“Back in the 1990s we needed to take radical steps to get the business on track which included finding a partner who could deliver an operational business and drive a change programme efficiently and effectively. This would leave the NS&I management team free to concentrate on its core business, the business of competing in a financial services market place.”

Steve Owen, Channel Delivery and Management Director, NS&I.

“We had huge expectations. A complete overhaul of our operations bringing us into the 21st century with one of the best equipped operations in the UK financial services market. The level and complexity of the change was much greater than we anticipated at the outset but we have done it. Most importantly we have made this quantum shift without any customer related problems.”

Steve Owen, Channel Delivery and Management Director, NS&I.

National Savings and Investments is one of the most deeply-rooted and historically significant financial institutions in the United Kingdom. It was founded as far back as 1861, when Lord Palmerston was still Prime Minister, Abraham Lincoln was just starting his first term in office as President of the USA and China still had an emperor. Though the world has changed almost beyond recognition, the underlying idea of NS&I remains as relevant today as it ever was.

Business Challenge

In 1999, National Savings comprised three separate and autonomous processing units, in different locations and with little in common as regards day to day contacts or working methods. Transaction processing was paper-based, with minimal computerisation and only two significant channels to market: both via the Post Office branch network in the form of “over the counter” and leaflet “pick up and post” services. The system was inefficient, laborious and involved a great deal of duplication and redundancy.

Solution

Improve performance and deliver cost savings of 30% above the internal target - the equivalent of a £500 million saving to the taxpayer during the lifetime of the contract. Increase funds managed and put the business on a growth track again. Open up modern new sales channels in order to attract new customers and support the growth strategy.

Benefits

Employee productivity has improved by more than 400%, with response times now down from over 9 days in 2000 to around 3 days in 2009/10 and funds managed per employee over three times their 2000 level.

The NS&I service contract has been repeatedly recognised for the quality of its performance by awards for excellence over the years, including:

• The National Training Award for implementation of the LEAN continuous improvement programme.

• The BQF Achievement Award for Partnership Development in 2009.

• Charter Mark accreditation for several years – replaced in 2010 by the new Customer Service Excellence award, achieved at the first assessment.

• Recognition by the National Audit Office for delivering outstanding business benefit to the client and the taxpayer, alike.

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