BCG-中国农业银行转型发展研讨会材料-20110317

BCG,TheCorporateBankingTransformationExpertMarch17,2011BCGteamtoday黄河合伙人兼董事总经理15年以上丰富的金融服务业咨询及相关从业经验为国内外多家金融机构制定战略和转型计划加入BCG前服务于汇丰银行及一家本土知名的产业基金康乃尔大学工商管理硕士JürgenE.Schwarz资深合伙人兼董事总经理批发银行专题研究组全球负责人金融服务扭亏为盈/转型专题研究组全球负责人加拿大金融服务专题研究组负责人帮助欧洲和北美多家全能银行开展转型项目曾就职于花旗银行公司/商业银行部门，并担任勃林格殷格翰公司的公司金融负责人何大勇项目经理超过10年的金融行业经验和咨询经验帮助多家银行设计公司战略、组织架构、绩效管理、运营模式并协助转型实施曾在中国银行总行、中银香港、纽约分行工作多年芝加哥大学工商管理硕士周雅雯批发银行专题研究组专家超过10年的金融行业经验和咨询经验帮助多家银行设计公司战略、组织架构、绩效管理、运营模式并协助转型实施曾在亚洲地区领导公司银行、交易银行和资本市场调研宾州大学华顿学院工商管理硕士AgendaIntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformationAgendaIntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformation“TheBostonConsultingGroupisthemostinfluentialsourceofstrategicadviceworldwide.” -FinancialTimes“ThemostprofoundconceptualinnovationinmanagementconsultingoverthelastdecadewasinitiatedbyBruceHenderson,founderofTheBostonConsultingGroup.” -TheEconomist“Ilikesomeconsultants:thosewhomakeyouthink.TheBostonConsultingGroupisthemostinterestingoftheconsultingcompanies,becausetheyquestionwhatisfundamentallygoingon.” -TomPeters(Authorof“InSearchofExcellence”)BCGisthegloballeaderinstrategyconsultingBCG'sglobalnetwork:70officesin41countriesLosAngelesDallasHoustonMexicoCityMonterreyChicagoMiamiMinneapolisAtlantaDetroitTorontoPhiladelphiaNewJerseyNewYorkBostonWashingtonSanFranciscoSãoPauloSantiagoBuenosAiresMilanOsloStockholmPragueBudapestViennaRomeAthensAbuDhabiDubaiBeijingShanghaiSeoulTokyoNagoyaTaipeiHongKongBangkokKualaLumpurSingaporeJakartaSydneyMelbourneAucklandNewDelhiMumbaiFrankfurtStuttgartZürichCologneDüsseldorfHelsinkiHamburgWarsawBerlinMunichMoscowKyivAmsterdamLondonBrusselsParisLisbonMadridBarcelonaCopenhagenBCGhas30yearsofexperienceinchinaBCG是第一家为中国国内企业提供服务的国际咨询公司主要的历史性里程碑1980：

我们在中国的第一个项目1985：

BCG开始为中国企业和政府机构服务1993：成为第一家在中国设立办事处的国际咨询公司1999：

在中国成立了独资企业2001：

开办北京办公室2002：

开办台北办公室自此我们在各个行业的专业与实力不断提高自上海办公室开办后，BCG已在中国开展了数百个项目我们约50%以上的项目对象是国内企业近年来我公司由上海、北京、香港、台北办公室构成的大中华区业务系统取得了迅速的成长专业人员~200名，多是本地或华裔咨询顾问，对中国有深厚的了解本地办公室由19位来自BCG全球运营的经验丰富的合伙人领导BCG在与客户项目组及第三方紧密合作从而取得项目成功方面有丰富的经验NoEnglishversion45

partners300

consultants1000projects9ofthetop10insurancecompanies7ofthetop10assetmanagers6ofthetop10banks7ofthetop10investmentbanks5ofthetop10creditcardissuersMajorleadingsecurities/derivativesexchanges&depositories110

partners600

consultants2000

projects14ofthetop20insurancecompanies16ofthetop20universalbanksMajorinvestmentbankingclientsMajorleadingsecurities/derivativesexchanges&depositoriesSpecialistentities(M&A,stockbroking,pensionfunds)45

partners250

consultants750

projectsMajorinsurancecompaniesandassetmanagers12ofthe20largestbanksplusleadingbanksinmanycountriesMajorleadingsecurities/derivativesexchanges&depositoriesSpecialistentitiesBCGhasaglobalpresenceinfinancialinstitutions

