Breakthrough Process Improvement case study submitted by Mashreq Bank during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.

1. Lean project on
Improving Sales, Service and Quality across all
domains of Branch Network
A Mashreq Bank – Case study
09.10.2011
1

2. Introduction
About Mashreq
Mashreq has provided banking and financial services to millions of customers and businesses since 1967.
We are one of UAE's leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait and
Bahrain.
We focus on providing our customers access to a wide range of innovative products and services.
Mashreq is invariably among the highest performing banks in the region. Last year we recorded a Net Profit of AED 803 million
from a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED
84.8 billion.
Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also have
customer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseas
offices in nine countries, including Europe, US, Asia and Africa.
Vision Customer focused
To provide our customers the most rewarding banking We act in the interest of our customers, seeking to exceed their
relationships expectations
Mission Transparent and fair
Being relationship based We are clear, concise and open in all our communications, and
Delivering superior service treat customers and our colleagues with fairness, respect and trust
Being the primary bank to our customers Progressive
Being the Employer of Choice We are fast, agile and constantly think of ways to enhance
Values customer experience
We are on a constant journey towards service Bold
excellence, developing innovative new products and We challenge established practices and take smart risks
financial solutions. Anticipating your needs and providing Individually Responsible
you with new opportunities, convenience and peace of We each take responsibility for the quality of our work, the success
mind, stem from our core beliefs. of the bank and delivering the brand promise to each customer
Teamwork, cooperation and responsiveness drive the
way we work and form the basis of our core values 2

3. Project Charter
E. The Goal Statement:
Improve and reinvest capacity in branches of Sales and Service Officer’s (SSO)
The teams involved:
Branch Team – two pilot branches – Retail Banking Group
G. Stakeholders model:
• Project chaired by the head of Retail banking
• Decision making group formed for toll gate reviews involved stakeholders from –
– SME banking
– Credit operations
– Risk management
– Legal
– Others
H. The project timelines:
• Diagnostic – 3 weeks
• Design – 3 weeks
• Plan – 1 week
• Roll out – 6 weeks
I. Quick Win opportunities (If any)
NA 3

4. The diagnostic indicates improvement opportunities
across 5 dimensions of the lean programme
Key improvement opportunities
▪ Sales time of SSOs can be ▪ Scoreboards do not reflect the
right indicators and are not
increased from 8% to over 25%
frequently updated
– Move sales administrative
tasks to tellers
▪ Performance huddles lack
individual tracking and
– Simplify key processes
problem-solving elements
around account opening and
mortgages release
▪ Apart from sales, metrics are
not tracked systematically;
– Reduce rejection rates Process Efficiency Performance
▪ Opportunity to increase Teller Management
particularly, no commercial
activities metrics
capacity through move to
alternative channels and process
improvements
▪ Teller and SSO staffing not
coordinated with customer Customer
footfall
Mindsets Organization ▪ Skills gaps required to be
▪ Main issues for branch staff are: and Behaviours and Skills closed with coaching on the
– Communication of key back of gap analysis to allow
changes not sufficient multi skilling and flexible
– Lack of empowerment resourcing
– Insufficient training for daily ▪ Surveys with customers highlight a generally very ▪ Resource planning is conducted
tasks positive attitude towards branch performance ad hoc and not systematically
▪ Staff expect: ▪ However, a number of areas were identified to tracked
– greater flexibility, guide the future design, for example: ▪ Require to align spans of
– higher employee recognition – Following through on promises made control for SSOs, observed
– and innovative processes – Addressing requests in a reasonable time inconsistency of 1:4 and 1:7 in
– Being knowledgeable about the products & DIC and Muraqabat,
services respectively
4
SOURCE: Team analysis

