The impact of change
CHANGE MANAGEMENT
Leading the change
Culture is key
High morale
Taking action
2000
2003
before
(first full year with
Rabobank
Rabobank
International)
International)
Core Profit Before Tax
and Exceptionals
€l4m
€5 Om
Customer Loans
€2.3b
€4.1 b
Customer Loan Issues
€0.6/;
€2.1 b
Loan Growth
4.3%
58%
Fee bicome
€12m
€25m
Staff
6 54
6 40
change and grow the business on a much larger scale, with a
higher level of investment, that would not have been possible
before the acquisition,' says Colm Darling, Chief Executive
Officer at ACC Bank. 'In addition, Rabobank's triple-A rating
has bolstered out profile within the industry.' However, it's
ACC Bank that should take credit for undertaking a change
management program that ushered in many major adjustments
in its business focus, culture and products.
Led by Geoghegan, who has worked with ACC Bank for nine
years, a core group directed various teams to undertake the
program. Almost all aspects of the bank's corporate structure
were under review and the program affected the entire organi-
zation. Execution of the change management process continues
to be widespread, with staff from all areas of the organization
working towards transformation.
'Changes in structure, role, and staff underpinned the changes
we've achieved in the culture of the organization,' explains
Darling. 'Erom the outset, we painted a very clear picture of
the profile of the bank. We want to be a niche-differentiated
bank, with a Relationship Management focus and business
unit banking model. We wanted improved efficiency, customer
service and increased earnings. Staff who did not share our
vision volunteered to depart.' This voluntary severance
scheme, initiated in 2001, gradually resulted in a shift to staff
more motivated towards change. Over 200 new people from
business banking or operational backgrounds were recruited to
join ACC Bank.
During and after a cultural shift, 'It's very important to the
staff who stay with the bank that the people who leave are
looked after,' says Geoghegan. 'The voluntary severance
scheme allowed staff to make the decision freely to stay or
to leave. The scheme incorporated severance packages and
pension enhancements. As a result, morale at the bank has
remained robust, fostering a dynamic and confident banking
culture.'
The process of transforming ACC Bank from a high street
bank to a niche bank required a concentrated exit strategy.
'From 2002 to 2004 we closed 30,000 current accounts and
Mike Geoghegan - new focus, culture, products and staff
The Word I 21
