Best Practices at John Hancock Financial Services Improving Customer Service through E-Learning Best Practices at John Hancock Financial Services Presented by Josh Bersin March 2006

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Agenda The customer service problem Typical training solutions John Hancock’s solution

Growth in Knowledge Workers Nearly 1 in 3 workers in the U.S. are knowledge workers Others 69.5% Knowledge workers 30.5% % of Knowledge Workers by Industry (Bureau of Labor Statistics, 2003) Telecomm 34% Oil and Gas 21% Finance and Insurance 33% Government 51% Health 44% Source: Hewlett Packard, “80% of our intellectual capital is in the heads of our employees.”

Customer Service Industry More than 5 million people work in service centers today Turnover rates range from 60% to 150% per year Many agents now work from home so training is difficult Employees must be highly trained on systems, processes, procedures, and culture Service Center Job Roles Telemarketing Sales Technical Support Customer Service

Employee Management Challenges 3 2 4 New-hire training & onboarding Performance management Recruiting Job Roles Job Descriptions Competency Models 1 5 Workforce planning Training & performance support Training Content 8 6 Critical skills, gap analysis Succession planning 7 Compensation and benefits Employee Talent Management Process © Bersin & Associates

Service Center Needs Learning Platform 2 3 4 5 Recruiting New Hire Training Onboarding Performance Management Training & Performance Support Pre-screening assessment Qualification assessment New Hire Training Systems Training Blended Learning Coaching Goals Manager Support Training Online Performance Support Remote and Self-Service Learning Platform Learning Management Content Repository Assessment Platform Competencies – Job Profiles

Learning Delivery Continuum On Demand Multimedia Archives /CD ROM Face to Face Classroom Live Webcasts Collaboration & Community Web-Based Learning Performance Support Coaching OLI/\I /O\\EI LEO\I IL\I Foundation Immersion Reinforcement Community

Training Options Highest Cost Instructor Led Self Study Instructor Simulations Instructor Led Training Web-Based Self-Study Interactivities Assessments Live E-Learning with Interactivity Labs, Small Groups Online Help And Modules Broadcast Live E-Learning Replays of Live E-Learning

Blend “When mastery matters” Program Cost and Complexity Blended Programs Awareness, Familiarity Competence Mastery Informational  Skills & Competencies Productivity

Wells Fargo Call Center Training Collaboration 15% On the job 15% On the job 30% On the job 45% Instructor-led 50% Collaboration 30% Instructor-led 40% Collaboration 10% Instructor-led 15% Instructor-led 30% Web-based courseware 40% Web-based courseware 35% Web-based courseware 30% Web-based courseware 15% Week 1 Week 2 Week 3 Week 4

Range of Training Needs Task Concept Help “How to” Process Process Conceptual, Purely Understanding Memory Fact-filled - Conceptual Help - Support Training Education How do I modify the order I entered? How do I change an address? What is our order process? What is accounting? What is the right marketing strategy? What is our return policy? How do I position this product?

Performance Support Systems Performance support (Learning on demand) Conventional training (Classroom, online) What? Access to specific, relevant information as needed to perform a task Typically covers a range of topics and concepts; relevant and irrelevant information When? Access to information when the learner needs it Available on a schedule; may not be available when needed How? Used on the job while the task is being performed Takes learner away from the job for simulated experience Why? Purpose is to provide information in order to complete the task Geared toward providing understanding or skill For Example Online reference database, help system Web-based courseware, online video, instructor-led training

Need for Integrated Learning Content Online Help Courses LCMS Help System

John Hancock Financial Services $23.2 billion company (Manulife) with 20,000 employees John Hancock Retirement Services Business Sells and services 401K management solutions to businesses Based in Toronto; 1,100 employees, 600 in service Independent business unit with its own performance development team, 10 people Company Snap Shot

Employee and Business Profile 400 client account representatives: Highly trained customer service reps with 160 accounts each. Reps must be familiar with a wide variety of products, processes, policies, procedures, and regulations. Top performers are promoted to higher revenue accounts. Hiring, assessment, and training Candidates are screened, assessed, and interviewed extensively. Intensive six-week training program for new hires covers systems, processes, and customer service. Performance development team Only 10 people responsible for assessment, hiring, instructional design, classroom facilitation, project management, and SMEs.

Training Challenge Class size 20-50 people, difficult to schedule, courses scheduled 7-20 times per year, employees spent dozens of hours of training per year Tests, scheduling, and tracking all done manually No online support system for help and performance support Evaluated a range of options: Learning management systems Internally-built systems BlackBoard Learning System™

John Hancock Solution Learning Platform (Blackboard) Third Phase First Phase Second Phase 2 3 4 5 Recruiting New Hire Training Onboarding Performance Management Training & Performance Support Pre-screening assessment Qualification assessment New Hire Training Systems Training Blended Learning Coaching Goals Manager Support Training Online Performance Support Remote and Self-Service Learning Platform (Blackboard) Learning Management Content Repository Assessment Platform Competencies – Job Profiles

New Training Design

Continuing Education Needs Problem: More than 100 different investment options 10-15 enhancements to 401K program each year Ongoing state law changes and systems enhancements Reps needed to take 12-15 courses per year, with written tests Solution: Online content now available in Blackboard Each rep has 2-3 weeks to complete and take an assessment online Total learning and testing time is now only 30 minutes Compliance training now fully tracked

Hiring and Assessment Problem: Solution: Variety of assessments needed for training, screening, and recruiting Assessments were done manually Solution: All new hire screening uses an online assessment All recruiting uses an online assessment All training uses online assessments Assessments can be correlated to make sure that competencies in training are being screened and reused in the hiring process

Performance Support John Hancock built an online database of frequently-asked questions for knowledge management Focused on policies and procedures Eliminates needs for broadcast emails and meetings when processes change Performa nce Support Training Knowledge Performance Management Support To instruct To inform To guide performance directly Requires an Less interruption Least interruption interruption to work Dictates how learner User s determines how Task at hand defines learns they learn what the tool will do Goal is to transfer skills Goal is to be a Goal is to assist and knowledge to user resource performance (or do it InfoNet completely)

Results 20 e-learning programs launched in 2005 11,853 student hours in e-learning (100% growth) Widespread adoption and satisfaction Benefits to service representatives: System is very easy to use Reduced time in training makes reps more productive Compliance training completely tracked Performance team freed up for more strategic work Opportunity for competency-based recruitment and learning

Lessons Learned Blackboard™ served needs without cost and complexity of traditional LMS solution. Ease-of-use was and is a critical criteria. Very easy to publish any form of content (from documents to Captivate simulations). Change management, training on system very important. E-learning does not replace instructor-led training, classroom still preferred for new-hire modules, and discussions.

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Who is Blackboard? Mission Statement What we believe Our role? To enable learning innovations everywhere by connecting people and technology What we believe Connected with the right technology organizations will bring about lasting learning innovations Technology breaks down barriers and unlocks new possibilities / experiences / services Technology is only as relevant as the achievement it helps bring about Our role? Provide a new learning environment Foster a global community of practice Create exceptional user experiences for all participants

Who is Blackboard? Publicly traded Company (NASDAQ:BBBB) Approximately 800 employees 7 offices around the US and abroad Approximately 3,700 clients Approximately 200 clients outside of traditional education space (i.e., corporate and government accounts) Marsh Morgan Stanley Tennant Company Progressive Insurance John Hancock Texas Instruments US Army US Air Force US Navy Social Security Administration Health and Human Services Veterans Administration

Questions? Contact Josh Bersin at info@bersin.com or Patrick Devlin at pdevlin@blackboard.com