5. Measure
Recent customer feedback has been very positive; still, we have identified 7 key
S SO satisfaction drivers
improvement areas
T Teller satisfaction drivers
Both Pilot Branches are Leveraging previous transaction survey the team identified key VOC
excelling in service priorities
Customer satisfaction
1-10 of which 10 is Sales Officer
100
highest S1 S2 T1 S1 Following thro-ugh
95 on promises made to
10.0
S6 you
90 S3 S2 Addressing your
8.6 S4 T2 request in a
85 T3
reasonable time
80 S7 S5 S4 Being know-
ledgeable about the
Importance
75 T4
products & services
70 S5 Addressing your
T5 T6 S10 request accurately
65 S9 S8
S6 Being able to
S11 understand your
60
needs
S13 S12 T7 S7 Waiting time to be
55
T9 T8 serviced
50
45 T10 Teller
T4 Ability to provide
1.0
0 accurate inform-
0 60 62 64 66 68 70 72 74 76 78 80 82 84 ation upon request
Customer
satisfaction Performance
5

6. Measure
Diagnostic has shown capacity creation to deliver 25% direct sales activity, a sales
potential increase of +200%
Sales Officer
Percent
Sales activity
1.0 0.9 0.3 17.4 Percent SSO time
13.5 1.8
+217%
Admin Account Info. Rejection Mortgage Total
opening update release
25
8
Teller
Percent
Current % Future
13.5
0.7 SSO % SSO
2.0 2.1
8.7 time on time on
sales sales
activity in activity
Auto- Cheque Cash / Remit- Flexible Total branch
mation/ deposit cheque tance staffing
migration withdrawal 6

7. Analyse
Sales Officer spend 7.6 % of time on sales
Dealing with customer query (face-to-face) 63.2%
Dealing with customer query (over the phone) 0%
Customer service 63.55%
Cashier-type transaction processing 0.3%
Sales 7.61% Sales conversation over telephone 0%
Total customer Face-to-face customer sales meeting 7.6%
interaction time 71.17%
Customer service admin (customer not there) 12.7%
Service admin 12.69%
Opening/handling applications 1.8%
Sales admin 1.83% Other customer admin 0%
Hygiening prospect lists 0%
Internal meeting 5.79%
Internal discussion/huddle 3.1%
Branch admin 2.34% Assisting a colleague 2.7%
Branch Admin 2.3%
Cash handling 0.00%
Feedback/Training/Coaching 1.1%
Coaching / feedback
Learning / training 3.15% Seeking information (face-to-face/intranet) 2.1%
Unproductive time 3.05% Idle time 2.7%
3.9% Re-stocking 0%
Total time 100.00% Private conversation 0.3%
7

8. Analyse
Capacity is not varied with demand, leading to inconsistent service levels and
unused potential to support Sales Officer
Pilot Branch 1
50
Footfall per hour
45
43
40 40 Tellers per hour
35
33
30
28 Key Observations
25
20 20 20
15 ▪ Intraday foot flow fluctuation is quite
10 11 10 different from branch to branch
4 3 3 3 3 3
5 2 2 depending on the location and size
0
8am 9am 10am 11am 12pm 1pm 2pm 3pm
▪ Poor intraday capacity management
Pilot Branch 2 ▪ Variation of tellers available 2-5
40
38 38 ▪ Variation of actual foot flow
35
30
▪ Customer segmentation different re
25
23 transactions at Tellers
20 20 19
18 Retail 27% / Corp 63% Branch 1
15 14 Retail 45% / Corp 55% Branch 2
10 5 5 5 5 5 5 5 5 9
5
0
8:00 - 9:00 - 10:00 - 11:00 - 12:00 - 1:00 - 2:00 - 3:00 -
9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00
8