Morethan3000projectsinlastdecade,25-30%ofglobalrevenue,20%CAGROurofficesOurclientsAmericasEurope&MiddleEastAsia-PacificBCGfounder,currentCEOandAPChairmanareallwithbankingexperienceandfromFIpracticeClients18of20largestbanks14of20largestinsurancecompaniesAllmajorcapitalmarketsplayers7leadingstockexchange/derivatives&custodySpecialists(M&A,pensionfunds,brokers)12of20largestbanksandleadingcommercialbanksinmanycountries7leadingstockexchange/derivatives&custodyMajorinsurancecompaniesMajorassetmanagersSpecialists8of10largestbanks7of10largestCapitalMarketsplayers7of10largestinsurancecompanies7of10largestassetmanagers4leadingstockexchange/derivatives&custody3of10largestcreditcardissuersCorporatebankingamajorpartofBCG'sfinancialservicespractice,inallindustrysegmentsandgeographicregionsExpertiseAreasRiskManagementMNCLargecapMid-marketSME,MicroRealEstateBCGCorporateBankingReportandbenchmarkingdatabaseCorporateBankingTransactionBankingSales&tradingUnderwritingAdvisoryExchangesHedgefundsBCGQuarterlyIBreportCapitalMarkets&InvestmentBankingWealth/AssetManagementRetailCRO'sagendaCredit,market,opriskRisk-basedpricingCapitalmgmtCrisisresponseBCGSeniorRiskOfficerSurvey,RiskWhitePapersPaymentsCashmanagementTreasuryservicesCross-borderCustodyProcessingBCGAnnualPaymentsReportandglobalpaymentsmodelRetailInstitutionalWealthmgtBCGGlobalAssetManagementReportandAMdatabase,BCGGlobalWealthManagementReportCorebankingConsumercreditMortgagesE-channelsBCGFutureofRetailBankingReport,retaildatabaseBCGglobalwholesalemarketsizingdatabaseDuncanMartinCorp/InvBankingLondonDougBealCorp/InvBankingDubaiMarkusMassiCorp/InvBankingAbuDhabiSaurabh

TripathiCorp/InvBankingMumbaiRuchin

Goyal

Corp/InvBankingMumbaiOliverDanyCorp/InvBankingFrankfurtStefanDabCorp/InvBanking

BrusselsMartinBucharCorp/InvBankingPragueGennaro

CasaleCorp/InvBankingMilanJunichiIwagamiCorp/InvBankingTokyoTjunTangCorp/InvBankingHongKongAmyChouWholesaleTaiwanStefanMohrTransactionBankingSydneyAllardCreyghtonCorp/InvBankingAmsterdamCarlosBarradasCorp/InvBankingLisbonNicolasHarléCorp/InvBankingParisShubh

SaumyaCapitalMarketsNewYorkAchim

SchwetlickCorp/InvBankingNewYorkChandyC.CapitalMarketsNewYorkJuergenSchwarzWholesaleleaderKeithHallidayWholesale

TorontoNiclas

StorzTransactionBankingMunichCarsten

BaumgärtnerCapitalMarketsMunichMatthewRogozinskiCorp/InvBankingMelbourneAlenka

GrealishCapitalMarkets/TxbankingCarlRutsteinTransactionBankingChicagoBCG'sglobalexpertteamforwholesalebanking

