Organization and processes
Creating efficiency in the organization
Many financial companies have in recent years invested heavily to adapt its operations and establish the controls necessary, in order to keep up with the increasing regulation. Although the rules are largely based on sound principles regarding risk management, a well-functioning management and customer care, the regulatory implementation is often perceived as cumbersome and hampering for the profitability and efficiency of the company.
The amount and complexity of rules in combination with the short lead times for implementation often leads to a high degree of reactivity. This in turn has led to high costs and in many cases an accumulated inefficiency within the organization, with negative effects on governance and business operations as a result. The regulations also have a major impact on strategic positions in governance and risk culture.
How do you know if your organization is suffering from inefficiency? There are various instruments to measure it. This is most evident, however, on the company culture, where some features are typical:
- Constant reorganisations
- Vauge visions
- Inadquate internal communication
- Unclear ownership on key issues
- Long decision paths
- Difficulties prioritizing
- High sick leave
- Much ”banter in the corridors”
- Dissatisfied customers
- Declining revenue
When an organization is characterized by the above mentioned, it can lead to a vicious cycle, which may seem difficult to get out of. In order to break it, it’s important to highlight what is not working. It can often be about any of the following:
- The company has lost its direction- who are we, what do we stand for and what target group do we turn to?
- Management is acting in panic, due to dissatisfied customers and declining revenue
- Personnel may have been given a lower priority
- Long-term goals are constantly changing in order to reverse the negative trend in the short-term
FCG has extensive experience in implementing change in organizations, whether for regulatory compliance or general management and control. FCG contributes with identifying what creates inefficiencies in your organization and with establishing a plan for the short-term and long-term. To thus reverse the negative trend and create forward thinking.