outperform competition and gain market share• Management development has been identified as a key strategic priority• “Structure follows strategy” - Organisational structure should be well aligned with corporate strategy
Risk Management
Finance & Control
Marketing
Operations
HR
Compliance & Legal
Organisational SettingOrganisational Chart (Matrix Format)
Please provide the organisationsal chart in matrix format with clear distinction between functions which are lines of business (i.e. having P&L responsibility) and departments which are functional support.
Organisational Excellence
CEO
Functional Management Line Management
Illustrative matrix org chart
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Etc
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver
Talent Acquisition• Proactively recruit :• # of Interns• # of Graduates• # of Management trainees• # of High Value Specialists• Actuaries• Finance• Others• Roll out IAP and local induction program for recruits
Talent Development• Identify and accelerate development of high-potential talent (top 5%):• Development plans in place (%)• # of A Potentials (BU Head positions)• # of B Potentials (Functional Head Potentials)• # of C Potentials (GMP’s & FMP’s)
• On-going development of talent pool (top 20%):• Development plans in place (%)• Senior Management (Key functions)• Complete development plan (%)• Middle management• Complete Development Plan (%)• Junior talents• Complete development plan (%)
MD Excellence
Management DevelopmentObjectives & MeasuresPresent
11E ‘12F ‘13F ‘14F
100%
100%
75%
75%
75%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
DriverTalent Development (Cont’d)• Increase development opportunities for people in the talent pool
through regional/global programmes:• # of regional/global rotations• Intra-region• Inter-region• # of talents trained in IAP-IBS• # of talents trained in IBS (Amsterdam)• Graduate trainees attending IIGP
• Re-profile and increase E-learning usage (# of active users)
Succession Planning• Conduct MT MTP process• Key positions (BU heads & key regional functional heads)• % with at least 1 “ready now” candidates• % with at least 1 “ready in 1 move” candidates• % with at least 1 “ready in 2 moves” candidates• Heads of functions• % with at least 1 “ready now” candidates• % with at least 1 “ready in 1 move” candidates• % with at least 1 “ready in 2 moves” candidates• Key position vacancies filled with internal candidates• Retention of high potential talent (top 5%)
Diversity Initiatives• % female representation in senior management• Localize the regional “lioness club” - an initiative for women at ING
MD Excellence
Management DevelopmentObjectives & MeasuresPresent
‘11E ‘12F ‘13F ‘14F
• Complete by July
• 25%• 50%• 50%
• 50%• 75%• 100%• 25%• 100%
• 25%
• Complete by July
• 75%• 100%• 100%
• 100%• 100%• 100%• 75%• 100%
• 25%
• Complete by July
• 50%• 50%• 75%
• 75%• 100%• 100%• 50%• 100%
• 25%
Performance Management
Pay for Performance• Base Salary (Fixed Remuneration)
• Performance Bonus
• LEO (Retention for Key Staff/Talents)
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
‘12F ‘13F ‘14F
Objective:
All staff Base Salary should reach at least market P50
Measure:
Base Salary % Diff from P50
Objective:
A competitive broad-based bonus plan for all staff (Total Cash at market P50)
Measure:
Total Cash % Diff from P50
Objective:
New leo allocation models (value as % of salary) to be in place in all BU’s
Measure:
All BU leo models are value-based
Objective:
Base Salary of high potentials/ performers should reach at least market P75
Measure:
Base Salary % Diff from P75
Objective:
Total Cash for high potentials/ performers should reach market P75–P90
Measure:
Total Cash % Diff from P75–P90
Objective:
Competitive & meaningful 2007 leo grants for key staff/ talents
Measure:
leo participants turnover rate
Objective:
Maintain market competitivenessP75 – Hi Po P50 – all staff
Measure:
Base Salary % Diff from P50/P75
Objective:
Maintain Total Cash competitiveness P75/P90 – Hi PoP75 – all staff
Measure:
Total Cash % Diff from P75–P90
Objective:Maintain a competitive Total Direct Compensation (Salary+Bonus+leo)
Measure:
leo participants turnover rate
Organisational Excellence
Performance RewardDriver Objectives & MeasuresPresent
‘11EManagement by S.M.A.R.T. objectives and the TPE Framework
HR Dashboard• Implement HR scorecard reporting
Global MIS Reporting• Status of PeopleSoft (if live)• If PS not live, contribution to quarterly reporting