Corporatebanking,transactionbankingandinvestmentbanking/capitalmarketsFrankieLeungCorp/SecuritiesHongKongRobertGruebnerCapitalMarketsHamburgDouglasJacksonCorp/InvBankingSingaporeSangsoonParkCorp/InvBankinhgSeoulJorgeBecerraCorp/InvBankingSantiagoFedericoMuxiCorp/IB/TxbankingBuenosAiresMasso

UkonCorp/IB/TxbankingSaoPauloMichaelGuoCorp/Txnbanking“Theissueforlargecorporatecustomersishowtoimprovelendingprofitability,wheremarginsareslim...threequartersofbankshadprofitabilitybelow16%...accordingtoastudybytheBostonConsultingGroup.“Justwhenbankersandinvestorsarecelebratingareboundincommercialborrowing,anewstudyfromBostonConsultingGroupsayslendingmaybetheleastprofitableelementofacorporatebankingrelationship.”“BCGgathereddatafrom75largefinancialinstitutionsgloballyandfoundthat45%ofcorporatebankingbusinessescreatednovalueabovecostofcapitalbetweentheendof2002andtheendof2004.”Australia“AccordingtoBCG,ifabankisabletomeasurereturnonequity(ROE)onlyattheleveloforganisationalunitorsegment,itsaverageROEisnegative2percent.Ifitcanmeasurethat...downtothe"perclient,perproduct"levelthatitrisesto26percentwithlessthan10percentofcorporatebanksgloballyatthatlevel.

"Dec.9,2008(Bloomberg)--Corporatebanksmustadjusttoslowereconomicgrowth,higherloanlossesandscarceliquiditythatwillbecomethe“newnormal”foratleastthenextdecade,BostonConsultingGroupsaidinareportreleasedtoday."BCG'sCorporateBankingBenchmarkinghassetthestandardforperformanceinsightssince2003BCGleadingmanyclientsgloballytotransformthebanks

SelectedclientsBCGhasextensiveexperienceincorporatebankingtransformation(I)

ProjectexamplesfromnorthAmerican,EuropeandotherAsiancountriesClientLargeNorthAmericanbankMajorGermanbankMajorEuropeanbankbankMulti-countryEuropeanbankMajorFrenchuniversalbankMulti-countryEuropeanbankTop4AustralianbankLargeGermancorporatebankLeadingNorthAmericanuniversalbankMajorNorthAmericanbankDescriptionSupportcorporatebusinesstransformationprogram,includingbusinessmodel,organization,process,etcSupporttransformationdesignwithintegratedproducts,distributionmodelandbackofficeRedesignandimplementnewdistributionandoperatingmodelforcorporatebusinessIntegrateandoptimizecorporatebankingdistributionandbackofficemodelsfortwomajorEuropeanbankinggroupsDesignandimplementsalesforceproductivityimprovementandcross-sellingprogrambydeepclientanalyticstoidentifyclustersofcomparableclientsandsizetheirwalletsDesignandimplementnewcapitalmanagementframeworktoimprovetransparency/decisionmakingonlargecorporateclientsandproductsinmultiplegeographies/subsidiariesRedesignmulti-brandclient-drivendistributionmodelforlarge/mid

