The Death Of The Dinosaurs
How To Transform Yourself Before Somebody
Else Does It….
Dr. A.P. de Bree MBA, FINtel 2008, Bru...
Content
•   Introduction
•   The “Dinosaur Argument” (2001)
•   Towards the Risk Intelligent Enterprise
•   “Change” vs “T...
Introduction
Introduction
•   Tony de Bree:

     –   Technology Based learning: contracting
     –   IT: contracting/negotiating/strat...
The “Dinosaur”
  Argument
The “Dinosaur”Argument
“Dinosaur”Argument:

•   Bill Gates (1998): “large banks own dinosaur architectures that are not
  ...
The “Dinosaur”Argument
Results of our organisational Corporate Profiling in Europe (2001):

•    UBS, Credit Suisse, ABN A...
Towards The Risk
Intelligent Enterprise
The Risk Intelligent Enterprise
•   After the 11th of September 2001:

     – From ‘Traditional’ Risk Management to ‘Regul...
The Risk Intelligent Enterprise
What are the basic principles of ‘the Risk Intelligent Enterprise’?

•   An organisational...
The Risk Intelligent Enterprise
What does this “Risk Intelligent Enterprise’ look like?

•   It is flat, de-layered and fl...
“Change” vs
“Transformation”
“Change”vs “Transformation”
      S“
 “AS-I




   Traditonal approach of large Banks:change management.
You take the time...
“Change”vs “Transformation”




  And we keep on talking until everybody agrees…..but….


                 Dr. A.P. de Bre...
“Change”vs “Transformation”




         Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
“Change”vs “Transformation”
The Transformation/split-up imperative:

• There is no time for a step-by-step change manageme...
“Change”vs “Transformation”




         Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
How to Self-Assess your
        bank?
How to Self Assess your bank?
How to self assess your bank (“Corporate Profiling” like in 2001):

• 7 connected elements o...
How to Self Assess your bank?




         Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
How to Self Assess your bank?




         Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
How to split up your
      bank?
How to split-up your bank?
Lessons learned and tips for splitting up a bank:

•   Financial Services companies create valu...
Unleashing the
 killer-apps
Unleashing the killer-apps
7 Killer-apps for large banks helping them to transform themselves:

•   “Internal Monitoring A...
What (or “who”) is next?
What (or “who”) is next?
To be expected:

•   More right offs also in insurance, life insurance and pension funds;

•   Mo...
Thank You!
Further reading and contact
           info…
Further reading and contact info…
   My Personal Blog, Free Downloads & Contactinfo:
                www.tonydebree.com

 ...
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"Death Of The Dinosaurs". Presentation by Tony de Bree on the bleak future of large banks, Fintel 2008, Brussels

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Presentation at Fintel 2008 in Brussels on "Death Of The Dinosaurs": How To Transform Yourself Before Somebody Else Does It…. by Tony de Bree, www.tonydebree.com

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"Death Of The Dinosaurs". Presentation by Tony de Bree on the bleak future of large banks, Fintel 2008, Brussels

