Using Continual Improvement Tools to Improve Processes September 24, 2019 - ICAE PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Today’s Plan Background Two Examples Wrap Up & Questions Project Connection Intake Cycle Time Wrap Up & Questions PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

A little about our team PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

A little about our process PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Why start down this path? The goal of the Consumer Relations team is to have a world class complaint handling organization that resolves each of our customers concerns in a timely, high quality and efficient way, which makes them want to stay with Progressive for decades. PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

The start of our journey Baseline Lot of Fire-Fighting Lack of team visibility & accountability Top down problem solving Growth in very cost controlled environment Initial Steps Internal Quality Team created Process diagnostics PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #1 – Project Connection Opportunity to better connect with customers Continual Improvement methods used: SIPOC Voice of the Customer Interviews CTQ Tree Fishbone Diagram Priority Exercise Communication & Training PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #1 – SIPOC PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #1 – Voice of the Customer What are the top 5 most important attributes of a complaint response? Show customer we care Clarity Accuracy Timeliness Accountability PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #1 – Fishbone Diagram PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #1 – Project Connection What we did: Defined empathy Initiated calibration sessions Created better guidance Added Communication Specialist What we saw: HUGE IMPROVEMENT! 56% improvement in quality scores More engaged team PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #2 – Intake Cycle Time Opportunity to improve the time it took to enter complaints into database Continual Improvement methods used: Process Bootcamp Process Mapping Value Stream Mapping Visual Management Problem Solving Meetings PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #2 – Process Mapping PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #2 – Visual Management Daily meetings (Morning Mind Meld) Review inventory, workload, updates, issues, moods, etc. PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Example #2 – Problem Solving What we did: Regular team problem solving sessions Many process improvements resulted No more printing complaints Verification guidelines Database improvements Process Documentation What we saw: Improved Cycle Time!! 96 % complaints entered w/in 1 day Better management of workload – fewer fires PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

Measurable Benefits & Noticeable Differences Better Process Documentation Improved Cycle Time Higher Quality Increased Productivity More visibility into the work MORE ENGAGED TEAM!! PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.

That’s It! Questions? Thank you!! PROGRESSIVE CONFIDENTIAL AND PROPRIETARY MATERIALS Any unauthorized use, duplication, disclosure or distribution is prohibited. ©Progressive Casualty Insurance Company 2015. All rights reserved.