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3 International
Flatter hierarchy
Proactive solutions
Poinful process
Back to the future
Service oriented
Target groups
Customer services
Consolidation
Smooth transition
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1996, achieving functional profitability in all
marketing areas, and a 10 percent reduction on
1993 costs by 1996. Project members then set
about the job of stripping down day-to-day pro-
cesses and redesigning tbem so that they would
not only be more effecient, but also cost effec-
tive. It was a process similar to that which has
been ongoing for some time in the bank in the
Netherlands.
'I have a great respect for the project-group
members,' says Klep. 'Our people are so com-
mitted to finding real solutions, that they put the
bank's interests ahead of their own.' Besides sug-
gestions for a flatter hierarchy consisting of only
three rather than the current four levels and the
transformation of Frankfurt's offices into open
plan accommodations (both of which will im-
prove and shorten lines of communication), the
project groups involved also came up with a re-
commendation for the centralization of activ-
ities.
Frankfurt, July 1994. Most of the projects have
now been completed and the first steps taken to-
wards implementation. 'The effects on staff of
centralization are far-reaching,' Sonntag says,
'because it means we don't need as many people
if all activities of a specific nature are located in
one place, but it also means a lot of hard work
for everyone concerned because the process will
not happen by itself - we have to make it hap
pen.'
In fact, the general consensus was that centraliz
ation is the only logical way of achieving the
bank's goals. The German market is organized
in that way, so it follows that the bank should
have the same structure. But market structure is
only an indicator. 'The bottom line is that every-
one's dollar is green,' says Klep, 'and unless I
can give the cliënt value added, then our dollar
is the same green. So we asked ourselves what
value added we could give to clients. The answer
was knowledge. Ifwe are able to proactively solve
customers' problems on a knowledge plus
taylor-made basis, then you can generate prod-
ucts that have perceived value added.'
By bringing together formerly scattered exper
tise, Rabobank Germany believes it can achdeve
the ambitious targets it has set for itself. But first
it has to overcome some lingering low morale
among staff. 'The whole process has been pain-
ful,' says private-banker Arno Rehermann, who
is also a member of the staff representative body,
'because it means losing colleagues. And the job
market in the banking sector is not particularly
good at the moment. I suspect most other banks
should be doing what we are doing. But they
appear to be opting for other solutions, such as
non-hiring policies. Everyone here sees the logic
of restructuring, understands that it is essential
and inevitable, but it doesn't make it any easier
for some of our people.'
In sharp contrast, the people in the commercial
department are bubbling over with enthusiasm.
The food and non-food marketing projects were
among the first to be completed and staff
know exactly where they are going and how the
intend to get there. In the new structure, corpor-
ISSUE 32/15 AUGUST 1994
ate banking has been split into two units - food
and agri and non-food, with food chief Ralf
Jung keeping responsibility for M&A activity.
'It makes a lot of sense,' he says, 'because the Ger
man food and agri-market is still very ff agment-
ed. Unlike other countries, only 25 to 30 of com-
panies in this sector here have a turnover of
more than DM 1 billion, and the market is dom-
inated by medium-sized companies. So you see
we just don't have the big players in Germany.
That's where our international network comes
in, because we believe there will be a major con-
centration process over the next five years and
that means real cross-border M8cA potential.'
However, Jung admits that Rabobank Germany
has still to make a major impact on the food and
agri-sector. Of the top 500 German companies,
only eight are already clients, although real pros-
pects number almost 250. 'So there's a lot to be
done,' Jung says gleefully.
Down the corridor, non-food and corporate fi-
nance boss Adriaan van Ravenstein is also en-
joying the new challenge: 'If we're going to make
this work, we will have to think 'customer' ff om
top to bottom and from bottom to top. Achiev
ing this would mean we have an advantage over
other banks because most are no longer service-
oriented. Some either became so lean and mean
that they don't think customer any more, or
they're still fat and are used to having the busi-
nes come to them.'
Van Ravenstein and his team's marketing area
comprises pharmaceuticals, cosmetics, non-food
retail, paper and environmental targets. With
only 110 current clients and 717 prospects, they
have enough to keep them busy for a long time
to come. 'But I'm convinced there are real advan-
tages in being a centralized wholesale bank here,'
Ravenstein says. 'In Germany we may be a small
bank, but with all the advantages that entails,
such as personalized service. At the same time,
we're also part of a huge organization. Okay, the
day when I get a chance of doing a corporate fi-
nance deal with the BMWs of this world may
never come, but there's a whole middle market
out there that tends to be forgotten, and in less
than a year we are already working on our third
deal and generating some good fee income.'
Part of the centralization process involves im-
proved support for account managers in the field.
'Account managers are usually out and about,
and cliënt queries weren't always dealt with
promptly,' says Ottfried Koschorreck, head of
the newly created customer services sector. 'Now
the food and non-food AMs will all be based in
Frankfurt, we will be taking on their administrat-
ive tasks. One important aspect is customer
queries. We've worked out a system whereby we
respond within 24 hours, and if we haven't al
ready solved the problem, we at least let them
know who is dealing with it and what the current
status is. We're also talking to Munich, Stuttgart
and Hanover's clients individually, explaining
that we will be taking care of them in the future
so that they feel confident about the move.'
Following the somewhat premature press re
lease, the private banking team is also busy con-
tacting clients personally to assure them their
business is in capable hands. 'It will take some
time before we have covered the whole cliënt
list and Consolidated our current position,' says
Helmut Vortanz, 'but the move doesn't seem to
have made any real impact on them. Most don't
mind where we are, just as long as they're get-
ting the same service they've always had. And, of
course, our goal is to improve it considerably.
Then we can begin tapping the market for new
clients, but that won't 6e for a few months yet.'
With the whole of Rabobank Germany actively
involved in the integrative and consolidatory
process, the implementation of the initial stages
of restructuring is going according to plan.
There are still some logistical problems, but as
Van Ravenstein points out, there's a bit of Mur-
phy's Law at work here. 'So many things have to
run in exact sequences that a very few are bound
to go wrong before we can make them right.'
Jung agrees. 'The most important thing is to
make sure that we treat customers exceptional-
ly wel! during this period. The restructuring has
to be invisible for them, it has to occur as a nat-
ural process rather than a radical change. We're
aiming for the smoothest transition ever into a
strong wholesale operation within the interna
tional network.'
Management team
Department heads
Group leaders
Staff members
General manager
Team leaders
T T
I11 I11 I11 I11
m
Rabobank Germany before top) and after reorganization.
State members
