People, Service, and Profit at

Jyske BankPresented by :

Amartojit Basu ()Arushi Rajvanshi(37142)Devesh Kumar Singh (37)Garima Nagpal(37171)Kashmira Brahmane()

Background

• Very successful bank in Denmark, founded in 1967

• Second-largest bank in Denmark with 119 branches and operations in several other European countries

• In 2007 Jyske Bank received a long-term A+ rating from Standard and Poor

Philosophy

• To be the most customer-oriented bank in Denmark• Equal respect to employees, shareholders, and

customers• Flat and decentralized organizational structure – It takes at most two people to make a decision– As few rules as possible; operate on principles, guidelines,

and empowerment

• Financial performance is very important, but they take a long-term focus

Case Situation• Describes the change process that Jyske Bank went through,

laying special emphasis on its value system• Goals of change process

– To become the most customer-focused bank in Denmark– Build a strategy focused on “Jyske Differences”

• To achieve its goals Jyske went through a process of– Identifying core values, and – Making many tangible and intangible changes

• Results– Highest customer satisfaction of any bank in Denmark– Highest employee satisfaction of any major bank in Denmark– High return to shareholders – average of 17.9% for ten years

Core Values

– Have common sense

– Be open and honest

– Be different and unpretentious

– Have genuine interest in and equal respect for people

– Be efficient and persevering

JYSKE DIFFERENCES

Tangible Differences

Video

Tangible Changes

• Re-design of branches (modern/warm/original art)

• Café – coffee available/juice for kids

• Play area for children

• Business cards with photos

• Large round tables where bankers are seated

• Customers sit next to bankers

Tangible Differences

Value Chain

Conclusion• Jyske Bank’s values and differences and

the bank’s value chain provided ways to achieve the balance they wanted among their 3 stake holders: employees , customers and shareholders

• With large capital investments 2003, net income expected to increase considerably in the coming years.

• While the bank’s leadership was pleased with the bank’s success, they were interested in determining how the bank would remain in a position of leadership while keeping the interests of its key stakeholders in balance.

• What is Jyske Bank’s new positioning or competitive differentiation strategy?

• What changes did the bank make to get to its new position? What effect did these changes have?

• Analyze Jyske Bank’s success using the Service Quality Gaps Model. What are Jyske Bank’s strategies for closing the 5 gaps in the model?

• In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske Bank?