Shaping Up to Global Banking Leadership and Management Development Challenges Stephen Regan...
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Shaping Up to Global Shaping Up to Global Banking Banking Leadership and Management Development Challenges Stephen Regan Cranfield University England s.regan@cranfield.ac.uk
Transcript of Shaping Up to Global Banking Leadership and Management Development Challenges Stephen Regan...
Shaping Up to Global BankingShaping Up to Global Banking
Leadership and Management Development Challenges
Stephen Regan
Cranfield University
England
Enter the Dragon: The Beginnings of Globalisation
1985/86 Deregulation– Banking Act
– Building Societies Act
– Financial Services Act Creation of a single competitive arena Impact of this on strategies Leadership agenda
The Basic Economics of a UK Retail Bank
Financial Intermediation
Retail Deposits
Wholesale DepositsWholesale Lending
Retail LendingBusiness
Consumer
StructuredMaturity TransformationRisk TransformationAggregation/Disaggregation
Competitive Advantage: Information
Banks as Customer Focussed Businesses
Attractor
Manufacturer
Wholesaler
Enabler
Asset Gathering Liabilities Management
DepositNon deposit
Credit CardsPersonal LoansMortgagesCurrent Account
Increasing Competition
Increasing Competition
Sales/Products
Strategies in the banking supply chain
Attractor
Manufacturer
Wholesaler
Enabler
ChannelsAffinityCRM
Call Centres, BPR, Automation, Cost reduction
Risk averse lendingWelcome borrowers
Information-ERP.SAP.accentureStaff-ERM-Ulrich-accentureCustomers-CRM Terradata Accenture
The New Competitive Arena
Attractor
Manufacturer
Wholesaler
Enabler
Virgin
HBoS
Sainsbury
RBS
RBS(CBFM)
IBM
Tesco
NatWestRBS
IBM
Hbos Corp
GUSCentrica
GE Capital
The Global Challenge
Attractor
Manufacturer
Wholesaler
Enabler
Global Financial Services Brands:Amex, Fidelity,… Investec?
An emerging superleague based on global scale HSBC, Citigroup
Already Globalised: Bulge Bracket,Chase, State Street,
Outsourcing Partners: IBM,
Accenture, Experian
An Objective assessment : UK banks readiness for the future
Past strategies have amounted to Retrench into UK marketRely on customer inertiaExpensive marketing mistakes: one stop shops
internet banking International losses Branding!
Regulatory mistakes: pensions misselling, Cruickshank report
Competences of UK banks
What are they globally competitive in ?– Cost management
• Outsourcing
• Back office innovation (maybe)
• Ruthless HR models
• Process Improvement
• Consolidation
Current Structure and strategic direction of the Industry
HSBC
Barclays, Lloyds
HBoS
Abbey National
RBS
Citigroup
HSBC
InternationalDomestic
Established
EntrantRegional Global
The Leadership Agenda
PEST
Market Dynamics
Strategies
Capabilities
Investor RelationsGovernance
BehavioursCultures
CEOs Role
Middle Management
Cultural Leadership
Leadership (Discretion)
Capability(Implementation)
Vision(Strategy)
Senior managers in subsidiaries all add to performance if they do this
Discretion
Jobs
10
50
250
OLDNEW
260
Self Interest, Sympathy and Empowerment
Adam Smith in “The Theory of Moral Sentiments” Sympathy: fellow feeling, regulates human affairs and
is rational Pure self interest is irrational: the unsocial passions
lead to resentment and disorder Approval is our strongest drive
– Overrides material well being
– Rank is a state of grace akin to love
– Ambition is the driving force of private man
– Abilty, prudence and virtue are its features
Some Caveats
No society can continue without sympathy Loss of sympathy (resentment) may be just but it is
the hardest trait of all to sympathise with The importance of justice at all times And finally
– Sympathy can be recommended
– It can even be expected
– But it can never be imposed
