Enabling Banks to Deliver

on their Strategy

Agenda

2

1. Your Business Needs and Implications for Human Capital

2. Strategic Challenges for the Banking Industry

3. Impact of these Challenges on Banks

4. How MCE Can Help Banks to Implement their Strategy

5. Capabilities: MCE’s Banking Practice

6. MCE References and Banking Practice Team

7. MCE Services

8. Beyond Workshops: How We Work With You for

Organizational Development

9. The MCE Difference

YOUR BUSINESS NEEDS

AND IMPLICATIONS

FOR HUMAN CAPITAL

3

1

The Way Your PEOPLE Execute the Strategy

Determines Your Strategic Success

4

STRATEGY

PEOPLE PROCESSES

To execute strategy, organizations must align

their processes and their people.

Your people need to be:

Competent

Informed

Engaged

Aligned

Working together, with good leadership

Organizations that invest in developing their

people and aligning them to the strategy give

themselves a competitive advantage.

Human Capital Development is critical to

aligning people to execute the strategy.

60% of strategic success depends on the way the mission and strategy get implemented through people.

* At MCE, we close

the gap between your strategic ambitions and performance. * Source: McKinsey

Customer Value Proposition is at the Centre of Strategy

5

Achieve unbeatable cost advantage through efficient operations and/or access to lower cost resources.

Provide expertise to solve customer’s unique problems. Deliver customized service in a long-term customer relationship.

No distinguishing features or price advantage. Works only in a protected market.

Clearly distinguished with high quality or special features customers care about and will gladly pay more for.

VALUE-

PRICED

OFFER

IN-BETWEEN

OFFER

CUSTOM-

MADE

SOLUTIONS

PREMIUM

OFFER

The strategic choice influences what kind of culture, processes, leadership and rewards your organization needs

to have in place in order to deliver on the strategy.

Align Your People thru 6 Dimensions that Form an

Interdependent System

Ensure aligned KPI’s, competence maps, appraisals,

comp & ben, rewards and promotions.

PERFORMANCE METRICS

Ensure leaders model the strategy, lead the people.

Ensure right skills and empowerment.

LEADERSHIP BEHAVIOUR

CUSTOMER PROPOSITION

Ensure skills, competences and resources to make

the customer value proposition a reality.

Ensure aligned organizational design and cross functional

processes.

PROCESSES & STRUCTURE

Diffuse strategy via internal communications. Ensure

feedback loop.

STRATEGY COMMITMENT

Shape culture by adjusting policy and initiatives in the five

other dimensions.

CULTURE

Failure to align your people puts your strategy at serious risk.

6

STRATEGIC

CHALLENGES FOR THE

BANKING INDUSTRY

7

2

Four Competitive Pressures on Retail and

Commercial Banks

8

ECONOMY COMPETITION

CLIENTS EMPLOYEES

Challenge 1: Economic Environment

9

• Do we face another 2008? • Asset quality is key

• FX risk

• Lack of medium and long term

liabilities

• Higher capital requirements

• Stricter regulation

Challenge 2: Increased Competition

10

• Consolidation and intensifying

competition

• New entrants from non-banking sector

• Limited access to interbank funding

• Decreasing interest spread

Challenge 3: More Demanding Clients

11

• Increasing expectations on service

• Growing segments of middle-class and

affluent clients

• Opportunity to build relationships,

increase share and size of wallet

Challenge 4: Fight for the Best Employees

12

• Competition for attracting, developing

and retaining the best talent

• Pressure to keep workforce costs under

control

IMPACT OF THESE

STRATEGIC CHALLENGES

ON BANKS

13

3

The Challenge – Return on Equity

14

ROE =

INCOME FEE

NON-FEE

- COSTS PEOPLE

IT - RISK

Strategic Consequences

15

Customer Value

• Understand and

segment

customers

• Pragmatic,

convenient

value

proposition

• Maximize

income

o Primary banking

relation

o Lifetime value

Risk Management

• Adapt to new

regulations –

capital, risk,

liquidity

• Optimize

allocation of

capital

Efficiency

• Systems,

processes, IT

• Operational

excellence

• Cut costs

strategically –

cut fat, not

muscle

• Efficient

service

delivery

Growth

• Need for

effective

expansion

strategy

• Organic growth

or acquisition?

• Effective

integration of

newly acquired

businesses

How to segment and build a superior

customer value proposition

16

INDIVIDUAL

High Net Worth

Affluent

Mass affluent

Mass retail

BUSINESS

Large

Mid

Small

SME

Micro-segment

What position do banks want to develop?

