Amphora -
enhancing service
True culture
Corporate governance for HRM
Working discipline
tt is a fact'When it comes to serving our local member
banks, Rl does not have the best record,'says Hans ten Cate,
'it has always amazed me how humble our local member
banks are when they ask us for service and we teil them it
cannot be done.That must change. One way of achieving
greater service orientation is through the Amphora project.
It aims to improve the international cash management and
finance services to our Dutch clients who operate interna-
tionally. Services will be enhanced by the newly established
International Commercial Business Units which will integrate
existing Dutch Desks. By the end of 2007, we should have
them in place in Germany, Belgium, France and the UK,
with roll-out to other main markets scheduled thereafter.'
'Having said that, it is also a disciplined and risk-aware business.
It cannot all be opportunistic, even though we benefit from our
ability to seize opportunities, such as the acquisition of HNS in
Chile. It wasn't in our strategie plan. But we had the chance to
acquire a good, profïtable bank with a strong infrastructure and
good people in one of the world's biggest F&A countries. And
even with solvency constraints, it was at a price we could afford.
This is how a strong organisation operates. At the same time, a
healthy and fit bank, with the kind of ambitions Rl has to 2010,
works on its culture and discipline.'
Culture was one of the key issues at the Exchange Conference
hosted by Hans ten Cate last April (more information available
on Meeting point). According to the chairman, 'Initially, I think
people were surprised that we'd given "culture" such a priority
position at the conference. It is an intangible component of our
daily work as bankers. But though you cannot touch it, it is a
"must have" in any healthy business. Since 2004, we have seen
a 40% increase in people within Rl. This means there is a mix of
cultures. Rabobank is a strong organisation, yet, at the Exchange
Conference, participants identified the need to work on our
culture. That is the reason I am committed to defining RI's true
culture and ensuring it is embedded in the organisation.'
The focus on culture is linked closely to Human Resources
Management (HRM) and leadership within Rl. Hans ten Cate
believes a strong, healthy organisation needs the right people
in the right place. 'That facilitates a flexible organisation,' he
argues. 'To my mind, leaders will take the weight of responsibil-
ity whilst managing the complexity of the business. They are
the people who get things done, with and through others,
and ask the tough questions. So, one of our stated priorities is
to put our HRM house in order. Why have we not done this in
the past? We are a young organisation and have been growing
rapidly, as the increase in personnel shows. We have still to
improve our HRM infrastructure to develop the leaders of the
future. Basically, what I am proposing here is that we create a
"corporate governance" for HRM and carry it through, both to
the letter and in the spirit. We need structure, but we also need
to define and establish the "unwritten rules". This is culture in
its purest form - you ensure people know exactly what can and
cannot be done; it's all about being clear. In my view, that is
one of the key (success) topics for Rl.'
While the banking environment may be in a state of flux at this
time, Hans ten Cate is cautiously optimistic about RI's ability
to build on its existing strengths and improve organisational
health and fitness. 'The first quarter was a period of surprises
- some good, some bad,' he says. 'If we can stay on budget,
supported by our current "investment/harvest" position,
whereby we are in the growth phase in some activities, such
as retail banking, and reaping the rewards of others, includ-
ing participations, and if we can maintain discipline on the
solvency issue, then the full year 2007 should bring us closer to
our longer-term ambitions. But let me be very clear here, it will
not be easy. The future market environment is uncertain. Our
task and our focus should be on making sure Rl is as strong, as
healthy and as fit as we can be to build on our existing position
as second top contributor to Group performance. It will take
work, it will take discipline. It will take your commitment.'
6 The Word
