BCG-中國農(nóng)業(yè)銀行轉(zhuǎn)型發(fā)展研討會材料-20110317

BCG,TheCorporateBankingTransformationExpertMarch17,2011BCGteamtoday黃河合伙人兼董事總經(jīng)理15年以上豐富的金融服務(wù)業(yè)咨詢及相關(guān)從業(yè)經(jīng)驗為國內(nèi)外多家金融機(jī)構(gòu)制定戰(zhàn)略和轉(zhuǎn)型計劃加入BCG前服務(wù)于匯豐銀行及一家本土知名的產(chǎn)業(yè)基金康乃爾大學(xué)工商管理碩士JürgenE.Schwarz資深合伙人兼董事總經(jīng)理批發(fā)銀行專題研究組全球負(fù)責(zé)人金融服務(wù)扭虧為盈/轉(zhuǎn)型專題研究組全球負(fù)責(zé)人加拿大金融服務(wù)專題研究組負(fù)責(zé)人幫助歐洲和北美多家全能銀行開展轉(zhuǎn)型項目曾就職于花旗銀行公司/商業(yè)銀行部門，并擔(dān)任勃林格殷格翰公司的公司金融負(fù)責(zé)人何大勇項目經(jīng)理超過10年的金融行業(yè)經(jīng)驗和咨詢經(jīng)驗幫助多家銀行設(shè)計公司戰(zhàn)略、組織架構(gòu)、績效管理、運營模式并協(xié)助轉(zhuǎn)型實施曾在中國銀行總行、中銀香港、紐約分行工作多年芝加哥大學(xué)工商管理碩士周雅雯批發(fā)銀行專題研究組專家超過10年的金融行業(yè)經(jīng)驗和咨詢經(jīng)驗幫助多家銀行設(shè)計公司戰(zhàn)略、組織架構(gòu)、績效管理、運營模式并協(xié)助轉(zhuǎn)型實施曾在亞洲地區(qū)領(lǐng)導(dǎo)公司銀行、交易銀行和資本市場調(diào)研賓州大學(xué)華頓學(xué)院工商管理碩士AgendaIntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformationAgendaIntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformation“TheBostonConsultingGroupisthemostinfluentialsourceofstrategicadviceworldwide.” -FinancialTimes“ThemostprofoundconceptualinnovationinmanagementconsultingoverthelastdecadewasinitiatedbyBruceHenderson,founderofTheBostonConsultingGroup.” -TheEconomist“Ilikesomeconsultants:thosewhomakeyouthink.TheBostonConsultingGroupisthemostinterestingoftheconsultingcompanies,becausetheyquestionwhatisfundamentallygoingon.” -TomPeters(Authorof“InSearchofExcellence”)BCGisthegloballeaderinstrategyconsultingBCG'sglobalnetwork:70officesin41countriesLosAngelesDallasHoustonMexicoCityMonterreyChicagoMiamiMinneapolisAtlantaDetroitTorontoPhiladelphiaNewJerseyNewYorkBostonWashingtonSanFranciscoS?oPauloSantiagoBuenosAiresMilanOsloStockholmPragueBudapestViennaRomeAthensAbuDhabiDubaiBeijingShanghaiSeoulTokyoNagoyaTaipeiHongKongBangkokKualaLumpurSingaporeJakartaSydneyMelbourneAucklandNewDelhiMumbaiFrankfurtStuttgartZürichCologneDüsseldorfHelsinkiHamburgWarsawBerlinMunichMoscowKyivAmsterdamLondonBrusselsParisLisbonMadridBarcelonaCopenhagenBCGhas30yearsofexperienceinchinaBCG是第一家為中國國內(nèi)企業(yè)提供服務(wù)的國際咨詢公司主要的歷史性里程碑1980：

