Consolidation and cost reduction for the IT and organizational structure of a specialist bank

Case Study

Background

The owner of a specialist bank in another European country had prescribed a very tough austerity and consolidation course for the bank. In coordination with the regulators, the aim was to focus the business model, reduce secondary business areas and also achieve a robust reduction in personnel and material costs. The strong organizational and business integration with the parent company and the restrictive regulatory framework for the core business posed particular challenges. The challenge was all the greater as the bank had already undergone an earlier cost-cutting program.

Goals

The target set by the owners and regulators should be implemented as quickly as possible and with as little risk as possible. The specified key figures relating to personnel, costs and income should be achieved in full. To this end, appropriate analyses should be carried out, measures derived and projects set up for implementation. In particular, optimizing the remaining minimum level of IT and personnel resources posed a particular challenge.

Solution

The viability of the various approaches to achieving the objectives was examined using a fixed template. Approaches with a sufficient degree of maturity were evaluated, coordinated and brought to a decision. Implementation decisions were translated into measures or projects. The validity of the measures was put to the test in advance and scrutinized according to a variety of criteria. The process was closely monitored by the Bank’s Management Board and Supervisory Board.

Results

The activities included a detailed analysis of the bank’s complete income and cost structures in all areas down to individual items. Approaches for optimizing these structures were developed in cooperation with internal and external stakeholders in numerous discussions and workshops – including the reduction of redundancies, the reduction of less profitable business areas, the reduction to a regulatory framework, the outsourcing of IT systems and business processes, the consolidation of IT architectures and the optimization of organizational processes. An (IT) roadmap for achieving the objectives was drawn up and the measures agreed at the start of implementation were actively implemented.

Our role

We managed the project from the role of an on-site project manager. The project structure, reporting system, templates, process model, etc. were set up, expanded and operationalized. Very close cooperation with the Executive Board and other internal stakeholders ensured the success of the project. Extensive technical expertise in terms of organization, processes and, in particular, IT in the banking environment was a key factor. In addition, a high level of coordination was required with the demanding external stakeholders, while at the same time acceptance among the workforce had to be established in the best possible way – strong moderation skills were therefore also crucial for the success of the project.