PWC-KM-銀行業(yè)成本重組建議-2012

Reshapingyourcostbasefortoday’smarketrealitiesBanking:CostRestructuringPropositionwww.pwc.co.ukContentsSectionPage1TheCostChallengeintheMarket-CapitalMarkets2TheCostChallengeintheMarket-RetailandCommercialBanking3HowdowethinkaboutCost4OurOpportunityAcceleratorapproach5OurCommercialConstruct6WhyPwC2TheCostChallenge–CapitalMarkets13BanksarefacingunprecedentedpressuresontheircostbaseandarehavingtoidentifyhowtoaddresstheirpreviouspoorcontrolofcostBanksnowneedtochangetheirculturetodrivesustainableandcontinuousmarginimprovementfromthecostsideoftheagenda.Theywillbeforcedtodothistoremaincompetitiveandattractive.Banksneedtotackletheinefficientfunctionsandprocesseswhichhavearisenthrough:industrywideunderinvestmentinrevisiting‘quickfixesandinitialworkarounds’yearsofignoringFrontOffice‘badbehaviours’productcomplexitycompoundedbysignificantinorganicgrowth4TakentacticalcostcuttingactionstomaintaintheirC:IratiosindifficultrevenueyearswhicharereversedwhenmarketschangeLookedtoisolatedbackandmiddleofficeoptimisationprojectstoreleasecoststoneutraliseregulatorydrivenincreasestodatedrivenandrewardedbusinessmanagementperformancethrougharevenuelensBankshavetraditionally:TheBankshavehistoricallymanagedtheirbusinesswithrevenueastheprincipledriver,primarilytakingactionsoncostinreactiontomovementsintheirin-yearrevenuestreams.Untilnowtheyhavenotneededtoinitiatetherelentlessefficiencydrivetoremaincompetitivethattheircounterpartsinotherlower-marginindustrieshavebeenfacingforyears.5Whatisrequirediscostrestructuringwhichis:Sustainable-notjustplacingitemson‘hold’.Strategicallyaligned-redefiningthecoststructuretoreflectthechangingstrategyofthebusiness.Thebankneedstobepositionedtosupportexpectedgrowthwithoutfacingthecostof‘re-hiring’staffithasjustletgo.Supported-thetargetrequiredtosupportthebusinessresultsneedstobearticulated,understoodandfullysupported.Costrestructuringdemandstheabilitytoexecuteanddeliverrealbenefitsfromcomplex,politicallychallengingmulti-yearprogrammesofwork.Costrestructuringdemandsthedisciplineandgovernancetomakethetoughdecisionsaboutinternalpriorities,servicelevels,quality,structure,location.Costrestructuringrequiresinnovativethinkingacrosstheorganisationandcollaborativefront-to-back,crossfunctionalanalysisandaction.CostrestructuringrequiresBankstochangetheirculture,behavioursandstructuresBankstypicallyunderestimatethescaleofchangerequiredincostrestructuringTheCostChallenge–Retail&CommercialBanking26Inthisperiodofeconomicuncertaintybanksfacelowreturns...

7OverthelastdecadeBankshavebecomemorefragile–firstasleveragegrew,thenasthecrisishit–andnowbanksareatgreaterriskofcontagionfromproblemselsewhereintheworld.ThisisreflectedintheBanksTotalShareholderReturnperformance,whichhighlightstheimpactpreandpostthefinancialcrisis.TheUKbankshaveinparticularexperiencedadramaticdeclineintotalshareholderreturnsTotalShareholderReturnoverthelast10years–LargeEuropeanBanksvs.FTSE100&EuropeanBankindicesBNPParibasFTSE100HSBCBancoSantanderDeutscheBankBarclaysLloydsBankingGroupDexiaRoyalBankofScotlandGroupCitigroupFTSEEuropeanBankIndexPeriodofLeverageFinancialCrisisPeriodofdeleverageIndex=100inJan2001Note:TotalShareholderReturns(TSR)adjustedforstocksplitsanddividends.TSRincludescapitalappreciationandcashdividendsreinvested.