我們在中國的第一個項目1985：

BCG開始為中國企業(yè)和政府機(jī)構(gòu)服務(wù)1993：成為第一家在中國設(shè)立辦事處的國際咨詢公司1999：

在中國成立了獨資企業(yè)2001：

開辦北京辦公室2002：

開辦臺北辦公室自此我們在各個行業(yè)的專業(yè)與實力不斷提高自上海辦公室開辦后，BCG已在中國開展了數(shù)百個項目我們約50%以上的項目對象是國內(nèi)企業(yè)近年來我公司由上海、北京、香港、臺北辦公室構(gòu)成的大中華區(qū)業(yè)務(wù)系統(tǒng)取得了迅速的成長專業(yè)人員~200名，多是本地或華裔咨詢顧問，對中國有深厚的了解本地辦公室由19位來自BCG全球運營的經(jīng)驗豐富的合伙人領(lǐng)導(dǎo)BCG在與客戶項目組及第三方緊密合作從而取得項目成功方面有豐富的經(jīng)驗NoEnglishversion45

partners300

consultants1000projects9ofthetop10insurancecompanies7ofthetop10assetmanagers6ofthetop10banks7ofthetop10investmentbanks5ofthetop10creditcardissuersMajorleadingsecurities/derivativesexchanges&depositories110

partners600

consultants2000

projects14ofthetop20insurancecompanies16ofthetop20universalbanksMajorinvestmentbankingclientsMajorleadingsecurities/derivativesexchanges&depositoriesSpecialistentities(M&A,stockbroking,pensionfunds)45

partners250

consultants750

projectsMajorinsurancecompaniesandassetmanagers12ofthe20largestbanksplusleadingbanksinmanycountriesMajorleadingsecurities/derivativesexchanges&depositoriesSpecialistentitiesBCGhasaglobalpresenceinfinancialinstitutions

Morethan3000projectsinlastdecade,25-30%ofglobalrevenue,20%CAGROurofficesOurclientsAmericasEurope&MiddleEastAsia-PacificBCGfounder,currentCEOandAPChairmanareallwithbankingexperienceandfromFIpracticeClients18of20largestbanks14of20largestinsurancecompaniesAllmajorcapitalmarketsplayers7leadingstockexchange/derivatives&custodySpecialists(M&A,pensionfunds,brokers)12of20largestbanksandleadingcommercialbanksinmanycountries7leadingstockexchange/derivatives&custodyMajorinsurancecompaniesMajorassetmanagersSpecialists8of10largestbanks7of10largestCapitalMarketsplayers7of10largestinsurancecompanies7of10largestassetmanagers4leadingstockexchange/derivatives&custody3of10largestcreditcardissuersCorporatebankingamajorpartofBCG'sfinancialservicespractice,inallindustrysegmentsandgeographicregionsExpertiseAreasRiskManagementMNCLargecapMid-marketSME,MicroRealEstateBCGCorporateBankingReportandbenchmarkingdatabaseCorporateBankingTransactionBankingSales&tradingUnderwritingAdvisoryExchangesHedgefundsBCGQuarterlyIBreportCapitalMarkets&InvestmentBankingWealth/AssetManagementRetailCRO'sagendaCredit,market,opriskRisk-basedpricingCapitalmgmtCrisisresponseBCGSeniorRiskOfficerSurvey,RiskWhitePapersPaymentsCashmanagementTreasuryservicesCross-borderCustodyProcessingBCGAnnualPaymentsReportandglobalpaymentsmodelRetailInstitutionalWealthmgtBCGGlobalAssetManagementReportandAMdatabase,BCGGlobalWealthManagementReportCorebankingConsumercreditMortgagesE-channelsBCGFutureofRetailBankingReport,retaildatabaseBCGglobalwholesalemarketsizingdatabaseDuncanMartinCorp/InvBankingLondonDougBealCorp/InvBankingDubaiMarkusMassiCorp/InvBankingAbuDhabiSaurabh

TripathiCorp/InvBankingMumbaiRuchin

Goyal

Corp/InvBankingMumbaiOliverDanyCorp/InvBankingFrankfurtStefanDabCorp/InvBanking

BrusselsMartinBucharCorp/InvBankingPragueGennaro

CasaleCorp/InvBankingMilanJunichiIwagamiCorp/InvBankingTokyoTjunTangCorp/InvBankingHongKongAmyChouWholesaleTaiwanStefanMohrTransactionBankingSydneyAllardCreyghtonCorp/InvBankingAmsterdamCarlosBarradasCorp/InvBankingLisbonNicolasHarléCorp/InvBankingParisShubh

SaumyaCapitalMarketsNewYorkAchim

SchwetlickCorp/InvBankingNewYorkChandyC.CapitalMarketsNewYorkJuergenSchwarzWholesaleleaderKeithHallidayWholesale

TorontoNiclas

StorzTransactionBankingMunichCarsten

Baumg?rtnerCapitalMarketsMunichMatthewRogozinskiCorp/InvBankingMelbourneAlenka

GrealishCapitalMarkets/TxbankingCarlRutsteinTransactionBankingChicagoBCG'sglobalexpertteamforwholesalebanking

