IA CaseStudy - MBNA CPM by ps0001

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									INSIGHT ANALYTICS CASE STUDY


MBNA’s Accounting Division needed help to
analyze departmental recourse capabilities
Insight Analytics helped MBNA create and employ a Capacity Planning
Model which helped them prove the need to hire more resources.
BACKGROUND

Managing loans of nearly $120 billion, MBNA is the largest independent credit card lender in the
world. Employing nearly 30,000 people, the company provides lending, deposit, and credit
insurance products and services to more than 50 million customers. The international financial
services company maintains its headquarters in Wilmington, Delaware and has operations
throughout the United States and in Canada, Ireland, Spain, and the United Kingdom.

MBNA was working diligently to respond to the United States’ increasingly complex regulatory
and tax legislation, increased federal and state tax audits, and arduous filing deadlines. MBNA's
Accounting Division found itself using more and more resources to comply with IRS information
requests and deadlines rather than allocating time and resources to build its own mission critical
tax strategies.

To effectively manage all business goals and regulatory requirements, the Accounting Division
wanted to add full-time resources to increase the Division’s bandwidth. The Accounting Division
feared that if it struggled to allocate resources to internal growth strategies, that within two years,
their division would show a bottom-line impact due to reconciliation and reporting inaccuracies
and/or fall out from being unable to provide optimal customer service. Understandably, MBNA’s
corporate management understood the situation, but wanted verification that the Division was in
fact operating at peak performance prior to approving the addition of more resources.

APPROACH

In order to provide corporate management with an independent evaluation of the internal
workings of the entire department, the Accounting Division’s management selected Insight
Analytics to help them:
• understand the processes within the Accounting departments-- both what work was being
  done and how it was done;
• calculate the practical working capacity for each department; and
• explore opportunities to improve processes and/or reduce cycle time.

To provide a complete resource and process analysis, Insight Analytics designed, constructed
and populated a full-scale Capacity Planning Model. Insight Analytics began populating the
Model by deploying its Structured Metrics® methodology to catalog all processing activities for
each of the 33 in-scope sub-departments. Unit times were captured for all processes performed
using Insight Analytics’ automated and confidential data collection technology. A multi-variable
equation was developed to link all input components. Outputs of the resulting Capacity Planning
Model included calculations of working capacity and the optimum number of people required
within each department.
RESULTS

MBNA’s Accounting Division was pleased to receive data that supported its hypothesis that it
needed to add resources. Results from Insight Analytics’ CPM analysis indicated that the
Accounting Division was operating at 85% of its capacity. While this Capacity Utilization Factor
(CUF) in and of itself was average, the relatively high score was the result of completing the
workload under a non-sustainable capacity. Using a sustainable working hours model, the
Accounting Division would need to continue operating at 97% of available capacity – an
untenable situation in their near term future.

To remedy this, and bring about an optimal CUF of 90% under sustainable conditions, additional
resources were required in certain business units. For the division overall, incremental resources
were recommended under the following scenarios:
• to consistently perform current workload: 8 incremental FTEs were required;
• to consistently perform projected workload: 10 incremental FTEs were required;
• to consistently perform projected workload, plus address internal strategy development and
  attention to customer service: 18 incremental FTEs were required.

Qualitative data also suggested that common workplace challenges were exacerbating the
Division’s workload issues. Those included: long work hours, infrequent intra-divisional
communications, mismatched skill-sets, complex regulatory factors, inadequate time for
professional development, and the need to address time-consuming company policies.

Specifically, Insight Analytics’ recommendations outlined the need for:
• Increased communication and coordination within and between departments to reduce errors,
  extract efficiencies, improve workflow;
• Educating staff to ensure skill sets were better aligned to job requirements;
• Increased senior management visibility and providing effective and regular communication to
  department staff to improve morale, lend support, and present the ‘big picture;’
• Aggressive review of workload activities for elimination, automation, or substitution of
  opportunities;
• Further promotion of ‘work and life’ balancing to address worker fatigue; and
• Declination of requests for information that were already provided in an existing medium.

Insight Analytics’ findings supported Division management’s hypothesis that it needed to increase
resource capacity to effectively meet its business and regulatory requirements. Subsequent to
reviewing the data, MBNA corporate was very pleased to have received an independent and
unbiased confirmation of the Accounting Division’s situation.



[Highlights]
• MBNA's Accounting Division found itself using substantial resources to comply with IRS
  requests and deadlines rather than allocating time and resources to build its own mission
  critical tax strategies.
• The Division asked Insight Analytics to build a capacity model to help them prove that they
  would be unable to maintain optimal customer service and effectively respond to internal
  reconciliation deadlines without adding more resources.
• Using its proprietary methodologies, Insight Analytics developed a comprehensive Capacity
  Planning Model helped the Accounting Division prove its hypothesis.
• MBNA’s corporate executives were pleased to have been given an educated and unbiased
  report on the Division’s resource situation.


[Client Feedback/Quote]
“I enjoyed working with Insight Analytics on our issues. Their report is being used as
substantiation for the addition of people to the Accounting division. This work will go a long way
to helping us solve our people resource needs over the next 18 to 24 months.”
- Victor Manning, Senior Executive Vice President, MBNA America

								
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