Bank stuck in the paper & stone ages? It's all HR's fault.

michael's picture

I often wonder about the bank back office that will be displaced when workflow and imaging are used to make processes more effective.
Wonderment fills me on both sides of the two-edged sword.
On the old, dull edge: Where will the clerical staff go that have limited customer-facing and problem solving skills?
On the new, sharp, and if I dare say more important edge: What will the remaining operational staff look like?
For they will no longer be clerical.

  • Who will recruit and coach them?
  • What skills will they have?
  • What behaviors will they exhibit?
  • Where will we deploy them first?
  • When will we start realizing the benefit?
  • Why can't it be sooner?
  • How will they be measured and rewarded?
  • How will banks and credit unions attract and retain them?

These questions need to be answered. Maybe that is why the back office is still stuck in the paper and stone ages. It's all HR's fault.
In addition to the information technology systems that must be reengineered into high performing processes, the human resource systems will also be affected.
This Michael Hammer-inspired table sheds light on the human resource cost/benefit analysis of employees in a high performing bank.

COST of LOW PERFORMER BENEFIT of HIGH PERFORMER
Focus on activity Focus on results
Training teaches “how” Education teaches “why”
Advancement based on performance Advancement based on ability
Advancement is a reward Advancement is a change
Pay based on efficiency of tasks Pay based on value created
The boss pays my salary Customers pay all our salaries
Keep the boss happy Do what it takes to please to the customer
Head down, don’t make waves My ideas can make a difference
My manager is my supervisor My manager is my coach

As you migrate to a digital business, don't forget about the types of human resources you need to get there and beyond.
-CroalDude