Corporatebanking,transactionbankingandinvestmentbanking/capitalmarketsFrankieLeungCorp/SecuritiesHongKongRobertGruebnerCapitalMarketsHamburgDouglasJacksonCorp/InvBankingSingaporeSangsoonParkCorp/InvBankinhgSeoulJorgeBecerraCorp/InvBankingSantiagoFedericoMuxiCorp/IB/TxbankingBuenosAiresMasso

UkonCorp/IB/TxbankingSaoPauloMichaelGuoCorp/Txnbanking“Theissueforlargecorporatecustomersishowtoimprovelendingprofitability,wheremarginsareslim...threequartersofbankshadprofitabilitybelow16%...accordingtoastudybytheBostonConsultingGroup.“Justwhenbankersandinvestorsarecelebratingareboundincommercialborrowing,anewstudyfromBostonConsultingGroupsayslendingmaybetheleastprofitableelementofacorporatebankingrelationship.”“BCGgathereddatafrom75largefinancialinstitutionsgloballyandfoundthat45%ofcorporatebankingbusinessescreatednovalueabovecostofcapitalbetweentheendof2002andtheendof2004.”Australia“AccordingtoBCG,ifabankisabletomeasurereturnonequity(ROE)onlyattheleveloforganisationalunitorsegment,itsaverageROEisnegative2percent.Ifitcanmeasurethat...downtothe"perclient,perproduct"levelthatitrisesto26percentwithlessthan10percentofcorporatebanksgloballyatthatlevel.

"Dec.9,2008(Bloomberg)--Corporatebanksmustadjusttoslowereconomicgrowth,higherloanlossesandscarceliquiditythatwillbecomethe“newnormal”foratleastthenextdecade,BostonConsultingGroupsaidinareportreleasedtoday."BCG'sCorporateBankingBenchmarkinghassetthestandardforperformanceinsightssince2003BCGleadingmanyclientsgloballytotransformthebanks

SelectedclientsBCGhasextensiveexperienceincorporatebankingtransformation(I)

ProjectexamplesfromnorthAmerican,EuropeandotherAsiancountriesClientLargeNorthAmericanbankMajorGermanbankMajorEuropeanbankbankMulti-countryEuropeanbankMajorFrenchuniversalbankMulti-countryEuropeanbankTop4AustralianbankLargeGermancorporatebankLeadingNorthAmericanuniversalbankMajorNorthAmericanbankDescriptionSupportcorporatebusinesstransformationprogram,includingbusinessmodel,organization,process,etcSupporttransformationdesignwithintegratedproducts,distributionmodelandbackofficeRedesignandimplementnewdistributionandoperatingmodelforcorporatebusinessIntegrateandoptimizecorporatebankingdistributionandbackofficemodelsfortwomajorEuropeanbankinggroupsDesignandimplementsalesforceproductivityimprovementandcross-sellingprogrambydeepclientanalyticstoidentifyclustersofcomparableclientsandsizetheirwalletsDesignandimplementnewcapitalmanagementframeworktoimprovetransparency/decisionmakingonlargecorporateclientsandproductsinmultiplegeographies/subsidiariesRedesignmulti-brandclient-drivendistributionmodelforlarge/mid

