Bridging%20IT%20implementation%20with%20ANZ

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Bridging IT implementation with ANZs
organisational culture
Presentation to AFR 3rd Annual Banktech Summit
7 November 2002

• Peter Dean
• Head of Technology, Personal Banking Wealth
• Australia and New Zealand Banking Group Limited

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Agenda

• The ANZ approach
• Strategy
• Technology focus
• Aligning IT with ANZs culture
• People
• Customers
• Processes
• Infrastructure
• IT Case Study ANZs approach to project
  management - aligning IT with ANZs culture.
• Key achievements

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ANZs Strategy
Our targets

• Extend specialisation
• Grow customer numbers
• Increase share of wallet
• Drive productivity

Organic out-performance

• Revenue growth materially higher than expense
  growth
• Take business units to sustainable leadership
  positions
• Build a range of strategic options

• Invest in high growth areas
• Build specialist capabilities
• Exit weak positions
• Risk reduction

Portfolio reshaping
Transformational moves

• Step changes in positioning
• Creating new growth options
• Proactively shaping industry

• Create the Bank with a Human Face
• Build strong commitment to our people
• Promote team performance and cultural
  transformation

Breakout culture
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ANZs Technology Focus

• Putting technology to work to
• Provide our customers with a personalised,
  consistent experience
• Empower our customers and our people with real
  time information access and online applications
  via web-based technology, anywhere and anytime
• Ensure our technology is robust, flexible and
  cost effective
• Aggressively reduce costs, improving
  productivity, benchmarking, increasing
  straight-through processing, simplifying and
  automating administrative functions
• Provide low-risk, high-efficiency
  state-of-the-art payment capabilities

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Agenda

• The ANZ approach
• Strategy
• Technology focus
• Aligning IT with ANZs culture
• People
• Customers
• Processes
• Infrastructure
• IT Case Study ANZs approach to project
  management - aligning IT with ANZs culture.
• Key achievements

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Initial Strategy (1998) provided focus to align
IT with ANZs culture
Infrastructure
Process
People
Customers (BU)
1998 Inward focused, low satisfaction, weak
process, complex infrastructure

• Little BU focus
• Poor understanding of business drivers
• Service levels poorly understood

• Leadership weaknesses
• High staff turnover 18
• Many cultures

• Inflexible, high cost technology
• 15 data networks
• 6 core systems
• Many different platforms

• Poor disaster recovery
• Inconsistent architectures
• Poor project management methodology
• Billing of services incomplete and inaccurate

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Customers - Commitment to focus technology on
business unit objectives
Service level agreements in place for each
Business Unit
Average SLA for major systems
Clear alignment between Technology Business
Units
Customer survey/ feedback process on 6 monthly
basis. Linked to individuals performance
measures.
Electronic timesheet capture for IT project
tracking, reporting billing
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People - Skilled committed
Management tertiary qualifications policy
Breakout cultural transformation workshop

• pcs_at_home heavily subsidised packages for staff
  to acquire PCs

Online training courses
Half yearly staff survey with action teams to
address issues raised
eVouchers provided free to staff to choose
reading materials

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Process designed to improve execution capability

• Project in a Box
• Best of breed project management tools
• Central repository for all project reporting
• Open access to all users

• Capability Maturity Model
• Significant productivity quality improvements
• CMM
• AustraliaPartial level 2 certification - 1st
  Australian Bank
• Bangalore, Indialevel 4 certification

• Project management training
• Generic training courses tailored with ANZ
  specific content latest Project in a Box tools

• Reengineering in a Box
• Standard tools, templates process for re-design
  of business processes

• Continuous improvement programme
• Driving real culture change
• Series of workshops for all staff
• Resulted in significant cost savings

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Infrastructure - Commitment to rationalisation
standardisation
Core Systems
IP network
1998 6 major systems
1998 Multiple data networks

• Single IP Network provides universal connectivity

• Simpler systems platforms reduce cycle times

Servers Desktops
Platforms
2002
1998
1998 8 major platforms
2002
Platform Focus Eg,W2K, UNIX, MVS

• Greater ability to leverage new technologies
• Lower hardware, software licence fees support
  costs

• Provide all staff with best tools possible
• Low cost of ownership through standard solution

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Initial IT strategy (1998) where are we in 2002?
Customers (BU)
People
Process
Infrastructure
2002 Customer focused, positive culture,
improving process, simpler infrastructure

