The Swiss Banking Sector in Transition
Since the announcement of the takeover of Credit Suisse by UBS in 2023 at the latest, the topic of consolidation among banks has moved into the spotlight. In the banking industry, many small and medium-sized institutions have either disappeared completely or merged over the past few years. This trend will continue in the coming years.
The reasons for this are, on the one hand, rising costs, e.g. due to higher capital deposit requirements, the implementation of regulatory requirements or necessary investments in technologies and digitalization and, on the other hand, falling average income per customer, e.g. due to higher price sensitivity, increasing competition from digital challengers or generally declining price levels for standard products.
However, studies show that the majority of mergers either fail or do not lead to the expected results. The main reasons for this often lie in an inadequate, insufficiently structured post-merger integration process along the following four dimensions.
Integration strategy
Key elements of a successful integration are the development of a common vision, the definition of common goals for the integration strategy and the formulation of a suitable business and operating model. The design and mode of operation (structure and process organization) of the joint business activity must be coherent; only then can the desired synergy potential be realized. Successful integration can only be achieved with clearly defined, common goals that are consistently pursued and whose degree of achievement is continuously measured and monitored.
Integration planning
No integration without integration planning. A clear and detailed plan must be developed with corresponding goals, time budgets and milestones, which areas are to be integrated (e.g. organizations, processes, IT systems/landscapes), which resources (money, time, people) are required for this, where and how the targeted synergies are to be realized and how the result is then to be measured.
Integration transformation
The identification of key functions and their leaders and personalities is important for a successful integration. They must "swear in" the new team to the common vision or mission and its shared goals and values, as well as ensure communication during the integration and its progress. This is the only way to overcome the often major cultural differences. The primary goal must be to quickly hand over operational responsibility to the new management in order to achieve the smoothest possible transition to day-to-day business.
Integration management
The IMO (Integration Management Office) forms the backbone of every successful integration. It is responsible for operational program management and keeps the program together and on track to ensure joint and efficient implementation. It is the link between the program and line functions, manages time and content dependencies, identifies and addresses critical topics and areas and defines responsibilities. An effective IMO requires a team with experience that brings together all strands, maintains an overview and ensures a clear structure.
Curious?
Consileon takes a systematic approach to help you successfully complete even complex business transformations and achieve the expected success. Talk to us.