Source:Datastream.,PwCAnalysisUKBanksusedtobemuchbettercapitalisedthantheybecameintheyearsprecedingthecrisis,whenUKbanks’ratiosofassetstoequityrosetoover40fromhistoriclevelsofaround20.Muchofthestrengtheningofthelossabsorbencyrelativetothesituationinthelastdecadeisrestorationofthehistoricnorms.Theperiod2001-07wasoneofuninterruptedgrowthforUKbanks,underpinnedbyincreasingGDPgrowthacrosstheworld.Thefinancialcrisisandeconomicvolatilityandasharpdownwardtrendinfinancialperformancefrom2007onwardshavepromptedanurgentneedtoreaddressthebalancesheet.RevenuegrowthforUKbanksreachednearly10%pre-crisis,supportedbythehighlevelsofbalancesheetleverage.Gearingincreasedsubstantiallywithdebt:equityratiosreachingabove200%forUKbanks.During2007-10,thefinancialcrisisexposedtheflawsinthebanksoperatingmodel.UKBankshistoricleverageSource:ICBFinalReport,2011Challenges:continuedde-leveraging,increasingfundingcosts,andananticipatedlowgrowthenvironment82001-20042004-20072007-20102011-2014UKBanksAverageRevenueGrowth9.4%9.9%3.9%1.0%UKBanksAverageGearingRatio53%220%187%N/AUKGDPGrowth(%)2.582.65-0.231.58USGDPGrowth(%)2.232.780.282.25WorldGDPGrowth(%)3.415.043.173.05UKInflationRate(%)1.292.012.862.85UKBanksRevenueGrowthvs.GearingratiotrendsSource:AnnualReports,AnalystReportsforforecasts,IMF,PwCEconomicsData,PwCAnalysisResultinginorganisationshavingagreaterfocusontheircostbaseinresponsetofundamentallyrestructuringandreshapingtheiroperatingmodel9Overthelastdecade,improvementsincostincomeratioshavesuperficiallybeendriventhroughacombinationofrevenuegrowthandcostrestructuringinitiatives.Revenuegrowthhadbeenthekeydriverinparticularin2004-07Thesteadygrowthandgrowingprofitabilityhavemeantthatcostrestructuringhasbeenpiecemeal:thefocushasbeenoneasy-winsacrossmultiplecyclesofcostcutting.ThismindsetisnolongerpossibleforUKbanksandbuildingsocietiesassignificantcostrestructuringtoreshapethecostbasetotoday’smarketrealitiesisnowthekeydrivertorestoringbank’sfutureprofitability.Buildingsocietieshavetraditionallyhadahighcostbase,partlyreflectinghighcustomerservicebutinsomecasesweakercostcontrol.Thestrongersocietieshavetendedtobethosethatmaintaincost-incomeratiosbelow50%.Theremaybescopeforsocietiestocontaincoststhroughincreasedco-operation,forexamplebysharingback-officeservices.Consolidationoffersanothermeansofachievinglowercoststhrougheconomiesofscale.Historic&ForecastedCostIncomeRatioforUKBanks&BuildingSocietiesHistoric&ForecastedRevenue&CostGrowthforUKBanks&BuildingSocieties2005-072007-10CompoundAnnualGrowthRateCompoundAnnualGrowthRate2011-14CompoundAnnualGrowthRateROE%Cost:Income%ForecastPeriodSource:AnnualReports,AnalystReportsforforecast,PwCAnalysis.Note–smallbanksdonothaveforecastspubliclyavailablesowehaveprovidedestimatesbasedonourobservationsandexperienceofworkingwiththissector.AllCEO’sespeciallythosewithinbankingarelookingatimplementingcostrestructuringinitiativesthisyear

10Our15thAnnualGlobalCEOSurveyhighlightedthedifficultmarketconditions.Thesurvey,whichinterviewstheCEOsofmanyofthelargestbusinesses,alsoidentifiedthatcontinuedvolatilityanduncertaintyhavetakenatollonCEOconfidenceintheprospectsforthebusinessenvironmentin2012.Costrestructuringremainshighontheagenda.PwC2012GlobalCEOSurvey

