Cards Operations Offshore Update - March

Capacity PlanningForecastingWhat is a forecastPurpose of long term forecastingForecasting and re-forecastingForecasting File

Cap Plan OverviewWhat is a Cap PlanCap Plan SummaryOpportunity/RiskHiring SchedulesAttrition SchedulesAXP Internal4-Apr-151#Capacity PlanningWFM TimelineCapacity Plan is created Financial Plan is adjusted to match Capacity PlanShort-term forecast is created and discussions with cap planners take placeScheduling of agents is completedCreation of the DPs takes placeTCC executes the planMIS data is recordedFinancial Plan Comparison12 - 18 Months 30 - 45 days 4 - 6 weeksDay ofReviewed day after6 MonthsAXP Internal4-Apr-152#Capacity Planning-Forecasting BasicsWhat is a Forecast? It is what is what is expected to happen based on previous history.

What is the purpose of Forecasting? To ensure that business service level objectives are met. To predict call workload and estimate the staff required to answer those calls. To prepare the corporation for the upcoming period of action. To provide out business with a plan of action for the month and/or year.ForecastingAXP Internal4-Apr-153#Capacity Planning-Forecasting BasicsWhat are the reasons to forecast/re-forecast? Normal day-to-day operations New business Marketing Initiatives Change in operating hours Economic state Increase/Decrease in contact rate Attrition Higher/Lower Volume and Handletime Increase in LOA hours

Any of the above factors can trigger a change in call volume. If volume is lower or higher than expected, then adjustments to the forecast are made.ForecastingAXP Internal4-Apr-154#Capacity Planning-Forecasting BasicsForecasting Spreadsheet The Forecast Spreadsheet is used to contain historical information needed to create an accurate forecast. Historical information needed: Active Accounts Contact Rate VRU Details Call Volume details Projects

AXP Internal4-Apr-155#Capacity Planning-Forecasting BasicsForecasting Spreadsheet

Example of Essbase pullAXP Internal4-Apr-156#Capacity PlanningWhy are Capacity Plans created? To ensure that business service level objectives are met. To track and manage hiring, site growth and sharing of resources to maximize company assets and minimize expense.

What is a Capacity Plan?The process of planning, analyzing, sizing, and optimizing resource utilization to satisfy workload demand in a timely manner and at a reasonable cost. Capacity PlanAXP Internal4-Apr-157#Capacity PlanningWhen are Capacity Plans created? Cap Plans for the upcoming year are completed in 3rd Quarter and updated as necessary When are Capacity Plans updated? Cap Plans are updated monthly with the prior months results, actual hiring, attrition, headcount, and workspaces Revisions to the Forecast for the remainder of the year are also updated monthly Who reviews the Capacity Plan once it is updated? The Business Directors each month in the second or third week Reviewed by each of the Regional Directors and updated to the Business Performance website

Capacity PlanAXP Internal4-Apr-158#Capacity PlanningCapacity Plans contain detailed information about:Volumes AHT Assumptions Hiring Attrition LOAs Headcount FacilitiesWhere are the Capacity Plans stored?The Business Performance website:http://bpg.cards.citicorp.com/CapacityPlanning/IndexCapPlan.htmlUnderstanding the Capacity PlanAXP Internal4-Apr-159#Capacity PlanningThe primary components that are included in the Capacity Plan are: Hiring Summary: A weekly and monthly overview of the annual hiring forecast by site and function. Hiring Details: Used to record, track, and forecast weekly hiring and training attrition by site. Attrition Summary: Overview of attrition for the Business Attrition Details: Used to record, track, and forecast attrition by site at a weekly or monthly view. Headcount Details: Used to track, at a given site, a 12-month view of headcount and productive staff available to take handle the workload. Volume Details: Call volumes, drivers and incremental projects used to track and forecast monthly requirements.Capacity Plan ComponentsAXP Internal4-Apr-1510#Capacity PlanningWhat reports and/or areas of focus help to make up the Capacity Plan Summary? Volume Details: This takes a look at the projected volume for the entire portfolio and calculates the combined weighted AHT for the function by month. It includes a learning curve base handle time for new hires as well as additional handle time for sales. Incremental Project File: Forecasts the existing cardmember activities (ECM) that can potentially drive NIVR & Rep Offered Volume Workspace Utilization Analysis: Used to evaluate any opportunity or risk the organization has with workstations for the group at a given site given the assumptions booked in the Capacity PlanCapacity Plan Summary and ReportsAXP Internal4-Apr-1511#Capacity Planning-Capacity Plan ModelCapacity Plan - Table of Contents