capsclientsandalign

backofficeoperatingmodelandprocess

toimproveclientexperience/reducecostDesignandimplementsalesforceproductivityimprovementandcross-sellingprogrambydeepclientanalyticstoidentifyclustersofcomparableclientsandsizetheirwalletsAssessbanksproductlinesinlargecorporateandinstitutionalspaces,assessingcurrentperformanceandfuturepotentialgivenneweconomic/regulatoryenvironmentSupportlargetransformationprojectinoptimizingdistributionmodel,cuttingcoststoalignwithnewmarketsituationNationalbankofCanadaBNPPUnicreditWestpacBayernLBBMOABNBNPP-FortisRBCCommerzbank客戶項目描述四大行之一分析客戶市場機(jī)會，擬定投行業(yè)務(wù)戰(zhàn)略，根據(jù)客戶發(fā)展需求設(shè)置產(chǎn)品組合以及高效的投行組織平臺和績效考核四大行之一根據(jù)客戶自身能力和市場需求，制定了最適合客戶的投行業(yè)務(wù)戰(zhàn)略，并設(shè)計組織架構(gòu)及關(guān)鍵業(yè)務(wù)能力建設(shè)作為支持，同時設(shè)計負(fù)有操作性的實施計劃四大行之一分析客戶市場機(jī)會，結(jié)合客戶自身能力和全球領(lǐng)先銀行的經(jīng)驗，為客戶制定涵蓋公司銀行業(yè)務(wù)在內(nèi)的整體業(yè)務(wù)線的五年戰(zhàn)略規(guī)劃四大行之一分析市場環(huán)境和客戶內(nèi)部能力，為客戶制定貿(mào)易融資業(yè)務(wù)轉(zhuǎn)型戰(zhàn)略，擬定組織結(jié)構(gòu)為戰(zhàn)略推行提供支持四大行之一為公司業(yè)務(wù)體系制定KPI體系，并進(jìn)一步細(xì)化成公司業(yè)務(wù)報表體系，并完成項目一期實施的詳細(xì)設(shè)計政策性銀行通過對政策、市場、競爭格局、目標(biāo)客戶需求和內(nèi)部能力的多角度分析，制定專注于中長期融資的公司銀行業(yè)務(wù)戰(zhàn)略中型城商行深入分析市場格局及自身優(yōu)劣勢，結(jié)合市場發(fā)展導(dǎo)向制定5年戰(zhàn)略，并按照戰(zhàn)略發(fā)展方向，重組銀行內(nèi)部資源及運作方式領(lǐng)先股份制銀行根據(jù)“流程銀行”的概念，制定有利于支持客戶公司銀行業(yè)務(wù)增長目標(biāo)和擴(kuò)張計劃的組織結(jié)構(gòu)和管理流程區(qū)域股份制銀行全面分析收入目標(biāo)、細(xì)分市場、產(chǎn)品選擇和地域選擇，重點擬定對公司銀行業(yè)務(wù)的戰(zhàn)略和實施計劃大型城商行涵蓋公司銀行業(yè)務(wù)的整體戰(zhàn)略評價及組織診斷，建立組織架構(gòu)設(shè)置、部門級KPI及IT強(qiáng)化措施中型城商行根據(jù)客戶欲成為“本土領(lǐng)先中小企業(yè)銀行”的目標(biāo)制定可持續(xù)發(fā)展的五年戰(zhàn)略規(guī)劃，確定合適的戰(zhàn)略重點并建立長期可持續(xù)的競爭優(yōu)勢區(qū)域股份制銀行確定客戶在未來三年的重點增長領(lǐng)域，制定針對中小型公司銀行業(yè)務(wù)的戰(zhàn)略和商業(yè)模型，促進(jìn)銀行整體業(yè)務(wù)的轉(zhuǎn)型領(lǐng)先的臺灣商業(yè)銀行開展深入的公司客戶研究，制定定期的客戶調(diào)查計劃以評估銀行總體競爭力領(lǐng)先的臺灣銀行分析錢包份額，定義并歸檔機(jī)遇行業(yè)劃分的客戶集群以發(fā)現(xiàn)中型企業(yè)公司銀行業(yè)務(wù)的錢包份額機(jī)會臺灣金融控股公司針對客戶在中小公司銀行業(yè)務(wù)上存在的問題，重新設(shè)計銀行中小企業(yè)業(yè)務(wù)戰(zhàn)略，包括核心客戶和運營模式的區(qū)分、銷售團(tuán)隊的管理效率提升和業(yè)務(wù)再造歐洲銀行集團(tuán)對亞洲交易銀行市場進(jìn)行細(xì)分，總結(jié)交易銀行業(yè)務(wù)的關(guān)鍵成功因素，制定進(jìn)入亞洲交易銀行市場的積極戰(zhàn)略BCGhasextensiveexperienceincorporatebankingtransformation(I)