Banking&CapitalMarkets:WhichRestructuringdoyouplantoinitiateinthecoming12months?.%ofCEOsBanksdon’thaveexperienceatdoingthisTheBankshavetraditionally:takentacticalcostcuttingactionstomaintaintheirC:Iratiosindifficultrevenueyearswhicharereversedwhenmarketschangelookedtoisolatedbackandmiddleofficeoptimisationprojectstoreleasecoststoneutraliseregulatorydrivenincreasestodate.Scaleofchangerequirednowdemandscostrestructuringwhichis:Sustainable-notjustplacingitemson‘hold’.Strategicallyaligned-redefiningthecoststructuretoreflectthechangingstrategyofthebusiness.Thebankneedstobepositionedtosupportexpectedgrowthwithoutfacingthecostof‘re-hiring’staffithasjustletgo.Front-to-BackandCross-functionalinitiativesdrivefocusonoverallcorporateimpactsandbalanceacrossthefirm.Atthelevelofchangeneeded-thetargetrequiredtosupportthebusinessresultsneedstobearticulated,understoodandsupported.Costrestructuringonthisscaledemandstheabilitytoexecuteanddeliverrealbenefitsfromcomplex,politicallychallengingmulti-yearprogrammesofwork.Banksneedtotackletheinefficientfunctionsandprocesseswhichhavearisenthroughindustrywideunderinvestmentinrevisiting‘quickfixesandinitialworkarounds’andyearsofignoringFrontOffice‘badbehaviours’.ThiswillrequireachangetoBanks’cultureandtheirstructure11PwC11HowdowethinkaboutCost?312PwC’sviewonCostRestructuring

13Costrestructuringisastrategicinterventionwherewehelpourclientsidentifyarapidimprovementinfinancialperformanceanddeliverasustainablereshapingoftheircostbase.It’snotaboutjustcuttingcostsbutaboutanuncompromisingfocusonvalueandtheabilitytoreleasecapacityandredirectresourcestogrowthareas.Itrequiresfundamentalchoicestobemadeaboutstrategicobjectivesandthefutureoperatingmodel.Thescaleofchangethatisrequiredintoday’senvironmentrequiresCostRestructuringprogrammestobesustainable–itisnotaboutplacingitems“onhold”.Itisaboutre-definingthecoststructuretoreflectthechangingstrategyofthebusiness.Organisationsneedstobepositionedtosupportexpectedgrowthwithoutfacingthecostof‘re-hiring’staffithasjustletgo.Front-to-BackandCross-functionalinitiativesneedtodrivefocusonoverallcorporateimpactsandbalanceacrossthefirm.Organisationsthathavegreatercontrolovertheircostsaremoreflexibleandagileandcanscaleactivityupordowninresponsetochangesinmarketdemandwithouttheneedtoincreasetheircostbase.Costrestructuringisabouthavingagreaterunderstandingofyourcostbase–thecompositionoffixedversusvariablecosts,transparencyofactivitycost,underlyingdrivers,efficiencylevels,employeenumbersandcapability.Costrestructuringmaximiseslong-termsustainablevaluebylookingacrossthewholeorganisationandcostbaseratherthanatindividualelements.Itrequiresforensicanalysisofallthebucketsofcost–fromstaffandnon-staffcosts(oftenreferredtoasthe“controllable”costs),tore-chargesallocatedfromgrouptobusinessunits,bonuspools,andlargegroupleddiscretionaryprojects.Allthesearesubjecttoreview.Thesetypeofprogrammesresultsinachangethatwillbeasignificanttestofleadershipandorganisationalcommitment.Itdemandsdedicatedfocusanddisciplinedexecutionwhichmustbeownedanddrivenbythebusiness.Understandingthescopeofthecostchallenge

