Evolution to strategie partners
Shared targets,
team spirit
The launch of the new matrix organisation has been
more of an evolution than a revolution, says Raymond
Moonen, Global Head of Risk Management GFM since
last April, adding that the matrix is a natural conse-
quence of Rabobank's new governance structure with
its clear lines of accountability for business heads.
He welcomes the new structure, as he believes it will
not just change reporting lines but also how people
behave. Risk Management itself has already reorga-
nised globally in line with the matrix structure. "We
now have clear lines of communication to people
accountable for a business line both globally and
in the regions. They are now much more aware of
theirtotal responsibility, taking it beyond revenues
to include for instance risk and compliance. This is
really helping us to embed risk management in the
organisation."
This has led to a much stronger relationship between
risk management and business headsas there is
now a lot more personal contact between the two,
which in turn has resulted in a much more proactive
approach to risk management.
"Although many of us already worked along these
lines anyway, I wish the matrix structure had been
there all along."
Of course, it has not been all plain sailing and there
are challenges, Moonen says. "We have been chang-
ing the view of risk management. Traditionally,
we've been seen as a reporting and controlling
function, keeping people to their limits, but now we
are also seen as strategie partners. Because of this ap
proach, we also share a certain responsibility for sus-
tainable revenue targets. At the same time, we have
clear escalation lines to an independent person on
the managing board. But now this should only hap
pen when we cannot sort it out between ourselves or
there is a clear need for additional transparency. And
because we are talking to each other much more, it
enables us to combine our global view of risk, with
the business knowledge of the local market. Because
we are talking to the heads of business lines, we are
much closerto the business itself enabling risk manage
ment to support sustainable business growth."
Of course, the change in behaviour also applies to the
people in risk management, Moonen says. They have
to accept the need for two-way communication to
make this a real partnership between the back office
and front office. 'That will take time. And as with any
change in behaviour, it is very important that both
the heads of Risk Management and the accountable
business heads lead by example."
Raymond Moonen
Martijn Sorber
Shared financial targets and the resulting
increase in cross-selling are one of the biggest
benefits of the matrix structure, says Martijn
Sorber, Head of GFM Large Corporates. 'We
work very closely with the Corporate bank,
so the agreements I make with Rob ten
Heggeler's teams are very important. Every
single corporate cliënt has one Rl Corporate
Clients Netherlands Relationship Manager
and one primary GFM Risk Advisor and Debt
Capital Markets specialist. We have shared tar
gets, which mean that all the Risk Managers
are also working very hard for my teams
in order to get mandated for GFM deals."
"Of course, you also need to have more
formal meetings and, very importantly, ask
for feedback, so that you know whether my
teams and I are performing well. If you do
this, you can be much more effective and
be much more successful. In just four years,
for instance, GFM Corporate Risk&Treasury
Advisory has moved from a numberfour
position in the Netherlands to a shared first
place with ABN AMRO. And the matrix helps
in other respects", he adds, pointing out
that his teams are not only talking to RICCN
but feel responsible for a large number of
departments like Credit Risk Management,
Back Office or Risk Management. 'That is why
I personally do not only feel responsible for
GFM but due to the matrix structure make
sure that other departments are also pleased.
Basically, although everybody has their own
individual targets and key performance indi
cators, they're all part of our shared targets,
targets for which l'm directly accountable.
Believe me, that creates a real team spirit and
due to the matrix structure a more successful
Rabobank organisation."
You do have to get used to the matrix
structure, build upyour network and talkto
everyone involved, he says, but adds that in
the matrix everybody is important to reach
the targets. "I have one line manager, for
instance, but the functional managers are as
important to create a successful team. You
do need a different management style, but it
is very effective. You need to be a networker
and keep everybody up to date. And make
sure that everybody communicates with each
other, either by phone or by e-mail. I have 15
risk advisors and I make sure they involve their
RMs whenever they talk to clients. And for the
cross-sell we generate, I talk strategically to
Peter Norrie (Global Head of GFM Origination
Sales) and locally with the MT members of
GFM and Rl Corporate Clients Netherlands
(RICCN). And all that communication is vital. It
creates opportunities and enables us to work
together to take advantage of those opportu
nities. But it also enables us to respond quickly
if something goes wrong."
issue 16 ni THE WORD