• Compensation Surveys
Value Add• Audit / SOX Compliance
• High level of customer satisfaction
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
‘12F ‘13F ‘14F
HR MIS Excellence
HR MIS & Value AddDriver Objectives & Measures
Objective:
Annual reporting
Measure:
Dashboards with 3-5 key HR drivers
Objective:
Quarterly reporting
Measure:
Dashboards with 5-7 key HR drivers
Objective:
Monthly reporting
Measure:
Dashboards with 7-10 key HR drivers
Present‘11E
WPC Scan results
Once a year
Satisfactory audit reports and SOX compliance
OPERATIONAL Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Strategic Priorities• Increase efficiency and distributor/customer satisfaction• Improve operational risk management• Obtain / maintain satisfactory audit rating & AO scan results
Key Ops & IT themes for the region are:• Operations/IT and related functions to be well aligned with overall group’s strategy and strategic priorities• Increase efficiency and distributor/customer satisfaction through:• Straight-through-processing• Customer self-service• Implementing optimized customer service model • Growing Lean Six Sigma methodology, based on ISO.. standards
Illustrative: Please update this slide with strategic priorities for your Business Unit
Operational Excellence
Operations Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Operations Excellence
‘11E ‘12F ‘13F‘14F
Please fill in “+” or “–” based on 3Q Dashboard
NB/UW• Efficiency• Responsiveness: Average TAT• Quality and Satisfaction• STP for products x/direct channel
Point of sales Efficiency• Customer friendly shops• Contact Information Change
Contact Centre• Efficiency• Responsiveness• Quality and Satisfaction
Claims Management• Efficiency• Responsiveness• Quality and Satisfaction
Follow Objectives and measures as set out in the NB/UW initiative
Please put a “√” when STP will be implemented
• Follow Objectives and measures as set out in the POS initiative
Follow Objectives and measures as set out in the Contact Center
initiative
Follow Objectives and measures as set out in the claims initiative
Please refer to slide notes
Operations Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Operations Excellence
‘010E ‘11F ‘12F ‘13FProduction Optimization Initiatives
- Innovation, R&D - Quality improvement - ISO standards- Efficiency Improvements - material cost/unit - labor hours/unit POS/CC • Call Centre Interface*• Advanced Telephony*• Workflow/ BPM
SIX SIGMA• # Lean Six Sigma Workshops• # Orange Belts• # Black Belts• # Staff for "Train-the-trainers"
Note: Black belt training @approx. €6,000 and Ops network / Work stream conference @ approx. €3,000 (3-4 conferences/year)
Port
Mkt
Org
OpsFin
PerfRep
Applications and Architecture• Implementation of IA3 • What projects and activities will further the roll out of IA3 in
your Business Unit in 2007.• Describe your plans for the IA3 Infohub and Operational Data
Store in 2007• Reuse of Applications• Sell side: Applications you have installed or will develop that
you believe will be reusable by other Business Units• Buy side: Applications you plan to obtain by reusing existing
applications from other Business Units• Standardisation of Applications• Indicate when you plan to implement the following
standardised applications:• PeopleSoft• Information Hub / Operational Data Store• BPM (TIBCO or FileNet)
Towards Performance Excellence
‘11E ‘12F ‘13F‘14F
Driver Objectives & MeasuresPresent
• Provide a brief description of your program of work in this areas.
• Highlight any projects that will either Implement or extend the Infohub and ODS
• Provide a brief description of the application subject area
• Provide a brief description of the application subject area
• Implemented / Year & Quarter / NA (why)• Implemented / Year & Quarter / NA (why)• Implemented / Year & Quarter / NA (why)• Implemented / Year & Quarter / NA (why)• Implemented / Year & Quarter / NA (why)
Information Technology
IT Excellence
Port
Mkt
Org
OpsFin
PerfRep
Infrastructure• Lifecycle Management• Nominate any significant upgrades planned to your
infrastructure during 2007. (Indicate likely quarter)• Co-existence• Indicate any plans for migrating to the new global co-existence
environment (GDIL) once it is agreed.• Compliance to Policies Affecting Infrastructure• Implementation of email archiving (KVS)• Implementation of Laptop Encryption
Procurement• Products and Tools• List any planned significant investments in 3rd party tools
planned for 2007. Name the product type and likely investment.