capsclientsandalign

backofficeoperatingmodelandprocess

toimproveclientexperience/reducecostDesignandimplementsalesforceproductivityimprovementandcross-sellingprogrambydeepclientanalyticstoidentifyclustersofcomparableclientsandsizetheirwalletsAssessbanksproductlinesinlargecorporateandinstitutionalspaces,assessingcurrentperformanceandfuturepotentialgivenneweconomic/regulatoryenvironmentSupportlargetransformationprojectinoptimizingdistributionmodel,cuttingcoststoalignwithnewmarketsituationNationalbankofCanadaBNPPUnicreditWestpacBayernLBBMOABNBNPP-FortisRBCCommerzbank客户项目描述四大行之一分析客户市场机会，拟定投行业务战略，根据客户发展需求设置产品组合以及高效的投行组织平台和绩效考核四大行之一根据客户自身能力和市场需求，制定了最适合客户的投行业务战略，并设计组织架构及关键业务能力建设作为支持，同时设计负有操作性的实施计划四大行之一分析客户市场机会，结合客户自身能力和全球领先银行的经验，为客户制定涵盖公司银行业务在内的整体业务线的五年战略规划四大行之一分析市场环境和客户内部能力，为客户制定贸易融资业务转型战略，拟定组织结构为战略推行提供支持四大行之一为公司业务体系制定KPI体系，并进一步细化成公司业务报表体系，并完成项目一期实施的详细设计政策性银行通过对政策、市场、竞争格局、目标客户需求和内部能力的多角度分析，制定专注于中长期融资的公司银行业务战略中型城商行深入分析市场格局及自身优劣势，结合市场发展导向制定5年战略，并按照战略发展方向，重组银行内部资源及运作方式领先股份制银行根据“流程银行”的概念，制定有利于支持客户公司银行业务增长目标和扩张计划的组织结构和管理流程区域股份制银行全面分析收入目标、细分市场、产品选择和地域选择，重点拟定对公司银行业务的战略和实施计划大型城商行涵盖公司银行业务的整体战略评价及组织诊断，建立组织架构设置、部门级KPI及IT强化措施中型城商行根据客户欲成为“本土领先中小企业银行”的目标制定可持续发展的五年战略规划，确定合适的战略重点并建立长期可持续的竞争优势区域股份制银行确定客户在未来三年的重点增长领域，制定针对中小型公司银行业务的战略和商业模型，促进银行整体业务的转型领先的台湾商业银行开展深入的公司客户研究，制定定期的客户调查计划以评估银行总体竞争力领先的台湾银行分析钱包份额，定义并归档机遇行业划分的客户集群以发现中型企业公司银行业务的钱包份额机会台湾金融控股公司针对客户在中小公司银行业务上存在的问题，重新设计银行中小企业业务战略，包括核心客户和运营模式的区分、销售团队的管理效率提升和业务再造欧洲银行集团对亚洲交易银行市场进行细分，总结交易银行业务的关键成功因素，制定进入亚洲交易银行市场的积极战略BCGhasextensiveexperienceincorporatebankingtransformation(I)