14ChangePortfolioSpend(rechargedbacktothebusiness)Staffcosts(headcountreductionthroughprocessefficiencies,staffcostsreducedthroughsalaryre-profilingadre-basing)NonStaffcosts(reviewof3rdpartyoutsourcing,infrastructure,anddiscretionaryspend)Disaggregatingtheorganisation’scosts:GeographyMarketsFunctionsAnalysingthecontrollablecostbaseMandatoryprojectsIT/InfrastructureprojectsOtherdiscretionarychangeportfoliocharges63%83%100%0%EstimatedRechargeBreakdown14IllustrativeOtherCoststhatwouldneedtobereviewedforcostsavingopportunitiesIndirectTaxesBonusesChangeDeliverycostsReviewingthetotalcostbase(fixedandvariablecosts)23OtherCostsHowdowethinkaboutcosts?

Thinkingcomprehensivelyaboutaddressingthevariouselementsofcost15Tax(indirecttaxesincludingVATandotherliabilities)Property(includingcorporaterealestateassetsandrelatedservices)People(includingtotalrewardsandremunerationforpermanentandtemporarystaff)3rdPartyonproductandservicesproviderbystrategicandnon-strategicsuppliersBymaterialcostcategoryByCostDriverBySpendCharacteristics/ClassDirectvs.IndirectFixedvs.VariableCostAllocationByFunctionByProcessByLineofBusiness123

StrategicBusinessImprovementCoreBusinessEnablerDiscretionarySemiDiscretionaryNonDiscretionaryAnswersQuestion...“IF?”“WHEN?”“HOWMUCH?”“TOWHATEXTENT?”“MUST”NewCapabilitiesEnhancementstoExistingCapabilitiesServiceQualityImprovementsComplianceLifecycleManagementPreventiveMaintenanceITDeliveryManagementITBaseManagementOutageRestoration(RedtoGreen)Operate(KeeptheLightsOn)InvestmentClassesInnovatione.g.Reviewingthetotalcostbase(fixedandvariablecosts)Bridge76c7ca17d1474355adf809d30fcdef57MajorCostSavingsCategoriesSomeofthekeychallengeswehaveobservedourclientsfacethatimpacttheirviewoncosts

16Leveraginglessonslearntfrompreviouscostprogrammesandavoidingthepitfalls.Customerrequirementsarechangingduetoanincreasedneedfortransparencyandtheimpactofregulatorychange.Portfoliochanges–divestments/exitsfromMarkets,reductioninbusinesssizeetc–impactsthesizeofthecostbaseandtheabilitytoabsorbfurtherchange.Numerousongoing,concurrentandduplicatechangeprogrammes.Thebusinessareashavegotusedtohavingannualbudgetsfordiscretionarychangeperarea.Projectsmayconsumeresourcesandyetarenotalignedtostrategicobjectivesormaynotbehighprioritycomparedtootherinitiatives,buttheydoconsumeresources.Backofficeareasareexpensive,outsourcingmayhavebeendone,butthereispotentialforsynergyopportunitiesbydevelopinganoperatingmodelacrossOps/Technology/Finance&Riske.g.intermsoflocationsandstaffused.Multiplehand-offs,re-work,manualinterventionandoveralllackofautomationofprocess.Ongoingintegrationofacquisitionbusinesses–quiteoftenintegrationiscompleteornotdoneproperly,hencethereisscopeforITintegration,consolidationandprocessre-engineeringefficiencies.MultipleoutdatedlegacyITanddatasystemscoupledwithpoorqualityandinconsistentMI.Continuedbespokedevelopmentversusindustryorgroupstandardshenceexpensiverunandmaintenancewhichincreasesinstability,flexibilityandcontrolissues.Multiplevendorcontracts–potentialforconsolidationandreviewofcontractsandT&Cs.Highrelianceoncontractorstaffthatstayonforalongtimewhichendsupbeingexpensive.Integrationresultinginstaffremunerationvaryingconsiderablyacrossthebusinessesanddivisions.Increasedreportingandtransparencyrequirements–peopledonotfullyunderstandthedriversandcostallocationmethods–thereforecostandactivitiesarenotprioritisedforvaluecreation.Ourpointofviewoncostrestructuringandthepotentialopportunitysizeofthecostsavings(Generic)