9. Analyse
Improved performance management can enable a step change in
performance of Sales Officer
Key findings
Targets and KPIs Reporting Key areas of opportunity
Current performance
scoreboard ▪ KPI set as observed in ▪ Not all reports available on
branches cover only sales time (e.g.. Reject reports) ▪ Scoreboards do not
goals ▪ Few reports are reflect the right
▪ Visual targets only exist automated – SFA and indicators and are not
against high level KPIs SFE only1 frequently updated
such as sales
▪ Performance huddles
▪ Service, Control or Quality lack individual
are set in balance
tracking and problem-
scorecard, but not
solving elements
managed on daily basis
▪ Apart from sales,
Performance meetings Improvement process metrics are not tracked
▪ Meetings are not ▪ Few improvement actions
systematically;
standardized; discussion particularly, no forward
outlined and often without
not focused on any quantified impact looking commercial
performance gaps activities metrics
▪ No process to identify root
causes
1 Reporting systems to track sales 9

10. Focus Group Session revealed eagerness for change
Analyse
•Manual work •Very organized
•Customers not •Always open for the
happy with speed of customers
service •Market leader
•Hectic •Happy staff
•Tied up with policy •Far sighted
•Hunting for •Training staff
customers •Supportive bosses
•No job security •Team work
•Not enough space, •Innovative
equipment, training •Recognize & award
staff
Key feed-back from the questionnaire score (lowest and highest scores):
Lowest - > - Once a problem is raised, it is resolved quickly
- I regularly receive effective training before taking on new tasks or roles
- Our managers work together effectively
- We have a culture of giving and receiving feedback
Highest - > - I look forward to coming to work
- I know what I am accountable for in my job and what are the targets I should meet
- I feel trusted to do my job well
- If we changed the way we work, performance would improve dramatically 10

11. Improve
Branch design executive summary
▪ Create 17% of SSO and more ▪ Display and manage
than 16% of CSS capacity branches with perfor-
through mance boards
– Simplifying processes Process efficiency ▪ Run daily huddles
Performance (and
(e.g., cheque deposits)
– Moving out of branches
sales) management ▪ Introduce weekly 1:1
performance meetings
(e.g., CCDM replenishing)
– Transferring between SSO ▪ Develop structured sales
and tellers Customer kits for SSO
(e.g. statement issuance) Mindsets and Organization
behaviours and skills
– Improve migration through
layout changes and CRO
education
▪ Introduce skills matrix
▪ Introduce flexible staffing
model in branches with
▪ Introduce weekly team ▪ Run annual customer feedback intra-day choreography
barometers survey
▪ Introduce rostering tool
▪ Display lean wall ▪ Continue monthly transaction survey
for monthly resource
and engagement ▪ Use structured action plans on the allocation
communication back of survey
▪ Enforce key communication ▪ Develop KANO model for key
such as delegation matrix indicators
11

12. Improve To
25% SSO
time spent
on sales
Several initiatives will ensure that freed up 5
activity
time is captured as sales activity Follow up
on meetings
4 booked
▪ Improve daily
Ensure enough performance
meetings are management
3 booked ▪ Performance
▪ Plan meetings in boards
Pull the right advance using ▪ Sales review
customers to meet performance board meetings
▪ Increase quality of ▪ Encourage usage
2 the leads from of diaries/
CRM calendars
Improve time usage ▪ Creation of a sales
▪ Automation kit
▪ Transfer of tasks ▪ Increase referrals
1
▪ Branch flexible
Free up time staffing model, i.e.,
RAG boards
▪ Stopping (e.g..,
excessive
stamping)
▪ Moving out of the
branch (e.g..,
account freeze)
From
8% SSO time
▪ Simplifying (e.g..,
cheque deposit)
spent on sales
activity
12

13. Skills matrix developed to manage branch development
Improve
▪ Limited skills
flexibility to
permit cross-
functionality
(e.g.. Teller not
able to support
sales
administration,
limited product
knowledge to refer
to SSOs)
▪ Business
English urgent
requirement for
some front line
staff
▪ Lack of Lean skills
,mainly coaching
and performance
management as
main driver for
increased
profitability in the
branch
Impact through skill development,
coaching and more flexible staffing
13

