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Benefits of Benchmarking A Case Study. AXA Canada. Johanne Cassis Vice President Finance, Corporate, Administration and Procurement. Summary. How does AXA Canada benchmark ? 03 Why AXA Canada chose to benchmark externally ? 04

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Benefits of benchmarking a case study

Benefits of Benchmarking A Case Study

AXA Canada

Johanne Cassis

Vice President Finance, Corporate, Administration and Procurement


Summary
Summary

  • How does AXA Canada benchmark ? 03

  • Why AXA Canada chose to benchmark externally ? 04

  • Benchmarking to drive improvements: an example 05

  • Some actions implemented 06

  • Benefits gained from external benchmarking 07

Benchmark - AXA Canada


How does axa canada benchmark

Internal regional Canada wide benchmark

Lack credibility

More discussions than actions due to cost allocations and regional market differences

International Group productivity benchmark

Regulations very different from one country to another

Data not always available in some companies and reported (accounted) differently

Time consuming and difficult to identify actions to improve our processes

External Benchmark

IBC

Few participants

More a cost analysis by major line of business and functions in Canada (no regional data)

A lot of costs allocation and most of the time simple basis

Not really useful

Conclusion: None of these benchmarks gave us what we needed to improve our processes and our costs.

How does AXA Canada benchmark ?

Benchmark - AXA Canada


Why axa canada chose to benchmark externally
Why AXA Canada chose to benchmark externally ?

  • We needed to know where we stood vs. our competitors and identify our gaps.

  • We needed a tool that could help us to «measure, compare and improve» our costs

  • We needed credible analysis that could be accepted by operations and drive the changes we were looking for (pure costs vs. allocation)

  • We needed information that could help our shareholders to understand our cost structure vs. our peers.

  • Conclusion:

  • We needed an independent firm that understood insurance and had a lot of experience in that field.

  • Based on a market research in North America, we decided to select Ward Group to assist us.

  • Benchmark - AXA Canada


    Benchmarking to drive improvements an example
    Benchmarking to drive improvements : an example

    Operational vice presidents seriously considered this exercise and wanted to understand and improve their results.

    Some of our regions were better than market, some others were behind.

    Credible benchmarking results drove actions and internal competition.

    One region decided to lead an internal analysis of the key processes of some business units in different regions

    This drill down identified areas for improvements

    Benchmark - AXA Canada


    Some actions implemented were
    Some actions implemented were:

    Migration of support tasks to ABS

    Managed headcount reduction in support retention and management consolidation (Target Ward benchmarking Ratios)

    Centralized some units (productivity, retention)

    Consolidated some business teams (similar business processes)

    Improved technology

    Workflow process re-engineering

    Monitored expense ratio quarterly and headcount on these specific processes

    Conclusion: In a soft market situation, these units became better than competitors and sister companies.

    Benchmark - AXA Canada


    Benefits gained from external benchmarking
    Benefits gained from external benchmarking

    Gave us an aligned vision on our regional cost structure (starting point and Targeted vision)

    Learned about ourselves:

    Where we were ahead of our competitors in terms of processes, practices

    Where we were lagging vs. peers and also between regions

    Great source of market intelligence not only numbers and ratios

    New trends

    Preoccupations

    Priorities

    Part of our annual planning process

    Results presentation by Ward in July with all top executives and CFO are attending

    Became a strategic management tool:

    Helped us to set priorities for cost improvement

    Helped us to identify areas where we needed to develop and grow our market share

    Helped us to set objectives in our Target Letter (AXA Balanced Scorecard) and measure it every quarter

    • Conclusion - Benchmarking :

  • Helped us to improve and keep the focus within AXA Canada

  • Was an internal communication tool to all levels of management

  • Gave our shareholders the information they needed on our cost structure

  • Benchmark - AXA Canada


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