Target-Operating-Model-framework

Framework to help you visualsie a future state

1. About this Document Document’s purpose: The purpose of this document is to provide an overview of the associated deliverables and outputs for the Target Operating Model (TOM). This deliverable will include content to address ( i ) Alignment of Company’s customer service vision and strategy, so everyone in the customer service organization is driving towards the Performance Standards, and understands the vision and how to deliver; (ii) Validation of the intended customer experience so Company is putting the customer first and building an engaged customer base for future growth; (iii) Agreement on current, transitional, and future state processes (as defined in the To-Be Process Design and Documentation Deliverable) and structures needed to minimize customer pain points in order to achieve Performance Standards; (iv) Agreement on the technology roadmap beyond the Project duration to deliver a business that supports a true omni -channel self-service environment; (v) Design the appropriate governance structure so decisions can be made with a clear understanding of the customer, employee, and value impacts; (vi) Communicate the Performance Standards so everyone is clear on how they contribute to meeting Company’s customer service vision; (vii) Updated or new job profiles to support future state roles for Customer Operations and Business Services departments; and (viii) Agreement on the appropriate resource mix of partners and suppliers so Company can deliver on its operational commitments, while keeping line of sight to value. SOW ID 81: Target Operating Model March 29, 2019 Version No. 0.7 Document Status ☒ ☐ In Review ☐ Final Update After Final Document Owner(s) Danielle Miller Document Author(s) Sam Worley Faris Moughal Geneva Travis Mateen Alinaghi Ashley McNutt Date Approved <mm/dd/yyyy> Date Last Modified March 29, 2019 Location of this Document on SharePoint To be added Sanitized by Global Markets - EY Knowledge

2. Document Review Name Role Date Danielle Miller Organizational Readiness Tower Lead               Document Version Control Version Date Author CR/SIR Ref(s) Details of Change 0.1 2/27/2019 Mateen Alinaghi   Original version with storyboard 0.2 2/28/2019 Mateen Alinaghi   First draft 0.3 3/1/2019 Faris Moughal Updated based on initial review and feedback 0.4 3/4/2019 Sam Worley Updated storyboard 0.5 3/6/2019 Ashley McNutt Incorporated new content 0.6 2/28/2019 Mateen Alinaghi   Incorporated team feedback after internal review 0.7 3/29/2019 Sam Worley Review and edits                                                   Document Approval Role Approver Name Date Electronic Signature Organizational Readiness Tower Lead Danielle Miller mm/dd/yyyy   REVIEW, VERSION CONTROL AND APPROVALS

3. Does the document meet the quality standards established in the SOW? ☒ Does the title page correctly identify the current version and status of this document? ☒ Has the Document Version Control section been continuously updated? ☒ Is the table of contents updated to the latest content? ☒ Document completion checklist

4. Customer Services Consolidated TOM Deliverable March 29 th 2019 PROPRIETARY AND CONFIDENTIAL INFORMATION. UNAUTHORIZED COPY, REPRODUCTION OR DISTRIBUTION OF THIS INFORMATION IS STRICTLY PROHIBITED WITHOUT THE PRIOR WRITTEN PERMISSION OF ENTITY

5. Table of contents Content Page Introduction and executive summary: introduction and summary of operating model work 6 Vision & alignment: setting the direction across Customer Services 23 Customer Services vision, mission statement, and design principles, associated workshop outputs High-level design: making decisions based on our vision 43 High-level design decisions and ENTITY BPD Change impacts, associated workshop outputs Operational Improvement: defining how we will achieve TOM 54 Roadmap of initiatives (quick win and TOM) , initiative one pagers, associated workshop outputs Customer services transformation: defining the process and plan to deliver the vision 92 Continuous improvement process, g overnance and terms of references , associated workshop outputs Customer Services KPI: defining how we will measure success 111 Performance framework overview (primary / secondary KPIs) , OGSM, prototype dashboard, associated workshop outputs People & culture: defining the organization that will deliver the vision 122 Placeholder: Finalized organizational design, RACI, transition plan , associated workshop outputs Placeholder: Updated job profiles for agreed Customer Services area , associated workshop outputs Next steps: further operationalizing TOM 127 Communications plan for TOM Appendix : supporting documentation 130 Workshop material and plans, baseline assessment, market assessment, quick wins handbook Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

