Page 141 - Performance Leadership

130 • Part II Operational and Analytical Dimensions

F igur e 8.5
Value Drivers for Direct Banking

ROCE

Grow assets Sound and
under transparent
management reinvestment

Trust

Market Flawless
awareness process

C. Raise market awareness: Too indirect to achieve the immediate
objective.

D. Islamic banking: Great idea but with a long-term focus.

After a short discussion, the management team decides to go for
option A. It is easy to calculate the cost savings needed to increase the
return on capital employed and meet the new target.
The choice was made as a single solution directly solving the prob-
lem at hand—easy to oversee and relatively easy to control. But is this
the right choice? Option B was dismissed because it was too risky. But
all the other options have risks associated with them as well. Cutting
costs by centralizing call centers negatively affects “trust” as it looks
like the bank will physically retreat from certain countries, leaving
only a Web site and a local phone number. Raising market awareness
has the risk of being a victim of its own success. When meeting the
stretch target, the scalability of the customer contact processes might
not be enough. A decrease in reliability negatively affects trust again.
Islamic banking may present a great long-term opportunity, but
currently the company lacks the cultural capabilities to create an