1. op⋅er⋅a⋅tion⋅al /ˌɒp əˈreɪ ʃə nl/ – adjective trans⋅for⋅ma⋅tion ˌtræns fərˈmeɪ ʃən/ – noun

2. Operational Transformation Productivity Zero-based Budgeting Regulatory Inspection Facilities Management Network Expansion Cost Management Operational Risk Key Risk Indicators Market driven SLAs Operating Policies Manual Update SOPs Disaster Recovery Performance Management Process Re-engineering FTE Reduction Vendor Management Reporting Requirements Service Orientation Complaints Resolution Change Control Staffing Issues Business Continuity Cash Insurance Business Conflicts Organisation Alignment Product Launches Project Prioritisation ATM Management Training Key Performance Indicators Technology Uptime Internal Audit MIS Capacity Planning

3. Operational Transformation Productivity Zero-based Budgeting Regulatory Inspection Facilities Management Network Expansion Cost Management Operational Risk Key Risk Indicators Market driven SLAs Operating Policies Manual Update SOPs Disaster Recovery Performance Management Process Re-engineering FTE Reduction Vendor Management Reporting Requirements Service Orientation Complaints Resolution Change Control Staffing Issues Business Continuity Cash Insurance Business Conflicts Organisation Alignment Product Launches Project Prioritisation ATM Management Training Key Performance Indicators Technology Uptime Internal Audit MIS Capacity Planning

4. Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres Operational Transformation Matrix

5. Lean Process Transformation Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

7. Organisational design

8. Capability building infrastructure

9. Support functions

12. Leadership – aligned and committed sr. team

13. Focus – compelling purpose , clear direction

14. Skills – People work effectively in their roles

16. Team selection

17. Project charter

18. Diagnose current state to ascertain key levers for improvement

19. Prioritise processes for transformation

20. Set future state point-of-arrival

21. Design processes to achieve future state

22. Pilot new processes

23. Establish measurement criteria

24. Coach staff on new dynamic (process & measurement)

25. Communicate progress and targets

26. Full implementation rollout

27. Monitor and report progress through established dashboards

30. Inconsistent procedures (& outcomes)

32. Inconvenient procedures

34. Excessive re-work and wasteSuite of tools used to address these challenges & provide solutions

37. Productivity Enhancement Cost Control Revenue Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Lean Process Transformation Productivity Enhancement Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

38. Productivity EnhancementDefinitional clarity Productivity is a measure of output from a production process, per unit of input. Productivity measures the efficiency of the employees in using the organization’s scarce resources to produce goods and services. Σ Daily Volume Processed Pa = Average Team (Time Out – Time In) x FTE “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” Paul J. Meyer

39. Productivity EnhancementI/O of Productivity Augmentation Process Input Activities Process Steps Reference Checks External Services Time Rework Redundancies Errors Wait Time People Organisation Design Span of Control Technology Core Technology Automation Tools Output Products & Services Production Capacity Defect Ratio Processing Time Delivery Time Organisation Span of Control FTE Redeployment Capability Load Balancing Capability Design Validation Management Execution Plan Dashboards

40. Productivity EnhancementProcess Schematic Capacity Plan & FTE Redeployment Analysis Process Identification & Prioritisation Current Metrics & Standard Processing Time (SPT) Organisation Structural Review & Design Proposal Current Metrics & Standard Processing Time (SPT) Process Transformation Deep Dive End-state Implementation Plan, Targets & Dashboards P1 = A1 + A2 +... An P1 = A1 + A2 +... An SPT >> FTE Conversion & Baseline Metrics Rollout, Monitoring, Measurement, Course Correction E2ESPTP1 = SPTA1 + SPTA2 + ... SPTAn

41. Resource Optimisation Cost Control Revenue Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Productivity Enhancement Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

42. Resource Rationalisation / OptimisationSingle Focus; Multiple Approaches People Performance management Skills inventory Skills utilisation & multi-skilling Team productivity dynamics Service Providers Performance management Vendor evaluation Vendor rationalisation Technology Performance management Project prioritisation Vendor evaluation Project Prioritisation

43. Operational Transformation Matrix Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

44. Operational Policies Cost Control Revenue Cost Control Revenue Operational Policies Lean Process Transformation Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

46. Facilitates better communication across the Operations organisation

47. Helps in the development of operating procedures

48. Removes subjectivity & ensures consistency in interpretation of guidelines

49. Minimises disputes in the Ops-Business partnership

50. Empowers employees

51. Briefing on mission & strategy

52. Content selection

53. Review existing documentation

54. ToC, Format & Layout approval

55. “Write & Review” plan approval

56. ProductionA Policy lays out what management wants employees to do; a Procedure describes how it should be done.

57. Operational Procedures Cost Control Revenue Cost Control Revenue Operational Policies Lean Process Transformation Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Operational Procedures Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

59. Processor Feedback

60. Safe Work Practices

61. Legislative Compliance

62. Set Expectations

63. Measurement Benchmark

64. Decisioning Hierarchy

65. Eliminates Ambiguity

66. Workshops

68. Control Checklists & Risk Indicators Consistency in Control Environment A checklist is an informational job aid used to reduce failure by compensating for potential limits of human memory and attention.

