Transcript Working Organization

Working Organization: Trends and
Challenges for Professional and
Managerial Staff
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Background: a bundle of new developments
Competition in the bank sector
Virtualization
New mix of services offered by banks
European developments
• Discussion groups on the Cypriote situation:
questions
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A Working Organization
Gerald Musger
A bundle of demographic, technical and social
developments influences the background
• European societies becoming older and richer, but
concentrated at middle aged working people and
smaller groups of retired
• Social security systems becoming more and more
inbalanced because the number of working and
paying citizens relatively declines
• Private accumulation of money/capital and private
individual pension systems becoming more and more
important
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A Working Organization
Gerald Musger
A bundle of demographic, technical and and
social developments influences the background
• Always actual account services all over the world
through electronic networks and internet
• Fast systems of electronical proving, comparing data
and simulating options or scenarios
• All field representatives always easily connected with
the bank centre (mobile technology)
• Automatic systems allow customers‘ self service or
e-banking from their homes or offices
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A Working Organization
Gerald Musger
A bundle of demographic, technical and social
developments influences the background
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Diversification and changes of lifestyles
Job and private life stability declines
Legal deregulation accelarates changes
European market motivies for mobility
European monetary union improves private
customers‘ crossborder activities (e.g. looking for
cheap credits)
• European legislation improves the safety of
Europewide activities
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A Working Organization
Gerald Musger
Competition in the bank sector:
Key elements for success...
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Big is effective (cf Mergers and Acquisitions module)
Outsourcing, insourcing and networking
Focus on customers: lowcost, anytime, anywhere!
Flexibility in change, decisions, offers, services
Balancing of engagement in new fields (e.g. advisory
or insurance services, new economy) and
disengagement from declining or instable fields (e.g.
old economy industries)
• Reconstruction: technology, human resources,
logistic
A Working Organization
Gerald Musger
Competition in the bank sector:
Measures phase 1: automatization
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• Back office automatization by electronic systems
• Development of electronic networks between
departments inhouse and branch offices
• Outsourcing of special departments: electronic data
processing departments becoming independent
software companies
• Bank employees need a lot of new computer skills
• Some old competencies becoming less important
• P&MS: control partly shifting from persons to
electronic systems
A Working Organization
Gerald Musger
Competition in the bank sector:
Measures phase 2: restructuring
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• Cashier areas reduced: self service areas extend
opening times with less personal
• Advisory departments getting more important: the
wide field how to invest money needs profound
information and advice
• New additional services (insurances, funds,
pensions) for private customers
• New services for companies, esp. small and middle
sized enterprises (the bank as their finance
department)
A Working Organization
Gerald Musger
Competition in the bank sector:
Measures phase 3: competence changes
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Reduction of branch offices and allround staff
Increase of specialized staff in central branch offices
and for company customers:
advisory competencies (e.g. investment consultance)
insurance specialists
stock analysts and brokers
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Field consultants with allround competencies to
advise private customers at their villages and homes
Decrease of hierarchy levels and managerial
positions
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A Working Organization
Gerald Musger
Virtualization of banking services (1)
• Following economists‘ definitions we may call money
a sort of „virtual work“. When you have a twohundred
Euro note in your hand, you cannot see what real
work it is based on.
• Now we can see new developments:
A banking operation need not be operated in a real branch
office.
An account sum need not be based on real money.
And you do not see where and when all the operation data are
processed, proved, administrated...
• Welcome in the world of „virtual money“!
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A Working Organization
Gerald Musger
Virtualization of banking services (2)
• Allows fast and global transfer of virtual money of any
type
• Extends bank working time to possible 24 hours 7
days
• Allows separating customers‘ and staff‘s activities
and work of service partners by time and location
• Establishes a new customer – bank – relation by
shifting some part of service and risk to the customer
• Makes the staff working back office anywhere less
visible
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A Working Organization
Gerald Musger
Virtualization of banking services (3)
Challenges for P&MS:
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• Competence: The specialists in banking operations
are as important as the specialists in data processing
system architecture
• A virtual network needs sophisticated systems of
supervising and controlling staff and quality of work
• The globalized network of dislocated and
diversificated services needs fast and precise
decisions with high chances and risks – an huge
challenge for managers
• Virtual bank organizations are by nature instable:
change management is necessary
A Working Organization
Gerald Musger
New mix of services offered by banks
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Giro/credit card services
Investment funds, mortgages, deposits
Internet and telephone banking
Pension insurance and pension funds
Lifecare insurances
systems for car financing
Special finance services for small and middlesized
enterprises
• Investment engagements in new fields of industry,
tourism or infrastructure
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A Working Organization
Gerald Musger
European Market Developments
• Despite EU directives the various national legal
systems remain
• New services increase income and improve bank
profitability: e.g. payment/credit card services,
pension and life insurances
• Despite common currency price spreads seem to
remain important (local and European markets)
• Employment and wages in banks overall Europe
relatively stable
• Strategic positioning and adaption of legal systems to
European right already ongoing in applicant countries
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A Working Organization
Gerald Musger
Questions to debate the Cypriote
situation
• Which of the mentioned trends are actual in Cypriote
banks? (personal experience or feeling, data
available)
• Which are measurable results:
hierarchy levels
development of staff‘s quantity/quality of skills
offer of services etc.
• Which are the main chances of developments?
• Looking 5 years forward: What will be changed?
• And how can all these changes be managed?
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A Working Organization
Gerald Musger