Flagship E-mail Turnaround Project Control Tollgate Presentation

Team Charter

 Executive SummaryThe goal of the Flagship E-mail team is to respond to 100% of client e-mails within 48 hours. In the current

work environment the group is only responding to about 55% of e-mails within this timeframe. This project will reduce the percentage of defects from 45% to 28%.

Business Problem/OpportunityWithin the current environment there are:

          Forty-five percent of client e-mails are responded to in greater than 48 hours.          Delays within the e-mail process.          Increased cycle-times for e-mail received after hours.          Large overtime and contingency requirements to manage daily volumes.          High defect rates/low sigma ratings for turnaround times.          Client dissatisfaction with prolonged response times.  Project Benefits

The Primary goal of this project is to reduce cycle-time for Flagship e-mails.          Save costs by reducing reliance on overtime and phone assistance.          Increase client satisfaction by more efficiently responding to inquiries.          Reduce or eliminate rework by lowering departmental “redundancy” rates.

While the department goal is to respond to 100% of e-mails in 48 hours, the goal of this project is to achieve a 72% rate. This project

was initiated as a result of Voice of the Business feedback.

1. Client 2. interested

parties 3. Marketing 4. Web 5. Press 6. Web

technical areas

7. Reps 8. Writers

1. E-mail (secure-non-secure)

2. IMH database

3. Systems (CINergy, Webtop, Awd, Brokerview, IWS)

4. Web content

5. Transaction request

6. Processing Database

1. E-mail 2. Transaction 3. Outcall 4. No reply 5. Letter 6. Walk-in 7. Lead 8. Enhanced

relationship 9. Trends 10. Projects

1. Shareholder 2. Flagship rep 3. TL/senior 4. HNW Depts 5. Interested

Parties

Suppliers Inputs Process Outputs Clients

1. Client Sends E-mail

2. Writer Accepts/Drafts

3. Sent to Rep

4. Rep Approves

5. Approved to Send

6. Client Recieves

Client sends e-mail

Writer accepts and drafts response

Rep edits and approves

4-6 Key Process Steps

Management approves e-

mail

Client receives e-mail

High Level SIPOC

• 74 VOC items pertaining to HNW e-mails received between 3/2001 and 2/2003.– 34 of 74 were negative feedback regarding e-mail

turnaround times.– 15 of 34 were from Flagship clients.

• “Two to three days is unacceptable.”

• “Client doesn’t like how long it takes to send and receive e-mail.”

• “E-mails should be handled in a more timely manner.”

• “E-mail responses take too long.”

Reactive VOC Data

Client Expectations

Response Label Frequency Percentage Adjusted Percentage

Within 8 hours after sending the e-mail

94 12.58 12.97

Within 24 hours after sending the e-mail

407 54.48 56.14

Within 48 hours after sending the e-mail

159 21.29 21.93

Within 72 hours after sending the e-mail

22 2.95 3.03

Other, (please specify): 43 5.76 5.93

Total 725 97.05 100.00

•“The promptness of the service should be improved”

•“Why would I use e mail when I can get to someone immediately by phone? I find e-mail the most effective way of communicating IF people answer promptly.”

•“I have no problems with the response time nor the quality of the responses.”

•“E-mail is intended as a responsive medium. Vanguard's policy of answering within 2 business days is poor and very poor relative to your competition.”

*Survey developed by Web Services

Data Collection Plan

Data-Collection Plan Flagship E-mail Turnaround

1. How long is turnaround time by: Day, Hour, Date, Quarter, Month, Subject, Writer, Rep, request type? 2. What is Writer Productivity by: Day, Hour, Date, Quarter, Month, Subject, Rep? 3. What is Rep Productivity by: Day, Hour, Date, Quarter, Month, Subject, Writer? 4. What turnaround time do our clients expect? 5. Where are the delays in the process? 6. What is the turnaround time by approver? 7. What is the redundancy rate due to long turnaround times? 8. How many e-mails are not responded to? 9. How many e-mails should be responded to through another channel? 10. What are the top reasons for delays?

