Branch-Supported Organizational Transformation

One of the most effective starting points for organizational change is creating a new branch business model and prototype. The reason it is so effective is that it requires engaging all elements of your organization.

Most staff work in the abstract world of information technologies, financial products, regulations, forms, processes and metrics. Creating a branch is building something tangible together that can be experienced in a uniquely visceral way. The process of creating a new branch model creates a common language and set of physical brand goals that all involved can touch and experience together. The process breaks down silos and forces all sectors to cooperate toward a tangible mutual goal.

Branch transformation of the sort that can support organizational transformation includes seven key considerations:

1. Branch audits – Most branch networks are composed of a variety of legacy, acquired, freestanding, in-line, in-store branches and offices built and remodeled at different times over the past 30 years. They do not provide a standard operating model, consistent experience for customers and staff or a strong brand image. Auditing all branches provides foundational information about image, size, condition and opportunities.
2. Branch network optimization – The reward for branch transformation must be more than a pretty new branch. The process and its associated steps must increase productivity, growth and return on investment at every branch and across the network. Delivering these results requires a deep analysis of existing and new markets. Competitor analysis determines levels of saturation that may impact line-of-business growth. Markets with the highest potential for success are defined and the existing branch network is overlaid to understand how to build the perfect delivery array over time through retaining, relocating, rightsizing, closing or repurposing branches to maximize market performance. This includes understanding which lines of business need to be represented on site or can be served by a hub or remote location.
3. Lines of business integration – We often hear that small business banking, mortgage or investments do not let branch planners know if they want to be in a market until the last minute, making planning difficult and clumsy. The process of branch prototyping forces previously siloed departments to plan ahead in support of the common goal.
4. The brand vibe – The brand is the basis for all branch design and operating decisions. The brand must be clearly defined in terms of its promise, voice, style and image. Then the branch transformation team can fully understand and embrace the brand attributes as the foundation of a physical brand, expressed through the branch, staff and integrated technologies.
5. Branch business modeling and prototype development – The branch is the face of your credit union and the best place to establish, build and retain relationships. The process requires involvement of the cross-functional transformation team and line staff representatives. The consulting brand translation and design team must be highly experienced in branch prototype development. It is easy to design an attractive branch that garners “wows” at opening for target market growth, customer engagement, increased share of wallet, staff success and high ROI.
6. Human resources – Staff are the most important factor in branch performance. A new branch business model typically introduces new ways of doing business that impacts staff functions, expectations and performance. These critical HR changes must be part of the branch business modeling process to ensure the highest possible branch performance and staff success. New branch business models require new kinds of staff. Creating alignment between your brand objectives and staff understanding of their supporting roles is critical to success.
7. Technology integration and the seamless experience – Last year we completed a technology integration study for one of the largest banks in North America. Its leaders wanted to understand which technologies were on brand, would be practical long term, and elevate the brand experience for customers and staff. They also wanted to avoid the hype cycle of pursing the coolest new technology and then being disappointed. The result was a short list of technologies and delivery methods that could be seamlessly integrated into the experience and branch design. Technology is one of the key factors driving branch change. During the branch prototyping process, we must align our visions and expectations with the realities of current applications and resources. When we do so, technology becomes an integrated part of the operating model rather than an aspiration that limits near term performance—and we will know what will work today and how we need to build in flexibility to accommodate ongoing change.

Paul Seibert, CMC, is principal/financial and retail design, for CUES Supplier member EHS, a NELSON
Company, Seattle.