Rabobsnt
Direct accountability
Risk profile
Critica! questions
Full endorsement
Price tag
If rhis seems a complacent
attitude, then think again.
The reason Kuun de Boer and
liis colleagues not only asked
sometimes difficult questions,
but were also satisfied with
responses that were often
explanations rather than
definite answers, is precisely
because they trust the
cooperative system of
consultation. There are no
hidden agendas at these
meetings. They are what they
purport to be: frank exchanges
of views, opinions and insights
relevant to the whole or part
of the organization. As such,
they are also valued
enormously by the executive
board. 'Where else would you
get this kind of input from
your customers?' asks
Herman Wijffels. 'Standing
up and facing all of these
Rabobankers and accounting
directly for our actions
takes some getting used to.
Once you are used to it,
it is a very special and
exhilarating experience.'
understand precisely how
integration would be tackled.
The step-by-step approach
rather than expansion through
acquisition was applauded.
RI activities in central and
eastern Europe, however,
generated frustration. Jan
Wolleswinkel of member bank
Renswoude questioned the
quality of service we are
currently able to provide for
our clients wanting to do
business there. 'If the
competition is able to serve
our customers in these new
markets and we are not, then
we run the risk of losing the
domestic business, too,' he
argues. Visser was able to
argue in his turn that service
has improved considerably in
the region. However, given the
risk profile of most CEECs,
prudent and cautious
I expansion into this area was
considered the best strategy.
(continued from page 7)
work very close to the
customer. We know their
concerns, their needs. That is
why input in policy and
strategy is so important.'
From the local assembly,
where the board members
of local banks are elected and
local policy determined, to the
regional assemblies where
common issues are debated
and decided, to the central
assembly where local bankers
get to talk frankly with
responsible board members
- the whole process is an
inherent part of the Rabobank
and how it works. At the last
Central Delegates' Assembly -
to give it its full title - Henk
Visser, the executive board
member responsible for
Rabobank International, was
in the hot seat and on the
receiving end of critical
questions from the floor.
Agendas for these assemblies
are supported by information
and background from a
number of sources, including
subsidiaries such as RI but
General assembly, fine-tuning
future policies and strategies
also special policy preparation
commissions, which are
comprised of technical and
other specialists from the
whole organization.
RI has been the subject of a
lot of attention in recent
years, not least because it has
evolved and grown in ways
that were not immediately
perceived in the early years of
internationalization. This
evolution and present strategy
is fully endorsed by the whole
organization, i.e. our
shareholders, but that does
not mean we are immune from
penetrating questions on how
we plan to perform. Basis for
discussion was a
memorandum on
internationalization of the
whole organization and the
role of RI in that process.
Henk Visser provided further
information and was open to
questions. Investment banking
was clearly an area where the
Assembly was looking to
Service to member-bank
clients in other
international markets was also
a major point for the
Assembly. Kuun de Boer of
Rabobank Rijn and Wouden
was also concerned that in a
single-currency environment, a
Herman Wijffels making a stand
lack of quality cross-service
could cost local banks dear.
'We understand that the
market has dictated a course
and a niche for Rabobank
International,' he says, 'and
that our offices abroad are not
waiting for small
entrepreneurs who want a
small loan or guarantee. But
this is a question we will have
to solve as an organization.
Obviously, if one of the
international offices provides a
service for our customers, then
there will be a price tag. Who
pays the tab, and how it is all
organized, is still on the
drawing board. We're eager
for a solution and I'm sure by
the next central assembly we'll
have one.'