Towards Performance Excellence
‘11E ‘12F ‘14F‘15F
Driver Objectives & MeasuresPresent
• Project 1 (Quarter)• Project 2 (Quarter)
• Details
• Year & Quarter• Year & Quarter
• Product - (estimated investment)• Product - (estimated investment)• Product - (estimated investment)
Information Technology
IT Excellence
Port
Mkt
Org
OpsFin
PerfRep
Information Risk Management• Level of GWAN Compliance• State your current level of GWAN compliance.• If not Level 2, set out the timeframe you plan to reach GWAN
Level2• Compliance to Policies• Current level of compliance to ING 34 Security Policies.• Ambition for your level of compliance by end 2007. (Recommend
90%)
Projects• Major Project in 2012• List the three largest projects you are likely to undertake
in 2007. Provide name, brief description and estimated cost.
Towards Performance Excellence
‘11E ’07F ’08F’09F
• Not Compliant/GWAN L1/GWAN L2• Quarter and Year
• XX%• XX%
• Project 1. Description (Cost)• Project 2. Description (Cost)• Project 3. Description (Cost)
Driver Objectives & MeasuresPresent
IT Excellence
Information Technology
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Operational Excellence
Risk Management Essentials 11E 11F ‘12‘ ‘13F
1. Governance {The below is the status for the region. Please replace each item with the status of your BU}
{Please fill in BU target in line with following regional target. Variations need to be individually agreed with RO}
- Operational Risk Committee ING-controlled BUs have ORC monthly meeting to oversee risk issues & risk process implementation
Monthly ORC ▪ Show decision support meeting based on risk assess data
- Business Risk Management Plan Detailed departmental plan in place for matured BUs driven by risk
Risk Management Plan ▪ Risk Management Plan at company level at function/department level
- Risk Awareness Culture Systematic E-Learning / Awareness programme in place for matured BUs
Coverage of Awareness/Comm programme for new joiners:70% 95%
95%- Product Risk Review
- Project Risk Review
Product risk checklist included in PARP. OR identification, monitoring and acceptance to be dev.Project risk management min standard in draft. OR identification, monitor & acceptance to be dev.
% new products built in RCSA, KRI & risk acceptance:30% 60%
90%% new projects built in RCSA, KRI & risk acceptance:
30% 60%90%
2. Action Tracking (AT)- Coverage- AO Scan Overdue Rate
Track Int. & Ext. Audit + RCSA itemsWeighted overdue rate < group limit (25%)
Track Int/Ext audit, RCSA, management identified issuesWOR<10% <10%
<10%
Risk Management Core Processes1. Risk Control Self Assessment (RCSA) 30% BUs have bottom up (detailed function) RCSA but
not linked to Hi-Level (first echelon) RCSA.Yearly Hi-Level RCSA followed by detailed RCSA for: 100% Hi-Risk 100% Hi-Risk 100% Hi-Risk
50% Med Risk 50% Med Risk 50% Med Risk
2. Key Risk Indicators (KRI) 40% BUs have top down (from RCSA or IRM) but few have KRIs built from bottom up
Bottom Up KRIs covering % of organisation:80% 90%
100%3. Incident Response (IR) Coverage of incidents above group threshold Analyze lower threshold ▪ Determine root cause &
incidents backtest RCSA / KRI
4. MI Reporting No standard BU management reports. RO publishes monthly stats report for AO Scan.
BU publish monthly management information packInclude ORM bullets in CEO’s monthly TPE update
Managing for Value / Capital Management1. Scorecard (Quality of Control Adj.) 40% BUs receive capital reduction based on above-
the-norm scorecard results{Please indicate targets based on: BUs with ≥10% OR capital contribution to exceed Group norm target; BUs with <10% OR capital contribution to reach 500 pts in 2007
