PEOPLE, SERVICE, AND PROFIT AT JYSKE BANK

Summery :

The Jyske Bank Group is managed and operated as a business. At the same time, They attach

great importance to treating their three groups of stakeholders-shareholders, customers

and employees-with equal respect. This is illustrated by three equally big overlapping circles

which must remain in perfect balance. If the balance shifts in favor of one or two of the

groups, this will be to the long-term detriment of all the groups.

In 2003, Jyske Bank Group's primary operations consisted of Jyske Bank, which was the third

largest bank in Denmark after Den Danske Bank and Nordea's Danish operations (see Exhibit

1). Jyske Bank was created in 1967 through the merger of four Danish banks having their

operations in Jutland, Jyske being Danish for "Jutlandish." Jutland was the large portion of

Denmark attached to the European mainland to the north of Germany. Until the late 1990s,

Jyske Bank was characterized as a typical Danish bank: prudent, conservative, well-

managed, generally unremarkable, and largely undifferentiated.

At the heart of these changes was the bank's determination to be, in the words of one

executive, "the most customer-oriented bank in Denmark." The bank achieved its goal by

focusing on what it called Jyske Forskelle, or Jyske Differences.

JYSKE BANK Incorporated in 1967 through the merger of 4Danish banks.

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 customers.

A customer allotted to a group of bankers

Friendly images of employees.

The procedure is highly reduced for better services.

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Q 01: AS OF THE MID 1990’S WHAT WAS JYSKE BANK’S COMPETITIVE POSITIONING ?

THAT IS WHAT DID IT DO FOR CUSTOMERS RELATIVE TO ITS COMPETITORS ?

STRATEGIES

Mid 1990 Jyske Bank’s Competitive Positioning was very poor and it was not compliable with

its competitors. Beginning in the mid-1990s, Jyske Bank embarked on a change process that

led to its no longer being characterized as either unremarkable or undifferentiated. By 2003

its unique "flavor" of service made it a leader in customer satisfaction among Danish banks.

One employee for a group of customers

Physical Evidence: Dull images for employees

A long procedure before process could be lead to computer.

Q 02: AS OF 2003, WHAT WAS JYSKE BANK’S COMPETITIVE POSITIONING ?

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Answer: Jyske Bank’s Competitive Positioning at 2003.

Out of Box Service

Physical Evidence

Targeting the right customers

A Customer is assigned to a group of bankers

Friendly pictures of employees

Value Added

People Oriented

Focused on niche market

Training for good customer service

Empowerment

Cutting Edge

Technology

Similar

Delivery- Significant difference

Tools developed- To Identify customer needs

Tools + People= Cutting edge

Service culture that differentiates

Product selling approach to Customer oriented approach

Delivery of Financial products

Employee centric

Q 03: What did Jyske bank change to enable it to deliver its new competitive positioning?

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Ans:

Tangible Changes:

Account team

Branch design

Details

Intangible changes:

Training

Empowering the branches and throughout the bank

Q 04: How did Jyske Bank implement those changes?

Ans: Jyske Bank can implement changes in following ways:

Selection: Not only banking skills but also social ability to serve the social people for societal

betterment.

Training : Execute a variant of training session to develop a every nodes.

Incentives : Providing incentive to its Employees, customers & services partners. Stock,

annual raises and onetime payment.

Commitment : Keep the strong commitment to all parties.

Measuring performance and financial results:

RORAC, measures customer satisfaction and employee satisfaction

Communication: All changes should be communicated to the employees as well as related

all parties.

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