1. Integrating Government Service Channels February 11 th, 2003 Ottawa, Ontario, Canada

2. Integrating Government Service Channels Agenda  @BMO: Client Expectations  @BMO: Channel Integration  @BMO: Observations  Question Period Slide 1 2

3. Background  At BMO, full scale channel integration began about 2 years ago in the Retail & Business bank.  Up to that point, channels came together organizationally near the top of the Bank.  Channels were supported by the Product groups as opposed to a separate Channel Management function. BMO Channels  Face-to-face, Telephone & Internet @BMO: Client Expectations Slide 2

4. The Facts  Customers are looking for anytime, anywhere, anyhow service.  A customer will use multiple channels to manage their financial affairs.  A customer will use multiple channels for a single transaction. BMO Mantra  “One Business Multi-channel” @BMO: Client Expectations Slide 3

5. The Implications  BMO needed inter-operability across all customer channels in to meet increasing customer expectations.  BMO needed a more co-operative work environment across all channels to deliver on those expectations. BMO Mantra  “Seamless Client Experience” @BMO: Client Expectations Slide 4

6. The Challenges  Customer “ownership” culture.  Prioritizing investment opportunities across all channels.  While “good customer service” and “client choice” were critical to our success, we needed our staff to promote self-serve channels and we needed our customers to use self-serve channels. BMO Strength  Strong customer service culture @BMO: Client Expectations Slide 5

7. Integrating Government Service Channels Agenda  @BMO: Client Expectations  @BMO: Channel Integration  @BMO: Observations  Question Period Slide 6

8. At BMO, channel integration was required across 2 separate dimensions  Integration within a channel  Consolidation of internet channel management  Optimization of call centres  Integration across channels  Aligned our People programs across channels  Developed a shared Technology platform across channels  Aligned our Processes across channels  Re-engineered our Change & Communication processes @BMO: Channel Integration Slide 7

9. Internet Channel Management  Management of the internet channel was scattered across various product and marketing groups within the bank.  There was no single group responsible for the centralized planning and development of the channel for our retail and business customers.  To address the problems, we consolidated the various subgroups into an Internet Channel Management function responsible for:  Channel strategy  Channel development  Channel management  Group now works with the individual product groups to implement their strategies. @BMO: Channel Integration Slide 8

10. Contact Centre Optimization  Within the Bank, there were multiple call centres or help desks supporting various product groups and market segments within the Retail and Business bank.  Each of the contact centres had their own management infrastructure, people programs, technology and processes.  To streamline operations, we consolidated our customer-facing call centres into a single Direct Banking Division responsible for:  Retail Banking sales & service for the internet and telephone channel  Business Banking sales & service for the internet and telephone channel  Centralized outbound sales  The Direct Banking Division became an equal partner with the 5 geographic divisions across the Bank. @BMO: Channel Integration Slide 9

11. Alignment of People Programs across channels  Aligned the Performance Management systems across channels.  Base pay  Incentive pay  Performance Measurement system (ie: sales and service measures and targets)  Identified career paths that encouraged staff to consider opportunities in other channels.  Developed a cross-channel referral programs that rewarded co-operation across channels.  Provided cross-channel learning opportunities. @BMO: Channel Integration Slide 10

12. Alignment of Technology across Channels  Implemented a common technology infrastructure across our entire distribution network – Pathway Connect.  1,128 sites;19,960 workstations  We are currently implementing a common CRM tool across the entire distribution network. This system will enable:  Shared workflow across channels  Shared customer contact history across channels  Shared customer solutions and opportunities across channels  Shared calendaring across channels  50 % complete; fully implemented by March 2004 @BMO: Channel Integration Slide 11

13. Alignment of Processes across Channels  At the start of 2002, we moved accountability for process design much further down in the organization and into a new organization group – Integrated Channel Management.  Responsible for process design across the face-to-face, telephone and internet channels for both Retail and Business customers  Responsible for a common process framework across all channels  Responsible for shared process libraries  We have already seen considerable benefits from the new organization. Greater synergy and leverage on new initiatives and better decision-making.  Major focus for 2003 and 2004 is to re-engineer our cross-channel and cross- product processes. At BMO, People and Technology changes were key enablers to successful process changes. @BMO: Channel Integration Slide 12

14. Change & Communication  Moved to centralized co-ordination of all change initiatives  Implementation of all changes scheduled centrally – Traffic Controller  Restricted access to the front line for all Headquarters functions  Streamlined communications to the front-line across all channels  Collapsed all channel specific communications into a single cross-channel monthly “Action Guide” – One Source  Developed a common intranet site across channels – One Source Online  Implementing a Roles-based portal in 2003 @BMO: Channel Integration Slide 13

15. Integrating Government Service Channels Agenda  @BMO: Client Expectations  @BMO: Channel Integration  @BMO: Observations  Question Period Slide 14

16.  Everyone in the organization needs to “buy-in” to an integrated approach to channel management.  At BMO, linking channel integration to customer needs NOT organizational needs was critical.  Overcoming the client ownership culture is difficult.  Get People and Technology right and everything else will follow  Common people programs  Common technology platforms @BMO: Observations Slide 15

17.  It is NOT necessary to provide the same functionality on all channels  Customers prefer certain channels for certain services. Listen to your customers - this makes it much easier to prioritize future investments.  Moving accountability for process design and investment planning lower down in the organization was critical. It made investment prioritization and decision-making much easier. @BMO: Observations Slide 16

18. Integrating Government Service Channels Agenda  @BMO: Client Expectations  @BMO: Channel Integration  @BMO: Barriers and Opportunities  Question Period Slide 17