2. Quantity and Quality of ORM People Average 2.2 FTE per BU. No benchmarking of job function and skill match.
{Please benchmark current ORM functional and fill in intended structure and resource level}
Operational Risk Management
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Procurement
Procurement Excellence
‘10E ‘11F ‘12F ‘13F
€ mn € mn € mn € mnTotal spend• "% of total spend done through global/regional
contracts
• Total controllable spend• % controllable spend where procurement is involved• Total contract spend• % of contracts co-signed by Procurement and budget owner
Strategic Sourcing• Added value in relation to spend• Savings • % of spend sourced following P&P
Please refer to slide notes for definitions
Note: If the required systems to produce requested data are not available, please state "data not available" and mention when will the system be available to report these KPI’s
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Procurement Excellence
Fulfilment• % of spend ‘fulfilled’ following P&P• Total # invoices• % invoices paid in time• % Number of invoices which have pre-
approved Purchase OrderSupplier (Relationship) Management• # of suppliers• % Suppliers accounting for 80% of spendTechnology• % of electronic invoices
People• Total # procurement FTEs • # Procurement FTEs per Euro1mn spend
Procurement
‘11E ‘12F‘13F ‘14F
€ mn € mn € mn € mn
REPUTATION
Towards Performance Excellence
Port
Mkt
Org
OpsFin
PerfRep
Strategic Priorities• Increase brand recognition• Strengthen compliance• Communicate clearly with internal/external stakeholders• Ensure integrity and ethical behavior in all areas
Illustrative: Please update this slide with strategic priorities for your Business Unit
’07F ’08F ’09FBranding Objectives & MeasuresPresent
Brand Strategy Brand Awareness Aided Unaided
Country Brand Status Introduce Brand Signature
List exceptions to use of ING <Lion> (only) brand Timeline for brand signature implementation
• Calculated from latest review• Calculated from latest review
In line with Group strategy?
Customer Centricity Customer Satisfaction
Brand Attributes Treats me fairly Easy to deal with Delivers on promises
CCAP actions(people, products, processes,
communication)
Current
Current Current Current
Key project 1 Key project 2 Key project 3
XX% XX% XX%XX% XX% XX%
Advertising SpendProduct Ad (€ ‘000s)Corporate Ad (€ ‘000s)Total as % of New Business
Agreed to increase ad spend by at least 10% per annum
% in
Sponsorship (€ ’000s) Detail local sponsorship projects
XX% XX% XX%
XX% XX% XX%XX% XX% XX%XX% XX% XX%
XXX XXX XXXXXX XXX XXXX% X% X%
XXX XXX XXX
Corporate Communications Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Communication Excellence
Outcome of project in 2007 and means of measurement Outcome of project in 2007 and means of measurement Outcome of project in 2007 and means of measurement
‘11E
Communications Objectives & Measures
Corporate Responsibility Chances for Children Target Environment Ad-hoc Initiatives
Media Relations Media relations support Communications planning Crisis management plan
Marketing Material Corporate spend Product spend Other
Internal Communications Internal publication Production cost (€ ‘000s)
Corporate Events Customer focused Sales force focused
Present
(€ ‘000s) (€ ‘000s) (€ ‘000s)
Name / audience Cost of total production (incl.
headcount)
Agency used Not previously reported
Not previously reported
Not previously reported
‘12F ‘13F ‘14F
XXX XXX XXX Initiatives in place Initiatives in place
Changes to be implemented?XXX XXX XXX
XXX XXX XXXXXX XXX XXXXXX XXX XXX
XXX XXX XXXXXX XXX XXX
XXX XXX XXX Initiatives in place? Initiatives in place?
