Rabobank International - MAKING THE CHANGE 4 Rl organization What's News Issue 8 August 1996 The new strategy announced in June and aimed at transforming Rabobank International into a worldwide customer focused, knowledge driven top quality wholesale bank is already on track. But no one expects this transformation to happen overnight, or by itself. It requires proactivity, effort and commitment, not only from those directly involved in defining what needs to be done. According to Henk van der Stelt, who heads up the team working on the separation of head office functions from the 'branch' to be created in Utrecht, no one in the organization should be sitting around, waiting for someone else to fill in the framework. One of the most radical changes to come out of the focus strategy plan was the news that the current 'head office' would be redefined into two separate units. One would be shaped into what has already been dubbed 'Utrecht Branch', while the other would take care of 'head office functions'. Says Henk van der Stelt: 'You WHATEVER HAPPENED TO INTERNATIONAL? For the global network that grew up with the Foreign Offices Department, which played a major liaison role in their contacts with head office, its disappearance from the organigrams could seem like losing an old friend.Will contacts now be more difficult? 'Absolutely not,'says Henk van der Stelt.'The FOD may have disappeared, but its tasks have not.They have simply been reallocated to other departments which can provide more specialized support. If you look at the history of the FOD, you see it underwent an almost organic growth. It began very small when the could also say that our brief was to look at the 900 people working here in Utrecht and to define who was actually performing a head office function. The remaining staff, in fact, belong within the branch structure to be elaborated by the Utrecht management team.' LEAN AND MEAN According to Van der Stelt, the results weren't big on surprises. 'Our aim is not to centralize, but rather to decentralize activities within certain boundaries. We want a head office that is as lean and mean as possible. Wherever possible, most activities should remain in the international offices, rather than centralizing here. Our thinking has been continually: an area of activity should not be seen as a head office function "unless".' COMMON SENSE The 'unless' involved a number of touchstones, including value added, effectiveness, necessity. 'That's why I say the results are not really surprising,' Van der Stelt confirms. 'They turn on basic common sense. Our thorough examination showed that activities that network hardly merited the name. Over time, tasks were added, such as financial control, IT and even human resources. We now have specialized global IT groups and HR, so it is more logical to concentrate these tasks in the groups where they belong. 'There is also another factor here,' he adds.'ln the past, there was a fairly clear separation between the Netherlands and the rest of the world.That will change because we are forging our organization into one international network. A split between 'International'and other divisions is illogical now we're all one network.' required a centralized approach were: strategy; control and audit; human resources; communication; and global risk management. These constitute the future head office functions for Utrecht. Other activities belong with the branches - wherever that is most useful. OPEN COMMUNICATION This definition represented phase one of the working group's mandate. The group is working on a fairly tight Schedule. It only began two months ago, but had already completed an initial fleshing out of these functions by early July. 'The initial results of this second phase were sent out to the Group of 30 and to all Henk van der Stelt - rememher the cliënt. general managers on July 9 with a request to communicate them to staff,' Van der Stelt confirms. 'But we're not talking here about a top-down imposition of decisions. 'What we want - and this is why this report has been circulated to the whole network, including Utrecht - is real cooperation from everyone in the organization to get the best framework and to make it work,' Van der Stelt emphasizes. 'The document we have prepared is not the framework. What we have said is: this could be the approach. If people have better ideas, then we want to hear them. I think the name of the game here is to involve as many people as possible. Having said that, we shouldn't forget the cliënt. So I'm not saying that all 2,000-plus international Rabobankers should devote all their time to this and forget the reason we're all here - the cliënt. But I'm also not saying that discussion on this truly important matter should be limited to a very small people. No one should be complacent, no one should be sitting back waiting for someone else to determine the framework for your bank or activities.' WAT WORDT HOOFDKANTOOR, 0Ê^,. EN WAT BRANCH? De ontmanteling van de hoofdkantoorfunctie van Utrecht is in volle gang. Alleen die taken die niet in 'Utrecht Branch'thuis horen zullen hierin worden ondergebracht. Flenk van der Stelt licht een tipje van de sluier op. Duidelijk wordt dat niet alles'van hogerhand'wordt bepaald, het management staat open voor elke goede suggestie.

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