14. Improve
WEEKLYWeekly 1:1 meetings to follow a clear and documented structure
1:1 SHEET
Employee Name: _______________ Signature: _______________
Manager Name: _______________ Signature: _______________ Date: _______________
KPI ( Key Performance Indicator ) Target Performance
Key successes (Refer to behavioral competencies) Key issues encountered (Refer to behavioral competencies)
Actions required for Status
Who When Support required
following week (Red/Amber/Green)
Impact through more
▪ BM/SSM/CSM to hold weekly rigorous coaching and
1:1 meetings performance management 14

15. Control
Two boards used to manage performance and activities of the branch
staff
Branch performance board for Sales and services board for
weekly review daily review
M
M M
Branch BSC rank C Action of the day
M Daily Targets setting M Weekly/
W Margin W Deposits
Monthly
C Staff Birthdays
W Avg. Per Day Targets
M C C R
Top Performers
Monthly Schedule C Planned M
(report based) Submitted Booked Sales
Sales
W Credit cards W Loan Applications (report based)
Meetings Coaching,
1:1 sessions
Avg. Queue Time
C SSO and Teller C Actual/Targets
(report based)
C
HO New
W CASA M
Mashreq Gold – W Daily Targets setting
Average revenue
W W W
C C C
C W SME – median Referrals to Transaction
Staff Suggestions portfolio revenues SSO MM Sales
Errors
W Team Barometer
C C C Actual/Targets
M M
Targets setting
Skill Matrix
Quality and Problem
Service Scores Solving
(MTD
Management
C individual
Cumulative)
targets
W Weekly by assigned staff C Daily by assigned staff W Weekly by assigned staff R Daily by assigned staff
M Monthly by Manager M Monthly by Manager C Daily by each individual
▪ Boards to be displayed and used in daily
15

16. Control
Morning huddles are structured and aligned with performance boards' data
Timing: 7-45 am (15 mins max)
Morning Huddle (15 mins)
Daily at Performance Board
Purpose: To identify plan for the day / week based on current results against targets. Highlight success areas with top performers. Review
sales pipeline / WIP. Obtain feedback and define the concerns.
Who Time Attendees
Agenda All ▪ Branch Manager
▪ Greet; check for absence
▪ Update on Head Office news ▪ All team members
▪ Discuss Team news / Team barometer
Review branch KPIs All
▪ Discuss Quality / Service achievements with teller focus Output
▪ Review last day/week results, mark top performers on board
10 mins
▪ All staff to be aware of gaps in
Raise problems for resolution All performance
▪ Identify key / pending issue(s), appoint staff for resolution
▪ Obtain feed-back , ideas for improvement on long-term goals ▪ All staff have a clear vision on what
to be treated as Individual and
Summarize Plan of the Day All Team Task for the Day
▪ Identify 1 Item/Target for Today – Sales / Service / Quality / Control
▪ Obtain commitment for Referrals/Calls/Meeting ▪ Registered issue(s) for timely
▪ Communicate / Reinstate the TOP 5 & Tag-Ons resolutions
Sales review BM/SSM/ 5 - 10 mins
▪ Review Sales board with previous day results SSO
Meeting rules
▪ Update board with KPIs prior to the meeting
▪ This is not a problem-solving meeting – agree to take problems/improvement ideas off line
▪ Keep mobile devices switched off
Decision required
▪ Implement standard huddle agenda in pilot branches 16

17. Control
Regular surveys will ensure staff engagement and change acceptance
▪ Satisfaction score
▪ Action plans in place to
address highs and lows
Satisfaction Level
How to use the team
barometer
▪ Dedicated resource in each
branch to manage process
▪ Survey ran every Thursday
▪ Action items displayed on
performance boards
Weekly Trend
Drive change by coaching,
Track, reinforce, and
trainings, root cause
encourage positive
analysis and two way
behaviour
dialogue 17