ProjectexamplesfromGreaterChinanoEnglishversion今日會議目的IntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformation我們對農(nóng)行背景與優(yōu)先重點的理解背景農(nóng)行為四大行之一，于2010年在香港和上海上市，是目前全球最大IPO公司業(yè)務(wù)為農(nóng)行的支柱業(yè)務(wù)公司業(yè)務(wù)2009年稅前利潤為452億元，占利潤總額的61%2008年以來，農(nóng)行的公司業(yè)務(wù)開始大幅轉(zhuǎn)型加快大城市業(yè)務(wù)發(fā)展變革了銷售模式，強(qiáng)調(diào)通過總部而非分行開展重點大客戶營銷/銷售工作發(fā)展了國家電網(wǎng)等眾多重點大客戶，牢固夯實客戶基礎(chǔ)挑戰(zhàn)使命與監(jiān)管環(huán)境特殊使命：加快中小企業(yè)與農(nóng)村地區(qū)貸款業(yè)務(wù)發(fā)展廣闊且深入的區(qū)域覆蓋面：覆蓋中國的城市與農(nóng)村地區(qū)組織從總部到網(wǎng)點共4-5個層級總部設(shè)多個相關(guān)業(yè)務(wù)部門：公司業(yè)務(wù)部、大客戶管理部、中小企業(yè)部、投資銀行部等客戶行業(yè)與細(xì)分市場目標(biāo)遠(yuǎn)大無法提供整體解決方案管理機(jī)制評估與關(guān)鍵績效指標(biāo)資源分配團(tuán)隊數(shù)量質(zhì)量尚未為利率市場化改革做好準(zhǔn)備發(fā)展為金融控股公司：租賃業(yè)務(wù)、海外分公司...需求與優(yōu)先重點因此，農(nóng)行高管希望徹底、系統(tǒng)性評估、設(shè)計并轉(zhuǎn)型公司業(yè)務(wù)診斷公司業(yè)務(wù)設(shè)定公司業(yè)務(wù)轉(zhuǎn)型方向價值主張、差異點、目標(biāo)細(xì)分市場、財務(wù)目標(biāo)制定詳細(xì)的轉(zhuǎn)型舉措組織結(jié)構(gòu)人力資源/人才發(fā)展銷售覆蓋產(chǎn)品開發(fā)績效管理業(yè)務(wù)轉(zhuǎn)型noEnglishversionTypicalapproachtobanktransformationDiagnosticDesignImplementationCEOteamengagementBurningplatformandaspirationforchangeIssueIdentificationHypothesizedlistofbiggestopportunitiesOrganizationredesignandalignmentDetailedinitiativedesignandimplementationRigorousprogrammanagementBusinessmodelFuturevisionandstrategyOrganizationdesignprinciplesandculturalprioritiesOperatingmodelInitiativeportfolioReview/definitionofbusinessstrategiesOpportunityidentificationandvalidationInitiativeprioritizationandalignmentProgramandchangemanagementImplementationplanning,sequencingPMOdeploymentCommunicationandchangemanagementplanKeysuccessfactorsforlargescalechangeprogramsAToplevel(CEOandseniorleadershipteam)commitmentandcommunication(internal&external)ClearvisionandobjectivesThebestpeopleinvolvedandgivethemthetools/trainingtoperformDefined"RulesofEngagement"(eg,roleofline,vsprojectPLvsPMOetc)ActivistPMOapproach(provideanalyticalsupport,assiststrugglingprojectsetc)Rigorousplanning,measurementandfollowupExplicitchangemanagementstrategyandtoolsBCDEFGAllfactorsneedtobeaddressedintheTransformationPlandesignandexecutionKeymessagesforAgricultureBankofChinaYouneedaclear'burningplatform'IteitherexistsalreadytodayOryouneedtocreateit(aspirationalvisionand/orfinancialobjectives)TheleadershipteamneedstobealignedandcommittedOrbecomealigned/committedfollowingashortvisionandobjectivesexerciseThink'big'Bigvaluecreation,bigsuccess,bigchangeAvoidincrementalthinkingandincrementalresultsOver-communicatedtoyourkeypersonnelandwinthemoverThrougheffectivestakeholdermanagementandconsistentcommunicationSpeediscriticalToprovidecleardirectionquicklyToovercomedoubtersinternallyToprovideaconvincingstorytothestreetBuildingandmaintainingmomentumiscritical,otherwise,youwillachieveslowincrementalimpact今日會議目的IntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformationBurningplatformandcontextforchangeAverageTSRperformancerelativetopeersLowrevenuegrowthInsufficientoperatingleverageBoardandstreetdemandingaggressiveEPSgrowthtargetResultinginverysizeableNIBTgapthrough2012Clienthasauthored"OneClient,OneBank"strategicvisionVisionlackedsufficientlevelofdetailandwasnotcommonlyunderstoodacrossorganizationSignificantorganizationalchallengesSiloedbehaviorCapabilitygapsinsomebusinessesLackofaccountabilityOverallapproachtotransformationeffortDiagnostic/designphaseImplementationDetaileddesignphaseClarifyvisionanddefinebusinessmodelEvaluatebestpracticeapproachesAlignonkeyprinciplesandstrategiesIdentifypriorityrequirementsforstrategyDiagnosecriticalconstraintsandenablersEngageCEOteamandnextlevelofseniorexecutivesinbeliefsauditDevelopactionplantoaddresskeyorganizationalandculturalconstraintsAssessinitiativeportfolioPressuretestIdentifygapsIdentifyadditionalpotentialopportunities1DetaileddesignofinitiativeportfolioRefinementofbusinessstrategies(retail,commercial,wealth)Initiativedefinition,prioritizationandalignmentDesignprogrammanagementapproachImplementationplanningandsequencingPMOdeploymentandgovernanceCommunicationandchangemanagementplanOrganizationalchangeeffortDetailedinitiativedesignandimplementationRigorousprogrammanagement23458SummaryofkeycommercialbaselinefactsandstrategicissuesSince2005,Commercialrevenuehasgrownxx%CAGR,atxx%,achievingxx%opleverageFXgrowthhasbeenstrongdriverofcommercialgrowth,howeverdeposit/cashmgmtgrowthhasbeenflatBankhassignificantleadinsmallendofmarket,whileBankholdsslightleadincommercial/mid-marketHighclientattrition,anddecliningclientacquisitionthreatensBank’scurrentpositionCommercialrevenue($M)200720062005CostsNIBTNIBTxx%xx%xx%CAGR(’05-’07)xx%

