Bank-Wide Organizational Restructuring

Leading MENA Bank

Situation

One of the largest banks in Middle East was faced with an organizational structure unable to scale with its current business let alone its strategic objectives.  Duplicated functions, inappropriate span of controls, lack of customer focus and major businesses all running in silos were all factors impeding growth.  More detrimental was the bank was not easy to do business with for both its customers and employees.  

In support of its objective of being the number one bank in its market in terms of: Profit, Revenue, Customer Experience and Employer of Choice, management engaged LoBue to assist in restructuring the entire organization.

Recommendations
  • Implement a “manage, support, control” organizational model to ensure customer first focus and appropriate function to skill alignment.
  • Reorganize business lines in support of a customer segment versus product centric market approach.
  • Purify business line functions to shift focus from activity to results management.
  • Create centers of excellence for support / operations and consolidate like functions throughout the organization.
  • Recommend an authority/responsibility model for production and service functions consistent with industry best practices.
  • Implement a staffing/capacity planning process to allow for appropriate and controlled organizational sizing
Results
  • Improved customer focus and service delivery. Designed and achieved clear separation of front office customer facing responsibilities from back office and support functions which allowed for total customer focus.
  • Created consistency and standardization across Operations, IT and support functions.  Activities included consolidation of all Operations, Administration and IT functions into Shared Services units.  Additionally all budgeting, planning, training, recruiting and risk activities were merged into appropriate support groups.
  • Costs optimized. Restructuring activities achieved greater than USD15MM run rate savings.
  • Significantly improved span of controls. Spans were optimized across the entire organization including the top line reporting from 17 to 10.
  • Functions consolidated. Over 150 misaligned functions were consolidated into organizations including IT, Process Operations, Administration Services, Enterprise Project Delivery, Human Resources, Strategy, Risk and Finance.
  • Forced end to end accountability. Restructuring created focused points of customer, cost and process accountability across all major functions bank wide.