AXP Internal4-Apr-1512#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary

The Cap Plan Summary pulls together on one page, each of the individual components of the Cap PlanAXP Internal4-Apr-1513#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary

Top TierAXP Internal4-Apr-1514#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary

CardsAXP Internal4-Apr-1515#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary

Average Actives The average number of active accounts. This number is obtained from either Finance or MIS. Average actives are used as a driver to forecast future calls offered. Calls Offered The Actual/Forecast number of calls offered during the period. VRU By Pass The number of calls routed out of the VRU. These are included in the Calls Offered total.AXP Internal4-Apr-1516#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary

Base AHT The number of seconds it takes for an agent to take a call LC Learning Curve; The number of seconds over the base AHT it takes for a newly hired employee to complete a call Leveraging Impact The number seconds over the base AHT it takes for a contingent employee to complete a call Combined Weighted AHT Average Handletime for all employees in the function for the period. AHT is the average length of calls and is measured in secondsAXP Internal4-Apr-1517#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary Staffing Strategy Represents the business strategy to be over or under staffed to best utilize available resources for the servicing of cardholders. Also helps to address the fluctuations in volume and provide the required service level Total Required The total number of agents required to provide the required Service Level to our Cardmembers. It is the sum of the Base FTE and Staffing Strategy

Base FTE Required The number of agents required to support call volume. It is obtained from eWFM, and is calculated using the following metrics: Offered Volume, Handletime, Shrinkage, Occupancy and the # hours available in the month.AXP Internal4-Apr-1518#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary Exit the Business Those employees that terminate their employment, either voluntary or involuntary Training Associates that terminate their employment during training Transfers Associates that are transferring to another department within the company. When typically speaking to attrition, transfers are not considered as attrition Total Exit the Business The total number of Associates that left the function during the period

AXP Internal4-Apr-1519#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary New Hires Graduated The number of new hires that graduated and hit the floor during the month Total Productive FTEs The total number of productive staff available to take calls Base Position The total number of Associates within the group that are available to assist Cardmembers. It is calculated as the Total Productive Staff minus the Total Required Staff.

AXP Internal4-Apr-1520#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary Net Position Represents the total number of associates across all groups that are available to assist cardholders. It is calculated as the base position plus support from, minus support to, plus overtime minus VTO Net Position w/o Staffing Strategy Indicates what the net position would be excluding the staffing strategy from the Total Required. The number is carried forward to the Opportunities and Risks

Support From Represents the FTE equivalent of calls handled by other groups Support To Represents the FTE equivalent of support provided to other groupsAXP Internal4-Apr-1521#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary ASA Average length of time in seconds to answer a call Service Level The % of calls answered within a set number of seconds Occupancy The % of time the Associates are using AHT compared to the total time they are signed onto the phone. Availability The % of time the Associates are signed onto the phone compared to the total scheduled/paid hours Shrinkage The inverse of Availability. Calculated as 1 minus the Availability % Paid Hours Total number of business days in the month times 8 hours Productivity The Total Calls Offered/Productive FTE

Metrics The actual/forecast operating results for the periodAXP Internal4-Apr-1522#Capacity Planning-Capacity Plan ModelCapacity Plan - Summary Driver Impacts of FTE The FTE change that results from a 1 second, or 1 % change in each of the drivers

AXP Internal4-Apr-1523#Capacity Planning-Capacity Plan ModelCapacity Plan - Availability

Availability Summary of previous year actuals and current year forecastAXP Internal4-Apr-1524#What is the Capacity Opportunities/Risks? A detailed schedule, by business unit, what the upcoming areas of opportunities/risks are for the department. The Capacity Opportunities/Risk report is completed monthly in conjunction with the updates made to the forecast.