xx%xx%Commercialloanshare(%)OtherDCBA>$500kloans<$500kloansBBanksCommercialdepositshare(%)ASept'07Sep’05xx%ofSMBsarelocatedinxxareaDepositsharegrowthlargelydrivenbystronggrowthinpublicsectorCommercialrevenueCAGR(‘05-’07),(%)Loan&BAsDepositServicesOtherFeesFXFeesTermDepositDemandLoansDemandDepositMort-gageSpecial

DepositCompensationhighlysupportiveofFXsalesDepositservices(cashmgmt)tendtobekeydriverofrelationship‘stickiness’andprofitability2006-07No.ofCommercialclients(k)2005-06#Lost#AcquiredLargepoolofxxunassignedclientsareathighriskofattrition1ProductPenetrationBySegment(Clientcorecustomersvs.market)SegmentsComplexLoan4DepositPaymentservicesTradefinanceOffshorebankingTreasury/TMUInvestmentbankingMicroSMECorporate91%100%24%17%4%1%0%29%100%43%29%10%24%0%4%14%1%48%15%95%84%0%3%3%33%34%93%87%4%25%30%61%52%93%64%x%x%ClientMarketProductpenetration7%55%51%100%47%98%83%Client’spenetration<10%under-penetrated<50%under-penetrated>50%under-penetratedBasicSource:Customerquantitativesurvey,Clientdata,BCGanalysis1UnderstandingclientproductpenetrationIdentifyingwhitespaceforclient'scorporatebankingbusinessMayincludecreditcardsNote: FourotherbanksusedherearethemostcommonlyusedbanksbySMEandtheonesmostmentionedasTopSMEbankSource:Quantitativesurveyanalysis,BCGanalysis LoanDepositPersonalWMPaymentservicesTradefinanceOffshorebankingTreasuryInvestmentbankingOther(1)BusinessComplexBasic<10%11-20%21-30%31-40%41-50%51-70%71-99%Levelofproductpenetrationoflendingcustomers(%ofrespondents)100%1WMawhitespace,noonehascapturedthemarketsharessignificantlySource:Companywebsites;investorpresentations;BCGanalysisMultiplecoveragemodelsadoptedbyleadingplayersRelationship-ledapproachIncreasinguseoftechnologyandprocessTraditionalRMbygeographyOneRMdedicatedtoagroupofclientsDifferentintensityofproductspecialistusageAssignedbygeographybutsometimesbyindustrySalesprimarilydrivenbyproductspecialistteamsRoleofRMisincoordinationandidentifying

newopportunitiesProduct-ledapproachSinglecoverageOneperson,usuallyI-Banker(Wachovia)orcorporatebanker(HSBC,Nordea)inchargeoftheclientserviceteamDualcoverageSharedresponsibilitybetweenI-bankerandcorporatebankerforrelationshipClearproductsplitLargeCaps/MNC’sRMbyindustry/sectorOneRMdedicatedtoagroupofclientsDifferentintensityofproductspecialistusageGroupedbyindustryIncreasinguseoftechnologyClientshaveaccesstopoolofRMs

