Operational Excellence at Bank Permata
In the last decade, the world of national banking has experienced significant acceleration, this is due to, among other things, advances in information and communication technology and the increasing number of world banking companies entering the Indonesian market. Indonesian customers are now open to banks that are able to compete in terms of quality, service, and speed of time. How Gem Bank play in the tidal wave?
Herwidayatmo, Deputy President Director of Bank Permata seemed satisfied when he received an award from the Chief Editor Bloomberg Businessweek Indonesia in the Corporate Image Award 2011 which took place on June 9 last.
This is the fifth award this year received by Bank Permata for its increasingly bright achievements. Previously, Permata Bank also received the International Excellence in Retail Financial Services Awards, The Asian Banker awarded Bank Permata as the Best Mobile Phone Banking Award in Asia Pacific, and from the MRI assessment, Permata Bank managed to reach the fourth position (the previous year fifth position) for Conventional Service. Excellence, while in the sharia category, Permata Syariah managed to become the champion for Sharia Service Excellence. Bank Permata also received a prestige award from Carre CCSL for the Best Call Center in the Banking category for 6 consecutive times, Credit card 3 times in a row, Priority Banking was just surveyed and immediately became number 1. The ranking organized by Infobank, MRI and CCSL has long been used as a reference by national banks as a benchmark.
What is the catalyst for Permata Bank’s myriad achievements? “Our vision started with a simple idea, how to make one stakeholders we are customer like a dummy (a big fan), in a positive sense, to the club he’s proud of.” Bernard Lokasasmita Head of Service and Operation Excellence Bank Permata opened the discussion that afternoon. “We want our employees to be proud because they are employees of Bank Permata, from the customer’s point of view, we want our customers to remember their finances, so that they remember Bank Permata as a financial solution for them,” added Bernard.
“The vision desired by Permata is only possible if Bank Permata formulates the right strategy and is supported by its consistent and integrated implementation,” said Gregory Utama, Principal Premysis Consulting. According to Gregory, the strategy that must be owned by Permata must have three aspects, namely: maintaining the performance that has been achieved, making continuous improvements, and growing through innovation and investment. All of the above can only be achieved if all levels of Permata Bank in word and deed reflect the achievement of this vision. This must be reflected in the alignment between the superstructure (vision, strategy, values) and infrastructure (process, system, and structure).
Responding to this statement, Bernard said that Bank Permata already has a management system to manage the planning, implementation and review of the company’s strategic decisions.
The formulation and implementation of a structured and systematic strategy is the key to the success of the organization in achieving the Bank’s vision, which in 2004 the majority of its shares were taken over by Standard Chartered Bank and PT Astra International Tbk.
Management System This applies to all Permata Bank organizations where top management determine the direction and strategy of the company, and all levels of the organization translate it into the form of continuous improvement, in a container Operational Excellence.
Operational Excellence itself is a structured system to encourage and develop a mindset (mindset) to make continuous improvement (continuous improvement). Operational Excellence is an umbrella, which accommodates all kinds of improvement activities and is also able to adapt itself according to development demands such as new concepts or work aids (tools) new. “Operational Excellence For us, it is an enabler, a culture for employees and customers,” explained Bernard.
How is OPEX executed?
When asked about obstacles in running operational excellence, Bernard admits that creating a system framework and how to run it are two different things. Making the system into a culture is not as easy as turning the palm of the hand, it used to be Permata Bank struggle In terms of maintaining consistency in performance, the experience in several projects that have been successfully implemented can only last two to three months, said Bernard.
Inviting people to change starts from our ability to answer what are the benefits for those who want to change, seeing is believing! The ways that Bank Permata does to make people believe are as follows:
- Simulation: The purpose of the simulation is to create awareness that the improvements to be made are feasible and can be done
- Pilot : The aim of the pilot is to minimize the risk to an improvement initiative. The pilot is used as the initial momentum of success
- Training: Training is given to maintain the sustainability of the improvements that have been made
- Roll-out:replicating the repair solution to a wider area for greater gain
- Success Story: getting the people involved to tell stories, so that they are always motivated to do the same thing and inspire other people/other teams to do the same.
Bank Permata believes that if the process is correct, profits will follow. Each year each Business Head sets a target that becomes a shared commitment. Targets are set based on long-term strategies and existing market conditions.
The targets are then translated into KPIs (Key Performance Indicators), and the SC team (Steering Committee) which consists of cross-functional management makes a list of improvement initiatives that will be carried out in order to achieve the KPI targets.
The listed improvement initiatives will be sorted by RCR priority (Revenue, Cost, Risk). The list of “big” projects will be facilitated and monitored by an internal facilitator/consultant, while the internal team and related units focus on their respective business sides.
Even though it’s been “only” for 2.5 years, Operational Excellence at Bank Permata has had a significant impact. Several projects have succeeded in contributing to large savings, for example credit card applications that are made paperless, in addition to making the process faster so that customers are happier, this project also has an impact on paper savings of ±105 reams/month, not including ink, energy and FTE costs. which can be allocated to other, more productive tasks.
And the sweetest fruit is felt is a change in the mindset of the employees themselves. “When the project has reached the target, people with enthusiasm and challenge each other, ‘what else? here which can beimprove?’, which is very expensive”, said Bernard.
Now, work is also well standardized, standardization makes administration better and neater. A simple example is table standardization Customer Service. “When there is” Customer Service who has just moved from another place, he can immediately work, because he knows where all the work tools are placed”. Process standardization also makes the sales team more confident in promising process time to customers.
Seeing the progress that has been made, can it be said that Bank Permata has been successful? “Success is a journey, not a destination point. We want Operational Excellence it’s more civilized. Make every Permata Bank employee proud of their work, and feel comfortable to work, be creative, and innovate. So that customers become more satisfied and more loyal”, Bernard hoped, closing the discussion that afternoon.