Structured for synergy
organization
Rabobank Group structure
1
The recent appointment of Hans Smits as Group chairman signalled a number of
changes in the way the executive board is structured. This reshuffle of
responsibilities and focus is driven by a recognition of the need for a Group-wide
approach to issues crucial to future development and even survival in a single
Europe and beyond. Individual members of the board will now be accountable
for defined issues such as IT, management development, risk management and
numerous others of equally significant importance. We ask Henk Visser what this
will mean for Rabobank International.
Framing the future
Highly visible
Budget contract
6 What'sNewS Issue 5 May 1999
For Rabobank International (Rl), this
recent reshuffle of executive board
responsibilities means Henk Visser is our
man at the top; formerly, he shared this
role with Rik van Slingelandt who now
has taken on other tasks for the Group
(see sidebar). Essentially, this redivision of
roles represents a so-called 'functionali-
zation' of senior executive time and effort.
Basically, the board has been 'matrixed'.
The reasons are clear, according to Visser.
'In the late 1980s and the I990s,' he says,
'the Group as a whole was highly active
both in defending and acquiring market
share, especially in the domestic market.
We evolved front a savings and loan
specialist into a major provider of
Allfinanz products to customers. This
scenario was partly achieved through the
acquisition of an insurer, a large asset
manager, and a venture capital operation.'
The name missing trom this list is, of
course, Rabobank International. Rl has
grown dynamically throughout the 1980s
and 1990s. With Group commitment, it
was expanded rapidly to beconte a
focused intermediary in a number of core
areas. 'We are enterging front the 1990s
stronger and bigger than 10 years
before,' says Visser. 'But we asked
ourselves: are we big enough, do we
have the critical mass, the systems, the
strategies, the policies to tackle the next
decade? Markets, both domestic and
international, are already very different.'
The executive board's response to those
questions is currently in the ntaking. 'We
are engaged in a Group-wide so-called
"Strategie Framework Plan",' Visser
explains. 'Each individual subsidiary has,
of course, its own strategie plan.
However, this is the first time we are
framing a plan for the whole organi
zation. Ir will be completed in the second
half of 1999 and we will certainly come
back to you with more information at
that time.'
This Group-wide approach to strategy
dovetails perfectly with the new
'functionalization' of the executive board.
'In the past,' Visser notes, 'our culture
tended to be entity driven. Now, we are
more oriented to the synergies which
either exist, such as between Robeco and
Rabo Securities and the local banks, and
those which are there in potential.' The
change in executive board approach is a
highly visible expression of this search
for synergy. Less immediately apparent,
though potentially highly effective is the
series of offsites organized in Eausanne
under Hans Smits' auspices. These
meetings bring together people from all
Group subsidiaries and are aimed at
building relationships, strengthening
networks, and especially at generating
ideas for further cooperation.
On a practical level, these changes are
already filtering down through the
organization. The clamp down on cost
overruns is just one reality that will have
to be tackled throughout the organi
zation. 'We came from a culture where
cost overruns could be compensated by
additional income over and above
budget. That is no longer acceptable. I
think people will find we will operate in
a stricter way. Our budgets and targets
Member banks
Member banks Sector
Rabobank Nederland
Coöperatieve Centrale Raiffeisen-Boerenieenbank B.A.
Group Staff Units
Rabobank International
corporate banking and investment banking
N.V. Interpolis
inmance and pension plans
De Lage Landen International 6.V.
vendor finance, trade finance
and leasing
Robeco Group N.V.
asset management
and investment fonds
Nedship Bank N.V.
ship rmance
Schretlen Co N.V.
private banking
Gilde Investment
Management N.V.
venture capital
Interantional Private Banking
Trust
Rabofacet B.V.
information communication,
technoiogy and support services
Other participations
