CUSTOMER FOCUS -
STRATEGY FOR GROWTH
What's NewS Issue 7 July 1996
organization
5
The 1996 general managers conference in early June was a perfect opportunity
for the presentation of the finalized, approved new strategy for Rabobank
International up to the year 2000 - and beyond. For the general managers, many
of whom had been heavily involved in the development of the Customer Focus
Strategy over recent months, there were few surprises. In the meantime,
information packs have been sent out to the network which include a video
presentation by chairman of the managing board, Arthur Arnold and a 40-page
booklet detailing the various aspects of the new strategy. What's NewS
summarizes the main points.
May 14 and 24 would prove's crucial dates
for the new strategy. Following months of
intense discussion involving international
Rabobankers worldwide, the final plan
was submitted for approval to the bank's
Executive Board and Board of Directors.
According to Arthur Arnold, the Board's
approval of the new strategy showed the
whole organization's commitment to the
growth of Rabobank International - the
name we now have adopted to reflect
more clearly who and what we are. 'This
approval was a very important statement
for us all because we, as Rabobank
International, do not yet generate sufficiënt
profits to finance the growth we foresee.
We still need additional investment from
the organization.' This additional
anvestment is a significant amount. The
Prganization is also willing to allow
Rabobank International to use the income
it will generate for reinvestment.
DEFINED TARGET AREAS
Rabobank International now has the task
of justifying the confidence placed in it by
the whole organization. How can we
achieve that? The strategy that has been
developed looks relatively simple. More
than ever before, Rabobank International
must be customer-driven. 'Essentially,
what we do is invest in customers,' says
Arnold. 'That means you have to be
selective in choosing the customers you
work with. We have identified seven target
groups within our three core activities -
corporate banking, investment banking
and private banking.' Corporate banking
^411 focus on four cliënt groups:
Dutch corporates operating
internationally;
global food and agribusiness clients;
health-care;
ocal corporates.
Arthur Arnold - knowledge is the key.
FROM COUNTERPARTY TO CLIENT
In investment banking, the second core
activity, financial institutions will be the
fifth target group. 'This is a real
challenge,' says Arnold. 'Too often, we see
institutional investors and other banks as
counterparties, rather than as clients. We
have to develop real relationships with
them because you can't be active in
investment banking unless you have
distribution channels, placement power.'
The sixth target group is the Rabobank
organization itself. Rabobank
International already functions as a
'banker's bank' for other member of the
organization and their customers offering
competitive access to money and capital
markets, not least through our know-how
and expertise. The seventh target group
consists of the high net-worth individuals
served by our international private
bankers. 'What is needed here,' Arnold
adds, 'is a focus on creating links back to
the other target groups.' In other words,
to link our marketing efforts in all three
core activities to make the best use of
cross-selling opportunities.
INTERNATIONAL MINDSET
Seven target groups of clients, three core
activities. But the strategy also comprises
another important area of focus: markets.
