Finance
Organisations in the finance sector face a variety of challenges
Shareholders and business analysts continue to claim ongoing business growth in a nearly saturated market along with steady productivity increase.
With this scenario in mind, even leading business organisations are well-advised to continually review strategies and operative activities in order to identify and capitalise on competitive advantages.
By means of process industrialisation, reduction of in-house production depth (outsourcing), harmonisation of product range and advanced IT applications, considerable cost advantages can be reaped. Optimised risk management can boost effectiveness of funds deployed.
HPO has got broad experience in the finance sector:
- Banks
Retail banks, commercial banks, banking-related IT services - Insurances
Life insurance-, non-life insurance and health insurance - Private equity firms
Thanks to the number of our projects in the finance sector, we easily can access broad know-how. We are familiar with the challenges of our customers. We offer support to leading business organisations from the finance sector in the areas of strategy check and -definition, optimisation of business processes for performance improvement and raise in innovative ability as well as in industrialisation or processes for cost reduction e.g. by the optimised application of banking specific IT systems.
Growth strategy
Shareholder value thanks to growth strategy and lean manufacturing
Industry: Financial services, retail banking
Client size: Over CHF 2 bn. in customer loans
Challenges:
- Organisation has developed historically into several separate units
- Decentralised structure prevents efficient processes and cross-fertilisation among locations
- Lack of appreciation for synergies and market potentials ('mature business')
Approach:
- Identification of untapped market potentials
- Definition of strategic options with regard to tapping growth potentials and creating a lean processing site
- Redesign of corporate processes
- Decentralised processing of customer interactions (to remain close to the customer)
- Sweeping centralisation of all other activities
Results:
- Considerable increase in revenues and profit expected (in implementation)
- Documented increase in efficiency over 10% through increased centralisation
Erich Wild CEO, BANK-now
With HPO consumer finance business strengthened in a sustainable way
«HPO is an ideal partner when emphasis is laid on a successful implementation of strategic realignment. It has been assured early in the stage of strategy development through assistance of the management and through application of HPO methodology that the strategy effectively can be implemented. Attention has been concentrated on the design of to-be processes with subsequent consequent transfer to the definition of the process organisation. So, construction of an internally consistent business model has been assured.
HPO’s strong professional and methodological competence has been highly valuable. The consultants are excellent sparring partners, highly flexible and repeatedly contributing to the project with a critical external view. We had the opportunity to refer to their rich experiences in non-banking sectors allowing us to strongly “industrialise” our processes and to design them in a “lean” way in order to make them fit for the future – as basis for further innovative solutions to come.»
Hanspeter Kurzmeyer Head Retail Banking, Credit Suisse
With HPO consumer finance business strengthened in a sustainable way
«We were looking for an external partner not only experienced in development of strategies but also in implementation. It was our objective to attain the highest certainty possible about implementation of the strategy developed. With HPO we have found the partner we were looking for.
Thanks to substantial expertise in business design, HPO very pragmatically has guided us through the strategy process and has continually pointed to process-related and structural consequences in the discussion of strategic options. This has been a valuable support in the decision making process. We gained a very concrete perception of the consequences of each variation considered with respect to resources and core competences required in the future as well as to necessary redesign of the business. This perception has served as excellent basis for decision making.»
Greenfield Business Design
Return to profitability thanks to Greenfield Business Design
Industry: Financial services
Annual sales: Over CHF 1,5 bn. in customer loans
Challanges:
- High losses due to inefficient processes
- Own development of application software resulting in large risks in the IT department
Approach:
- Development and implementation of a business model in accordance with strategy
- Redesign of business processes
- Detailed process cost accounting to determine the profitability of individual clients
- Support for the evaluation of software
Results:
- New organisational structure approved
- Lasting cost reduction of over 15%
- The target processes as defined in the process handbook take into account the planned change in software
Beat Wespi Head Executive Board, UBS Factors AG
With HPO costs reduced and foundation for further growth laid
«We have been looking for a consultant ready to accept ambitious cost reduction targets along with simultaneous performance improvements together with the executive board. Questions were raised about fundamental issues, how the Factors AG was able to satisfy high customer expectations with competitive offerings regarding to pricing. Additionally, a starting position in order to implement growth- and product strategy had to be established.
Thanks to support and an open at HPO, have been touched and innovative solutions have been developed. Within 12 months, could be reduced by over 30% and a process organisation has been established which is able to address customer requirements more effectively than ever before. Results are improved profitability and innovative ability as well as customers more satisfied and employees with higher motivation.»
Backoffice & support area
New business process model with accordingly derived organisation
Industry: Private Banking
Net return: AUM 1'763 mio. / 129 bn.