17

This bank provides a service

that is basic but serves

my purpose well.

The price is cheaper –

why pay more for

features I don’t

need?

This bank draws on their

expertise

and assembles resources to

provide a unique solution

to my needs.

I’m prepared to

enter into a long-

term relationship

with them.

I don’t see any

difference or clear

advantage in this

bank’s offer

compared to others.

I’ll be persuaded (for

now) by sales or marketing

tactics rather than the value.

This bank

provides quality

services and offers

desirable benefits

that I care about.

For this, I am prepared

to pay a premium.

CUSTOMER

VALUE

PROPOSITION

Getting it Done through the Bank’s PEOPLE

18

STRATEGY

PROCESS PEOPLE

Implications for People

19

Developing a customer-centric organization and customer-focused culture

Aligning people to new business models

Managing people to new performance and risk standards

Finding, developing and retaining best talent while controlling costs

Integrating possibly acquired companies, people, systems, culture

The MCE Leadership Model for

Implementation of Strategy

20

PERFORMANCE METRICS

How will I be measured

and how will I be

rewarded?

BEHAVIOUR of LEADERS

How do leaders enable

and support me to do the

job they expect?

PROCESSES & STRUCTURE

What tools / procedures

are there to help me do

the job as expected?

CULTURE

What are our values and

how do we do things

around here?

STRATEGY COMMITMENT

What does the strategy

mean for my job? What am

I committing to?

CUSTOMER PROPOSITION

Why should customers buy

from us instead of

competitors?

From the point of view of your people:

HOW MCE CAN HELP

BANKS TO IMPLEMENT

THEIR STRATEGY

21

4

Management Centre Europe:

Your Partner in Managing Change

22

MCE is the leading provider of

management development

services in Europe, Russia,

Central Asia and the Middle

East.

We help you achieve your goals

• By developing individuals

• And developing organizations

• In a complex and changing

environment.

Helping to Strengthen Society Through Education

23

We contribute to

sustainable prosperity and

stable societies. Key to this

is educated and skilled

people working in

businesses and institutions.

Our programmes help to

strengthen these valuable

building blocks:

• Education

• Innovation

• Governance

• Leadership

• Healthcare Industry

• Financial Institutions

• Energy and Natural

Resource Industries

• Telecommunications

Industry

MCE’s Global Network

24

FACTS & FIGURES

Customized programmes and services tailored to your industry

150+ Senior Associates with senior business

experience in 29 industries

120+ Management Development Workshops for

Individual Managers

Based In Brussels since 1961. Part of American

Management Association, founded in 1921.

Global Resources and Offices in 43 locations

through the AMA Global Network

Abu-Dhabi • Adelaide • Atlanta • Bangalore Bangkok • Barcelona • Beijing • Brisbane • Brussels

Cairo • Calgary • Cebu • Chicago • Guangzhou Istanbul • Jakarta • Kuala Lumpur • London • Madrid

Manila • Melbourne • Mexico City • Milan • Monterrey Montréal • Moscow • Mumbai • Munich • New York

Ottawa • Paris • Penang • Perth • San Francisco São Paulo • Seoul • Shanghai • Singapore • Sydney

Tokyo • Toronto • Vancouver • Washington, D.C.

Practices, models and tools developed by thought leaders from key academic institutions

More than 150 Ex-Senior Managers and Expert Trainers

25

20+ years’ experience in corporate or government management,

consulting and developing people

Leading multinational organizations, rich in multicultural

background and experience, have lived and worked in multiple

countries

Industry and cross-industry experience + senior functional and

general management expertise

Experts in adult learning, coaching and interactive training

experience, qualified in recognized instruments and methodologies

Shared commitment to develop the current and next generations

of managers to lead their organizations profitably and responsibly.

