Conférence SHU 9 septembre 2015
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Transcript of Conférence SHU 9 septembre 2015
2003 / 2004 Cu#ngCost
2005 / 2006 PrudentGrowth
2007 Externalshock
2007/2008 AllianceforGrowth
2009/2011 Execu:ngWell
20012/2013 Integra:ng
CompanyPresenta:on&Challenges
FairProcess
Theenvironment
Howdoyougetotherstodowhatyouwant?
Somereflexionsalongtheroad
From500’000cardsto3’000’000cardsFrommonolinetodiversifiedITservicesFromcoopera:vetoacommercialcompany
CETREL S.C. in 2002 • A cooperative of Luxembourg banks
• Active in electronic payments – real time 24/7
• Numerous stakeholders
– Cardholders – Merchants – Banks
Challenges • Complex activity
• High prices, because of a “protected”market
• Banks restructuring, saving cost
• Cetrel untouched
– No effort to improve cost position – Lacking efficient project management – Neutrality questioned
2003-2004 “Cutting cost” • Objectives
– Lower cost to serve to the banks – Maintain quality of service and project delivery – Ensure regeneration of assets
• Key actions – working in the system
– Introduce cost transparency (ABC) – Strict cost control ( internalise work and lay off contractors) – Upgrade the organisation (assessment and recruitment) – Reorganize in clearly defined areas (PS / BS / IT) – Close long standing issues (Close 2nd site; sell IP)
“When change is happening faster outside of your company than inside, you put your company in danger” (Jack Welch)
The environment • Competition among banks (ie. banking groups)
• Competition from new entrants (international players)
• Consolidation of the industry through M&A
• Regulatory compliance taking the elevator
2005-2006 “Prudent Growth” • Objectives
– No change
• Key actions – working on the system – Introduce Lean Management to free up resources – Introduce an 18 month training program for SM and MM to
sharpen and develop our management skills (“shared principles of management”)
– Go international with processing – Introduce ITIL, PMO, BCP, SLA – Develop new business ideas / diversify on the basis of a 24/4
highly resilient IT infrastructure (Luxtrust, Cetrel Securities SA)
• Authority – Balance of power – One-off
• Persuasion – Minimize cognitive discrepancy
• Rational behavior (align behavior with beliefs) • Rationalizing the behavior (align beliefs with behavior)
– Perfect understanding • Necessity to incl. feedback loop
• Engagement – Start changing behaviors on a small scale – Fabricate successes
Some reflexions along the roadmap (1)
• What will change and what will remain ? – In order to protect what we value dearly, we have to be capable
to change what we value less – Always refer to the past and the protection of the things we
value – People hate insecurity more than change
• Recognize the loss and be prepared to compensate that loss (negotiate) – There will be a loss – Depending on your position, you will have a another view of
things to come – Stay close to the troops (their reality is not yours)
• Seek input before deciding, allow for a fair “share of say” – You do not have all the answers
• Do not adapt to change – Imagine a new future taking the new constraints into
consideration – Develop a clear and engaging vision (a land of milk and
honey…) / dissatisfaction with today, satisfaction with tomorrow
• Hold workshop to fish for ideas, give time to recognize and
acknowledge the issue – Sell the problem not the solution
• Replace authority or persuasion by engagement – Stop, start, continue – Allow for autonomy in reaching the best solution
• Change behaviors, ensure early successes. The change in beliefs will follow, man will seek to rationalize past behavior
Some reflexions along the roadmap (2)
• We lost the local clearing & settlement business to EBA due to their projection of vastly lower unit cost.
– Were the banks our friends or enemies ?
• Pressure due to foreign competitors was increasing.
– How are we going to compete against vastly lower rates ?
• Bigger clients demanded that migration/on boarding was pre-financed by the supplier. Our ownership did not allow for this.
– How do we get our owners accept a growth strategy and invest in a scalable IT platform ?
The year 2007
• The company has developed over the last 2 years – Acquired international client base and increase volumes – Diversified it service offer to generate additional revenues
• Economies of scale / size play an important role in being able to produce at competitive prices
– Owners cannot bring more volume – Clearing and Settlement is the first victim
• Prefinancing growth is not an option for the banks as they see themselves as “banks” and not “financial service providers / Industrialists”
The context
Fair Process
• Engaging – Involve relevant people, ask for their input in framing the issue, conclude with a
clear framing of goals and challenges
• Exploring
– Generate multiple options, thoroughly examine them, including the implementation; use clear criteria to eliminate unpromising options
• Explaining – Make a clear decision, take time to fully explain its content and rationale, clarify
expectations to properly execute, roles and rules
• Executing – Devote all efforts to loyal execution; give feedback, give rewards or sanctions. In
case of fatal setbacks, move to next stage
• Evaluating – Seek critical revisions and lessons to improve decision and process for the next
time; getting the learnings
2007-2008 “Alliance for growth” • Objectives
– Conclude an equity alliance to ensure a sustainable future – Share ownership and maintain joint control – Ensure lowest possible cost to the owners
• Key actions – Transform the cooperative into an SA, simplify corporate
structures and reduce shareholder ship – Perform a European wide search for the best industrial partner – Develop a joint roadmap for taking the company forward – Entry of SIX into Cetrel 50% via a capital increase
2009-2011 “Executing well” • Objectives
– Leverage the SIX presence to acquire new contracts (in issuing and acquiring; other financial technologies)
– Migrate merchant processing onto SIX platform – Transform CETREL IT platform for bank processing
• Key actions – Post acquisition workshops on working together – Emphasize on large scale project management – Introduction of Strategic Performance Management ABM/
BSC
EXECUTION
Develop the strategy
Mission, Values, Vision Strategic Analysis Strategy Formulation
Translate the strategy
Strategy Map Measures Initiatives / Stratex
Align the organsation
Business Units Support Units Employees
Plan the operations
Improve key processes Sales & Capacity Plan Budget
Strategic Plan
Strategy Map Balanced Scorecard Stratex
Operating Plan
Dashboards Sales Forecast Resource Requirement
Test & Adapt
Profitability Analysis Strategy Correlations Emerging Strategies
Monitor & Learn
Strategy Reviews Operating Reviews
Processes
Initiatives
1 2
3
4 5
6
KPI’s
KPI’s
Results
2012-2013 “Integrating” • Objectives
– Change of decentralized organisational structure to a centralized structure at SIX Group level
– Integrate Cetrel into the newly formed SIX Payment Services Division
– Maintain quality of service during transformation and integration
• Key actions
– Reengineering local procedures and processes to SIX standard – Emphasize on large scale project management and manage,
build vs run issues – Spin-off the IT and project management from all SIX
divisions to a new division “Global IT”
As of 2014
• Cetrel is a 100% subsidiary of SIX Payment Services
• The Luxembourg location has become – center of excellence for card issuing – merchant service hub for Luxembourg and Belgium – a service center for financial information
• SIX has through other acquisitions now some 1’500 employees in total, spread through Switzerland, Austria, Luxembourg and Poland.
• The perspective is to become one of the three top tier processors in Europe through acquisition and integration onto one single IT platform.