Build Operations Management Capability

SERVICES

THE CLIENT

The organisation was a Business Processing Outsourcing provider who was responsible for finance services for a number of different private sector clients. This included invoice & credit note processing, data maintenance and transfer pricing. The majority of the operations were located in India with 20% serviced from the UK.

THE CHALLENGE

Process redesign had recently taken place which had been successful and achieved an efficiency saving of around 15%. Although efficiency had improved, there were backlogs with certain types of work building up while others were serviced promptly. There was also an increase in the levels of re-work coming into the operation with Journals and Credit Note processing 20% higher than the previous year.

Operations Managers and Team Leaders were very focussed on the output of their team members and would often process work themselves when escalations were received from their clients. There was no forecasting or demand understanding across the management team and problems were given to subject matter experts to solve in the UK.

THE SOLUTION

An Operational Assessment was carried out by Reinvigoration to understand the current levels of operational management capability for the India operation. There were 4 areas of Reinvigoration’s 10 categories which scored significantly lower than the others.

These were Visual Management, Management Routine, Planning & Forecasting and Quality Management. A tailored training and coaching approach was created to improve the operational management capability of the off shore management team in these 4 specific areas.

  • Classroom training was carried out initially to provide the understanding of these topics and their importance.
  • The support from Reinvigoration was strongly focussed on coaching the required skills and creating the bespoke tools to support the management of the operation.
  • A quality management system was implemented with process documentation created and all team members assessed to the required standard.
  • A ‘Day in the Life of’ Analysis was carried out with each leader to understand where their time was currently spent.
  • A standardised Management Routine was developed making sure leaders and managers focussed their time on coaching staff, performance management, continuous improvement, workload planning and forecasting. This allowed managers to spend time helping to solve problems rather than logging them with the UK subject matter experts.
  • A planning and forecasting tool was created with all leaders trained and coached to use it in order to plan effectively and ensure all SLAs were met for all types of work. This incorporated likely spikes in demand due to seasonality and product launches.

THE RESULTS

  • Levels of re-work reduced by 35% after 3 months with both Journals and Credit Notes falling considerably.
  • Efficiency improved further across the operation with Manual Invoice Processing improving from 8.4 invoices per day to 10.5 invoices per day, a 25% increase.
  • Within 3 months, 100% of all work-in-progress levels were below agreed customer SLAs.
  • Turnaround time on invoice support queries reduced from an average of 5 days to within 24 hours.

HAVE A SIMILAR CHALLENGE?

Get in touch to discuss how we can help you transform your service operations.

Chris Dando - Reinvigoration

Chris Dando

Ryan King - Reinvigoration

Ryan King

Graham Turnbull - Reinvigoration

Graham Turnbull

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