ANZ To Transform Into Franchise-Based Organisation

Monday, 15 July 2002, 10:04 am
Press Release: ANZ Bank

Sunday 14 July 2002

ANZ will undergo a transformation this year as it introduces a franchise model to its network of branches - a first for the New Zealand banking industry.

ANZ's branches will be grouped into 23 separate local markets, which will operate as entrepeneurial, self-sustaining shadow-franchise businesses. Each area will be run by a local CEO. The bank is currently advertising the local CEO roles internally and externally.

The revamp will transfer greater operational freedom and decision making power to ANZ's frontline staff.

"Local CEO's will have an innovative new incentive structure which 'mirrors' the equity a full-franchise holder would have," says ANZ Managing Director, Dr Murray Horn. "Local CEO's have the potential to significantly increase their salary based directly on the growth they achieve. The more they grow, the more they earn."

The project has been under development in New Zealand since last year. Three pilot local markets - two in Auckland and one in Hamilton - have been in operation since April. Early success in the pilots and bank-wide staff feedback have encouraged ANZ to roll out the new business structure nationally in 2002.

ANZ Managing Director, Dr Murray Horn, says improving customer satisfaction is the key objective of the Bank's fundamental transformation.

"We recognise that we have some work to do to improve our customer satisfaction," he says. "Initiatives such as the introduction of the Customer Charter last year and the recently launched low-cost transaction accounts are significant steps in the right direction.

"This project is a quantum leap."

Dr Horn says applicants for the local CEO positions will present a business plan to ANZ for consideration. Those who are successful will be granted three-year contracts to manage their local market, subject to meeting performance criteria, which include: customer satisfaction, staff satisfaction, financial profitability and growth, and compliance.

A number of significant changes have already been made in the pilot areas such as a placing permanent concierge's in each branch, extending opening hours, and developing quicker in-branch service.

"The results from the 15 branches involved in the pilots have been very encouraging. The customers in these areas are noticing the change in service levels, key issues for our people are being resolved and research shows they are more satisfied. Financial indicators such as growth in funds under management in the pilots have also been very positive."

ENDS

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