Nowadays in conditions of economic crisis and recession of banking business it is possible to assume measures for cardinal changing of the bank structure in order to raise effectiveness and profitability. It can be provided thanks to the implementation of a new form of management and structure. Basic principles of reengineering and systematic approach can help to develop a new concept of Optimization of the structure and management.
What’s the new concept?
The main concept of this approach is to modify the structure and organizational form of work from functional model to the form of a project process. Such a change can provide a colossal economic effect as the structure becomes easy and mobile. Work of a bank includes business processes, their provision, and project work. Business processes can be followed and checked by using a time tracker.
Very often different types of activities are provided by different divisions what can complicate the process of work and cause a lot of problems and difficulties. In fact, it happens that different divisions just do the same task twice and waste a lot of time and energy. The problem can be solved by using a time tracker only partially. In general banking system needs to be modified.
It is also necessary to get rid of a huge and clumsy management system which spends a lot of resources and to change it to a constantly reconstructing and quickly functioning project groups those work can be monitored by a time tracker. However, it is necessary to have a constant central operating management who work on business processes. A time tracker can show the effectiveness of managers as well as the effectiveness of project groups. Such a structure allows a bank to speed business processes and to raise the effectiveness of its employees.
How to act?
To make the changes real it is necessary to follow 3 steps:
- To define (discuss and coordinate) strategic objectives and aims and the direction of development with help of employees (heads of departments). A time tracker report will help to set future plans and objectives.
- To describe the current structure and to make the plan of reorganizing it to an easier and mobile one.
- To arrange a gradual reorganization according to the plan taking into account time frames and economic resources.
Here’re also more detailed steps of reorganizing:
- Defining of a general strategy of a bank
- To make a project group
- To obligate heads of divisions to give notes with concrete improving proposals for optimization of their departments
- To process all data and to describe current system with its problems
- Making of a strategic plan of development
- Making of a new structure (project and process structure)
- Making of a plan of reorganizing
It is important to notice that such a complicated process shouldn’t influence on business processes. That is why there are many mechanisms such as a time tracker or other software which can help to follow business process without wasting a lot of time. It is important to think of all stages of reorganization, be attentive and consistent.