Data Operational Definition and Procedures What Measure type/

data type How measured Related conditions

to record Sampling notes How/

where recorded (attach form)

All Turnaround Times

Continuous Analysis of Impromptu Reports, drawing from IMH

Day, Hour, Date, Quarter, Month, Subject, Writer, Rep, request type?

Minitab Project: FSVUProject-email.MPJ

How will you ensure consistency? What is your plan for starting data collection? All turnaround data will be pulled through Impromptu Complete

How will the data be displayed? Control charts if process is normal, histogram, dot-plot, time series plot,

pareto chart

Analyze PhaseProgress to date:

Completed Analyze phase on 5-9-2003

Control charts, pareto charts and process step comparisons will drive Improve phase

Major process delays identified in 4 of 10 steps Assigned to Business Unit Assigned to Representative Accepted by Representative *Assigned to other unit

*limited control for this status

Analysis•Sampled 812 e-mails out of population of 25,800 to determine which e-mail statuses contribute most to process delays. The process is comprised of 12 distinct process statuses. The findings of this analysis follow:

•Status 1: “Assigned to Business”

•124 e-mails remained in this status over 48 hours

•55 e-mails remained in this status between 40 and 48 hours

•Average turnaround in this status is 16.54 hours

•Status 4: “Assigned to Representative”

•35 e-mails remained in this status over 48 hours

•25 items remained in this status between 40 and 48 hours

•Status 5: “Accepted by Representative”

•11 e-mails remained in this status over 48 hours

•15 e-mails remained in this status between 20 and 48 hours

•Of 812 sampled items, 21% remained within one status for over 48 hours.

•Of 812 sampled items, 31% remained within one status for over 40 hours.

•Sampled 1067 e-mails out of population of 25,800 to determine which

Process Defects

80 77 42 41 38 34 2923.5 22.6 12.3 12.0 11.1 10.0 8.5

23.5 46.0 58.4 70.4 81.5 91.5 100.0

0

50

100

150

200

250

300

350

0

20

40

60

80

100

Defect

CountPercentCum %

Pe

rce

nt

Co

unt

Pareto Chart Def ects by Day of Week

58% of defects within the process sample were received Friday through Sunday.

Improve PhaseProgress to date:

Utilized three distinct pilots to achieve results.

Improve phase was completed on 6/20/2003.

Pilot Summary• Pilot 1: Weekend Pilot

– Criteria: • All e-mails with exception of “relationship”

topics will bypass assigned phone reps.• Staffing for each Saturday will increase to 2

FTEs.– Measure:

• During pilot phase the number of e-mails sent on Saturdays increased from 2.4% of volume to 8.3% of total volume.

– Result:• Resulted in 69 less defects during pilot, or a reduction of

4.5%

0 1000 2000 3000

0

10

20

Observation Number

Ind

ivid

ual V

alu

e

Process Control Chart YTD (through 7/8)

11

1

1

111111111

111111

11111111

1

11111111

1

1111111 111111

11

1

11

11111111

1

Mean=29.03 Hours

UCL=116.21 Hours

LCL= 7.19 Hours

n p

UCL: 281.23Hours

Mean: 42.44Hours

LCL: 14.01Hours

PilotPre-Pilot1.61 Sigma 2.09 Sigma

Special cause data points include items sent to other departments, July 4 holiday, and the loss of 1

FTE to disability.

Pilot Success• For period of 6/19 – 7/8 the defect rate for Flagship dropped by 38%.

(45% to 28%)• Average turnaround for the pilot dropped from 42 hours to 29 hours.• 12.67% of all e-mails were sent via “Weekday” or “Weekend” pilots.• Value Added = $276,000 annually.

– Lost productivity and Contingency coverage ($158k)

• Voyager Coverage

• Does not include Flagship Contingency

– Reduced rework ($49k)

• Kickbacks to Writer

• Bypass Approvals

– Overtime costs ($69k)

• Sigma Shifts from 1.61 to 2.09.• Client Compliments

– “Please extend my sincere thanks to Kim Acosta for taking the time to reply in your absence with a very extensive and very clear message regarding my query on various stop orders.”

– “And it was a delightful surprise to get the response on the weekend.” 

• No Negative Feedback from Clients!

Pilot Success