6. Customer Services Target Operating Model Executive Summary March 29 th 2019 PROPRIETARY AND CONFIDENTIAL INFORMATION. UNAUTHORIZED COPY, REPRODUCTION OR DISTRIBUTION OF THIS INFORMATION IS STRICTLY PROHIBITED WITHOUT THE PRIOR WRITTEN PERMISSION OF ENTITY

7. Customer Services’ Target Operating Model (TOM) overview Additional macro and organizational factors shape ENTITY’s case for change Evolving customer preferences: customers expect an experience comparable to top retailers and business – one that brings on-demand, personalized service through their channel of choice Industry and regulatory changes: customer choice and options across ENTITY’s footprint are forecasted to expand with the introduction of community choice aggregators (CCAs ) and other providers Technology obsolescence : existing infrastructure and technology systems are becoming increasingly instable, presenting a higher risk of failure. Such complexities are introducing high operating and maintenance costs for these systems, and present additional challenges to enhance the customer experience Context Triggers ENTITY is undertaking a massive system transformation (ENTITY), which is intended to modernize and improve the business for customers, employees, and stakeholders This level of major transformation is a ‘once in a generation’ change and represents a huge opportunity to transform the business, alongside implementing a system The development of a target operating model (TOM) to define and clarify how ENTITY’s Customer Services organization works and delivers on its strategy Alignment of ENTITY’s Customer Services’ vision and strategy , including the intended customer experience Validation of the processes and initiatives required to achieve the desired target operating model Development of a delivery methodology , including an appropriate governance structure , to support the implementation and execution of the TOM Creation of a performance framework to support the measurement and assessment toward achievement of the TOM Coordination with HR to design an organizational structure that enables the achievement of the Customer Services TOM Response Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

8. September October November December January February March 3 rd 10 th 17 th 24 th 1 st 8 th 15 th 22 nd 29 th 5 th 12 th 19 th 26 th 3 rd 10 th 17 th 24 th 31 st 7 th 14 th 21 st 28 th 4 th 11 th 18 th 25 th 4 th 11 th 18 th 25 th workshop week W/C Our approach for Customer Services’ Target Operating Model CS Baseline Market assessment Customer segment analysis Validated strategy Quick wins Holiday 1. Current State & Vision Alignment Workshop 2. Operational Improvements Workshop 3. Future State High Level Design Workshop 4. Customer Experience Design Workshop 5. People, Culture and Supporting Processes 6. Data analytics and KPIs General Baseline customer service performance Conduct market assessment Analyze customer segments Agree customer value proposition Agree CS quick wins Establish TOM Governance Documents high level processes Interview and align key stakeholders Build out TOM case for change Collate baseline data Develop design principles Build strategic design options TOM case for change Current state TOM TOM design principles Leadership-validated high level TOM design decisions Obtain existing customer journey maps Collate existing CX data Prepare leading practice insights Customer service long list of issues Prioritizing ‘customer service’ quick wins High level customer experience design over time for customers Customer Journey (BPD) change impact assessment Agreed set of customer experience measurement priorities Build high level future org structure & RACI Develop process change impact assessment Develop gap analysis of tech roadmap Future org structure & RACI Org change impact analysis Process change impact assessment Tech roadmap gap analysis Prepare leading practice examples of analytics functions Prepare design choice options for analytics Prepare leading practice views on op model success measurement Agreed definition of analytics and role within ENTITY Customer Services’ Agreed set of KPIs to measure success of operating model performance Build w’shop plan Oct 26 Nov 28 Dec 4 Jan 17 Dec 12 Feb 12 Consolidate operating model report Begin to execute on identified quick win initiatives Begin to execute on H1 2019 operating model roadmap Develop Customer Services Initiative Roadmap Develop org change impact analysis Build detailed design future org structure Build high level future org structure Build new role descriptions Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

9. Target Operating Model overview Supports ENTITY by articulating the future state of the Customer Services organization that we are working towards Looks across rapidly changing market drivers, customer needs and organizational capabilities to inform how Customer Services will need to evolve to stay successful Describes the people, process and technological changes that are required to effectively serve our customers in the future Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

10. What is the Target Operating Model for Customer Services? People & organization Technology & data Process & policy Customers Channels Governance Brand & communication Offerings Performance metrics Culture & values Customer experience Capability Enablers Why do we operate the way we do? What capabilities are needed to enable the vision and strategy? How will these objectives and capabilities will be delivered? Vision and strategy Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix