Jyske BankCase Facilitati on

Errol Fernandes ID: 12433960

May 2

201 2
Jyske Bank

1- What changes did the bank make to get to its new position as the most customer-focused bank? !e Jyske "ro#$ is Danis! %ank t!at is o&ned and o$erated as a %#siness' !e co($any attac!es )reat i($ortance to treatin) t!eir t!ree )ro#$s o* stake!olders- shareholders, clients and employees + &it! e,#al res$ect' I* t!e %alance s!i*ts in *a-o#r o* one or t&o o* t!e )ro#$s. t!is &ill %e to t!e lon)-ter( detri(ent o* all )ro#$s /0eit!(al. Bitner and "re(ler 19961'

!e %ank2s core -al#es are its *#nda(ental cornerstone' In t!e eyes o* %ot! clients and e($loyees. t!e *ollo&in) traits are &!at (ake Jyske %ank #ni,#e:
Co((on sense 3$en and !onest Di**erent and #n$retentio#s "en#ine interest and e,#al res$ect E**icient and $erse-erin)

!ese sa(e core -al#es led Jyske (ana)e(ent to re-e-al#ate !o& t!e %ank did %#siness &it! its c#sto(ers' !e (ana)ers kne& t!at i* t!ey &ere to stay tr#e to t!ese -al#es t!at t!ey &o#ld !a-e to c!an)e t!eir conser-ati-e $osition o* t!e $ast and %eco(e a ser-ice dri-en and c#sto(er inno-ati-e %ank &it!in t!e co($etiti-e %ankin) sector' !e %ank (ana)ed to ac!ie-e its ne& c#sto(er orientated $osition %ased on t!ree *#nde(antal areas: 1- Competitive Positioning In a !i)!ly co($etiti-e %ankin) sector. (ana)ers looked to t!e %ank2s core -al#es and di**erences to esta%lis! its co($etiti-e $osition' !e %ank &it! t!e !el$ o* a cons#ltant cond#cted (arket researc! into t!eir $ri(ary tar)et (arket' !e researc! *indin)s s!o&ed t!e tar)et (arket consistin) (ainly o* D#tc! *a(ilies /604 retail1 and s(all Danis! %#sinesses /404 2

co((ercial1. &ere *a-o#ra%le to&ards t!e idea o* %ank t!at !ad a $ersona and %elie-ed in &!at it stood *or /0eit!(al. Bitner and "re(ler 19961' 5dditional researc! &as also cond#cted in (ore di**ic#lt areas concernin) t!e %anks 462s- 6rod#ct. 6lace. 6rice and 6ro(otion *ro( a c#sto(er orientated stand$oint' In contrast. so*t *actors s#c! as c#sto(er relations!i$s &it! t!e %ank. ser-ed as t!e %ank2s (ain $oint o* co($etiti-e di**erentiation' In addition. Jyske %ank concentrated on ser-ice inno-ation and de-elo$in) tools to s#$$ort sol#tion %ased ser-ice deli-ery' For e7a($le: I syste(s !el$ed e($loyees take c#sto(ers t!ro#)! $rocesses to deter(ine needs and *ind sol#tions' o a-oid !i)!er costs o* (aintainin) certain c#sto(ers. Jyske %ank #tilised de(o)ra$!ic se)(entation to it %ene*it' !ey also c!ar)ed a !i)!er $re(i#( and tar)eted only c#sto(ers less likely to %e a credit risk' Finally. t!e %ank decided to e(%race its o&n 2Jyske2 $ersona and $ersonality as $art o* its ne& co($etiti-e $ositionin) e-en t!o#)! t!ey kne& &!at $rice t!at ca(e alon) &it! %ein) $#rely Jyske' 2angible !spects

5lt!o#)! t!e %anks core $rod#cts re(ained si(ilar to ot!er Danis! %anks. t!ey &ay t!ey deli-ered t!e ser-ice c!an)ed' !is re,#ired si)ni*icant c!an)es to %ot! tan)i%le and intan)i%le as$ects o* t!e %ank' !e %ank %e)an o**erin) a (ore $ersonalised ser-ice to its c#sto(ers %y assi)nin) eac! c#sto(er a %ranc! e($loyee' 3-erti(e. (ana)ers sa& t!at t!is created $ro%le(s d#e to nat#re o* t!e %ranc! e($loyee 8o% to ser-e (any c#sto(ers and t!ere*ore co#ld not dedicate indi-id#al attention to one e($loyee' !e sol#tion &as (ore e**icient c#sto(er orientated acco#nt tea(s. &!ere eac! c#sto(er &as dealt &it! %y a s(all tea( o* %ranc! %ankers on a indi-id#al one to one %asis' In ter(s o* %ranc! desi)n. t!e %ank s$end 9:0 (illion to $!ysically redesi)n its %ranc!es. so it looked (ore like a ad-ertisin) a)ency or a s(all !otel and c!an)ed t!e &ay c#sto(ers interacted &it! %ankers /0eit!(al. Bitner and "re(ler 19961' !e s(aller details is &!at di**erentiated Jyske %ank t!e (ost' For e7a($le. !irin) a $ro*essional $!oto)ra$!er to take $!otos o* %ankers %#siness cards and t!en editin) t!e $!otos sli)!tly &it! a yello& tint. to )i-e a (ore *a(ily *eel )a-e t!e notion t!at %ankers &ere $art o* t!e co((#nity 8#st like a c#sto(er and not so(eone in a#t!ority &earin) a #ni*or(' "- #ntangible $ifferences Deli-erin) on t!e %ank2s ne& co($etiti-in) $ositionin) also re,#ired c!an)es to t!e intan)i%le as$ects not -isi%le to c#sto(er'

Be*ore any %ranc! &as redesi)ned. all sta** took $art in s$ecial trainin) sessions s#c! as tea(%#ildin) and c#sto(er ser-ice sessions. dra&in) on %est c#sto(er $ractises *ro( t!e retail sector' Jyske (ana)e(ent stron)ly %elie-ed t!at -al#e is created t!ro#)! decisions and enco#ra)ed e($o&er(ent o* not only e($loyees %#t also o* t!e &!ole %ranc!. &it! t!e (ana)ers to set t!e e7a($le t!ro#)! t!eir leaders!i$ and (ana)e(ent style' 5dditionally. &it! doc#(entation. trainin) and le)al doc#(ents all centralised at t!e %ank2s !ead,#arters it allo&ed !#(an reso#rces to %e (ore acti-e in dealin) &it! !#(an iss#es and e-en ena%led t!e( to o#tso#rce t!eir $ro%le( sol-in) skills as ;< $ro*essionals in t!e *ield /at a re)ional le-el1 *or a *ee' !is ser-ice &as at t!e cost o* t!e %ank %ranc! i* t!ey needed it. %#t &as not co($#lsory'

2- Construct a detailed blueprint of the service process to highlight the changes from a customer%s perspective& =er-ice %l#e$rintin) can %e de*ined as a $ict#re or (a$ t!at s!o&s a ser-ice cascade so t!at -ario#s indi-id#als in-ol-ed in $ro-idin) t!e ser-ice can #nderstand and deal &it! it o%8ecti-ely. re)ardless o* 8o% titles or indi-id#al $oints o* -ie& /0eit!(al. Bitner and "re(ler 1996. 26:1' !e dia)ra( %elo& s!o&s t!e %l#e$rint o* t!e -ario#s ser-ice enco#nters o* a c#sto(er in,#irin) on a loan *ro( Jyske Bank' Fro( a c#sto(er>s $ers$ecti-e. so(e o* t!e c!an)es in ser-ice deli-ery. co#ld co(e in t!e *or( o* a (ore inter$ersonal ser-ice &it! a dedicated tea( o* Jyske %ranc! %ankers alon) &it! *aster loan a$$ro-al- %ank (ana)er si)n o** rat!er t!an !eado**ice' 5dditionally. $otential *ail#re $oints can %e identi*ied *or e7a($le i* t!e c#sto(er is not !a$$y &it! t!e ser-ice deli-ery o* t!eir %ranc! %ankers? t!is co#ld i($act @Jyske> i(a)e. core -al#es and o-erall co($etiti-e $osition' 3t!ers *ail#re $oints incl#de. not recei-in) t!e %est loan on t!e (arket or t!e loan a$$ro-al $rocess is delayed d#e to %ranc! %ankers !#(an error'

