Customer Service Division Sales & Service in the post-integration network Gail Kelly, Mukesh Parekh & Neil Schafer 18 July 2001.

Customer Service Division

Sales & Service in the post-integration network

Gail Kelly, Mukesh Parekh & Neil Schafer

18 July 2001

Customer Service Division

Sales & Service in the post-integration network

Gail Kelly, Mukesh Parekh & Neil Schafer

18 July 2001

DisclaimerDisclaimer

The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 18 July 2001. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

AgendaAgenda

1. Overview - Goals & Strategy

2. Network Integration

3. Business Outcomes

To be To be

the best the best

brands in brands in

helping helping

customers customers

manage manage

and build and build

wealthwealth

To be To be

the best the best

brands in brands in

helping helping

customers customers

manage manage

and build and build

wealthwealth

Vision & GoalsVision & Goals

Group Vision CSD Goals

1. Build a team of people who are willing, able and empowered

2. Differentiate the Group on service

3. Maximise sales effectiveness across all channels and segments

4. Transform to a customer focussed distribution model

5. Reduce costs through maximum efficiency and productivity +

6. Complete Integration on time/within budget

Sales & Service 2000+ - Platform for Change Sales & Service 2000+ - Platform for Change

• New sales leadership & reward system

• Target group - front-line leaders & managers

• Key Principles;

- Ownership - Accountability - Outcomes - Reward

• Key Components;

- Increased authority - Focussed performance measurement - Flexible workplace arrangements - Variable remuneration - Upskilling & coaching - business acumen & leadership skills

AgendaAgenda

1. Overview - Goals & Strategy

2. Network Integration

3. Business Outcomes

Network Integration - Key Milestones Network Integration - Key Milestones

New

Network

Structure

Transaction

Bridge

Channel

Integration

Systems Conversion

October 2000

January 2001

May 2001

June2001

Integration of network

structures and people

Allowing Colonial

Customers to transact at CBA

Branch, ATM &

Call Centre integration

Conversion of Colonial accounts

to CBA systems

Highlights - Overall Program Highlights - Overall Program

• Transaction bridge designed and built for testing in 90 days

• 279 branch amalgamations and 89 Colonial branch sites rebadged over 7 weekends

• 500 ATM movements

• 5,100 pieces of equipment deployed in network

• 1,950 staff completed Orientation workshops

• 39,600 hours of call centre staff training

• 1 million Product conversion mailing packs sent to customers

• 1.3 million accounts converted

New Network Structure - Key Principles New Network Structure - Key Principles

• Rapid & smooth transition

• Leverage best elements of CBA & Colonial

• Embed “Sales & Service 2000+”

• Retain quality people

• Minimise customer disruption

• Streamlined & customer-focussed

Key Changes Key Changes

• Number of Areas reduced from 125 to 70

• Of 70 Area Managers - 22 former Colonial Franchisees

• Single Model - Area & Franchise structures merged

• Business Banking;

- Dedicated Structure & Focus

• Personal Banking;

- Dedicated Focus on Managed Funds Business

- Allfinanz Strategy

““Allfinanz” strategy Allfinanz” strategy

• Largest customer base

• Growth opportunity - effective cross-sell & referral

• Grouping of Advisory/Insurance staff - specialist stream

• “Team” approach within Areas (referrals);

- Branch Sales & Service

- Mobile Bankers

- Advisors/Consultants/Insurance

- Relationship Managers

- Small Business Sales

Business Banking Business Banking

• Distinct delivery models - “Middle Market” & “Small”

• “Middle Market”;

- Separate reporting line to State General Manager

- New Regional Manager positions established

- Streamlined & rationalised Business Banking Centres

• “Small Business”;

- Sales teams within Areas

- Centralised, telephone-based account servicing

Positive OutcomesPositive Outcomes

• All milestones achieved on or ahead of schedule

• Strong business momentum

• Tracking to business case costs & synergies

• Public assurances being met

Keys to SuccessKeys to Success

• Line management ownership at local level

• New network structure (best-of-the-best)

• Focus on business

• Managing dual networks

• Support - Queue Walkers, Advocates, Training, Diary

• Meticulous planning & execution

AgendaAgenda

1. Overview - Goals & Strategy

2. Network Integration

3. Business Outcomes

Sales & Service 2000+Sales & Service 2000+

Cultural Change

“This is where I work”

“This is my

business”

Key Performance IndicatorsKey Performance Indicators

Sales

Service

Customer Management

Leadership & People

Sales Sales

• Growing momentum in key markets

• Record Home Loan volumes

• Commercial Lending

• Managed Funds

Service Quality Service Quality

• New standards & measurement - all key channels

• Service a KPI for all network leaders

• Linked to year-end remuneration

• Communication, training, reinforcement

• Extra focus during integration

Customer ManagementCustomer Management

• Transaction migration - customer education

• Ongoing promotion of self-service options

• Over 2000/01;

- EzyBanking customer numbers up over 200% - NetBank transactions +200% - EFTPOS transactions +40% - ATM transactions +6% - Over 2 million customer service calls per week - “Over-the-Counter” transactions < 16%

Leadership & PeopleLeadership & People

• Gallup Staff Survey - significant improvement

• Positive trends;

- Absenteeism - Turnover • Differentiated approach across key job families;

- Recruitment - Employment Arrangements - Accreditation & Upskilling - Remuneration & Reward

Summary Summary

• Platforms for Growth

• Growing business momentum

• Future potential