'International is more
mature, so it bas betome
more independent'
3 International
Exe<utive board-member Jan Groninger:
Holland's agribusiness
lobbies North America
ISSUE 29/25 MAY 1994
Some months ago, there was a reshuffle and a restructuring at the top of the Central
Banking Sector (CBS). New management structures were put in place which effectively made
the various divisions more independent. Jan Groninger talks us through the new set up.
>- Until very recently, Rabobank Neder-
land's executive board operated using a very
hands-on approach to management. 'But
about six months ago,' says Groninger, 'it was
decided that a more detached approach would
be appropriate. By detached I mean that the
divisions that make up Rabobank Nederland
would beconte more independent. Formally,
the executive board remains the CBS's man
agement board - it is ultimately responsible
for performance and so on. And that hasn't
really changed. However, we believed a more
mature approach would be to make the
various sector heads/committees collectively
responsible for operations.
Groninger compares the new structure to a si-
tuation in which the CBS was an independent
company and the executive board had a su-
pervisory role, rather like that of a board of
commissioners. Officially, this type of con-
struction wouldn't have fitted in with the
bank's existing management hierarchy. 'But
the reality is that we actually behave as though
we had adopted that structure,' he says. 'In the
old structure, the CBS management commit-
tee comprised heads of divisions with execu
tive board members as chairman and deputy.
Now, the management committee consists of
division chiefs only, with Rik van Slingelandt
as chair. Three members of the executive board
were appointed to perform the kind of role
normally associated with a board of commis
sioners - Henk Visser, Frank Schreve and my-
self. I was asked because it was thought I could
add something to their expertise - my field is
financial and economie management.'
More independence
That is how the situation looked three months
ago. 'But then,' Groninger says, 'Schreve
moved over to his new company. We then had
to decide whether a new third party was to be
brought in. As Schreve was not being replaced,
we thought we would tackle it ourselves.'
What do the changes in structure mean in real
terms for the international division? 'As part of
the CBS, international feil under the supervi-
sion of the three executive board members,'
Groninger explains. 'The new structure meant
international, and the other divisions, became
more independent, was responsible for its own
budget and so on. That remains the same. But
now the supervision will be carried out by two,
rather than three, executive board members.'
Background
Groninger is hardly a well-known face in the
foreign offices - will the international division
be seeing more of him in the future? 'I
wouldn't discount that possibility,' he says.
Jan Groninger - insurer among the bankers
'But you know I'm not particularly well known
in any area of the bank.' The former chairman
of top agri-insurer Interpolis, Groninger
joined the bank's executive board when the two
organizations merged in 1990. 'There had al-
ways been a strict division between banks and
insurers in the Netherlands,' he explains. 'But
the law was changed four years ago. That year
saw a flurry of mergers between the bigger
banks and top insurers. The merger between
Interpolis and Rabobank was a logical step.'
At the time, some 50 percent of the insurance
products sold by Rabobank were supplied by
Interpolis - that percentage has since incre-
ased to 60 and the target is 85 to 90. 'I was
chairman of Interpolis' board of management
and as such became part of the bank's execu
tive board,' he continues. 'During the merger
process, Interpolis also restructured and I
ended up in a fairly convulated position - I
was a member of an executive board which
was actually monitoring a board of manage
ment of which 1 was chair.'
Non-banking areas
Groninger was offered the opportunity of join-
ing the bank and ultimately succeeding Jan
van Rijn, who has the financial and economie
management portfolio. 'It appealed to me be
cause I'm not really a banker. This portfolio
includes not only the reporting side, but also
Rabofacet, which comprises the whole Utilities
sector of the bank, everything from the com
puter centre to purchasing and printing. It has
recently become an independent company.
So, I'll be involved in all of the bank's non-
banking areas from January 1, next year.'
Rabobank's Visser and Gentis were
among the experts selling the extensive
services and expertise of the Dutch agri-
sector to dedicated seminars in the US
and Canada in early May.
Although at first sight the notion of tiny
Holland taking on North America's giant
agribusiness world rnay seem a little like a re-
run of The mouse that roared, insiders know
better. The Netherlands is the third largest
exporter of agriproduce in the world, and is
renowned for its innovative role in develop-
ing high-tech and intensive farming. It is a
world power in the fields of horiticulture,
both ornamental and edible, and agricul-
tural scientific research. And has a proven
reputation as pioneer in environmental pro-
tection. Through the port of Rotterdam, the
small country also occupies a prominent
place as one of the prime gateways to the ex
tensive markets of the European Union.
These were the points pressed home to au-
diences of top North American agribusiness
executives who attended the seminars in Chi-
cago and Toronto. Over 1,400 American
companies have already set up operations in
the Netherlands, most of them in the food
sector. Their motivation is not only Holland's
dominant position in European agribusiness,
but also its strong international competitive
place in the food processing industry.
Henk Visser told the meeting that food and
confectionary spending in Europe totalled
more than US$ 750 billion, 100 billion more
than in the US. Although it is an attractive
market for North American companies, he
also stressed the food industry was not easy
to penetrate. 'It is hardly a growth market,'
he said, 'but there are opportunities for
companies whose production processes are
very efficiënt and whose products have high
added value. My advice would be to try and
find a joint venture or acquisition.'
He went on to remind his audience that
though Europeans and North Americans
looked pretty much the same and have a lot
in common, 'our daily eating patterns really
do differ. Don't make a second Disney World
error,' he warned. 'You cannot always trans
plant concepts from one country to another.
Before making any move, carry out a thor-
ough market research program, and do it
with your new - preferably Dutch - partner.'
How has Groninger settled into the bank? 'It's
a fascinating business. At first, I was a bit con-
cerned because I come from a very different
background -1 started my career as a chemi-
cal technician before getting into insurance -
by accident, I may add. But, in fact, manage
ment is largely the same in most sectors, it
requires the same commitment and hard
work. It is interesting to see that many of the
processes that were introduced into industry
quite some time ago are now being applied in
the banking and financial world. And you dis
cover that if you're working at a specific level
in an organization you're involved in proces
ses, but especially with people - and that's
pretty universal, you know.' -<