The bank has been present in Spain since 1982 with a solid track record in the local arena with Iberian clients. But when it comes to international clients with interests in Spain, the competition had a much better and more efficient service.
Overhead costs were significantly higher than average, driven by a complex, oversized organization with a large regional staff and cumbersome processes requiring multiple handovers. Management asked RD+P to help implement an extensive restructuring. Objectives were to reduce costs, simplify the organization and improve responsiveness to customers.
After a thorough diagnosis of the current organization, the architecture of the new organization was determined in collaboration with management. A key outcome was that by simplifying and standardizing key processes such as pricing and customer segmentation, the company was able to close its Barcelona office. It was agreed that unnecessary or duplicate activities would be removed, decision-making would be streamlined and performance management would be redesigned to give account managers clear profit and loss accountability.
In just five months, a comprehensive reorganization was designed and successfully implemented. During this time, the organization was significantly simplified and streamlined, the workforce was reduced by 40 percent, the Barcelona office was closed, operations were moved to Madrid and service levels were introduced based on customer segmentation.
As a result, the international banking division was able to emerge from the recession and achieve substantial growth during the recovery.
Based on the Value Driver framework, RD+P can sustainably run a cost reduction program in 7 steps. RD+P has gained experience with this in the service sector.
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