What are the main components to view on the capacity O/R report? Working Base Position Working Net Position Opportunity/(Risk) Position Potential Management ItemsCapacity Plan - Opportunities and RiskCapacity Planning-Capacity Plan ModelAXP Internal4-Apr-1525#Capacity Planning-Capacity Plan ModelCapacity Plan - Opportunities and Risk

Summarizes any opportunities/risks that may impact the business. AXP Internal4-Apr-1526#Capacity Planning-Capacity Plan ModelCapacity Plan - Plan vs. Current

The Plan vs. Current report compares the current full year forecast versus what was initially projected for Plan the previous year.AXP Internal4-Apr-1527#Capacity Planning-Capacity Plan ModelCapacity Plan - Prior vs. Current

The Prior vs. Current report compares the current full year forecast versus what was projected the month before.AXP Internal4-Apr-1528#Capacity Planning-Capacity Plan ModelCapacity Plan Volume Detail

The Volume Detail is a summary by business by site of key call metrics. AXP Internal4-Apr-1529#Capacity Planning-Capacity Plan ModelCapacity Plan Projects

Forecasts activities that can potentially drive volume. Information is collected from project managers Assumptions made based on historical programs Types of activities could include plastics, conversions, CIT, Privacy notificationsAXP Internal4-Apr-1530#Capacity PlanningCapacity Plan ModelThe Hiring section of the Capacity Plan is designed to give an overview of the annual hiring forecast by Site and by Function. It consists of 2 primary pages: The weekly hiring page The Hiring Summary The hiring schedule can change frequently, for any of the following reasons: Increase/decrease in monthly Base Contact Rate Marketing initiatives Attrition Handle Time changes LOA increase Transfers to other departmentsHiring changes have to be reflected in RPS and notifications sent to the Training and Scheduling departments.Capacity Plan Hiring SchedulesAXP Internal4-Apr-1531#Capacity Planning-Capacity Plan ModelCapacity Plan Weekly Hiring

Training Date The start date is the 1st day of training, usually a Monday and generally consists of Orientation. Available Date The 1st day of production. May differ by business based on the length of training. Requested The number of associates requested to be hired Started The number of associates that actually started the class. Graduated The number of associates that completed the class and will join production.AXP Internal4-Apr-1532#Capacity Planning-Capacity Plan ModelCapacity Plan Weekly Hiring

The monthly roll-up table is also included on the weekly hiring sheet. Internal and External hiring is separated out, due to the variations in the length of the class. The totals feed to the Staff Count page, that uses the weekly totals to calculate the appropriate FTE lift depending on the week of graduation. Actual graduating counts should be input as soon as the information is available.AXP Internal4-Apr-1533#Capacity Planning-Capacity Plan ModelCapacity Plan Combined Hiring

The combined hiring page is a weekly view all sites combined.AXP Internal4-Apr-1534#Capacity Planning-Capacity Plan ModelCapacity Plan Hiring Summary

A 12 month overview of all hiring by site. AXP Internal4-Apr-1535#The Attrition summaries are used to record, track and forecast attrition for the business unit. The Attrition summary consist of two tables: Weekly attrition Monthly rollup

Attrition should be updated in the cap plan for the month at the beginning of the following month on the Actual Attrition page. This number feeds to the Attrition Summary pages.

The attrition data is pulled from the Headcount Database located on the Capacity Plan2 drive.Capacity Plan Attrition SummaryCapacity Planning-Capacity Plan ModelAXP Internal4-Apr-1536#Capacity Planning-Capacity Plan ModelCapacity Plan Attrition Actual

Actual number of agents that have exited the business should be entered here for the month, at the beginning of the following month. This information is fed to Weekly Attrition summary.AXP Internal4-Apr-1537#Capacity Planning-Capacity Plan ModelCapacity Plan Attrition by Site

Exit the Business Actuals The cell refers to the Actual Attrition page. Exit the Business Forecast Annualized attrition rate assumption on the staff count pages, multiplied by the prior months headcount, and adjusted for the number of weeks in the month. Transfers Actuals Manually entered at the beginning of the following month. Transfers Forecast Applies a standard annualized rate, varies by business based on trends, to the projected headcount to determine the number of projected transfers.AXP Internal4-Apr-1538#Capacity Planning-Capacity Plan ModelCapacity Plan Attrition by Site