18. Control
Tactical Implementation Plans – track each branch for consistency and timelines
18

19. Project Closure
Lean Key Performance Indicators - upward trend for branches (lead indicator)
SSO client meetings * Targets vary and depend on number of SSOs & Tellers in the branch SSO applications * Targets vary and depend on number of SSOs & Tellers in the branch
Ave Ave
30 Ave 30 Ave
Linear (Ave) Linear (Ave)
20 20
▪ Average of all
10 10
0 0 KPIs shows
9-14 July
Week 1
16-21 July 23-28 July
Week 2 Week 3
30-4 Aug
Week 4
6-11 Aug
Week 5
13-18 Aug 20-25 Aug
Week 6 Week 7
9-14 July
Week 1
16-21 July 23-28 July
Week 2 Week 3
30-4 Aug
Week 4
6-11 Aug
Week 5
13-18 Aug 20-25 Aug
Week 6 Week 7
positive trend
Ave 3.2 13.4 13.2 15.6 20 23.4 25 Ave 5.6 10 12.2 19.6 18.6 18.4 18.6 for branches
▪
Mussafah 16 36 14 6 10 4 5 Mussafah 11 26 18 23 29 28 26
Mushriff 0 17 4 4 16 24 22 Mushriff 0 2 3 13 15 9 6 Steady increase
Khalifa A 0 0 34 26 22 18 23 Khalifa A 0 0 12 10 10 18 10
Zaeyd 2nd 0 3 6 35 30 30 58 Zaeyd 2nd 17 14 18 42 18 21 28 in booked client
AD Main 0 11 8 7 22 41 17 AD Main 0 8 10 10 21 16 23
meetings results
Teller referrals Teller MM sales
Ave
* Targets vary and depend on number of SSOs & Tellers in the branch
Ave
* Targets vary and depend on number of SSOs & Tellers in the branch
in increase of
30 Ave 200
180
Ave number of client
160 applications
▪
Linear (Ave) 140 Linear (Ave)
20
120
100
Wallet share
10
80 increased due
60
40 to teller referrals
20
0 0 and MM sales
9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug 9-14 July 16-21 July 23-28 July 30-4 Aug 6-11 Aug 13-18 Aug 20-25 Aug
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Ave 0.4 21.2 15.2 13.4 23 16.8 21.2 Ave 38 168 153.4 179.6 149.6 183.4 141.6
Mussafah 2 33 22 7 9 6 11 Mussafah 54 65 92 334 398 245 124
Mushriff 0 50 21 17 25 32 28 Mushriff 0 355 255 90 70 364 122
Khalifa A
Zaeyd 2nd
0
0
6
8
16
7
6
16
21
48
5
22
19
27
Khalifa A
Zaeyd 2nd
0
136
120
174
40
159
110
187
9
133
10
166
9
215 19
AD Main 0 9 10 21 12 19 21 AD Main 0 126 221 177 138 132 238

20. Project Closure
Up to 12th
position for
May
Balance Scorecard
Impacts on Pilot branch
(Lag indicator)
After 1st
month 14th
position
Start of Lean in
16th position
20

21. Project Closure
Learnings
 Flexibility within tools used to deliver sales and service improvements
within branches – ensure degree of customization for Branch Manager
while not losing uniformed approach
 First week of new waves used as ‘mini-diagnostic’ to validate findings from
extensive pilot analysis
 Key staff in completed branches used during training phase for future
branch roll-out
 Regular ‘Problem Solving’ sessions held within Lean Team and Branches to
encourage continuous improvement
Team Recognition
 CEO visits to relevant branches, regular newsletter detailing achievements,
and recognition in CEO annual video conference across MENA
21

22. Finally
In light of competitive nature in the Financial Services Market in UAE, it is
essential that an organization can maximize it’s existing assets.
By re-energising, re-investing, and retraining staff in conjunction with
process efficiencies, and better use of support services…we can
significantly increase sales potential without significant headcount
expansion.
22