Aviva Plc · LSE:AV.
Aviva — Investor Day (July 2014)
19 slides from Aviva's investor day presentation, Jul 9, 2014
Slide 1: Productivity and systems thinking
Productivity and systems thinking Nick Amin Chief Operations and Transformation Officer 6
Slide 2: Life begins at the end of your comfort zone (quote)
"Life begin at ane end ot your comfort zone' ——— Neale Donald Walsh
Slide 3: In Summary
In Summary 1. More to do, we are not done 2. Ship is turning 3. We will deliver as we have the execution focus 4. We are on it We will not call victory too early
Slide 4: Systems Thinking in Aviva
Systems Thinking in Aviva Why, What, How and So What. Scott McFie, Head of Systems Thinking 9
Slide 5: Why?...Systems Thinking
AVIVA Why?...Systems Thinking
Slide 6: Commercial – it works… on all levels
Commercial – it works… on all levels Typical +30 point increase in NPS Predictably up to 60% failure demand identified Purpose Removing waste Design against customer One stop, end to end thinking demand CUSTOMER EFFICIENCY PEOPLE FINANCIAL Developing leaders Economic Model Building capability Macro
Slide 7: Conceptual
Conceptual “We can’t solve problems by using the same kind of thinking we used when we created them” – Relates to Thinking “Insanity: doing the same thing over and over again and expecting different results” – Relates to Method 12
Slide 8: Systems Thinking is about more than Operations
Systems Thinking is about more than Operations We can use Systems Thinking to become more efficient in support functions… Demand Demand Customer Operations Support (Purpose) Response Response But…more importantly, how do support functions ENABLE “Systems Thunk” Operations to better understand and me
Slide 9: What?...Systems Thinking
What?...Systems Thinking A gentle Intro
Slide 10: … there is a (tenuous) connection between these two, honest!
… there is a (tenuous) connection between these two, honest! Genichi Taguchi Brodie McFie 1924 - 2012 (age 12) 15
Slide 11: Why this works
Why this works – X Learn to design the way of working to meet the customer demand and not only does this improve Customer Sat, it also costs us less Net X X Promoter Score (NPS) Hierarchy and Management What the factory customer wants Reporting Costs MI £ Protracted Workflow (Local) process Improvem
Slide 12: But surely claims cost would rise?
But surely claims cost would rise? A major Claims area • Like for like claims cost down £15m p.a. on c £350m spend and still reducing AND… • Net Promoter Score from -3 to +53 • Headcount from 355 to 280 and a further 150 roles insourced and absorbed • 40%+ more efficient. 18
Slide 13: How?... Systems Thinking
AVIVA How?... Syste Mulldisti 12
Slide 14: So what's going on? Seeing the before and making the transition
So what’s going on? - how do we see the “before” for what it really is, and make the transition to “the after” CHECK (STUDY) • Understand current performance – “what and why” • Use front line staff to study the work – with leaders and data. RE-DESIGN (PLAN) • Identify levers for change and Experimen
Slide 15: It's a different type of Leadership
It’s a different type of Leadership … Systems thinking connects real insight with real influence. If you want to change Performance, (Leadership) Thinking must change. Analysis is bottom up from the work (with Leaders). Change happens at the thinking level. More attention to the system. 21
Slide 16: So What … Results and next steps
So What … Results and next steps 22
Slide 17: Life policyholder contact and annuity death claims results
Life Policyholder Contact Annuity death claims AVIVA fete) OQ0000000 70% 18% fofe) OO000000 Business areas Between 5 and 15 Failure Demand yD) Customer Satisfaction oS" EPS Engagement 200/month Complaints £2.5m cost savings even with repatriation of Failure Demand 90%) © Customer Satisfaction EPS En
Slide 18: …to conclude
…to conclude • We have tried and tested method and capability in Systems Thinking that drives and underpins our Theses – Investor, Customer, Distributor and People • It aligns perfectly to our Values • So, when we say we will be more efficient AND transform the customer experience… we can, we have a
Slide 19: Cautionary statements
Cautionary statements: This should be read in conjunction with the documents filed by Aviva plc (the “Company” or “Aviva”) with the United States Securities and Exchange Commission (“SEC”). This announcement contains, and we may make other verbal or written “forward-looking statements” with respect