The monthly table summarized by month the total exits. Exit the Business % Forecast - Exit the business attrites / Total prior month headcount * 12. The Exit the Business % is shown on the Staff count pages to forecast the attrites by month. The Transfers % is calculated the same way.AXP Internal4-Apr-1539#Capacity Planning-Capacity Plan ModelCapacity Plan Attrition Summary

A 12 month overview of all Attrition by site. AXP Internal4-Apr-1540#The Staff Count Schedules page is used to track, by site, a 12 month view of headcount and productive staff available to take phone calls. It is used to track actual and forecast of Exempt, Non-Exempt and support employees.

The Staff Count Schedule consists of three sections: Headcount Summary Graduating Lift Attrition Lift

Capacity Plan Staff Count SchedulesCapacity Planning-Capacity Plan ModelAXP Internal4-Apr-1541#The Headcount Summary consists of several components, that are used to calculate the productive FTE by month.

The Graduating Lift section calculates the FTE equivalent of how much time during the month, graduating staff will be productive, or available to answer phone calls.

The Attrition Lift calculates the FTE equivalent of how much time an agent was available to answer calls during the month, prior to leaving.

If an agent is graduates and becomes productive in the middle of the month, they can not be counted as a full FTE for the month, because they were only available part of the month. The same holds true for an agent that exits the business.Capacity Plan Staff Count SchedulesCapacity Planning-Capacity Plan ModelAXP Internal4-Apr-1542#Capacity Planning-Capacity Plan ModelCapacity Plan Staff by Site

Non-Exempt Hiring Pulled in from the Hiring schedule. Non-Exempt Attrition Pulled in from the Attrition schedule. Exit the Business Staff leaving the company. Training Staff exiting the business during initial new hire training. Non-Exempt transfers Staff transferring within or out of the phones. Attrition % - Annualized attrition based on current trend. (Current month attrition/Prior month non-exempt staff)*12.AXP Internal4-Apr-1543#Capacity Planning-Capacity Plan ModelCapacity Plan Staff by Site

Non-Exempt Staff on Payroll Staff available to take phone calls, plus staff in training. Support Staff Support staff functions, or non-phone staff. LOA/DIS Staff on leave of absence or disability. Forecast is based on an assumption based on trends. Exempt Staff Officials by band level. Ratios The number of staff to UMs, UM to OM, and OM to Director. Total Headcount Non-Exempt + Support Staff + LOA/DIS + Exempt.AXP Internal4-Apr-1544#Capacity Planning-Capacity Plan ModelCapacity Plan Staff by Site

Productive FTE Lift Full time staff + PT staff converted to FTE. Lift occurs when phone agents enter or exit the lines. PT Headcount Non-exempt part time headcount on payroll it subtracted in order for the FTE equivalent to be calculated. PT FTE Calculates the FTE equivalent for PT. 1 PT headcount would convert to .667 FTE. Loans Reduction in FTE due to loans to other departments.AXP Internal4-Apr-1545#Capacity Planning-Capacity Plan ModelCapacity Plan Graduating Lift

Graduating FTE Lift Calculates amount of time the graduating staff will be available to answer the phones. If an agent graduates in the 1st week of the month, they would equate to 1 FTE. If an agent graduates toward the end of the month, they would calculate to be available only .29% of the month, depending on the number of weeks in the month, or .29 FTE.AXP Internal4-Apr-1546#Capacity Planning-Capacity Plan ModelCapacity Plan Attrition Lift

Attrition FTE Lift Calculates amount of time the agent was available to answer the phones prior to leaving the business. If an agent leaves in the 1st week of the month, they would equate to 0 FTE, because the would not have taken phone calls. If an agent leaves toward the end of the month, they would calculate to be available .71% of the month, depending on the number of weeks in the month, or .71 of an FTE.AXP Internal4-Apr-1547#Capacity Planning-Capacity Plan ModelCapacity Plan Team Ratios

Staff - # productive agents assigned to the site, either historically, or forecasted. # Teams 20/1 ratio The number of staff / 20. # Teams allocated The actual # of staff / actual teams assigned.AXP Internal4-Apr-1548#Capacity Planning-Capacity Plan ModelCapacity Plan Walkdown Monthly