Corporate Communications Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Communication Excellence
11E
Drivers Objectives & Measures
Corporate structure Corporate legal structure in place
Governance in place
Brand protection in place
Légal risk management Transaction management
Documentation management / Implementation of email filing policy with support of IT
Dispute resolution
Legal framework Keep informed about legislation
and regulatory environment
attend to new legislation and regulations and increase awareness thereof within the organization by utilization of intranet
improve regulatory management by early involvement in regulatory matters, appropriate incident handling and regular communication with regulators
ensure preferred structure for legal entities and joint ventures in compliance with local and ING standards with accurate registration on intranet/cosmos
promote good corporate governance practices and enforcement of the Regional Governance Manual
manage reputation risk by monitoring surveillance of the ING brands
ensure timely involvement of Legal (external/internal) in main legal matters, strategic initiatives and important transactions and improve the quality of legal services in a cost efficient way
secure filing and appropriate storage of documentation
promote early engagement of Legal to prevent litigation and assist in the resolution of disputes to protect the interests of the company
‘12F ‘13F ‘14F
Legal Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Legal Excellence
Present‘11E
Regional Objectives. Please update status of your Business Unit
FINANCIAL Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Strategic Priorities• Raise x $ Capital and Debt• Expand value-based management• Strengthen risk management• Improve MIS & Control
Illustrative: Please update this slide with strategic priorities for your Business Unit
Control & Finance
• Financial control• Implement SOX (for SOX units)• Documented financial control procedures
• Financial Reporting and Analysis• Detailed source of earnings• Business analysis
• Financial Systems and Database Mgt.• Financial database with detail information
• Capital Management & Tax • Tax compliance
• Expense Management• Implement project expense review
• Finance Spearheads• HR• Communication• Continuous Improvement Projects
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Driver Objectives & MeasuresPresent
Control& Finance Excellence
‘10E ‘11F ‘12F ‘13F
Please
update sta
tus of yo
ur Busi
ness Unit
Driver
Risk Management Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Insurance Risk Excellence
- Implement risk mgt framework
- Control risk categories
1. Counter party risk 2. Country risk 3. Operational risk
Embed EC and Managing for Value• Prepare and train management for the
new metrics (MCEV)• Application in pricing(MCEV(0))• Balance value via returns / volumes
People• Recruit more specialists• Train for broader risk management
Enhance Performance Culture• Effective communication• Quality reporting to standards• 360-feedback mechanism
Ensure IRM reporting processes are auditableDevelop & TestTraining & communication No deficiencies
SoP complianceAdd value Efficient product review process
Completely switch to MCEV during 2007MCEV(0) in PARPTo include value in KPI
Recruit 5 risk manager2 analyst.
Train 3 specialist externally
Excellence in our daily jobsValue added analysis360 reviews in place
Pass audit of cash flow generation and input into ECAPS in Q1/Q2 2007, including auditable MCEV and EC figures with a Satisfactory rating or higher. Maintain this level ongoing, to be audited annually.
Agree architecture for automated data feeds to ECAPS by Q2 2007.
Integration with MIS/decision making.
Removal all significant and notable SOX deficiencies
IRisk area needs to become an integral value added part of the Product Development process in 2007. New sales IRR minimum is WACC+3.5%.
Control/reduce the turn around time of product review.
MCEV documentation and methodology, and implement MCEV.
All products including revisions must have MCEV(0) calculated and documented by EOY 2007. MCEV(0) should be documented in the PARP for approval.
To include VNB and EVP in the KPIs of business unit.
Talent assessment of the insurance risk teams in early 2007.
Appropriate training and investment.
Turning actuaries into risk professionals.
Improve / increase bench strength across network & recognition of high performers.
Risk & actuarial reporting,. Focus on value added analysis
and decision Improve interface with
Investment area: ALCO, investment mandates.
360 reviews for the CIRO and top level direct reports of the Insurance Risk team in 2007.
Objectives & MeasuresPresent ‘10E ‘11F ‘12F
‘13F
PERFORMANCEEUR Million 2010F 2011E 2012F 2013F 2014F
Gross Revenues
Net revenues
Cost of Sales
Profit Contribution
Operational Cost
Purchasing Cost
Staff cost
Depreciation
Value of new business
Cost/Income ratio
Cash flow
Market Value at Risk
Economic Capital
vROEC
Capital , funding needed
Dividends
Audit scores
Performance Excellence
Port
Mkt
Org
OpsFin
PerfRep
Towards Performance Excellence
Key Risks to MTP
• ………..….• ……………• …………..• …………….• ……….• ………….
Towards Performance Excellence
Port
Mkt
Org
OpsFin
PerfRep
Thank You