69. Control Checklists & Risk Indicators Sample: Branch Control Checklist

70. Control Checklists & Risk Indicators Early Warning Signals “I saw the signs and I was saved. Can you imagine my plight if I had ignored them; or worse, if they had not been there?”

71. Operational Risk: risk of direct or indirect losses on income or capital, resulting from inadequate or failed internal processes, personnel, systems, or from external events. Control Checklists & Risk Indicators Establishing Risk Indicators in Operations External Events Internal Process People Systems Identify potential risks Select Key Risks Identify Indicators Tracking & Monitoring Mechanism Launch Functional Self Assessment Teams SOPs deep dive

72. Control Checklists & Risk Indicators Establishing Risk Indicators in Operations

73. Control Checklists & Risk Indicators Establishing Risk Indicators in Operations

74. Control Checklists & Risk Indicators Executive Dashboards Answers fundamental questions about the health of the Operations unit. Volumes Productivity Headcount & Attendance Reconcilement outstandings Projects status Budget variance Executive alerts on issues or problems within the O&T space Pre-flights Checklist Defect rates Absenteeism SLA adherence Controls: Audit, Exceptions, Incidents Expense variance Aids executive decision-making Capacity planning & redeployment Cost control Skills renewal / enhancement Business partnership Project prioritisation

75. Business Partnerships Cost Control Revenue Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Control Checklists & Risk Indicators Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres

77. Everyone’s back-office is someone .else’s front-office

79. Unit-Cost Based Pricing (PS x U)-(CV x U)-CF = NI

80. Unit-Cost Based Pricing Costing Process

82. Start of day SWIFT messages received overnight sorted by ccy, MT, department, etc.

83. Through the day SWIFT messages collected from printer and sorted as above. Done every 15 mins between 8:00 am and 4:30 pm (i.e. 4 times per hr) with an average of 30 msgs per batch.

84. For IOPs each SWIFT message checked for correct reference number & no missing data prior to processing on system. On completion the transfer is data entered on screen as per the SWIFT message (7/8 fields).

85. The Transfer is now live and posted in the system. Two advices are generated, one sent automatically by Right Fax , the second is a hardcopy printed advice. EOD all printed advices are collected, sorted and checked complete address. Prepare pack to be couriered. (Courier collection 4 times a day). Time noted under Documentation. For Vostro accounts, when processing MT103/202 if an alert for "Balance Insufficient", email sent to FI for an OD approval.

86. Processing of Inward Order Payments ("IOP")

87. Verification of IOPs

88. Processing of Notepad Swifts

89. Verification of Notepad Swifts

90. Outward Remittance- Retail Applications (15% VOL)

91. O/R Commercial Applications (35% VOL)

92. O/R Vostro Applications (20% VOL)

93. O/R Internet Applications (25% VOL)

94. Pay Order/ Demand Draft Issuance

96. Unit-Cost Based PricingLabour cost calculation methodology

97. Service Excellence in Operations Cost Control Revenue Cost Control Revenue Lean Process Transformation Operational Policies Business Partnerships Unit Cost based pricing Productivity Enhancement Operating Procedures Unit Cost based pricing Resource Rationalisation / Optimisation Control Checklists & Risk Indicators Service Excellence in Production Centres Service Excellence in Production Centres

98. Service Excellence in Operations Reliability & Service Recovery

100. Overworked and stressed

101. Remuneration is not at par

102. Silos

103. Demotivated middle management

104. Leadership – immature middle management

105. High work pressure

106. Lack of recognition, specially from peers

107. Lack of interdepartmental communication

108. Work life balance programmes irrelevant

109. Severe level of stress

110. No team work and leadership

112. No walking the talk

113. No empathy

114. Serious lack of maturity

115. Favouritism by line managers

116. Low salary structures

117. No performance bonus for lower grades

118. Salaries do not cover cost of living

120. Operational Transformation Matrix