(semi-ornon-dedicated)Leveragetech/toolstodeepenrelationshipMid-CapsSmallCapsT/Othresholds1SuccessindistributionrequiresaholisticapproachSenseofpurpose

andleadershipAvisionandsenseofmissionthatinspire

individualsandclarifytheirobjectivesPerformancemanagementandrecognitionHighlyvisibleperformancemanagementandrecognitionsystemsPeoplemanagercapabilitySuperiorpeople-skillsandleadershipbehaviorsClearsinglepointaccountabilities—roles,goalsanddecisionrightsalignedCollaborationmechanismsinplace—planning&budgeting;operationalteams;trustHardwiredintegrationofaccountabilitiesintomeasurement,performancemgt,compensationandpromotionsystemAccountabilitiesandcollaborationAnaccountabilitysystemandworkingenvironmentwhichfosterstrongperformanceandcollaborationSharedcommitmenttoobjectivesattop,withclearcommitmentofleaderstocorporatebankingplan...alignmentoncreditvs.otherproducts,riskappetite,segmentprioritiesManagersthatcanbreakdownsilobehaviorsandcoachsalesstafftosucceedBCGframeworktoenablethecorporatebankingorganization2DiagnosisrevealedsignificantgapstowardsahighperformanceorganizationinthecorporatesegmentDiagnosticissuesStretchgrowth,profitabilitygoalsnotsharplydefinedNosharedagreementonspecificactionableobjectivesaroundfullclientrelationshipRMsandProductspecialistsdonotsharesenseofmissionandcommonpurposeSinglepointaccountabilityforclientsuccessisunclearandteamaccountabilityexpectationsunclearPlanningandoperationsreviewprocessesweakProductandrelationshipbankersdistrust/disrespecteachotherOpinionvs.databasedjudgmentsPoorinformationqualityofprovideddataintermsofaccuracy,completeness,timelinessAnnualplanhasnoteethOperations:PerformancemanagementprocessinadequateMetricsforresultsandinputarenotrobustenoughTalent/peoplemanagementisweakHighperformanceorgresponseDevelopspecificrevenueandprofitgoalsderivedfromclientprofilesandrigorousprioritizationPrioritizationbasedonwelldocumented,shared,transparentunderstandingofproducts,clients,competitorsCommunicatecorporatebankingstrategytoRMsandproductorganizationsSeniorexecssignalhighpriorityofsuccessDefineclientrelationshipdecisionandvetorightsforRMsandproductspecialistsMakelinkagebetweenindividualroles,goalsandmetricsstrongandtransparenttoentireteamStressbi-annualplanningandweekly,monthly,quarterlyoperationsreviewprocessesAddressissueopenlyandcreatecollaborationmechanismsandhighperformanceteamingInformationanddataasrobustandtransparentaspossible:Buildclientandbankerscorecardanddashboardtoolstoprovideaccuracy/transparency,completeness,timelinessMovetoactive,fullbi-annualplanningprocessWeekly,monthly,quarterlyoperationsreviewmeetingsResultsmetricstiedasfaraspossibletoobjectiveinputdata(internalandexternal)Createtransparent‘bankerdashboard’BesidesfinancialdataalsoincludeoperationalindicatorsinperformancediscussionRealisticskills/capabilitiesassessmenthastobeaggressivelyappliedtorecruitment,development,outplacementIncreasedfocusoncoachingandpeopledevelopmentascorecapabilitiesforsalesmanagersandexecsSource:BCGclientexperiencedatabaseSenseofpurpose