17Nearterm(3-6months)TimetorealisesavingsLevelofsavingsLongerterm(12-18months+)High(>25%)Mediumterm(6-12months)RestructurethecostbaseMedium(10-20%)Low(5-10%)IncreasingsustainabilityofsavingsReduceinfrastructurePropertyoptimisationFacilityandservicesspendreviewAssetdisposalsITconsolidationDatacentrerationalisationFocusofActivitiesSavings

LeversOpportunitiesRestructurethecostbase

‘DoDifferent’(20%+savings)ClosuresandExitsClosureordivestment,sub-scalelinesofbusiness,customersegmentsand/orproductofferings.StrategicSourcingConsolidatesourcingofactivitiesandvendors,createsharedservices,outsourcenon-coreprocessesandplatforms,off-shoring,andcoresystemsreplacements.Reduceinfrastructure‘Dowithless’(15-20%savings)ITConsolidation

ConsolidateITplatforms,hardware,infrastructureanddatacentres.PropertyOptimisationReviewpropertydemandtomaximisespaceutilisation,identifyassetdisposalopportunitiesandreduceallpropertyrelatedspendviasourcingandvendorreviews.Createefficiencies‘DoBetter’(10-15%savings)ProcessImprovementEndtoendprocessimprovementtoreducecomplexity,errorsandreworkandstandardisearoundkeyprocesses,applyingLeanandStraight

ThroughProcessing.BusinessSimplificationSimplificationandde-duplicationofrolesandactivities;consolidationandrationalisationofsimilarfunctionsandactivities.Cutcosts‘DoWithout’(5-10%savings)ActivityandHeadcountReductionReviewandchallengeofteamactivities,workloadcapacityandlinemanagementstructuresandreportinglinesleadingtoheadcountreduction.SpendReductionandDemandManagementDemandchallengeanddiscretionaryspendreduction,andpolicycomplianceReduce/eliminatediscretionaryspendReducecontractorspendRe-negotiatevendorcontractsEmbedcostcontrolcapabilitiesandbehavioursDisposalsandclosuresOff-shoringandoutsourcingIn-sourcingandstrategicpartnershipsSharedservicesPortfoliorationalisationBusinesssimplificationRemovingshadowfunctions/duplicationsProcessstandardisationEliminationoferrors,rework&wastageLeanandautomationCutcostsChangeportfolioreviewDiscretionaryspendreviewIndirecttaxes/VATreductionActivityandheadcountreductionSpansandlayersreviewCreateefficienciesOurpointofviewoncostrestructuringandthepotentialopportunitysizeofthecostsavings(RCBVersion)

18Nearterm(3-6months)TimetorealisesavingsLevelofsavingsLongerterm(12-18months+)High(>25%)Mediumterm(6-12months)RestructurethecostbaseMedium(10-20%)Low(5-10%)IncreasingsustainabilityofsavingsReduceinfrastructurePropertyoptimisationFacilityandservicesspendreviewAssetdisposalsITconsolidationDatacentrerationalisationFocusofActivitiesSavings

LeversOpportunitiesRestructurethecostbase

‘DoDifferent’(20%+savings)ClosuresandExitsClosureordivestment,sub-scalelinesofbusiness,customersegmentsand/orproductofferings.StrategicSourcingConsolidatesourcingofactivitiesandvendors,createsharedservices,outsourcenon-coreprocessesandplatforms,off-shoring,andcoresystemsreplacements.Reduceinfrastructure‘Dowithless’(15-20%savings)ITConsolidation

ConsolidateITplatforms,hardware,infrastructureanddatacentres.PropertyOptimisationReviewpropertydemandtomaximisespaceutilisation,identifyassetdisposalopportunitiesandreduceallpropertyrelatedspendviasourcingandvendorreviews.Createefficiencies‘DoBetter’(10-15%savings)ProcessImprovementEndtoendprocessimprovementtoreducecomplexity,errorsandreworkandstandardisearoundkeyprocesses,applyingLeanandStraight

