CBA cultural transformation unveiled
(Australia) Commonwealth Bank will shed 3,700 back office jobs, redirect its usual project spend of $600 million and spend another $620 million on overhauling its systems and processes over the next three years in a bid to improve customer service.
Chief executive David Murray said the moves signalled a "major cultural transformation" was taking place at the CBA in response to customer demand for "better, faster and more responsive service".
"We need to empower, motivate and skill our people and simplify our processes. We will start and finish with how our people meet the changing needs of our customers," he said.
Murray said he expected the program to result in compound annual earnings per share growth of more than ten percent over the three year period and lead to productivity improvements of four to six percent per annum.
In what CBA is calling its "Which new Bank" program, the bank stated its aim to improve customer service response times by 20 to 50 percent.
The bank said its Institutional and Business Services; Premium Financial Services; and Insurance and Investment Services had all "identified areas" where streamlined processes and better client service would "yield immediate results".
"Better customer service is about improving individual services and the way we provide them, but it is also about how we provide the customer, be they retail or business, with a comprehensive package of services, meeting that customer’s full range of financial services needs. The ability to do that depends on a unified culture and objective across all business units," Murray said.
Not surprisingly, the Finance Sector Union said the job cuts could result in industrial action.
"We need to empower, motivate and skill our people and simplify our processes. We will start and finish with how our people meet the changing needs of our customers," he said.
Murray said he expected the program to result in compound annual earnings per share growth of more than ten percent over the three year period and lead to productivity improvements of four to six percent per annum.
In what CBA is calling its "Which new Bank" program, the bank stated its aim to improve customer service response times by 20 to 50 percent.
The bank said its Institutional and Business Services; Premium Financial Services; and Insurance and Investment Services had all "identified areas" where streamlined processes and better client service would "yield immediate results".
"Better customer service is about improving individual services and the way we provide them, but it is also about how we provide the customer, be they retail or business, with a comprehensive package of services, meeting that customer’s full range of financial services needs. The ability to do that depends on a unified culture and objective across all business units," Murray said.
Not surprisingly, the Finance Sector Union said the job cuts could result in industrial action.
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