Process Innovation: From the Customer Side of the Fence
Through the flood of mails that I typically wade through everyday, I chanced upon a mail from my bank, reminding me that I had missed an installment payment. Gritting my teeth, I prepared mentally for a frustrating chat with the poorly informed call center executive, then downloading paper documents, making out a cheque, couriering the same… the list seemed so painfully long.
Reluctantly, I listened to the bank’s call center welcome my call with music, before my relationship manager, came on line. Surprise! Surprise! He tells me I can make the payment online, as they have rationalized their processes! What a relief! Their processes certainly seem more customer friendly now, without compromising on the vigor of regulatory and security compliance. This was process innovation that was not difficult for a customer – like me – to appreciate! I can also appreciate the effort they’ve possibly put into examining their as-is processes, its efficiency, throughput and productivity. These process innovations impact the agility of the organization, and reflect the culture and strategic intent of the organization. In this case – the customer – I – am at the heart of the bank’s strategic focus!
In my opinion, process innovations are vital for financial institutions, thanks to the constantly multiplying regulatory mandates and ever changing customer needs. There is a tremendous scope for banks in adopt and benefit from process-driven services. For this, banks must invest in setting up process offices, creating a repository of existing processes, establishing robust process audit procedures, identifying process innovation areas and driving innovation itself with energy.
Clearly, this is no light matter, especially for those players not yet conversant in the process game. It certainly requires real top management commitment, both on paper and in action…like it seems to be the case at my bank.
And yes, I paid my dues with just a click…besides contemplating on the merits of process innovation.
Comments
You blog is titled process change. However, what the bank has done is not just a process change. The bank also has to invest in technology to facilitate the change. I would believe that process change is something where there is a reuse of existing infrastructure and that there is only a change in process as against and technology investments to compliment the process change.
For example a process change in the example that u gave could be to scan a request to make the payment and authorising the request from the registered email id of the customer. It could also be a facility for the customer to fax the same document.
Posted by: Peter Burn | December 17, 2009 10:46 AM
Thank you Peter for your comment.
I agree with you that process innovation mostly demands reuse of existing infrastructure. In the scenario I have described the bank had online payment facilities i.e. the infrastructure was in place. The bank’s earlier process for online payments restricted transfers till due date. However, by allowing online payments post due date the bank not only brought about innovation in the existing process, but they also displayed that the customer is at the heart of their strategic focus.
Posted by: Rajendra Kumar K. L. | December 18, 2009 07:28 AM