Productivity

in
Service Sector
Areas of Productivity
Measurement
Banking & Financial Services:
Check Processing, Loan Processing, Bill Discounting, New
Applications, Customer Query Management etc.

Insurance:
Claims Processing, Policy Issuance, Customer Acquisition, Policy
Servicing & Query Resolution etc.

Telecom:
Account Processing and Activation, Query Resolution, Audit & Service
Quality Management etc.
Productivity measurement
(Example)
Efficiency ratios

 Interest income per employee

 Profits per employee
 Business per employee

 These ratios indicate the productivity level of

the bank’s employees
 Banking sector
FY01 Interest Profits Business Business Employees
income
Rs m Per Employee Per Branch
HDFC 4.6, 0.8 59.2 1,243.9 21.0
ICICI 2.8 0.4 52.1 619.3 11.9
UTI 7.5 0.7 117.4 1617.8 13.8
SBI 1.2 0.1 16.6 392.6 23.7
Corp. 1.7 0.2 23.3 386.9 17
OBC 2.0 0.2 26.3 383.7 14.6
BOI 1.2 0.1 19 329.5 17.4
Banking sector
HDFC UCO SBBJ

Loan 1 hr 1 day 3 days

Sanctioning

Cheque 1 day 2 days 2days

Clearence

NPA Ratio 0.5% 0% 6.0%

 Since state run banks are operating with
large employee base, the productivity ratio for
these banks lags behind when compared with
new generation private sector banks.
Courier Service

DTDC First flight Target

Point
Delivery time
Within 2 days 1 day 1 day
Rajasthan

Within India 3 days 2 days 5-7 days

Outside 7 days 5-7 days 15 days

India
The Business Process
Management
(BPM)
 Workflow
 Integration with business systems
 Integration with people
 Process Initiation
 Work Item Archival and Access
 Measurement, Tracking, Reporting & Control
Why BPM ?
Assumed Productivity As the scale of operations
Transaction Volume/
Scale of Operations

Enhanced Productivity increases, productivity does not

in a BPM enabled increase in proportion even by
environment
adding more people to the
Actual Productivity
operation.

Process Automation through

People BPM helps reduce this imbalance
and bridge the gap between
‘defective’ transactions
Quality of output/ Non

assumed and actual productivity

BPM enabled
environment

BPM also helps maintain the

Normal environment
quality of transactions standard
even when operations are driven
at faster speeds
Speed
Benefits of BPM

 Access to micro level details on turn around

times for processes, process steps and
employees
 Drastic reduction in headcount to run a
process
 Identification of process bottlenecks if any
 Ability to monitor the performance of a new
product on a daily basis