ProjectexamplesfromGreaterChinanoEnglishversion今日会议目的IntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformation我们对农行背景与优先重点的理解背景农行为四大行之一，于2010年在香港和上海上市，是目前全球最大IPO公司业务为农行的支柱业务公司业务2009年税前利润为452亿元，占利润总额的61%2008年以来，农行的公司业务开始大幅转型加快大城市业务发展变革了销售模式，强调通过总部而非分行开展重点大客户营销/销售工作发展了国家电网等众多重点大客户，牢固夯实客户基础挑战使命与监管环境特殊使命：加快中小企业与农村地区贷款业务发展广阔且深入的区域覆盖面：覆盖中国的城市与农村地区组织从总部到网点共4-5个层级总部设多个相关业务部门：公司业务部、大客户管理部、中小企业部、投资银行部等客户行业与细分市场目标远大无法提供整体解决方案管理机制评估与关键绩效指标资源分配团队数量质量尚未为利率市场化改革做好准备发展为金融控股公司：租赁业务、海外分公司...需求与优先重点因此，农行高管希望彻底、系统性评估、设计并转型公司业务诊断公司业务设定公司业务转型方向价值主张、差异点、目标细分市场、财务目标制定详细的转型举措组织结构人力资源/人才发展销售覆盖产品开发绩效管理业务转型noEnglishversionTypicalapproachtobanktransformationDiagnosticDesignImplementationCEOteamengagementBurningplatformandaspirationforchangeIssueIdentificationHypothesizedlistofbiggestopportunitiesOrganizationredesignandalignmentDetailedinitiativedesignandimplementationRigorousprogrammanagementBusinessmodelFuturevisionandstrategyOrganizationdesignprinciplesandculturalprioritiesOperatingmodelInitiativeportfolioReview/definitionofbusinessstrategiesOpportunityidentificationandvalidationInitiativeprioritizationandalignmentProgramandchangemanagementImplementationplanning,sequencingPMOdeploymentCommunicationandchangemanagementplanKeysuccessfactorsforlargescalechangeprogramsAToplevel(CEOandseniorleadershipteam)commitmentandcommunication(internal&external)ClearvisionandobjectivesThebestpeopleinvolvedandgivethemthetools/trainingtoperformDefined"RulesofEngagement"(eg,roleofline,vsprojectPLvsPMOetc)ActivistPMOapproach(provideanalyticalsupport,assiststrugglingprojectsetc)Rigorousplanning,measurementandfollowupExplicitchangemanagementstrategyandtoolsBCDEFGAllfactorsneedtobeaddressedintheTransformationPlandesignandexecutionKeymessagesforAgricultureBankofChinaYouneedaclear'burningplatform'IteitherexistsalreadytodayOryouneedtocreateit(aspirationalvisionand/orfinancialobjectives)TheleadershipteamneedstobealignedandcommittedOrbecomealigned/committedfollowingashortvisionandobjectivesexerciseThink'big'Bigvaluecreation,bigsuccess,bigchangeAvoidincrementalthinkingandincrementalresultsOver-communicatedtoyourkeypersonnelandwinthemoverThrougheffectivestakeholdermanagementandconsistentcommunicationSpeediscriticalToprovidecleardirectionquicklyToovercomedoubtersinternallyToprovideaconvincingstorytothestreetBuildingandmaintainingmomentumiscritical,otherwise,youwillachieveslowincrementalimpact今日会议目的IntroduceBCGOurunderstandingofyourcontextandourapproachtotransformationDiscussourtransformationexperienceforaNorthAmericanBankOpendiscussionabouttransformationBurningplatformandcontextforchangeAverageTSRperformancerelativetopeersLowrevenuegrowthInsufficientoperatingleverageBoardandstreetdemandingaggressiveEPSgrowthtargetResultinginverysizeableNIBTgapthrough2012Clienthasauthored"OneClient,OneBank"strategicvisionVisionlackedsufficientlevelofdetailandwasnotcommonlyunderstoodacrossorganizationSignificantorganizationalchallengesSiloedbehaviorCapabilitygapsinsomebusinessesLackofaccountabilityOverallapproachtotransformationeffortDiagnostic/designphaseImplementationDetaileddesignphaseClarifyvisionanddefinebusinessmodelEvaluatebestpracticeapproachesAlignonkeyprinciplesandstrategiesIdentifypriorityrequirementsforstrategyDiagnosecriticalconstraintsandenablersEngageCEOteamandnextlevelofseniorexecutivesinbeliefsauditDevelopactionplantoaddresskeyorganizationalandculturalconstraintsAssessinitiativeportfolioPressuretestIdentifygapsIdentifyadditionalpotentialopportunities1DetaileddesignofinitiativeportfolioRefinementofbusinessstrategies(retail,commercial,wealth)Initiativedefinition,prioritizationandalignmentDesignprogrammanagementapproachImplementationplanningandsequencingPMOdeploymentandgovernanceCommunicationandchangemanagementplanOrganizationalchangeeffortDetailedinitiativedesignandimplementationRigorousprogrammanagement23458SummaryofkeycommercialbaselinefactsandstrategicissuesSince2005,Commercialrevenuehasgrownxx%CAGR,atxx%,achievingxx%opleverageFXgrowthhasbeenstrongdriverofcommercialgrowth,howeverdeposit/cashmgmtgrowthhasbeenflatBankhassignificantleadinsmallendofmarket,whileBankholdsslightleadincommercial/mid-marketHighclientattrition,anddecliningclientacquisitionthreatensBank’scurrentpositionCommercialrevenue($M)200720062005CostsNIBTNIBTxx%xx%xx%CAGR(’05-’07)xx%

