1© 2002 Six Sigma Academy

Define

• Point one• Point two• Point three

Increase Market Share

2© 2002 Six Sigma Academy

Define

• Point one• Point two• Point three

The strike rate for lead generationAverages 12.04%. Industry benchmarks indicate best practice for call campaign strikes is 26%-28%.

Problem Statement

ObjectiveIncrease strike rate for lead generation by 70% in 6 months.Utilize outbound call program resources more effectively and efficiently.

Critical to Quality - CTQMaintain high customer satisfaction while achieving benchmark strike rates.

Current/Goal

Current Strike Rate = 12.04%

Goal (>70% Increase Achieved!)Strike Rate = 22%

Benefits Achieved

First year project savings >$639,000 ! Achieved near benchmark campaign strikes!

3© 2002 Six Sigma Academy

Define

• Point one• Point two• Point threeMetrics

Critical to QualityNear benchmark campaign strike rates while maintaining high customer satisfaction.

Strike rate: 12.04% Baselined

19103 3225 2709 2559 1061 471 1098

63.2 10.7 9.0 8.5 3.5 1.6 3.6

63.2 73.9 82.8 91.3 94.8 96.4 100.0

0

10000

20000

30000

0

20

40

60

80

100

Defect

CountPercentCum %

Per

cen

t

Cou

nt

Strike RatesPareto Chart for Low

4© 2002 Six Sigma Academy

AAM I Lead G eneration P rocess M ap

R aw D ataExtracted from

H oganS tart

R ules & D eletionProcess isC onducted

System C ontactD eta ils fo r EachR ecord M atched

w ith Te lstra W hitePages

C onductC om plim entary

D irect M ailC am paign

Is There aC ontact

Te lephoneN um ber?

N o

Yes

D ata U ploaded toAAM I Access

D atabase

C ustom er C ontactParam eters

Fo llow ed (Seedeta iled P rocess

C hart)

Exclude R ecord &End

Invite C ustom er toM eet w ith

F inancia l Adviser

Schedule an Appoin tm entW ith a F inancia l Adviser

(D irectly in to O utlookD iary)

YesIs the

C ustom erIn terested?

R ecord R eason inD atabase & End

R ecord

N o

Send Em ail toM C C M ailbox &

F inancia l Adviser

R ecord in D atabase &End R ecord

Send C ustom er aC onfirm atory

Letter

5© 2002 Six Sigma Academy

Attribute Gage R&R Study

Attribute Gage R&R Study for Results

Each Appraiser vs Standard

Assessment Agreement

Appraiser # Inspected # Matched Percent (%) 95.0% CI A 36 31 86.1 ( 70.5, 95.3)A_1 36 30 83.3 ( 67.2, 93.6)B 36 19 52.8 ( 35.5, 69.6)B_1 36 19 52.8 ( 35.5, 69.6)

# Matched: Appraiser's assessment across trials agrees with standard.

Between AppraisersAssessment Agreement

# Inspected # Matched Percent (%) 95.0% CI 36 21 58.3 ( 40.8, 74.5)

# Matched: All appraisers' assessments agree with each other.All Appraisers vs Standard

Assessment Agreement

# Inspected # Matched Percent (%) 95.0% CI 36 18 50.0 ( 32.9, 67.1)

# Matched: All appraisers' assessments agree with standard.

Measurement Systems Analysis

6© 2002 Six Sigma Academy

G eog rap h icsDem og rap h icsDep th of Relation sh ip

Cu stom er P rofil in g

Existin g In vestm en t Cu stom ers

Prop en sity Mod ellin g

Targ eted Data Extraction s

Hom e & Bu sin ess Telep h on e Nu m b er

Accu rate Con tact Details

C lear & Con ciseSp ecific to Targ et Market (Categ ory)O ffers/In cen tives

Scrip tin g

Sp ecific to Targ et Market (Categ ory)Em p h asis on Call to Action

D irect Mail Cam p aig n s

Q u alityCTS

Stan d ard Polic ies & P roced u resKn owled g e of F in an cial P lan n in g P rocess

Com p reh en sive Train in g P rog ram

Q u ality of Lead sSu ccessfu l SalesReason s for No Sale(m ay b e u sed to refin e cu stom er p rofile)

F eed b ack from Ad visers

DeliveryCTS

Volu m e of Lead s G en eratedLead Con version to Sale

Q u ality Lead s P rovid ed to F A Ch an n el at Lowest Cost

P riceCTS

Critical to Satisfaction

AAMI CT Tree(Outbound Call Consultant)

7© 2002 Six Sigma Academy

AAMI SIPOC

Inputs OutputsAAMI OutboundCall Campaign Process

Suppliers Customers

Market analysis Suite of products Data Extraction

Parameters Customer profile Propensity model Rules & deletions Direct mail campaign

letters Scripting Parameters for contact

details data matching Access database

design Policies & Procedures

for consultants Training program for

consultants Access to FA’s diaries FA’s flexible in terms

of apptmt times

Apply rules & deletions to raw data Contact details matched with Telstra White

Pages Modify scripting for specific target(s) Generate complimentary direct mail

campaign for specific target(s) Upload data to Access database

User friendly Access database

Access database of targeted records

Customers have a propensity for financial advise

Able to contact customer Tools for success Customer response Ease of scheduling apptmts FA’s available Mgt reporting Analysis of customer

response Feedback from FA

8© 2002 Six Sigma Academy

AAMI Fishbone Diagram(Cause & Effect)

