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develop smaller banks by the national regional and large banks with high growth aspirations and goals, many are in a structure inhibits the growth and standardization, and what compromises the efficient replication of the captive business model. This article examines the issue of enlargement and proposals to support growth strategies with the organizational structure capable of ensuring the expansion of successfulProcess.
Smaller, more concentrated at the local, community-driven banks pride themselves on their ability to understand the needs of their customers and deliver high quality, based on the report, one-on-one service to all its customers. Customer service is their key differentiator, and their services are usually through a hierarchical structure, branch-based system that has delivered managed by a local operator. This provides an excellent orientation to customer needs and supply locally, but all too often meansthat the needs of growing organizations can not be met.
The main problem with a hierarchy of branch managers, regional operations is that the organization is growing increasingly difficult place to achieve growth objectives. Product development is suffering because of the lack of coordination and operational costs. Sales targets are too often based on the results obtained in the previous year, and there is little or no focus on business development. individual rolesand responsibilities are tailored to each area, incentives and promotions is difficult to manage.
Inevitably, this is the competitiveness of the bank refers to a situation like this, the local branch-based bank has made the classic dilemma of growing Greiner (1). It 's the challenge to move from a focus on growth is driven by creativity in the face - and on the basis of individualistic and entrepreneurial management - driven by growth, which is acentral structure, a directive leadership style, standard and control systems.
What is not clear, many smaller organizations such as the need for transition from one fire to another, or even what the benefits of this operation would be.
The examination of the issues
Organizational growth and continuous delivery
There is no doubt that a small bank's success in developing markets can double-digit growth, oftenReaching more than 25% a year, even in these difficult times.
But without an adequate framework within which to manage this growth, smaller banks find they are not capable, efficient and effective allocation of resources in key areas. This is often compounded by the limited formal processes, like all the local managers of its regional customer base and managed according to their specific needs, and this in turn leads to a confusion of roles and responsibilities,as well as calls to the appropriate resources.
Performance management and improvement
In any organization, it is important that issues such as the organization does not respond, and be able to respond to changes in performance and trading environment on a common understanding of metrics and data. Ask how the organization is continuing because some results have been achieved, and what are the organization in agiven situation are all part of a measured approach and transparent process-oriented business. However, this can not be achieved through local management of data, customers and sales.
Centralized management and functional customers, products and channels is critical to promote regional growth into new markets, such as a value proposition that meets the standard requirements of all customers of the bank, and allows it to compete with the big banksthat the local market has occurred.
Further growth can only be achieved through a regional vision and product-oriented sales targets, increase the level of business units to branch people and products of both assets and liabilities.
Developing customer value proposition in a given region
Although smaller banks are proud of the level of service they provide to customers, that the concept of a comprehensive Customer Value Proposition thatcontains items such as appropriate products, prices, service levels, distribution channels, risk management and branding, is less clear and perhaps impossible to achieve in a hierarchical structure based subsidiaries.
Only the centralized analysis of customer data, customer-focused to determine the characteristics of the target so that banks can set a full value. It 'also important that the rates once delivered will be developed,standardized, cost-effective way that customer expectations are met. the impact of cost and efficiency in a regional context means that the provision is a one-on-one for all customers and increasing demands and complaints to a senior executive of the resolution is not feasible nor desirable. With a customer base larger, more diverse and geographically diverse, are integrated, streamlined systems and processes necessary to deliver products and services targetedIndividuals and groups.
Product Development
Moreover, as the supply of products and services through web-based and mobile channels increases, more attention and more to meet the development of new products to meet the specific needs of individual customers.
This course requires an integrated effort, which includes the development, process design new business processes and risk management. Simply improving existing products or developing new products,The use of existing systems and technologies, not the banks in order to remain competitive in a world of ever-changing technological progress. One key development of the product model and property must be present in all retail banking on a regional basis to ensure that products and services remain at the level with the person offering the competition.
It 'also important that all new products of value must be aligned with the bank, and that a formalizedProduct development to ensure that this happens, and ensure that risk and compliance requirements are met.
In a database maintenance of a regional customer base, the responsibility for the economy of product development and viability of the product owner, you are in a centralized facility that provides for the centralized definition and monitoring of sales targets. While negotiations with the owners of the channel should be used to ensure that these products are developed at the central levelTraffic on the right price and service levels to support the value of the bank rate.
Channel Management
Of course, changing the role of a regional head office based, inevitably, if a centralized structure is adopted. Independent, hierarchical structures that lead to entrepreneurial in nature to the changes in the structure, roles, responsibilities, opportunities and growth of the organization.
owner of the channel must therefore be responsible for the provision of standardSales and service platforms and the provision of products and services to the value proposition. The cost of delivery must be by-product and the heads are being negotiated in the segment, and customer feedback should be used for the level of customer satisfaction within the channel monitor.
Organizational impact and implementation
Design of a body of retail banking strategy, the requirements for the continued growth and increasing returns implies thatthe roles and responsibilities of all role players, from management to operational level to be redesigned.
New roles and function of units can be linked by business processes, ensuring the integration, the integration of customer segments, products and output channels. These processes should include:
- Product Segment Value Proposition and discussion forums;
- The process of product development;
- Integratedprocesses of direct sales and indirect sales orders;
- The sales targets and financial processes and alignment of budget
- Reward and incentive management processes.
To implement a new design of the organizational structure, new roles and standardized job descriptions must be clearly defined and articulated. Performance Management, which is aligned with the objectives established and agreed and performance indicators should be used in order to be able to lead a sales and service culture, both within theOrganizational and functional limitations.
An environment where growth, role clarity, specialization, and control "business as usual, leads naturally to the next level of greater speed, efficiency, flexibility, integration and innovation. As soon as this are mass has been reached on standardization, the growth of the local branch structure is also easily accessible place. replication across regional boundaries in seamlessly with standard processes andIs done, and the achievement of growth targets may have orchestrated the process of replication and extension, clarity of purpose.
Finally, the analysis must be what makes the change of this magnitude and nature of access, special tactics. A well-managed, carefully articulated and communicated properly change management program is needed to support growth and new levels of performance. Change the whole society is part of the effort, and this mustled by a CEO very involved and visible.
Without a clear idea of where the organization goes, and well able to take action there, the bank will stagnate and lose their competitive position in the market.
(1) Larry E Greiner, Harvard Business Review, May-June 1998
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