xx%xx%Commercialloanshare(%)OtherDCBA>$500kloans<$500kloansBBanksCommercialdepositshare(%)ASept'07Sep’05xx%ofSMBsarelocatedinxxareaDepositsharegrowthlargelydrivenbystronggrowthinpublicsectorCommercialrevenueCAGR(‘05-’07),(%)Loan&BAsDepositServicesOtherFeesFXFeesTermDepositDemandLoansDemandDepositMort-gageSpecial

DepositCompensationhighlysupportiveofFXsalesDepositservices(cashmgmt)tendtobekeydriverofrelationship‘stickiness’andprofitability2006-07No.ofCommercialclients(k)2005-06#Lost#AcquiredLargepoolofxxunassignedclientsareathighriskofattrition1ProductPenetrationBySegment(Clientcorecustomersvs.market)SegmentsComplexLoan4DepositPaymentservicesTradefinanceOffshorebankingTreasury/TMUInvestmentbankingMicroSMECorporate91%100%24%17%4%1%0%29%100%43%29%10%24%0%4%14%1%48%15%95%84%0%3%3%33%34%93%87%4%25%30%61%52%93%64%x%x%ClientMarketProductpenetration7%55%51%100%47%98%83%Client’spenetration<10%under-penetrated<50%under-penetrated>50%under-penetratedBasicSource:Customerquantitativesurvey,Clientdata,BCGanalysis1UnderstandingclientproductpenetrationIdentifyingwhitespaceforclient'scorporatebankingbusinessMayincludecreditcardsNote: FourotherbanksusedherearethemostcommonlyusedbanksbySMEandtheonesmostmentionedasTopSMEbankSource:Quantitativesurveyanalysis,BCGanalysis LoanDepositPersonalWMPaymentservicesTradefinanceOffshorebankingTreasuryInvestmentbankingOther(1)BusinessComplexBasic<10%11-20%21-30%31-40%41-50%51-70%71-99%Levelofproductpenetrationoflendingcustomers(%ofrespondents)100%1WMawhitespace,noonehascapturedthemarketsharessignificantlySource:Companywebsites;investorpresentations;BCGanalysisMultiplecoveragemodelsadoptedbyleadingplayersRelationship-ledapproachIncreasinguseoftechnologyandprocessTraditionalRMbygeographyOneRMdedicatedtoagroupofclientsDifferentintensityofproductspecialistusageAssignedbygeographybutsometimesbyindustrySalesprimarilydrivenbyproductspecialistteamsRoleofRMisincoordinationandidentifying

newopportunitiesProduct-ledapproachSinglecoverageOneperson,usuallyI-Banker(Wachovia)orcorporatebanker(HSBC,Nordea)inchargeoftheclientserviceteamDualcoverageSharedresponsibilitybetweenI-bankerandcorporatebankerforrelationshipClearproductsplitLargeCaps/MNC’sRMbyindustry/sectorOneRMdedicatedtoagroupofclientsDifferentintensityofproductspecialistusageGroupedbyindustryIncreasinguseoftechnologyClientshaveaccesstopoolofRMs

(semi-ornon-dedicated)Leveragetech/toolstodeepenrelationshipMid-CapsSmallCapsT/Othresholds1SuccessindistributionrequiresaholisticapproachSenseofpurpose

