Redesigning organisational structure
the chief executive of a major uk high street bank knew he needed to seek a fundamental change to the bank’s structure.
The bank needed to be redesigned in a way which would reverse the growth in support functions, modernise its transformation capability, rebalance its accountabilities, focus much more on the customer and make savings. Any changes proposed would of course require the approval of the Chief Executive, the Board and the Regulators.
The Challenge
Commissioned to undertake a ‘drains up’ analysis of the cost structure of the bank, we presented a literal wall of information in a digestible form which highlighted unacceptable anomalies, fragmentation, duplication, and expensive functions which had grown steadily over the years ‘under the radar. We were asked to propose something new.
Our Solution
With limited access to the key stakeholders and a clear instruction to maintain the strictest of confidentiality we were retained to create an engaging and interactive approach to the design of the Bank. Something which would be quick and easy to use. Something to provide insights and options. Something that would hold the attention of the Chief Executive in short but detailed working sessions. We were ‘locked in’ a secure room for the duration of the project the contents of which was known to a handful of staff and built a physical model of the entire Bank. The model could be manipulated so that different design options could be trialled, discussed and agreed. The model became the tool used by the Chief Executive and his supporting team. It was also the single source of evidence of decisions and options. Through a series of iterations and working sessions, we arrived at an agreed model, which was announced giving us two months in which to implement the desired organisational change across the entire Bank. We engaged with representatives from each of the Divisions, both receiving and sending staff and created a set of devices and protocols to manage the transfer of over half of the Bank’s staff, a process which was reconciled to the last FTE.
The Outcomes
The new organisation was announced on schedule with every member of staff knowing where they were to be placed.:
A new Transformation Division was established
End-to-end customer journeys were re-established by repatriating central functions
A better-balanced set of management accountabilities was established
Over thirty thousand staff were moved into the new structure
An overall 10 % FTE saving identified and attributed to the new structure
