Case Study
HISTORYIncorporated in 1967 through the merger of 4Danish banks.
The mid-Jutland area: Silkeborg Bank, Kjellerup Bank, Kjellerup Handels- og Landbobank and the Handels- og Landbrugsbank in Silkeborg.
Recognized at most differentiated and unremarkable bank.
But in mid 90s, the change process lost its differentiating characteristic.
Till 2003, Jyske bank has maintained the highest number of satisfied customer.
Questions????Q: As of the mid-1990s,what was Jyske Bank’s competitive positioning, that is, what did it do for customers relative to its competitors?
Q: As of 2003, what was Jyske Bank’s competitive positioning?
Q: What did Jyske bank change to enable it to deliver its new competitive positioning?
Q: How did Jyske Bank implement those changes?
Strategies (Tangibles)MID 1990’S
One employee for a group of customers
Servicescape
Physical Evidence: Dull images for employees
2003
A customer allotted to a group of bankers
Round tables, computer visible, no longer a dais, play place, café outlet, specially designed meeting rooms, change in interiors.
Friendly images of employees.
Strategies(Intangibles)MID 1990’S
Training provided to employees
A long procedure before process could be computer
2003
Training provided to employees
The procedure is highly reduced for better services.
Services 7 Ps
Kaffe Bar At Bank
Expanded Marketing Mix Expanded Marketing Mix for Servicesfor Services
PEOPLE PHYSICAL EVIDENCE
PROCESS
Employees
Facility design Flow of activities
Customers Equipment – IT and coffee machines
Number of steps
Communicating culture and values
Level of customer involvement
Employee training Business Cards Surprise audits and checks
Other tangibles
Jyske’s Competitive Positioning
Out of the Box Service
Physical evidence:
Developing a niche market and targeting the right set of customers.
A customer assigned to a group of bankers.
Friendly pictures of employees.
Cutting edge
Technology – Similar
Delivery – Significant Difference
a)Tools developed Customer Needs Identify
b)Tools + People Cutting Edge
Value added People: Being nice to customers
Making time for customers
Caring about customers.
Focused at niche market
Training in team building and customer service.
Empowerment to employees.
Incentives
Service Differentiates Process: Traditional product selling to customer solution approach.
Delivery of financial products changed.
Employee centric
Empowering employee for decision making
Training
Commitment
Incentives
Service Quality
Product Quality
Price
Customer Satisfaction
Situational Factors
Personal Factors
Customer Loyalty
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service Quality Responsiveness
According to the Companies core values published for the three major stake holders, Reliability comes under value (1) – Common Sense >> With both feet placed firmly on the ground, we think before we act<<•Consider common sense our best guide•Apply common sense when solving problems and meeting daily challenges•Allow common sense to override awkward customs and routines•Take action whenever we encounter examples of bureaucratic and routines•Observe existing rules and regulations•Accept that control measures are necessary to a certain degree•Generate satisfactory short and long term financial results by pursuing sound business practices•Apply common sense whenever we incur group expenses
Service Quality Assurance
According to the Companies core values published for the three major stake holders, Reliability comes under value (2) – Open and Honest>> We are open and honest in both word and action<<•Keep each other up-to-date on relevant matters, and do not misuse information obtained in the course of our work•Restrict the degree of openness only by business considerations or by considerations for other stakeholders•Respect agreements entered into and do not betray the bank’s confidence•Strive towards making important decisions concerning individual employees on the basis of constructive dialogue•Communicate openly about the mistakes we make and the problems we encounter•Accept that mistakes are made, that they are corrected, and that focus is then on learning from the process•Listen openly to new ideas and constructive criticism
Service Quality Empathy
According to the Companies core values published for the three major stake holders, Reliability comes under value (3) – Genuine Interest and Equal Respect>> We demonstrate insight and respect for other people<<•Recognize that no two people are alike•Seek lasting relations with shareholders, customers, and employees•Offer qualified advice matching the financial needs and requirements of each customer•Have job security based on mutual obligations and that we pay attention to individual and personal needs•Allow the highest possible degree of personal influence on assignments, working hours, and place of work
Service Quality Reliability
According to the Companies core values published for the three major stake holders, Reliability comes under value (4) – Be efficient and persevering>> We work consistently and with determination to reach our goals<<•Use JB 2005 (the bank’s core values) as a guide in our daily work•Are not blown off course because of external circumstances - •Adopt an organization which promotes efficiency•Consider security important •Are convinced that efficiency increases with the level of personal responsibility•Allow employees to assume personal responsibility for day-to-day decisions – even when the basis for decision making may not be 100% perfect•Acquire the level of skills required through personal and professional development•Act on the basis of competence rather than organizational charge•Support our decisions by well-founded arguments, working hours, and place of work
Product Quality
• New IT systems helped employees take customers through processes to determine their needs and find appropriate solutions
E..g : Determining the style of investment products based on risk aversion, time frame and return goals customized for a particular client
• 98% of the loans processed at regional office itself
• Smaller loans provided almost instantly
• Larger loans approval time reduced from 3 weeks to 10 days
Price
• As delivering this type of service was expensive, the bank charged a slight premium
• Targeted to customers who were less likely to represent a credit risk
• Expectations regarding price and terms were more often included in the application
Service Quality
Tangibles & Intangibles
• Accounts Teams• Branch Design• Details• Empowering the branches
TangiblesAccount Teams
1.Caring about customers as individuals
Branch Design
1.Customer interaction with bankers
2.Café: Customer feels welcome
3.Round tables: Equality
4.Screen visible: Openness
5.Home like meeting rooms
6.Better photographs: Old family like
IntangiblesEmpowering the branches
1.Improved customer experience
2.Quality of information and hence quality of loans improved
3.Acceptable to customer as well as bank
4.Improved branch credit skills, no incentive to make poor loans and robust internal auditing function
IntangiblesEmpowerment throughout the Bank
1.When in doubt, ask
2.Working hours and vacation
3.Spend what you need to spend
4.Telling what is expected and checking behavior
Human Resource Strategies for Closing GAP 3
Customer-oriented Service Delivery
Hire theRight People
ProvideNeeded Support
Systems
Retain theBest
People
DevelopPeople to
DeliverServiceQuality
Compete
for
the B
est
People
Hire for Service
Competencies and Service Inclination
Provide Supportive Technology
and Equipment
Tre
at
Em
plo
ye
es
a
s
Cu
sto
me
rs
Em
po
we
r E
mp
loy
ee
s
Be the Preferred
Employer Train for
Technical and
Interactive
Skills
Prom
ote
Team
wor
k
Measure
Internal
Service
Quality
Develop Service-
oriented Internal
Processes
Mea
sure
and
R
ewar
d S
tron
g S
ervi
ce
Pro
vide
rs
Include
Em
ployees in
the
Com
pany’s
Vision
Thank You
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