andleadershipVision,senseofmissionthatinspire

individualsandclarifytheirobjectivesPerformancemanagementandrecognitionHighlyvisibleperformancemanagementandrecognitionsystemsPeoplemanagercapabilitySuperiorpeople-skillsandleadershipbehaviorsAccountabilitiesandcollaborationAccountabilitysystem,workingenvironmentwhichfosterstrongperformanceandcollaboration2Evaluatedinitiativeportfoliotoguardagainstincrementaleffort,pushharderwherenecessaryImplementationchallengeTransformationInitiativePortfolioCostReductionRevenueIncreaseCurrentInitiativeNIBTImpact($M)PushHarderNew300+smallinitiativesillustratedRe-examinedtofreeupcapacity3Source:BCGanalysisSalesprocessesandtoolstosupportahighperformingsalesforceBuildingbest-in-classcorecapabilitiessupportedbysalesforceandorganizationalenablersdrivesvaluecreationDistributionModelalignedwithcustomerneedsandstrategicprioritiesCustomerneeds/segmentationDistributionapproachResourceallocationProductprioritiesChannelsandleadgenerationSalestoolsandtrainingSalesandcreditprocessesBusinessstrategiesWinningclientpropositionDifferentiatedcorecapabilitiesEconomicleversWinningclientpropositionDifferentiatedcorecapabilitiesEconomicleversOrganization&cultureTalentManagementCollabration-Performancemgmt.PrioritizedbusinessagendaEnterprisevision&objectivesOrganizationalenablerstodrivethebehaviorstogetherwiththepeoplecapabilitytodrivesuccessBusinesscasedrivenbyeconomicleversMaximizingshareofwalletIncreasingnetnewnumberofclientsHavingalow-costefficientdeliverymodelRedirectedsalesforcefromcredit-centrictocashmgmt/deposit-centric4SummaryofcommercialbankingtargetdistributionmodelSalesprocessandenablersDistributionModelSegmen-tation/

ClusteringDistributionApproachResourceallocationProductPrioritiesChannelsandleadgenerationSalestoolsandreportsSalesandcreditprocessesTherolesandresponsibilitiesoftheSeniorManagerwillchangetofocusoncoachingandthedevelopmentofamoreproactivesalescultureTheroleoftheaccountmanagerandtheaccountmanagerdepositwillbemerged;theaccountmanager'sscorecardwillbeadjustedtoreflectthenewfocusoncross-sellingSomeproductspecialistsandgeneralistswillbegiventheroleofa"Hunter"tofocusonnewcustomeracquisition;thisrolewillbetestedforsixmonthsintworegionsbeforebeingrolledoutbank-wideAnewspecialistfocusingontreasury/riskmanagementproductswillbeaddedtothecommercialteamThefinancialplannerentrepreneurwillbepartoftheoverallCommercialteamAcreditspecialistandanewlydefinedroleoftheAgentsdeCompteswillenableAMstohavemoretimeavailableforsellingBestpracticetoolsandnewincentivesschemeswillbeimplementedBestpracticetoolstoidentifyclientopportunitiesNewincentivessystemdirectlylinkedtosalesresultsNewcoachingmethodswillpromoteaproactivesalescultureRedesignedcreditprocesswillloweroperatingcosts,increasespeedandfree-uptimefortheAccountManagersDistributionmodelProfitforthebankperclient1CosttoserveofCommercialAM$3,400–3,600CosttoserveofSMEAM$800-1,000MicroSMECommercialClientsabovesalessizethresholdsgenerateenoughprofittooffsetthecosttoserveofeachmodel<$0.1M$0.1-0.5M$0.5-1.0M$1.0-2.5M$2.5-5.0M$5-15M$15-35M>$35M1.DefinedasRevenue–CoC–Expectedloss–allocatedfixedcosts(ExcludesdirectFTEcosts)Source:GRCWeb,BCGanalysisClientsalessizeSegmentationCashMgmtLendingPayrollSvc&MFPayrollSvc&MFFXPayrollSvc&MFFXFXInt'lProductsPayrollSvc&MF'Commonproducts''Add-onproducts'Note:Usageforacategorydefinedwhengreaterthan10%ofclientbaseisusingtheproductSource:GRCWeb,BCGanalysis<$0.1M$0.1-0.5M$0.5-1.0M$1.0-2.5M$2.5-5.0M$5-15M$15-35M>$35MFXInt'lProductsPayrollSvc&MFClientsalessizeprovidesindicationofproductusageamongBNCclientbasePayrollSvc&MFCommercialSMEMicroClientSalesCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingMed.loansize$35k$62k$88k$154k$312k$674k$1,337k$3,603kSegmentationOverviewofthetargetcommercialbankingteam-baseddistributionapproachDTGCredit

SpecialistFinancial

PlannerEntr.Business

Develper

"Hunter"AdCAMDSMTradeFinSpecialist

(exDCI)Treasuryspec