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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Execution is k<strong>in</strong>g: The effective delivery of cost sav<strong>in</strong>gs will<br />
differentiate post crisis w<strong>in</strong>ners from losers.<br />
POST-MORTEM OF A COST PROGRAM ONE YEAR AFTER LAUNCH<br />
KEY SUCCESS FACTORS<br />
100<br />
5<br />
-36%<br />
> Relentless sponsor<strong>in</strong>g from <strong>the</strong> top<br />
management<br />
> Partial sav<strong>in</strong>gs recognition<br />
> Restriction of shar<strong>in</strong>g<br />
opportunities (shared<br />
services…)<br />
> Low mobilization<br />
27<br />
14 64<br />
> Mobilization of middle managers<br />
around a long term vision and clear<br />
action plans/priorities<br />
> Well designed social eng<strong>in</strong>eer<strong>in</strong>g to<br />
realize sav<strong>in</strong>gs<br />
Initial target<br />
> Limited <strong>in</strong>vestment capacity<br />
> Inadequate availability of resources<br />
> Insufficient social eng<strong>in</strong>eer<strong>in</strong>g<br />
> Inefficient governance<br />
Additional target<br />
Sav<strong>in</strong>gs to be<br />
validated by<br />
bus<strong>in</strong>ess units<br />
Delay<br />
Adjusted target<br />
> Change management to <strong>in</strong>still a cost<br />
culture<br />
> Rigorous program management and<br />
sav<strong>in</strong>gs track<strong>in</strong>g<br />
Source: <strong>Roland</strong> <strong>Berger</strong> experience<br />
Bank<strong>in</strong>g_cost_<strong>reduction</strong>_FINAL_270712.pptx<br />
25
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