Process management Constantin Mares, IT Director 27 th October 2004

2 Agenda ING… Why process management? Framework What is the right mix? How can we do it? What’s in it for me?

3 ING Romania is part of ING Group Financial institution of Dutch origin Offering banking, insurance and asset management services Over 50 million clients in 60 countries, through its 115,000 employees.

4 ING Romania covers 63 cities through its bank branches and insurance agencies Employs 800 full-time staff, also benefiting from a network of 2,400 insurance consultants. In 2004, ING celebrated 10 years of presence on the Romanian market, being the first international bank to open a branch after 1989.

5 IT services 800 employees 2400 tied agents 3 business units from Information planning to building and maintenance of systems from Account management to to exploitation Full lifecycle development

6 Why process management? “80% of IT organizations are experiencing IT operational issues as a result of poor or nonexistent process formalization (e.g., resource allocation issues, poor process integration, difficulty in effectively prioritizing work efforts, organizational structuring issues, insufficient metrics to show process effectiveness/ governance).” META Practice Copyright © 2004 META Group, Inc. All rights reserved. 1 October 2004

7 Triggers to change (1) Technology push Business is technology dependant IT delivery not aligned with business needs Increasing competition Tight budgets

8 Triggers to change (2) Justification/validation of the ITO Regulatory adherence/risk management Evidence of performance/comparison with external providers Quality programs mandate process definition and documentation

9 Framework (1) Process standardization : IT operations ITIL BS15000 Application development CMM Project-management-oriented PMI Prince 2 Quality control/improvement: Six Sigma ISO/IEC 9003 Total Quality Management (TQM) Governance: COBIT

10 Framework (2) COBIT: identifies numerous control objectives that ITOs can use to ensure that controls exist within their IT process environment, but it does not identify the specific IT processes that COBIT’s control objectives intend to manage. ITIL: The ITIL framework covers IT service delivery and support processes, but does not cover the full service management spectrum, nor does it cover the processes at the procedural level. Six Sigma: Six Sigma is an IT-appropriate process- improvement methodology, though the fundamental objective is to reduce errors to fewer than 3.4 defects per million executions (regardless of the process).

11 The right mix? Accountability-driven Performance-driven Rationalization-driven Regulatory-driven

12 Relating models into a framework

13 Relating models into a framework Management processes (COBIT) Development processes (CMM) Operations Processes (ITIL)

14 Success factors Sense of urgency Management commitment: T, €, E Mission, vision, strategy and goals are clearly stated Clear focus on priorities Integrated & balanced approach of transforming (processes, people, culture) Facilitate and stimulate search for synergy and co-operation(though organisation, funding and reward) Change is completing many small steps successfully

15 Specific Pitfalls & Lessons Process Improvement is not a ‘sprint’ but a ‘marathon’ Process Improvement is only a matter for the ‘staff’ Quick wins increase the acceptance Line-management in the driver-seat Focus on both practical and behavioural issues Don’t forget the Cultural change

16 Results 90% of the projects on time and within budget (10% margin) Cost reduction Facilitation of in and outsourcing No projects cancelled during the runtime Major contribution to the overall result: In 5 years an 80% increase in number of transactions with half the number of employees and a 50% reduction of price.

17 Questions?