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Navigation Plan for Successful

Implementations

Presented by : Amy G. HarkinsSenior Vice PresidentMellon Financial Services Corporation

Offshore BPO:

Prepared by: Kathleen A. Beggs

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Establishing Operations Offshore

Evaluation

Preparation

Documentation

Implementation

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Assumptions: Management committed to Offshore

BPO Vendor selection completed

Dedicated Resources assigned to project•Project Manager

•Technology Team

•Human Resource, Audit and HR Support

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EvaluationTo be conscious that you are ignorant is a great step to knowledge. Benjamin Disraeli

High Level Assessment

General Description of each potential function Chart Key Attributes of each potential function

• ASP• Vendors• Systems

Identification of feasible functions using scoring process• Risk (operational, reputation,

legal)• Client Touch points• System Access•Process Complexity•Potential savings

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Evaluation Focus on probable candidates Expand data gathering process for feasible functions

Validate scoring with Function Manager

Estimate potential ASP savings

Create “As Is” Workflows• Determine delivery method of reports • Identify usage of unique databases or specialized applications• Identify frequency of handoffs to complete the process• Determine Communication points (internal and external)• Identify requirements for process re-engineering

• No. Experienced Onshore employees ≠ No. of Offshore employees required• Net the cost of training and travel against saving estimate•Verify that reorganization of the workflow won’t produce greater savings

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PreparationTarget Specific Process

Offshore BPO Planning

Develop HR Communication

Nothing can add more power to your life than concentrating all your energies on a limited set of targets. Nido Qubein

Create “Proposed” workflow•Incorporate all reorganization plans•Plan for quality checkpoints via local supervisory unit

Update Procedures

Collect Monthly Volume Statistics

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PreparationTarget Specific Process

Offshore BPO Planning

• Connectivity• Security• Access Levels

Identify and Mitigate Operational Risks

Confirm IT feasibility and Identify “To Do’s”

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Develop Transition Timeline

PreparationTarget Specific Process

Offshore BPO Planning

•Training Preparation

•Documentation of Function Requirements

•Documentation of Service Level Requirements

•Documentation of Risk Mitigation Plan

•Documentation of Parallel Processing and Quality Assurance Testing

•Vendor validation of Proposed Workflows

• Duration of Onshore and Offshore Training

• Duration of Parallel Processing and Quality Assurance Testing

Plan more than you can do, then do it. Anonymous

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Training Preparation

DocumentationOffshore BPO Details

• Reference Materials• Task Practice Exercises• Final Evaluation/Certification

Detailed Functional Requirements• What will the vendor be required to do?

• What are the required employee qualification?

• When must each task within the process be completed (including daily hours of operation)?

• What form and reports (samples) will need to be utilized?

• How and to whom should the finished product be delivered?

Plans are only good intentions unless they immediately degenerate into hard work. Peter Drucker

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DocumentationOffshore BPO Details

Documentation of Service Level Requirements

• What amount of the process must be completed and by when?

• What are the penalties for missed deliverable?

• How will problems be acted upon and by when based upon assigned levels of criticality?

• Will performance or lack thereof affect the terms of the contract?

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Documentation

Offshore BPO Details

Documentation of Risk Mitigation Plan• Strategy in the event that the supplier performs unsatisfactorily, suffers a system failure or is unable to recover from a disaster

• Detail controls embedded into the workflow to catch small errors before they become big ones.

• Strategy for training new, offshore hires

• Security Review Schedule

• Metric/Reports to communicate performance on a monthly basis

• On-going communication plan with vendor

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DocumentationOffshore BPO Details

Detail Parallel Processing and Quality Assurance Testing

•When can it begin? Pre- or post- certification.

•Document the phases for Parallel Processing

•What tasks should be performed?

•How much of the volumes should be assigned during each phase?

•Should benchmarks be achieved before advancing to a new phase?

•Prepare test case templates to document successful phase completion

It generally happens that assurance keeps an even pace with ability. Samuel Johnson

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Implementation

Offshore BPO Kickoff

Communicate

• Notify the affected employees

• Inquire about the vendor’s representatives and know his/her travel plans

• Be prepared for the possibility of delays

•Vendor Representatives’ visas should exceed Onshore training schedule

• Daily update meetings are critical

Strategy is buying a bottle of fine wine when you take a lady out for dinner. Tactics is getting her to drink it. F. Muir

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ImplementationOffshore BPO Kickoff

Assess

• Use test templates to objectively identify readiness to progress through QA Phases

• Utilize key employee(s) to perform Offshore training

Just because something doesn't do what you planned it to do doesn't mean it's useless. Thomas A. Edison

• Perform Checkpoint evaluations during training phase

Be prepared with Plan “B” if Plan “A” proves to be too aggressive

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Implementation

Ongoing monitoring

• Develop and report on set of measures that are most critical to determining the current and future success of the Offshore BPO.•Agree on a plan for adjusting vendor staff and SLAs based on volumes and job knowledge.

Offshore BPO Kickoff

100% Cutover to Production• Plan for brief overlap of staffing

Each success only buys an admission ticket to a more difficult problem. H. Kissinger

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Discussion

Welcome

to Lake

Ontario

Welcome

to Lake

Ontario