  1. 1. The Death Of The Dinosaurs How To Transform Yourself Before Somebody Else Does It…. Dr. A.P. de Bree MBA, FINtel 2008, Brussels.
  2. 2. Content • Introduction • The “Dinosaur Argument” (2001) • Towards the Risk Intelligent Enterprise • “Change” vs “Transformation” • How to Self Assess your bank? • How to split-up your bank? • Unleashing the killer-apps • What (or “who”) is next? • Further reading and contactinfo… Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  3. 3. Introduction
  4. 4. Introduction • Tony de Bree: – Technology Based learning: contracting – IT: contracting/negotiating/strategy – HR: strategy and new technologies – M&A teams (Generale Bank) – Merging units within AMRO – Merger ABN and AMRO – Investment Bank (back-to-front including Head of Global Custody BO) 1995-1997 • Network management • Merger with MeesPierson • JV with Mellon – Corporate IT Strategy & Architecture: 1997-2001: • Global Strategy of the Group (business and IT) • Strategic consultancy and advice • Venture Capital (.com companies) • Ecommerce projects with Dutch clients • European Ecommerce Projects – Transformation and split-up of ABN AMRO Trust: 2001-2004 2001: Book On Future Of Financial Services And Especially The Impact Of New Technology On Universal Banks using Quick Scans on current names. – Global Program Manager Compliance after 9/11 (2005) – Global Project Leader Business Risk Assessment Private Clients (2006) – Transition Manager Global Due Diligence Management (2007) – Separation and Integration Manager Fortis (2007-2008) – Separation Manager ABN AMRO Retained (2008-) Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  5. 5. The “Dinosaur” Argument
  6. 6. The “Dinosaur”Argument “Dinosaur”Argument: • Bill Gates (1998): “large banks own dinosaur architectures that are not flexible, too expensive and not future proof”. • The end of the universal banking/BCG model (March 2000, FT) and the need to split up because: – No highly specialised expertise – No focus: everything for everybody (muliple BUs, multiple countries) – Not able to attract and keep top employees – Not the right organisational characteristics (bureaucratic, internal focus etc) – Not able to adapt themselves sufficiently and quick enough and therefore ** Not suitable for the new environment ** Challenge: how to transform yourself before you become extinct. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  7. 7. The “Dinosaur”Argument Results of our organisational Corporate Profiling in Europe (2001): • UBS, Credit Suisse, ABN AMRO, ING, Fortis, Barclays • “New meteorite”: the Internet & new technologies like Web 2.0 in combination with the digitisation of banking products and services and thus potential virtualisation of all business processes end-to-end. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  8. 8. Towards The Risk Intelligent Enterprise
  9. 9. The Risk Intelligent Enterprise • After the 11th of September 2001: – From ‘Traditional’ Risk Management to ‘Regulatory Risk Management’ – Focus on HOW results are obtained, not only on financials from the past => using organisational scans – Critical business processes are: • Client-acceptance (KYC) • Client-servicing • Complaints-handling • M.I.S. • Continuous reporting to internal and external stakeholders – Challenge: better client-servicing, lower costs and lower risks (and compliance): “How to be compliant while still having clients?”: AAT/eTrust (2001). Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  10. 10. The Risk Intelligent Enterprise What are the basic principles of ‘the Risk Intelligent Enterprise’? • An organisational approach to risk, with a holistic view and using (Quick) Organisational Scans • New perspective on risk management processes and systems in response to or pro-active actions towards the business environment: – risk is the result of choices and decisions – alignment of strategic decisions regarding organisational and individual competencies including the ones of auditors and Risk Managers – with the perspective of the network/ relationship organisation level view of risk – management of the organisational tangible and intangible assets while optimising growth or survival opportunities including data, information and knowledge/experiences of staff/employees. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  11. 11. The Risk Intelligent Enterprise What does this “Risk Intelligent Enterprise’ look like? • It is flat, de-layered and flexible • It has an agile, opportunity based structure/design • There is hardly any difference anymore between “inside” and “outside” the organisation • It has flexible automated monitoring and prevention systems in place including “electronic hooks” from Regulators • It is using new web based and thin-technologies on a large scale • Management is using “hyper-competition” and “extreme competition” strategy models & automated scenario planning • It has a culture of client-focus/client-centricity and collaboration: the “relationship organisation”/”network organisation” similar to social networks But how do we get there? With change, transformation or … Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  12. 12. “Change” vs “Transformation”
  13. 13. “Change”vs “Transformation” S“ “AS-I Traditonal approach of large Banks:change management. You take the time with a step-by-step approach (including BPM)…. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  14. 14. “Change”vs “Transformation” And we keep on talking until everybody agrees…..but…. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  15. 15. “Change”vs “Transformation” Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  16. 16. “Change”vs “Transformation” The Transformation/split-up imperative: • There is no time for a step-by-step change management approach because • The problems in many large traditional banks are too great: – The business model/the strategy – The culture and inward focus – The (IT) Systems – The structure – The quality and number of (senior) managers – The missing organisational capabilities – The missing organisational competenties Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  17. 17. “Change”vs “Transformation” Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  18. 18. How to Self-Assess your bank?
  19. 19. How to Self Assess your bank? How to self assess your bank (“Corporate Profiling” like in 2001): • 7 connected elements of the Corporate Profile of your Bank creating or destroying value: – People & Skills – Core goals and values – Strategy – Business processes – Structure/design – Systems (including reward systems and IT) – Culture • Step 1: Quick Scan Self Assessment and map the results on the Transformation Grid • Step 2: Take action: change, transform or split up Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  20. 20. How to Self Assess your bank? Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  21. 21. How to Self Assess your bank? Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  22. 22. How to split up your bank?
  23. 23. How to split-up your bank? Lessons learned and tips for splitting up a bank: • Financial Services companies create value through Service Profit Chains in networks leveraging network economics like in communities. The value is in the network. • Critical stakeholders: – Clients – Employees – Partners – Shareholders • Critical intangible assets: – Clients – Employees (knowledge and experience) – Network infrastructures – Data, documents and knowledge about clients – Reputation – Time “Split Up Value Is Always OVERESTIMATED, Split-Up Costs Always Are Always UNDERESTIMATED” Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  24. 24. Unleashing the killer-apps
  25. 25. Unleashing the killer-apps 7 Killer-apps for large banks helping them to transform themselves: • “Internal Monitoring And Intervention Systems” (Senior management, compliance, risk, audit etc supporting the Risk Intelligent Enterprise). • Using Web 2.0 within organisations to transform/split the company to become agile, cut interaction & transaction costs & to become customer-centric. • Merging of internal applications and external collaborative environments in real- time to become client-centric. • Step-by-step replacement of current “dinosaur” infrastructures where possible (non-transaction) across silos. • Standardisation of all user experiences connecting everybody to everybody (when allowed) within the “organisation/networks”. • Replacing traditional “workflow and BPM tools” and other components with lite rule-based/knowledge-based applications to connect the value network and the communities. • In merger & split up programs and projects. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  26. 26. What (or “who”) is next?
  27. 27. What (or “who”) is next? To be expected: • More right offs also in insurance, life insurance and pension funds; • More large banks breaking up themselves or split by new owners; • Massive layoffs in Financial Services. Especially (senior) management; • Increased implementations of SOA using Web 2.0 type of tools and applications; • Organisations will more and more start to look like social networks and companies like Paypal also under the impact of Extreme Competition; • A few very large but automated infrastructural banks will survive globally (payments, securities, financial engineered products/services); • Increased implementation of knowledge-based systems and intelligent systems in support of the Risk Intelligent Enterprise also by Regulators and Governments; • Large U.S. & U.K. banks will have to revisit their strategies. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
  28. 28. Thank You! Further reading and contact info…
  29. 29. Further reading and contact info… My Personal Blog, Free Downloads & Contactinfo: www.tonydebree.com Coming up (2008-2009): - “Banking Massacre” and And… - “Stress Management For Bankers” - “Work-life balance for bankers”. Dr. A.P. de Bree, “The Death Of The Dinosaurs”, Fintel 2008.
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