Challenges:
- Quality problems and high labour costs in the backoffice & support area
- Processes and organisational structure not aligned with the new situation after the merger
- Decentralised structure of the support functions
Approach:
- Process-based redesign of the support processes and the organisational structure
- Clarification of tasks, roles and responsibilities
- Design and implementation of new micro-processes
Duration:
- 4 months
Results:
- New business process models with roles, responsibilities and key performance indicators including a derived organisation
- Partial centralisation of backoffice tasks
- Reduction of full-time equivalent
- Reduction of the lead time and improvement of the quality
- Cost reduction in the backoffice & support area
Business design prevention
Reduction of complexity and clarification of interfaces through new organisation
Industry: Insurance
Key figure: Ca. 1.9 million insured people
Challenges:
- Incongruence of process & organisational structure (matrix organisation)
- Need for separation of sovereign and additional services in the context of prevention
- Challenging preconditions for the delivery of non-sovereign operations
- No systematic innovation
Approach:
- Clarification of interfaces according to requirements
- 'Business Process Model Delivery' for the delivery of sovereign tasks as well as for additional business operations defined and implementation supported
- 'Business Process Model Innovation' defined and operationalised
Duration:
- 8 months
Results:
- Complexity reduced through implementation of a congruent process & organisational structure
- Separation of powers between sovereign and other operations reflected in the organisation
- Innovation management anchored in the organisation and thereby synergies in the development of both areas of operation reaped
Edouard Currat Head of Department for Safety & Occupational Health, Member of the Executive Board, Suva
With HPO compliance with legal requirements assured, complexity reduced and effectiveness & efficiency enhanced
«One precondition from the revision of health and safety at work regulations and a result of Suva strategy has been the task for the prevention department to establish clear separation of powers between sovereign enforcement of safety & occupational health regulations and additional services in the context of prevention.
HPO not only has supported us in organisational implementation of this task which required initial clarification of roles within the prevention department. We took a step forward and noticeably reduced complexity of the prevention department with a positive effect on manageability. Results of the reorganisation are reflected in process- and organisational structure today. In order to assure effectiveness & efficiency of prevention in the future, development of prevention has been anchored in the organisation.
The support of HPO consultants based on proven methodology has been highly valuable in the concept phase as well as in implementation of the “optimal business process model prevention” – particularly since HPO emphasised the balance between methodological approach and specific requirements of the prevention department. Thanks to experience in implementation as well as good cooperation with HPO consultants, first results already have been realised during the project.»
Check-up organisation & processes
Optimisation of service delivery and introduction of innovation management
Industry: Insurances
Key figures:
- Members of staff in the analysed department: appr. 2000
- Indemnification payments: more than mCHF 3 p.a.
Challenges:
- Complexity in the steering due to a matrix organisation resulting from process and line
- Partly different decentralised implementation of the process targets in the agencies
- Partly unclear roles and separation of tasks, among others in the area of innovation management
Approach:
- Comprehensive and critical analysis of the whole process regarding the handling of claims by considering all those concerned (incl. departments in the head office, 19 agencies, military insurance, two own rehabilitation clinics)
- Setting up of a business process model delivery for a comprehensive process optimisation, clarification of roles, micro design for the optimisation of the various processes and organisational structures of the different departments
- Development of business model innovation for the establishment of an integral innovation management
Duration:
- 9 months
Results:
- Clarification and optimisation of the performance in daily business (processes, roles, interfaces and organisation)
- Establishing of a new innovation management
- Development and implementation of the various measures for an increase in efficiency respectively for a sustainable reduction of the administration efforts (medical, judicial & administrative activities)
Felix Weber Director Insurance Benefits and Rehabilitation department, Member of the Management Board, Suva
Analysis and optimisation of case management at Suva with HPO
«As part of our project OptiCare we have conducted a critical in-depth analysis of the entire department “Case Management and Rehabilitation” as well as the process Care with all people involved. Within the project, we mutually developed areas for improvement, evaluated different options and determinedly implemented the solutions. In addition to the departments responsible for case management at the headquarter, partially case management at the 19 agencies, military assurance and Suva’s proper rehabilitation clinics, RKB and CRR, were also involved. In total, this project concerned the work environment of about 2000 employees as well as insurance benefits of more than 3 billion Swiss francs per year.
I came to know HPO as a highly reliable partner during this intense project. The thoroughly well-grounded methodology, as well as the broad industry knowledge and business acumen were crucial prerequisites for a successful project cooperation. In collaboration with HPO, we were able to formulate strategic issues for the future and also develop and implement possibilities for improvement in daily case management operations. Moreover, we redefined and repositioned our innovation management.
Thanks to the sound analysis and critical questions of HPO, we were constantly challenged to search beyond the already existing options for new solutions. At the same time, HPO disposed of the necessary understanding of the specificities and particular needs of Suva. HPO consultants managed to win the confidence of both, management team and staff thanks to their sensitivity, the careful and accurate working methods and the fact that they never gave the impression of enacting changes just for the sake of it. Thus, HPO was definitely the right partner for this project.»
