Agenda

• Company Overview

• Current Situation

• AXA Way

• Phases of Implementation

• Eight Steps for Transformation

• Problems and Challenges

• Recommendations
 Company Overview

• A French global insurance group headquartered in

Company Paris.
overview

Current situation
• Engaged in life health insurance and investment
management.
AXA Way
• Operation areas: life & savings, property &
Phases of
implementation casualty, international insurance, asset
management and other financial services.
Eight steps of
transformation
• Operates in western Europe, North America and the
Problems &
Asia pacific region and the middle east.
Challenges

Recommendations
 Current Situation

1990s 2000s
Good overall market Decentralized
Company condition Operation
overview
Acquisition as main High default rate
Current situation driving force of growth
AXA Way

Phases of
Over 140,000 Stagnant customer
implementation employees and service level
Eight steps of
distributors
transformation
Market share stalled
Problems &
Challenges
Out of time
Recommendations organizational
structure
 AXA Way

Company
overview

Current situation

AXA Way

Phases of
implementation

Eight steps of
transformation

Problems &
Challenges

Recommendations
 AXA Way - Phase 1
D.M.A.I.C
Long-term
Identify Problems
Implementation

Company
overview
Define Conditions
Current situation

AXA Way Determine Causes

Phases of
implementation

Develop Solutions Document,

Eight steps of
transformation Communicate, and
Check for
Prepare Actions replications and
Problems &
Challenges
Plan, Implement sustainability
Improvements
Recommendations

Verify Results
 AXA Way - Phase 2
D.M.O

Define Current Long-term

Company
overview Processes Implementation

Current situation
Identify Key Metrics
AXA Way

Phases of
implementation Set Up
Measurement Index
Eight steps of
transformation
Take Actions to
Maintain the
Problems & Monitor the
Challenges Stability of the
Ongoing Processes
System
Recommendations
 AXA Way - Phase 3
D.I.D.V.O

Define Current Long-term

Processes Implementation
Company
overview
Identify Potential
Current situation
Areas of
Improvement
AXA Way
Create Innovative
Phases of
implementation Ideas

Eight steps of
transformation Transform Ideas
into Feasible
Problems & Solutions
Challenges

Recommendations Validate Solutions

by using Implementation
Collaborative
Intelligence
 Establishing a sense of urgency

• Brunet identified that the current processes in the

company had a default rate as high as 2 out of 10.
Company
overview

• Henry de Castries was found out that the fluctuation in

Current situation
the outcome of AXA’s processes was the strongest
AXA Way source of customer dissatisfaction.
Phases of
implementation • The global economic recession in 2001 resulted in
Eight steps of
financial market depreciation and a series of severe
transformation losses.
Problems &
Challenges • A meeting with company’s top 300 executives was
called to launch AXA Way.
Recommendations
 Formation of powerful coalition

• The AXA Way central team based at AXA’s

headquarter would act as global leader.
Company
overview
• Local entities will apply guidelines and
Current situation
methodologies developed by central team regarding
the priorities they would opt for by themselves.
AXA Way

Phases of • A recruitment of 10 members of central team was

implementation
done in 2001.
Eight steps of
transformation
• A recognized high potential manager was appointed
Problems & as AXA Way leader reporting to CEO of the
Challenges company.
Recommendations
 Communicating the vision

• Employees wrote testimonials to demonstrate the

Company
overview benefits of AXA Way.

Current situation • Leaders, the Group magazine and local entity

AXA Way
newsletters, played a great part in this communication
effort.
Phases of
implementation

Eight steps of
transformation

Problems &
Challenges

Recommendations
 Empowering others to act on the vision

• Some of the top executive who attended the initial meeting

Company were skeptical about the AXA Way.
overview

Current situation • Ownership of the tasks they were involved in and

contribution towards improvement of processes.
AXA Way

Phases of
implementation • Awareness of their activities , the group (strategies and
Eight steps of objectives) and contribution to organization.
transformation

Problems & “Six Sigma may be fine for industry [manufacturing companies]
Challenges but you will soon discover our business is a very special one”
Recommendations
 Planning for and creating short term
wins

• First steps were to focus on simple processes in order to

Company
achieve quick wins from the low hanging fruits.
overview

Current situation • Additional operating costs generated by the program

would be minimal and the current priorities of the
AXA Way
entities involved would be supported, not challenged.
Phases of
implementation

Eight steps of
transformation

Problems &
Challenges

Recommendations
 Consolidating improvements and
producing more changes

Company
• Shifting from phase 1 to 2, a shift in the focus
overview
from DMAIC to DMO projects.
Current situation
• No low-hanging fruit on this side of the fence!
AXA Way

Phases of
implementation

Eight steps of
transformation

Problems &
Challenges

Recommendations
 Institutionalizing the new approaches

• Central Team – 10 members

Company
overview • Visible and recognized high potential managers
appointed as AXA Way Leader
Current situation

AXA Way • Black belts

Phases of
implementation
• By 2005, AXA way implemented in majority of
Eight steps of
transformation AXA entities and 90% of Group revenue was
generated by entities involved with the AXA Way
Problems &
Challenges

Recommendations
 Issues during “Phase 1”

• Spread awareness of the AXA Way program.

Company
overview

• Original projects were slow runners.

Current situation

AXA Way
• No short-cuts to conclusions, so executives were impatient.
Phases of
implementation

Eight steps of
• Measure of impact on customer satisfaction was not
transformation possible.
Problems &
Challenges • Customer-centric & process-centric for support of
Recommendations customer service.

16
 Issues During “Phase 1”

Company
overview
• Mere option.
Current situation

AXA Way
• Projects are meant to deliver lasting benefit.
Phases of
implementation
• Customer not given the focus.
Eight steps of
transformation

Problems &
Challenges

Recommendations

17
 Issues during “Phase 2”

• Stronger understanding & facilitation of processes.

Company
overview

Current situation • Learning & development would be slow.

AXA Way
• IT infrastructure & adequacy of AXA Way team.
Phases of
implementation

Eight steps of • Validity of AWNPI

transformation

Problems &
Challenges

Recommendations

18
 Recommendations

• Confidence building measures should be

implemented.
Company
overview
• Improve the Customer Relationship Management by
Current situation establishing better IT infrastructure.
AXA Way
• Publicize how the company is better in handling
Phases of
implementation
customers than its competition.

Eight steps of • Changing the working conditions & relations within

transformation
teams might also be necessary.
Problems &
Challenges
• Rewards and appraisals to all employees involved.
Recommendations

19
Q&A