"- 'ow and why did (yske )ank empower their employees? What have been the benefits? What are the potential costs? 5ccordin) to /0eit!(al. Bitner and "re(ler 1996. 3691 e($o&er(ent (eans )i-in) e($loyees t!e a#t!ority. skills. tools. and desire to ser-e t!e c#sto(er' Many or)anisations !a-e disco-ered t!at to %e reacti-e to c#sto(er needs. *rontline sta** need to %e e($o&ered to acco((odate c!an)in) re,#ests or $ro-ide a sol#tions t!e(sel-es i* so(et!in) is &ron)' F#rt!er(ore researc! s#))ests t!at e($o&erin) e($loyees can res#lt in %etter 8o% satis*action. 8o% stress and %etter o#tco(es *or c#sto(ers' In re*erence to Jyske %ank t!e reason &!y e($o&er(ent strate)ies &orks %est is: - Jyske %ank %#siness strate)y is one o* di**erentiation and c#sto(isation' - Bank c#sto(ers are lon)-ter( relations!i$ c#sto(ers - ec!nolo)y is co($le7 - !e %#siness en-iron(ent is #n$redicta%le By e7a(inin) t!e or)anisational str#ct#re. Jyske %ank &ere a%le to see &!ere -al#e &as created and &ere s!o#ld decisions %e (ade to )enerate t!e (ost -al#e *or its c#sto(ers /0eit!(al. Bitner and "re(ler 19961' E7a($le o* e($o&er(ent in action incl#de *le7i%le &orkin) !o#rs. -acation ti(e and %ranc! (ana)ers rat!er t!an !ead o**ice a$$ro-in) (a8or loans' !e %ene*its !a-e %een disc#ssed earlier in ter(s o* %etter e($loyee 8o% satis*action. 8o% stress and %etter o#tco(es *or c#sto(ers' In ter(s o* cost. t!is co#ld as a res#lt o* e($loyee (is#se o* *le7i%le &ork conditions and

ne& e($loyee trainin) costs to learn t!e Jyske &ay o* deli-erin) a ser-ice to its c#sto(ers'

*& $escribe the strategies (yske )ank used to deliver service +uality through people& )e sure to discuss all the dimensions of service +uality? <esearc! s#))ests t!at c#sto(ers> 8#d)e ser-ice ,#ality %ased on (#lti$le *actors' !ese can ran)e *ro( $erce$tions o* t!e o#tco(e $ro-ided. t!e $rocess %y &!ic! o#tco(es are deli-ered and t!e ,#ality o* t!e $!ysical s#rro#ndin)s /0eit!(al. Bitner and "re(ler 1996. 1131' !e researc! identi*ied *i-e s$eci*ic areas o* ser-ice ,#ality: Reliability- &!ic! is t!e a%ility to $er*or( t!e ser-ice as e**iciently and relia%ly as $ossi%le' In ot!er &ords. co($any2s deli-erin) on t!eir $ro(ises' For Jyske %ank. t!eir %#siness strate)y %eca(e one o* di**erentiation %ased on c#sto(er orientation as a res#lt o* t!eir core -al#es' !ey &anted to (o-e a&ay *ro( %ein) t!e conser-ati-e %ank o* t!e $ast and *oc#s on deli-erin) on t!e indi-id#al %ankin) needs o* its c#sto(ers' Fir(s need to %e a&are o* c#sto(er e7$ectations s#rro#ndin)s /0eit!(al. Bitner and "re(ler 1996. 1131' <elia%ility is t!e (ost i($ortant deter(inant in ter(s o* $erce$tion o* a ser-ice' Responsiveness- is &ilin) to !el$ c#sto(ers and $ro-ide a $ro($t ser-ice' <es$onsi-eness is co((#nicated to a c#sto(er %y len)t! o* &ait ti(e *or recei-in) assistance. ans&ers to ,#estions or $ro%le( sol-in)' For res$onsi-eness to &ork a co($any needs to -ie& t!e ser-ice deli-ery and !andlin) o* ser-ice *ro( a c#sto(er2s $ers$ecti-e' o di**erentiate %ased on res$onsi-eness. co($anies need to !a-e &ell trained *ront line sta** and res$onsi-e $eo$le across all $ositions s#rro#ndin)s /0eit!(al. Bitner and "re(ler 1996. 1141' Mana)ers at Jyske %ank %elie-ed t!at %eca#se t!e e($loyee is in direct contact &it! t!e c#sto(er &!o (ade a loan a$$lication. t!e ,#ality o* in*or(ation in a$$lications increased. (ore %orro&ers &ort!y o* credit recei-ed it and lar)e loan a$$ro-al $!ases red#ced si)ni*icantly *ro( t!ree &eeks to ten days &it! s(aller loans %ein) a$$ro-ed al(ost instantly' Assurance- defined as e($loyee2s co#rtesy and kno&led)e o* in*or(ation %#t also t!e a%ility o* t!e *ir( to (oti-ate and create a c#lt#re o* tr#st and con*idence /0eit!(al. Bitner and "re(ler 1996. 1141' C#sto(er2s $ercei-e t!is di(ension as !i)! risk and is t!ere*ore considered o* !i)! i($ortance *ro( a *ir(>s $ers$ecti-e- es$ecially *or ser-ice in &!ic! c#sto(ers *ind it !ard to e-al#ate t!e o#tco(e' B#ildin) tr#st and loyalty cannot %e ac!ie-ed in one day. and is a relations!i$ t!at is ce(ented o-er ti(e' 5s a %ranc! %ankers &orkin) at Jyske %ank t!e role o* t!ese %ankers is to )et to kno& t!eir c#sto(ers indi-id#ally so t!at ele(ent o* tr#st and loyalty can %e