andleadershipAvisionandsenseofmissionthatinspire

individualsandclarifytheirobjectivesPerformancemanagementandrecognitionHighlyvisibleperformancemanagementandrecognitionsystemsPeoplemanagercapabilitySuperiorpeople-skillsandleadershipbehaviorsClearsinglepointaccountabilities—roles,goalsanddecisionrightsalignedCollaborationmechanismsinplace—planning&budgeting;operationalteams;trustHardwiredintegrationofaccountabilitiesintomeasurement,performancemgt,compensationandpromotionsystemAccountabilitiesandcollaborationAnaccountabilitysystemandworkingenvironmentwhichfosterstrongperformanceandcollaborationSharedcommitmenttoobjectivesattop,withclearcommitmentofleaderstocorporatebankingplan...alignmentoncreditvs.otherproducts,riskappetite,segmentprioritiesManagersthatcanbreakdownsilobehaviorsandcoachsalesstafftosucceedBCGframeworktoenablethecorporatebankingorganization2DiagnosisrevealedsignificantgapstowardsahighperformanceorganizationinthecorporatesegmentDiagnosticissuesStretchgrowth,profitabilitygoalsnotsharplydefinedNosharedagreementonspecificactionableobjectivesaroundfullclientrelationshipRMsandProductspecialistsdonotsharesenseofmissionandcommonpurposeSinglepointaccountabilityforclientsuccessisunclearandteamaccountabilityexpectationsunclearPlanningandoperationsreviewprocessesweakProductandrelationshipbankersdistrust/disrespecteachotherOpinionvs.databasedjudgmentsPoorinformationqualityofprovideddataintermsofaccuracy,completeness,timelinessAnnualplanhasnoteethOperations:PerformancemanagementprocessinadequateMetricsforresultsandinputarenotrobustenoughTalent/peoplemanagementisweakHighperformanceorgresponseDevelopspecificrevenueandprofitgoalsderivedfromclientprofilesandrigorousprioritizationPrioritizationbasedonwelldocumented,shared,transparentunderstandingofproducts,clients,competitorsCommunicatecorporatebankingstrategytoRMsandproductorganizationsSeniorexecssignalhighpriorityofsuccessDefineclientrelationshipdecisionandvetorightsforRMsandproductspecialistsMakelinkagebetweenindividualroles,goalsandmetricsstrongandtransparenttoentireteamStressbi-annualplanningandweekly,monthly,quarterlyoperationsreviewprocessesAddressissueopenlyandcreatecollaborationmechanismsandhighperformanceteamingInformationanddataasrobustandtransparentaspossible:Buildclientandbankerscorecardanddashboardtoolstoprovideaccuracy/transparency,completeness,timelinessMovetoactive,fullbi-annualplanningprocessWeekly,monthly,quarterlyoperationsreviewmeetingsResultsmetricstiedasfaraspossibletoobjectiveinputdata(internalandexternal)Createtransparent‘bankerdashboard’BesidesfinancialdataalsoincludeoperationalindicatorsinperformancediscussionRealisticskills/capabilitiesassessmenthastobeaggressivelyappliedtorecruitment,development,outplacementIncreasedfocusoncoachingandpeopledevelopmentascorecapabilitiesforsalesmanagersandexecsSource:BCGclientexperiencedatabaseSenseofpurpose

andleadershipVision,senseofmissionthatinspire

individualsandclarifytheirobjectivesPerformancemanagementandrecognitionHighlyvisibleperformancemanagementandrecognitionsystemsPeoplemanagercapabilitySuperiorpeople-skillsandleadershipbehaviorsAccountabilitiesandcollaborationAccountabilitysystem,workingenvironmentwhichfosterstrongperformanceandcollaboration2Evaluatedinitiativeportfoliotoguardagainstincrementaleffort,pushharderwherenecessaryImplementationchallengeTransformationInitiativePortfolioCostReductionRevenueIncreaseCurrentInitiativeNIBTImpact($M)PushHarderNew300+smallinitiativesillustratedRe-examinedtofreeupcapacity3Source:BCGanalysisSalesprocessesandtoolstosupportahighperformingsalesforceBuildingbest-in-classcorecapabilitiessupportedbysalesforceandorganizationalenablersdrivesvaluecreationDistributionModelalignedwithcustomerneedsandstrategicprioritiesCustomerneeds/segmentationDistributionapproachResourceallocationProductprioritiesChannelsandleadgenerationSalestoolsandtrainingSalesandcreditprocessesBusinessstrategiesWinningclientpropositionDifferentiatedcorecapabilitiesEconomicleversWinningclientpropositionDifferentiatedcorecapabilitiesEconomicleversOrganization&cultureTalentManagementCollabration-Performancemgmt.PrioritizedbusinessagendaEnterprisevision&objectivesOrganizationalenablerstodrivethebehaviorstogetherwiththepeoplecapabilitytodrivesuccessBusinesscasedrivenbyeconomicleversMaximizingshareofwalletIncreasingnetnewnumberofclientsHavingalow-costefficientdeliverymodelRedirectedsalesforcefromcredit-centrictocashmgmt/deposit-centric4SummaryofcommercialbankingtargetdistributionmodelSalesprocessandenablersDistributionModelSegmen-tation/