ThroughProcessing.BusinessSimplificationSimplificationandde-duplicationofrolesandactivities;consolidationandrationalisationofsimilarfunctionsandactivities.Cutcosts‘DoWithout’(5-10%savings)ActivityandHeadcountReductionReviewandchallengeofteamactivities,workloadcapacityandlinemanagementstructuresandreportinglinesleadingtoheadcountreduction.SpendReductionandDemandManagementDemandchallengeanddiscretionaryspendreduction,andpolicycomplianceReduce/eliminatediscretionaryspendReducecontractorspendRe-negotiatevendorcontractsEmbedcostcontrolcapabilitiesandbehavioursDisposalsandclosuresOff-shoringandoutsourcingIn-sourcingandstrategicpartnershipsSharedservicesPortfoliorationalisationBusinesssimplificatione.g.Contact

centre/processingcentreconsolidationDemandmanagementchallengeRemovingshadowfunctions/duplicationsProcessstandardisationEliminationoferrors,reworkandwastageProcessimprovement(Lean)andautomation

Transaction,lending,currentaccount/customerdatamanagement,collections

andrecoveryprocessingCutcostsChangeportfolioreviewDiscretionaryspendreviewIndirecttaxes/vatreductionActivityandheadcountreductionSpansandlayersreviewCreateefficienciesDelivering&EmbeddinganOfficeofCostControltocreateselfsufficientdelivery

19Shorttermset-upKey:PwCCapabilityWewouldhelpyoutodesignandembedadeliverymodelthatwillactasasingle,integrateddeliverymechanismtoachievethefollowingoutcomes:Provideyouwithconfidenceindeliveringthesavingsinitiativesyouhaveidentified;(2)Demonstratetheaccruedbenefitsoftheseinitiativessothattheyarecreditedtowardyoursavingstarget;Createaplatformtosupportselfsustainingdeliveryofadditionalsavingsinitiativescurrentlybeingidentified;Changingtheorganisation’songoingculturearoundcost.ActivitiesWewouldundertakeaninitial3weekphaseofactivity,focusingonthefollowingactivitiesandoutcomes:Anassessmentofthecurrentstateofanyexistingreporting&co-ordinationinfrastructureandgovernancetodetermineitsfitnessforpurposetoachieveyourobjectivesMakeimprovementrecommendationstostrengthenandenhancethedeliverycapabilityandaccuracyofprogressreportingWewouldthendevelopaplanwithyoutoimplementtheserecommendationsenablingyoutoputrobustinfrastructureanddisciplinesinplace,creatinganOfficeofCostControlandembeddingculturalchange.ContinuousimprovementmindsetOffice

ofcost

controlCommon

toolsand

methodsAppropriate

mgmt

incentives

andrewardsGovernance

structureand

processesRegular

reporting

cycleSingle

portfolio

ofsavings

initiativesEnablingmechanismsTransparencyandlineofsightClarityofaccountabilityandleadershipPaceanddeliveryCultureofcostconsciousnessConfidenceindeliveryCostgovernanceFinancialcontrolProgrammeofficeIndependentbenefitsverificationCriticaloutcomesOurApproach420Howweareapproachingthistodayinoursectors

21TodriveconversationswitheachclientacrosstheCostPropositionFrameworkweneedto:Broadcastourdeliverycapability:wehavea‘library’ofinitiatives/enablerswehavedeliveredInvestinprovinghypothesisforspecificcostreductionsintheclient.Delivercostsavingsacrossafewinitiatives/enablers:earnourplaceatthetableLinkbacktothe’hypothesislibrary’toidentifyotheropportunitiesBroadenthediscussionusingStrategicCostRestructuringapproach;SCR-PropositionOfficeofCostControlContinuousImprovement(Lean)HypothesesEnablersFinancialControlsCostGovernanceProgramOfficeIndependentVerificationofBenefitsLegalEntityOptimisationPeople&ChangeManagementExits,Closures&Addressing‘Stranded’CostsTaxEfficientPropertyOptimisationCentralisedProcurementIndirectTaxesEtc.InternalUseOnlyHowwillwetakethispropositiontoourclients?