Low er ThanIndustry

Benchm arkS trike R ate

M easurem ent

Environm ent

M ateria ls

M ethods

People

Polic ies &Procedures

ConsultantsData

Tools

Database

W aves

Call

Scrip ting

O utbound CallPolic ies &

Procedures

C = C ontro l FactorN = N oiseS = S tandard O perating P rocedure

Parameters Rules for Deletion

Scrip ting

Temporary staff

O utboundTrain ing

Reasons forresponse

Profiled &PropensityM odelled

AM or PMW eek Day

vs W eekend

Enticement/O ffers?

Access for I/BTeam

Products

ReportingRequirements

Noncomulative

S

CC

C

C

C

C

C

ContactDetails

N

CConduciveW ork

Environment

Knowledtgeof F inancia l

P lannngprocess

Letters Database

F inancia l Advisers

Experience

Availab ie

M arket Cycle

Customer'sPerception of

SM L in M arket

User friendlydatabase

Q uiet

H igh or lowrates

User friendly

F lexib le

9© 2002 Six Sigma Academy

0-1-2-3-4-5-6-7-8

Target*LSL*LSL*

Process Capability Analysis for ProportionBox-Cox Transf ormation, With Lambda = 0

PPM TotalPPM > USL*PPM < LSL*

PPM TotalPPM > USL*PPM < LSL*

PPM TotalPPM > USLPPM < LSL

PpkPPLPPUPp

Cpm

CpkCPLCPUCp

StDev* (Overall)StDev (Overall)StDev* (Within)StDev (Within)Sample NMean*MeanLSL*LSLTarget*TargetUSL*USL

885981.38 *

885981.38

885981.38 *

885981.38

944444.44 *

944444.44

-0.40-0.40 * *

*

-0.40-0.40 * *

1.259700.036401.259700.03640

18-3.98358 0.03389-2.46510 0.08500-1.49165 0.22500

* *

Exp. "Overall" PerformanceExp. "Within" PerformanceObserved PerformanceOverall Capability

Potential (Within) Capability

Process Data

Within

Overall

Analysis of Results Sample Data(Lead Generated ~ All Campaigns & All Waves)

Original data not normalUsed Box-Cox transform

10© 2002 Six Sigma Academy

One-way ANOVA: Mon, Tues, Weds, Thurs, Fri

Analysis of VarianceSource DF SS MS F PFactor 4 0.00024 0.00006 0.03 0.998Error 25 0.04969 0.00199Total 29 0.04994 Individual 95% CIs For Mean Based on Pooled StDevLevel N Mean StDev ----+---------+---------+---------+--Mon 6 0.03575 0.04574 (--------------*--------------) Tues 6 0.02873 0.04015 (--------------*--------------) Weds 6 0.03252 0.03922 (--------------*--------------) Thurs 6 0.03688 0.05464 (--------------*--------------) Fri 6 0.03262 0.04137 (--------------*--------------) ----+---------+---------+---------+--Pooled StDev = 0.04458 0.000 0.025 0.050 0.075

Ho = Day of the week the outbound call has no impact on the strike rateHa = At least one day of the week the outbound call has an impact on the strike rateP Value >0.05 cannot reject the null hypothesis

Analysis of Results Sample Data(Lead Generated ~ By Day of Week)

11© 2002 Six Sigma Academy

Improvements Made

• Stream-lined the Process• Refined and implemented improvements in training and quote

preparation• Focused improvements around areas highlighted by analysis

Negotiated Term Deposits >$100K

23%

19%

11%4%

20%

11%

12%

Renewal of Term Deposit Funds Accounted For No Time

Short Term Investment Already Met FA Has Own Adviser

Other

12© 2002 Six Sigma Academy

Controls Established

•Links made to updated FMEA•Finalized and Implemented SOP’s•Formalized Communication Process• Implemented more efficient and effective means of utilizing outbound calling program resources

13© 2002 Six Sigma Academy

Control Plan put in place consisting of following: Nurse is responsible for case management, on-site care, scheduling therapy, advising and tracking restrictions, analyzing jobs, and meeting with the safety committees. Also, initiated internal care by treating minor injuries & illnesses resulting in a reduction of outside medical visits and costs. Set Permanent Partial Reserves at the mean percentage opposed to the maximum percentage. Worker’s Compensation Administrator reviews all reserves set for each reported claim. Monthly meetings are scheduled with our Worker’s Compensation Specialist & Worker’s Compensation Health Care Provider to discuss further tests, specialist referrals, and case closure of reported claims. An EDI Programming System has been installed to assist the nurse in submitting claims immediately, tracking injuries, review worker’s compensation claims, and increases efficiency and productivity. Carma System is being installed to allow access to all the information in the TPA’s system. Company will be able to view the reserves and adjustments made for each claim, and all claims an employee has or has had.