ClusteringDistributionApproachResourceallocationProductPrioritiesChannelsandleadgenerationSalestoolsandreportsSalesandcreditprocessesTherolesandresponsibilitiesoftheSeniorManagerwillchangetofocusoncoachingandthedevelopmentofamoreproactivesalescultureTheroleoftheaccountmanagerandtheaccountmanagerdepositwillbemerged;theaccountmanager'sscorecardwillbeadjustedtoreflectthenewfocusoncross-sellingSomeproductspecialistsandgeneralistswillbegiventheroleofa"Hunter"tofocusonnewcustomeracquisition;thisrolewillbetestedforsixmonthsintworegionsbeforebeingrolledoutbank-wideAnewspecialistfocusingontreasury/riskmanagementproductswillbeaddedtothecommercialteamThefinancialplannerentrepreneurwillbepartoftheoverallCommercialteamAcreditspecialistandanewlydefinedroleoftheAgentsdeCompteswillenableAMstohavemoretimeavailableforsellingBestpracticetoolsandnewincentivesschemeswillbeimplementedBestpracticetoolstoidentifyclientopportunitiesNewincentivessystemdirectlylinkedtosalesresultsNewcoachingmethodswillpromoteaproactivesalescultureRedesignedcreditprocesswillloweroperatingcosts,increasespeedandfree-uptimefortheAccountManagersDistributionmodelProfitforthebankperclient1CosttoserveofCommercialAM$3,400–3,600CosttoserveofSMEAM$800-1,000MicroSMECommercialClientsabovesalessizethresholdsgenerateenoughprofittooffsetthecosttoserveofeachmodel<$0.1M$0.1-0.5M$0.5-1.0M$1.0-2.5M$2.5-5.0M$5-15M$15-35M>$35M1.DefinedasRevenue–CoC–Expectedloss–allocatedfixedcosts(ExcludesdirectFTEcosts)Source:GRCWeb,BCGanalysisClientsalessizeSegmentationCashMgmtLendingPayrollSvc&MFPayrollSvc&MFFXPayrollSvc&MFFXFXInt'lProductsPayrollSvc&MF'Commonproducts''Add-onproducts'Note:Usageforacategorydefinedwhengreaterthan10%ofclientbaseisusingtheproductSource:GRCWeb,BCGanalysis<$0.1M$0.1-0.5M$0.5-1.0M$1.0-2.5M$2.5-5.0M$5-15M$15-35M>$35MFXInt'lProductsPayrollSvc&MFClientsalessizeprovidesindicationofproductusageamongBNCclientbasePayrollSvc&MFCommercialSMEMicroClientSalesCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingCashMgmtLendingMed.loansize$35k$62k$88k$154k$312k$674k$1,337k$3,603kSegmentationOverviewofthetargetcommercialbankingteam-baseddistributionapproachDTGCredit

SpecialistFinancial

PlannerEntr.Business

Develper

"Hunter"AdCAMDSMTradeFinSpecialist

(exDCI)Treasuryspec