To undertake the programs of operational performance

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The implementation of plans of operational performance corresponds to a strong tendency in the Banks. Thanks to the wave of plans of current productivity, a significant amount of profits is possible

for the French establishments (5 Md€ by 2010 according to the estimate of Sia the Council). However, the real contribution with the value of the Banks will depend for many nature actions selected and control of these programs

So that a program of operational performance brings a real added-value beyond the immediate financial profits, certain elements cannot be isolated:

the alignment of the operational strategy with the development strategy of the establishment,

the development of an operational strategy which generates performance, via the identification of durable layers of productivity, rather than a plan focused on the search for short-term profits,
a balanced choice of the actions constitutive of the program,

a control of the program of performance which integrates so much the upstream (preparation with the change) that the downstream (guaranteed perenniality of the actions).( Finance Information City )

A. Alignment of the strategies

The strategy of the establishment guides the growths of the activities and of this fact indicates to some extent the future organisational needs.

The requirements in internal services depend on the strategy of growth (acquisition, development with international, etc) and also on the finance strategy (localization centers of costs vs. centers of profits). The operational strategy must then provide the initial organization and allow its operation parallel to its regular evolution, so as to facilitate the form of desired growth. (see framed “internal Services and growth”).
The strategy business envisages the axes of innovation. With the operational strategy to give the means of carrying these innovations (via the provision of the services and suitable resources).

In addition, by defining the perimeter core activity and the fields of competing excellence, the strategy business indicates into negative the possibilities of externalisation.

B. Development of the operational strategy and search for profits

The many actions with launching within the framework of a program of productivity cannot rest exclusively on the search for short-term profits. A real positioning in the sphere of the operational strategy must thus be developed. It is this strategy which will have to then bring to the financial performance.

It will then be advisable to identify expertises, information and resources, keys of the company. Then to see how the organization could evolve/move so that those can be more easily accessible to the best level of quality (than it is a question of information, resources or expertise).

These evolutions will have to generate profits:

by the evolution of the stock management, information or expertises: mutualisation, optimization of flows and the use of the resources…
in the other activities also, following an improvement of the quality of the service or by allowing a easier access to these services.

This step of research of the layers of productivity is applicable at various levels, of the simple pole of competence to the externalisation of an activity. It aims at identifying evolutions which cannot easily emerge from the analyses traditional processes.

Nevertheless, most of the tracks of economy are largely known and on several occasions were identified and quantified. It is thus primarily today about a business of execution and priorisation of the building sites by nature and according to the contexts of each group.

C. Choice and priorisation of the actions of the plan of productivity

Several layers of productivity being identified, it is then necessary to select the actions to be realized within the framework of the plan and the prioriser.
Beyond their answer to the objectives of the company and search for already evoked durable effects, the mix of actions to be undertaken will have to be balanced:
compared to the organizations (lines trades, geography, directions…) : All must feel concerned. The plan of productivity cannot be allowed to transmit a message letting believe that certain sides of the company would not share the total objectives of productivity. It is rather of the number and the perimeter of the initiatives, the profits awaited being necessarily different according to the activities, of the history and the strategy of the establishment.

compared to the nature of the actions: We recommend to classify the tracks of economy in various categories:

Traditional dies (Desktop publishing…)
New technologies (GED, innovating means of payment…)
Off shoring (activities externalized apart from France)
Scale effect (factory loans habitats)
Co-operation between the Banks (installation of common factories)

Thus distributed the projects are not approached activity by activity but according to the method of reduction of the costs. It is then easier of prioriser while launching coherent building sites which will be able to release from the economies quickly.

compared to internal and external references: The recourse to benchmarks can be lighting to identify the priority areas. Nevertheless, the benchmarks compared to other establishments on operational levels are to be considered with precaution. The other establishments indeed have neither the same objectives (at least to some extent), neither same culture, nor the same history.

D. Control of the program of performance

Once the actions to be carried out identified, time will be hoped to implement them and to show their effectiveness.

As of the decision taken of launching a plan of productivity, a dynamic plan of communication will have to be set up in order to communicate on the step, to make share the objectives, to defuse social fears… No activity or line trade of the establishment will have to be at this time isolated there.

From the implementation of the first actions, it will be necessary to set up a very regular follow-up of the evolution of the potential of profit, then returns. That will contribute to ensure the safeguarding of the initial objectives throughout the program. It is important that the objectives of the actions initiated by the plan of productivity are not regularly re-examined to include other needs extending their perimeter and thus moving back the report for the profits.

Lastly, to perennialize the results, the program of performance will have to include the installation of the structures, methods, attitudes and resources of the continuous improvement.

Conclusion

The plans of productivity will make it possible some establishments to acquire a durable competitive advantage but only if they fall under a step broader (and more structured) than the simple search for immediate profits, that is to say a step coordinated around an operational strategy in the long run.
Without that, the plans of performance currently in the course of launching or execution will be only one new occurrence of the regular waves of productivity of the sector.