• Explicit business partnership
• High Customer satisfaction 7.7 (Sep 02)
• Service Level Agreements
• Customer Survey/ feedback process

• Tandem, Unix AS400 rationalisation
• 2 core systems
• Single IP Network
• Standard Win2000 desktop across Australia
• Intranet to all but 800 Intl staff
• Established strategy for standardisation and
  re-use

• Full DRP in all critical processes
• 854 staff through Project Mgt program
• New Processes - PiaB, One Team, CMM, Niku, RAD,
  Phased funding, Outcome Management
• Technology costs defined and regularly reported
• Technology governance, standards policies
• Detailed billing

• Significant benefits from our continuous
  improvement program
• Improved Staff satisfaction to 83
• IT staff turnover below 4
• Training on-line
• Leadership Development program
• Performance culture

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Agenda

• The ANZ approach
• Strategy
• Technology focus
• Aligning IT with ANZs culture
• People
• Customers
• Processes
• Infrastructure
• IT Case Study ANZs approach to project
  management - aligning IT with ANZs culture.
• Key achievements

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Situation analysis - What our internal business
customers expect from IT

• IT support of each Business Units strategy and
  agenda and elivery of annual Business Unit
  targets
• Dedicated IT team to meet Business Unit needs
• Maximisation of the return on investment in
  technology
• Accelerated, high quality, no surprises
  delivery of IT projects
• Substantial increase in output, at reduced cost
• Zero customer impact operating environment
• Increasingly aggressive use of technology in
  short time frames

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Our Project Management Challenge

• Situation
• High demand for professional staff
• Resources increasingly expensive and limited
• Need to move from traditional technical focus
  to systems business integration focus
• Complexity of large specialist organisation
• Projects increasingly need to cover multiple
  businesses
• Need to improve project delivery and build
  maintain a project management culture
• Ensure a no surprises culture

• Solution
• Develop high quality project management system to
  better leverage our existing project management
  capability

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Our Approach
To ensure high quality delivery of IT projects,
we implemented a two-phased approach - the
Capability Maturity Model (CMM) for software
development, followed by the refinement and
enhancement of our project management (PM)
practices
CMM
PM
Began with pilot of 100 staff
Development of ANZs Project Management practices
Widespread deployment in Australia
Implementation in India

• Results were meeting expectations within 6 months
• Work has been almost entirely self funding

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Project Management Practices what we have done

• What
• Improved project delivery capability
• Improved project management capability
• Better managed the utilisation of project
  management skill sets to our project portfolio

• Key attributes
• Evidenced by increase in projects with green or
  amber status
• Peer reviews, training and mentoring of project
  managers, project review process
• More informed of skill levels of project managers
  and better understand current and future skill
  requirements

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Project Management Practices key outcomes

• Improved delivery capability
• Professional project management culture
• Appropriate project management skills available
  for all project engagements
• Highly developed project management skills and
  practices
• Improved risk profile for portfolio of projects
• Enhanced compliance to all standards and policies

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Project Management Practices - advantages
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Key lessons

• Key challenge is change management
• Winning hearts and minds is difficult at outset
• First 6 months is very difficult needs strong
  leadership experience helps
• Success excitement more success

• Do this for tangible, business outcomes
• Use metrics to track progress and lock in results
• Make sure everyone is accountable for the same
  outcomes and use strong incentives
• Strong support for teams with their customers
  dates will be missed early in the program
• Teams go through a valley of despair in the
  early stages and need help through this

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Key achievements

• Aligning IT implementation with ANZs focus on
  people, customers, process and infrastructure has
  delivered
• Better outcomes for ITs business unit customers
• Higher customer satisfaction
• High IT staff satisfaction rate
• High quality, more productive IT staff
• Simpler infrastructure - robust processes
  supported by a continuous improvement focus

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Questions?
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Copy of presentation available on www.anz.com
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The material in this presentation is general
background information about the Banks
activities current at the date of the
presentation. It is information given in summary
form and does not purport to be complete. It is
not intended to be relied upon as advice to
investors or potential investors and does not
take into account the investment objectives,
financial situation or needs of any particular
investor. These should be considered, with or
without professional advice when deciding if an
investment is appropriate. For further
information visit www.anz.com or contact Philip
Gentry Head of Investor Relations ph (613) 9273
4185 fax [phone] e-mail
gentryp_at_anz.com