22CorebriefingpackhasbeendevelopedandtestedbycostteamacrossRCBandCMClientteamneedtodecidewhototargetatclientandprovidecontextInitialbriefingtakestheclientthroughallofthehypothesisandidentifiestheirparticularareasofinterestPwCSMEsthenprovidefollow-upbriefingsforeachareaofinterestandpropose2weekinvestmentpiecetovalidatehypothesisandframedeliverypropositionwhichwouldbedoneonrisk/rewardbasisEnablersClientaccountandcostteamClientMtgIndividualInitiativesHypothesisLibrarySMEworkshopInitialhypothesistestingOurFocusInternalUseOnlyCatalogueofCapitalMarketCostReductionHypotheses‘OpportunityAccelerator’-ourhypothesisledapproach

23PwChasabreadth,capabilityandtoolset:tosupportastrategicallyalignedreviewofyourfirm'scoststodesignandruntheprogrammethatwilldeliversustainablecostrestructuringWeknowhowtotacklethecostissuesprevalentinoursectorandbringtheexperienceandinsighttomakeadifferencequickly.WecandesignthesuiteofinitiativesrequiredtoaddresstheminyourbusinessThispackcontainsourportfolioof'CostHypotheses'-specificcostrestructuringinitiativesthatwehavedeliveredacrossmultipleclientstodeliverpositiveP&Limpacts‘Enabler’hypothesesarethosewhichwebelieveneedtobedeliveredinordertoensurethecostsavingsaresustainable,nomatterthesizeoftheprogrammeThebenefitsofthisapproachallowsustoquicklyidentifyareasthatyoumaynothavefullyconsideredoraddressed;providingindependentchallengetoincreaseyourambition,andspeeduptheprocessratherthanconductlengthy,desk-basedanalysisOverviewWithinbankingincreasesincapitalcostandtheneedtoinvestintheregulatoryagendawillforcefocusonoperationalcosts–requiringefficienciesthataresignificantandsustainable.Thesemustbedeliveredwithoutlosingcontrol,damagingriskmanagementorimpactingabilitytodeliverstrategicgrowth.PwChasabreadth,capabilityandtoolset:tosupportastrategicallyalignedreviewofyourfirm'scoststodesignandruntheprogramthatwilldeliversustainablecostrestructuringWeknowhowtotacklethecostissuesprevalentinoursectorandbringtheexperienceandinsighttomakeadifferencequickly.Wecandesignthesuiteofinitiativesrequiredtoaddresstheminyourbusiness.Thispackcontainsourportfolioof'CostHypotheses'-specificcostrestructuringinitiativesthatwehavedeliveredacrossmultipleclientsThese'CostHypotheses'identifyimmediateopportunitiesthatwillgiveyoureal,positiveP&LimpactsThesehypotheseshavebeengroupedandalignedfunctionallytohelpguidediscussion‘Enabler’hypothesesarethosewhichwebelieveneedtobedeliveredinordertoensurethecostsavingsaresustainable,nomatterthesizeoftheprogrammeCatalogueofCapitalMarketCostReductionHypothesesPwC’sCostRestructuringHypothesesLedApproach

24Wehaveagloballyconsistentmethodologythathasbeendeliveredwithmanyofourclientsandisunderpinnedbydiagnosticandimplementationtoolsandaccelerators251TransformStagesImplement&MonitorDesignAssessCreatetheVision1234Communications&ChangeManagementStrategicObjectivedefinedi.e.ReduceC/Iratiobyx%etcSpecificcosttargets(x%ofthecostbase)cascadedfromGrouptoRegions/BusinessDivisions(InitialBusinessCase)FunctionalOperatingCostEfficiencies

-design

StructuralCostRealignment

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OrganisationstructureE2EProcessTransformationTechnologyTransformationSourcingStrategyCustomerServiceSales&Marketi