HISTORYIncorporated in 1967 through the merger of 4Danish banks.The mid-Jutland area: Silkeborg Bank, Kjellerup Bank, KjellerupHandels- og Landbobank and the Handels- og Landbrugsbank inSilkeborg.Recognized at most differentiated and unremarkable bank.But in mid 90s, the change process lost its differentiatingcharacteristic.Till 2003, Jyske bank has maintained the highest number of satisfiedcustomer.
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 competitivepositioning?Q: How did Jyske Bank implement those changes?
Strategies (Tangibles)MID 1990’S 2003One employee for a group of A customer allotted to a group ofcustomers bankers Round tables, computer visible, no longer a dais, play place, caféServicescape outlet, specially designed meeting rooms, change in interiors. Friendly images of employees.Physical Evidence: Dull images foremployees
Strategies(Intangibles)MID 1990’S 2003Training provided to employees Training provided to employeesA long procedure before process The procedure is highly reducedcould be computer for better services.
Expanded Marketing Mix for Services PEOPLE PHYSICAL PROCESS EVIDENCEEmployees Facility design Flow of activitiesCustomers Equipment – IT and Number of steps coffee machinesCommunicating Level of customerculture and values involvementEmployee training Business Cards Surprise audits and checks Other tangibles
Out of the Box ServicePhysical 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 edgeTechnology – SimilarDelivery – Significant Differencea)Tools developed Customer Needs Identifyb)Tools + People Cutting Edge
Value addedPeople: Being nice to customers Making time for customers Caring about customers.Focused at niche marketTraining in team building and customer service.Empowerment to employees.Incentives
Service DifferentiatesProcess: Traditional product selling to customer solution approach.Delivery of financial products changed.Employee centricEmpowering employee for decision makingTrainingCommitmentIncentives
ReliabilityResponsiveness Service Situational Quality Factors Assurance Empathy Tangibles Product Customer Customer Quality Satisfaction Loyalty Personal Price Factors
Service QualityResponsiveness According to the Companies core values published for the three major stakeholders, 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 soundbusiness practices•Apply common sense whenever we incur group expenses
Service QualityAssurance According to the Companies core values published for the three major stakeholders, 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 informationobtained in the course of our work•Restrict the degree of openness only by business considerations or byconsiderations for other stakeholders•Respect agreements entered into and do not betray the bank’s confidence•Strive towards making important decisions concerning individual employees onthe basis of constructive dialogue•Communicate openly about the mistakes we make and the problems weencounter•Accept that mistakes are made, that they are corrected, and that focus is then onlearning from the process•Listen openly to new ideas and constructive criticism
Service QualityEmpathy According to the Companies core values published for the three major stakeholders, Reliability comes under value (3) – Genuine Interest and EqualRespect>> 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 ofeach customer•Have job security based on mutual obligations and that we pay attention toindividual and personal needs•Allow the highest possible degree of personal influence on assignments,working hours, and place of work
Service QualityReliability According to the Companies core values published for the three major stakeholders, 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 professionaldevelopment•Act on the basis of competence rather than organizational charge•Support our decisions by well-founded arguments, working hours, and place ofwork
• 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 aProduct particular clientQuality • 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
• As delivering this type of service was expensive, the bank charged a slight premium • Targeted to customers whoPrice were less likely to represent a credit risk • Expectations regarding price and terms were more often included in the application
Service QualityTangibles & Intangibles• Accounts Teams• Branch Design• Details• Empowering the branches
TangiblesAccount Teams1.Caring about customers as individualsBranch Design1.Customer interaction with bankers2.Café: Customer feels welcome3.Round tables: Equality4.Screen visible: Openness5.Home like meeting rooms6.Better photographs: Old family like
IntangiblesEmpowering the branches1.Improved customer experience2.Quality of information and hence quality of loans improved3.Acceptable to customer as well as bank4.Improved branch credit skills, no incentive to make poor loans and robust internal auditing function
IntangiblesEmpowerment throughout the Bank1.When in doubt, ask2.Working hours and vacation3.Spend what you need to spend4.Telling what is expected and checking behavior
Human Resource Strategies for Closing GAP 3 Hire for r Service fo Competencies B Pr e t te t pe es and Service E m e f e he m B le pl rred Co the op Inclination oy Pe er Str ard nd Te Inte kills Tr nica tive Re ure a ch rac Hire the ai n l Pr ervic g fo and ide e Right People on rs w as S r Me ov S Develop Customer- Employees Empower Employees Customers Retain the People to oriented Treat Deliver Best as Service Service People Delivery Quality Em th any’ wo e rk Inc am ot Provide plo e Te rom Co Visio lud es in ye Needed Support mp n P e De Systems Se v e l o s e ur or rvic p as nal i Int ente - e Provide Me ter e Pr ern d In rvic y oc Supportive Se alit es al se s Technology Qu and Equipment