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Rl organization
Strategie Review Team (SRT) - progress report
H
Working advice
6 What'sNewS Issue 7' July 1999
The pictures used to illustrate this
collection of stories show something of
the way the SRT is working to involve
as many international Rabobankers as
possible in the review process. We sat in
on this particular offsite in Noordwijk
to find out how proposals for our
revised strategy are being engineered.
Customer perceptions
The SRT's contribution to the short
term measures in what we appear to
be calling 'mini-Euroland' has been rather
more time consuming that originally
planned because it was necessary to obtain
more inforniation than originally envis-
aged and to ensure consistency in the fi-
nancial figures. This means the team will
continue its work into August, but will
certainly be ready with proposals at the
rather loose 'end of summer' deadline. At
the time of writing, the team was round-
ing off close to 1,000 discussions with
staff and customers and was getting ready
to start sifting through the accumulated
information. 'We have an enormous
amount of input trom staff and cus
tomers,' team-leader Reinier Mesritz con-
firms. 'McKinsey is also providing bench-
mark information on what other competi-
tors do, how they deal with the market-
place, with their customers, what their
cost structure versus revenues is in com-
parison with ours. Now it is time to start
choosing a direction.'
As part of that process, the team has had
several meetings with the managing board
to get their feedback on the direction they
are moving towards. 'In addition,' Mesritz
says, 'we also have a group we call our
Mesritz - 'we've gathered masses of input, now
it is time to start choosing direction'
sounding board. These are people from
the Rabobank Clroup who attended the
same Lausanne meeting I did. Hans Smits
asked them if they would be willing to
look at what we're doing and give their in
put, based on their perspectives as part of
the Group.' Mesritz does not want to an-
ticipate the review findings or provide fuel
for the very healthy rumour machine that
is alive and well in Rl (and outside, if the
In many of the Communications on
current developments you will see
references to decisions which will be
taken after consultation with the Works'
Council or 'OR' as it is know in Dutch.
For many of our colleagues around the
world, the concept of a works' council
will appear somewhat obscure,
especially when they come to
understand how much influence the
'OR' (literally enterprise council) can
have on an organization. This
consultative body was introduced into
the Netherlands in the early 1970s
through legislation. Any company with
more than 50 employees is required by
law to install an OR. OR represen-
tatives are elected by all staff, both full
and part-time.
The OR concept has since been intro
duced into the EU, although it merited a
guideline rather than a directive - the
former is a recommendation for legisla
tion, the latter is a 'must do'. In addi
tion, the concept has been watered
down for pan-European consumption
and management in some countries is
only obliged to inform their OR of plans
and other developments. This is known
as the 'right to information'. Not so in
Holland where the OR has both advi-
sory and consultancy powers, and must
give approval for any measures affecting
personnel.
In many companies, an OR was often
no more than a rubber stamp.
Increasingly, however, that is changing
as business is seen as a partnership
between employers and employees,
rather than the 'them and us' situation
of past industrial relations. Obviously,
as a cooperative organization,
Rabobank has always had a strong OR
culture. Rabobank International is
represented in the OR of Rabobank
Nederland (which is our parent). The
member banks have their own ORs.
Any organizational change must be
submitted to the OR for
recommendations. Although the body
does not have decision-
making powers as such, it has both real
influence on how an organization
evolves and what you could call 'moral
authority'.