(aintained. as t!is is t!e )ro#$ &!o &ill coordinate all %ankin) ser-ices *or a lon) $eriod o* ti(e' Empathy- relates to treatin) c#sto(ers as indi-id#als' It is critical to con-ey t!at c#sto(ers are #ni,#e and s$ecial and t!eir needs no (atter !o& %i) or s(all can %e #nderstood and dealt &it! in a *riendly and co#rteo#s (anner' In t!e case o* Jyske %ank e($at!y is re,#ired &!en *rontline sta** s$eak to c#sto(ers &!ose !o(e loan !as %een knocked %ack d#e to $oor *inances or loss o* &ork' 5lso it is i($ortant t!at certain %ranc!es !a-in) con-enient o$enin) or closin) !o#rs to acco#nt *or c#sto(er %#sy sc!ed#les' Tangibles- re*er to t!e $!ysical a$$earance. *acilities and tec!nolo)y /0eit!(al. Bitner and "re(ler 1996. 11:1' an)i%les $ro-ide i(a)es t!at es$ecially ne& c#sto(ers #se to e-al#ate ser-ice ,#ality' 5t Jyske %ank a c#sto(er &aitin) *or t!eir %anker co#ld !el$ t!e(sel-es to *res! co**ee &!ile &aitin)' !is (akes t!e c#sto(er not only *eel &elco(e. it says t!at t!e %ank is interested in yo#r %#siness no (atter !o& %i) or s(all it (ay %e' !bstract ,-elated . /*0 -eference1 Co&lin). 5lan. Ae&(an and Barin' 199:' CBankin) on $eo$le: TQM, service quality and human resources ersonnel Revie! 24/91: 2:' !tt$:DDsearc!'$ro,#est'co('d%)&'lisDc#rtin.ed#'a#Ddoc-ie&D214E13acco#nti dF103E2 urpose + 5n in-esti)ation into t!e introd#ction o* otal G#ality Mana)e(ent / GM1 into 2 (a8or %anks in t!e HB is re$orted on. &it! a s$ecial *oc#s on t!e reactions o* e($loyees' "esign#methodology#approach + &o di**erent a$$roac!es: Bank 3ne #ses =E<IGH5J t!e : di(ensions o* =er-ice G#ality and Bank &o @a%sol#tes o* ,#ality> di(ensions' $indings + !is st#dy de(onstrates t!e s#ccess and li(itations o* eac! ser-ice ,#ality di(ension a$$roac! and $ro-ides lessons t!at can %e learned %y senior (ana)e(ent and !#(an reso#rces' Research limitations#implications + !e case st#dy a$$roac! #sed !as $ro-ided a )ood ran)e o* learnin) and trans*era%le in*or(ation? alt!o#)! *irst $#%lis!ed in 199: it !as %een #$dated on E J#ne. 2010. so can still %e rele-ant researc!' ractical implications + !e co($arison in t!e article o* t!e t&o %anks %ased on ser-ice ,#ality di(ensions $ro-ides -al#a%le e-idence *or ser-ice ind#stries. &!ic! as t!e article states is si(ilar to t!e (an#*act#rin) ind#stry' It also $ro-ides a &ealt! o* kno&led)e concernin) t!e role o* !#(an reso#rce' ;o&e-er t!ere is little e-idence a%le to #se t!is o$$ort#nity to ac!ie-e a (ore strate)ic role *or !#(an reso#rces'

%riginality#value + "ood co($arison o* ser-ice ,#ality di(ensions %ased on -aryin) criteria o* t!e traditional =E<IGH5J a$$roac! and t!e a%sol#tes o* ,#ality a$$roac! s#))ested' 6ro-ides -al#a%le e-idence *or ser-ice ind#stries'

-eferences 5%o#t Jyske Bank' 2011' !tt$:DD8yske%ank'co( Co&lin). 5lan. Ae&(an and Barin' 199:' CBankin) on $eo$le: TQM, service quality and human resources ersonnel Revie! 24/91: 2:' !tt$:DDsearc!'$ro,#est'co('d%)&'lisDc#rtin.ed#'a#Ddoc-ie&D214E13acco#nti dF103E2 0eit!(al'I. M' Bitner and D' "re(ler 1996' =er-ices Marketin): Inte)ratin) c#sto(er *oc#s across t!e *ir(' Mc"ra&-;ill Ir&in' Ae& Kork'