Speed is more important than perfection and a solution that takes care of a problem 80% is enough if it contributes to integration and brings faster benefits. This is the principle Manfred Wimmer, Erste Bank manager in charge of strategy and head of BCR integration and development, applies.
"In essence, we are transferring what weeve learnt from previous acquisitions. We must start making changes quickly, in a profound and vital way. This is practically like changing tyres on the highway without stopping; this is not a simple operation, but we know how to do it," Manfred Wimmer, who is also a deputy chairman with BCRes Supervisory Board, told ZF.
The programme is due to be finalised in mid 2008, with all BCRes business segments being covered, including the launch of some new segments, such as the setting up of a unit destined to large companies or real estate financing. The programme includes over 40 individual projects, from the restructuring of the subsidiary network, the strengthening of the sales force and change of concepts, the development of alternative channels, to insurance and leasing activities and the centralisation of support-functions (IT, HR, marketing, etc). Wimmer says BCR management team currently enjoys a good combination of local bankers, with recognised expertise, and bankers from Erste group.
A way for BCR to secure its employeese loyalty is to turn them into shareholders. "BCR employees hold over 1% in Erste stock. We will keep our promise of listing Erste in Bucharest within 12 months after the takeover of BCR stock owned by employees is concluded (...)". Wimmer says floatation will be "extremely beneficial" for the Bucharest Stock Exchange, will have a significant contribution to market development, but will also be useful for Erste since a new investor base can be eventually created.
The list of priorities included in the integration programme starts with the "fundamental" reshuffling of the distribution network. At the same time, there will be a clear separation line between the corporate and retail segments, with a further clear distinction between each business line. BCR retail will further focus on major cities, boasting the biggest incomes and the strongest purchasing power, without overlooking the rural area, though.
The Austrians are aware, given their experience, that the integration programme cannot be achieved without the involvement of BCR employees. Wimmer maintains it is vital that changes should happen quickly and that employees should start to feel them. As regards customer perception, Wimmer says the first signs of change will start showing in terms of service quality, with faster transactions, which may be done on the same account from various subsidiaries across the country, and higher flexibility.
At the same time, customers will see a new BCR logo this year.
18 months for BCR integration
New business lines: micro banking, major corporations, real estate finance
Separation among sales, risk management and administration
The development of alternative distribution channels
The new BCR logo in Erste colours-red/dark blue
The centralisation of support functions: human resources, IT, marketing and communication
Personnel training and a higher number of employees in direct contact with customers
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