CAPABILITIES:

MCE’S BANKING PRACTICE

26

5

MCE Capabilities in the Banking Industry

27

Designing a Client-Centric Value

Proposition and Delivery

Developing a Cost-Efficient and Sales-Effective Regional

Network

Outperforming on Branch Sales

Productivity and Service Delivery

Building a Best-of-Class Multi-Channel

Service Delivery

Focusing on the Corporate Client and

Developing Long-Term Profitable Relationships

Competing in the New Mobile Banking and

Payments World

Leading Post-Merger and Acquisition

Integration

Managing Talent, Managing

Performance

Balancing Credit Risk, Debt Management

and Business Performance

Leadership for Strategy

Implementation

Preparing for your Future Senior

Management Role

5-Day Mini MBA for Banking

MCE REFERENCES

AND BANKING

PRACTICE TEAM

28

6

Recent Projects for Financial Institutions

29

OTP Bank Romania, June 2011 • Developing strategy focus

• Leading the strategy implementation

National Bank of Kuwait, June 2011 • Leveraging emotional intelligence for leading executive teams

EIF – European Investment Fund, July 2011 • Communicating the strategy across the organization

Recent Projects for Financial Institutions (continued)

30

ECB – European Central Bank, Feb. – Oct. 2011 • Developing leadership skill for the senior management

EIB – European Investment Bank, Jun. – Oct. 2011 • Reinforcing a successful performance

Société Générale, France and Western Europe, 2010 • Leadership and performance workshop for 28 senior managers

Introducing 5 Senior Associates from the MCE

Banking Practice Group

31

Christian DEKONINCK

for Northern Belgium in 1999. On assignment in Paris (1996 to 1998), he successfully opened a flagship

CitiGold Branch on the Champs Elysees. He was promoted to Regional Director and restructured the

Branch network in Flanders. Subsequently, he was appointed Managing Director of the call centre in

Aachen, Germany, turning it into a profit centre on all service levels. In 2003 Christian moved to Poland as

Managing Director of the Citi Handlowy network. He is credited for building one coherent, strong retail

network (over 200 branches/1800 staff) integrating the former Handlowy, CitiGold, Corporate and

CitiFinancial (consumer finance) branches into one unit to maximize revenue and cost synergies. He also

introduced a new branch model and set up a Direct Sales Agents network and tele-sales unit. He

managed a financial turnaround resulting in a positive ebit of $32m in 2006 and $54m in 2007 compared

to a loss of $18m at the end of 2003. In 2009 he became Managing Director of the Branch network (400

Branches/ 3,000 staff) of Kredyt Bank (KBC group). Within a year, he improved cost-to-income ratios from

72% to 56%. In two years’ time, sales activity tripled to a record high of 2.5 sales/fte/day.

Christian’s expertise in leadership and strategy implementation has been built over

a 20-year career in key sales and general management roles in the Banking

industry. He is an accomplished consumer banker (Retail, Private Banking, Small

Businesses) who has been leading very large networks with thousands of people in

different countries. He has proven to be an agent of change positively impacting the

sales and financial (both revenues and expenses) results for different banks in

Belgium, France, Germany and Poland. Christian joined Citibank in Belgium and

developed his banking career from Branch Manager in 1988 to Regional Director

Introducing 5 Senior Associates from the MCE

Banking Practice Group

32

Eddie BOGAERTS

in Europe and MENA. Eddie has a proven track record in restructuring as well as growth management.

Eddie’s expertise in management, banking, M&A, strategy, leadership, IT and

development has been built over a 30 career in general management roles in various

sectors. His career is split between MD roles in the financial services sector, including

retail banking, cards, insurance, and SME banking in various geographies (for Citibank

and AXA). He also managed several consulting companies (Cegos, A D Little, KPMG)

Sergey TOLKACHEV

Senior executive with 15+ years of top management experience in financial services in

Growth Markets and Ukraine. Successfully completed four projects in pre- and post-

acquisition business restructuring for international companies operating in Growth

Markets advised and coached local management. Sergey has led teams, organizations ,

and strategy implementation through crises.

Luc MARCHAL

director in a number of companies. He is Director of Ethias Bank since 2005 where he chairs the audit

committee and is a member of the remuneration committee. In June 2008 he joined HRD Antwerp, the

commercial subsidiary of Antwerp World Diamond Center as Independent Director. And in 2009 he

became Independent Director of Société Générale Private Banking (Belgium) where he also chairs the

risk, audit and compliance committee.

Luc Marchal has a proven track record in finance, change management, strategy

development and strategy implementation. From 1992 until 2002 Luc was respectively

Managing Director and CEO of ABN AMRO Bank, Belgium. Since 2003 Luc has been a

Managing Partner of SIGMA - Services for Investment Governance and Managed Assets

in Brussels. Luc also acts as non-executive

Introducing 5 Senior Associates from the MCE

Banking Practice Group

33

Robert MAURISSEN

operations including BBL. Robert is also member of the board of industrial SME’s and is providing

financial advisory services primarily to SME’s.

