Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
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% of managers<br />
% of managers<br />
2<br />
STREAMLINE ORGANIZATION<br />
Many banks are now flatten<strong>in</strong>g <strong>the</strong>ir structure<br />
MANAGEMENT WEIGHT FOR SUPPORT FUNCTIONS<br />
Span of control [# of employees per manager]<br />
HIERARCHICAL LEVELS WITHIN SUPPORT<br />
FUNCTIONS<br />
Width of hierarchy [# of hierarchical level]<br />
84% 16%<br />
0%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
55% 23% 21%<br />
2%<br />
Average ratio = 5,1<br />
Targeted ratio= 7 - 9<br />
5 10 15 20<br />
Ratio<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
1 2 3 4 5 6 7 8 9 10<br />
Hierarchical levels<br />
Workforce : 2020<br />
Weighted average= 4,4<br />
20%+ of potential <strong>reduction</strong> <strong>in</strong> # of managers<br />
Simplification by remov<strong>in</strong>g one hierarchical level<br />
Source: <strong>Roland</strong> <strong>Berger</strong> Strategy Consultants experience<br />
Bank<strong>in</strong>g_cost_<strong>reduction</strong>_FINAL_270712.pptx<br />
19
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