Summary of prior months performance as compared to plan. Primarily used as reference while reviewing with business.AXP Internal4-Apr-1549#Capacity Planning-Capacity Plan ModelCapacity Plan Walkdown Detail

Detailed comparison of Actuals vs. Forecast vs. Plan.AXP Internal4-Apr-1550#Capacity Planning-Capacity Plan ModelCapacity Plan Historical Data

Summary by month by year of historical call metrics.AXP Internal4-Apr-1551#Capacity Planning-Capacity Plan ModelCapacity Plan Forecast Data

Projected Availability and metrics forecast.AXP Internal4-Apr-1552#Capacity Planning-Capacity Plan ModelCapacity Plan Change Control

Notes page to reflect any changes made and the date they were made.AXP Internal4-Apr-1553#Capacity Planning The Workstation Utilization Summary is used to evaluate any opportunity or risk the business has with workstations at a given site. It is also used when making hiring decisions.

The Capacity planners are responsible to verify seat counts with individual contacts for each business at each site.

Both productive workstations, meaning the workstation has a PC, and nonproductive workstations, meaning the station does not have a PC, need to be accounted for in the Capacity Plan.

Stackable schedules are also reflected on the page. A stackable schedules file is received from the SFE group, that calculates the number of non-overlapping weekly schedules that can share the same workstation. The file is located on the Business Performance Drive and is updated monthly.

Capacity Plan Workstation UtilizationAXP Internal4-Apr-1554#Capacity Planning-Capacity Plan ModelCapacity Plan Stacking Ratios

Productive headcount w/LOAs Calculated from the staffing page and includes Full-time graduated + Part-time graduated + LOA staff for each site. Phone Workspaces Available Obtained from the point of contact for each business at each site. Current Stackable Schedules The current number of schedules that can share a workspace. Possible Stackable Schedules The number of current schedules, that can have another schedule stacked with it, but does not currently. AXP Internal4-Apr-1555#Capacity Planning-Capacity Plan ModelCapacity Plan Workstation Detail

Detailed analysis by site of the available workstations for each month.AXP Internal4-Apr-1556#Capacity PlanningWhy is a Learning Curve used? To calculate the calls per FTE that each new hire can take in a week, taking into account the total handle time expected to handle the call. The learning curve is added to the base handle time to forecast for requirements each month. Learning Curve models are computed for each site, and a division total.What is a Learning Curve?It is the amount of time over the base AHT it takes for a newly hired employee to complete a call. The learning curve percentage level indicates the percent of the base handle time that the new hire is expected to achieve. Capacity Plan Learning CurveAXP Internal4-Apr-1557#Capacity Planning-Capacity Plan ModelCapacity Plan Learning Curve Model

Calculation Assumptions Availability & Occupancy assumptions from the Capacity Plan. Annualized Attrition Assumption built from historical tenure statistics. Most attrition in Customer Service occurs within the first 3 months. Monthly Summary Summarizes Learning Curve impact to base handle time. Illustrates the full year impact of the Learning Curve on a monthly basis.AXP Internal4-Apr-1558#Capacity Planning-Capacity Plan ModelCapacity Plan Learning Curve Model Learning Curve Data & FTE Distribution Shows the distribution of the new hire classes moving along the learning curve week after week. Used to determine where in the learning curve a new hire class is.

AXP Internal4-Apr-1559#Capacity Planning-Capacity Plan ModelCapacity Plan Learning Curve Model

Call Volumes Computes the volumes that the team of new hires can take in a particular week. Uses the # of new hires left in the week times the average calls per rep. Percent of Volumes Computes the percentage of total volume that each new hire team can handle.AXP Internal4-Apr-1560#Capacity Planning-Capacity Plan ModelCapacity Plan Learning Curve Model

AHT Impact Computes the learning curve impact to the average handle time. Weekly Summary Base Handle Time, Overall Handle Time, and Learning Curve Impact to Handle Time.AXP Internal4-Apr-1561#Capacity Planning-Capacity Plan ModelCapacity Plan Combined Headcount

Quick look at the combined headcount by site.AXP Internal4-Apr-1562#