Robert’s expertise in banking and finance has been built over a 30 year career in US,

Canadian and European Banks with successful experience in line, matrix and general

management. Main fields of expertise: Treasury and capital markets, corporate and

investment banking and credit. He held different management positions at Chemical

Bank, Royal Bank of Canada and ING. As member of the management teams, he has

developed and implemented major strategic moves and restructuring for their Belgian

Ivan P. SHADSKY

development, installation and adaptation of management information systems and internal controls, cash

flow improvement and tax planning. Since 2008 Ivan’s focus is on international investment banking and

wealth management.

Ivan P. Shadsky has extensive hands-on experience in banking with a focus on general

management and international business development, strategy implementation and

strategic planning facilitation. For many years he worked in the auditing of banks,

development and evaluation of internal control structure for Banks, business

assessment and evaluation of business development strategy. His clients were major

international and banks, including Société Générale, Crédit Lyonnais, Menatep and

Investbank. At Rosbank as a Deputy Chief Accountant, he was in charge of

MCE’S SERVICES

34

7

MCE Develops People Across Your Organization

35

ORGANIZATION WIDE REACH

TOPICS LEVELS GEOGRAPHIES

DELIVERY METHODS

SERVICES

Wide Range of

Management Topics

Core Business

Management Skills

Specialist

Management Skills

Industry-Specific

Topics

Top Executives Global Delivery Open Enrolment

Workshops

In-Company

Workshops

Individual Coaching

and Mentoring

Advice on Talent

Management

Advice on Strategy

Execution & Change

Management

Europe, Russia,

Central Asia,

Middle East

Other Continents via

AMA Global Network

Face-to-Face

Virtual

Blended

Senior Managers

High Potential Talent

Middle Managers

Functional / Technical

Specialists

New Managers,

Supervisors

Executive Assistants

Complete Range of Management Topics

36

6 Key Business

and

Management

Skills

Industry

Topics

Leadership and

People Management

Specialist

Business and

Management

Skills

Strategic Alliances,

Mergers & Acquisitions

Healthcare

International Strategy

and Implementation

Business

Management Skills

Communication and

Influence Skills

Project

Management Skills

Financial

Management Skills

Sales and

Marketing

Talent Management

and HR

IT

Strategy

Supply Chain

Management

Creativity and

Innovation

Public Organizations Chemicals

Banking

Oil & Gas

Telecom

BEYOND WORKSHOPS:

HOW WE WORK WITH YOU

FOR ORGANIZATIONAL

DEVELOPMENT

37

8

Development Solutions for All Levels of the Organization

38

Aligning people and developing skills and competencies to execute strategy

How We Work with You

39

Development Implement

Solution Follow-up

Analysis & Design

• Stakeholder

commitment

• Understand issues

• Identify what needs

to change

• Identify alternative

approaches

• Agree on KPIs

• Agree on

framework

• Budget

• Design the solution

• Create customized

workshop

• Develop workshop

materials

• Prepare exercises,

group activities

• Add tools and

instruments where

they contribute to

the objectives

• Prepare notebook,

slides, etc.

• With client, enroll

workshop

participants

• Conduct pre-

workshop activities

• Produce ‘kick-off’

event if needed

• Deliver workshop(s)

• Gather stakeholder

feedback

• Coaching

• Stakeholder

support

• Evaluation of

Results

Practices based on sound instructional science and

the best of adult learning theory.

We partner with leading providers to

maximize effectiveness

40

Talent Analytics. Competence Assessments, talent audits, development needs assessments and high-potential identification, Global Talent Survey

Blended learning portal, virtual classroom, e-learning content

Business games. Team-based competitive strategy simulation customized per industry

Customized 360° feedback instruments and corporate surveys, e.g. employee engagement, customer satisfaction, etc.

Best case studies and articles from business schools around the world

Team decision-making “survival” simulations to improve decision-making, conflict management, and group processes

We work with the most widely recognized assessments and exercises

THE MCE DIFFERENCE

41

9

MCE:

Your Premium Provider of Human Capital Development

Business Experience

Pragmatic Approach

Global Mind-set &

Delivery Wide Reach

Flexible to Your Needs

Proven Return on Investment

42

Call MCE Today

43

General number MCE head office:

+32 (0)2 543 21 20

info@mce-ama.com

www.mce-ama.com

Management Centre Europe Committed to developing your people to

overcome the challenges of today’s

changing global economy.