Handelsbanken

Question # 1

What is the purpose?

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

The ethos of Handelsbanken is that a bank should be an asset to the community, not a liability.

Handelsbanken focuses on 6 sustainable development goals:

 Goal 5: Gender equality.

 Goal 8: Decent work and economic growth.

 Goal 9: Industry, innovation and infrastructure.

 Goal 11: Sustainable cities and communities.

 Goal 13: Climate action.

 Goal 16: Peace, justice and strong institutions.

https://www.handelsbanken.com/en/sustainability/sustainable-development-goals

https://www.globalgoals.org/goals/

Question # 2

How is focus on user needs strengthened?

Tracey Davidson: What is important is that we can give them [customers] the relationship that they want. So an access to physical meetings when they want them. And digital - especially now that customers are much more used to doing this kind of meeting. We can see more. What we have noticed, though, is that our interactions customer to colleague are very much more about adding value to that relationship.

https://www.linkedin.com/posts/frankcalberg_how-do-you-go-about-with-technological-activity-7043956073010987008-9h4m/

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

People, who work for Handelsbanken, are asked to exclusively focus on the customer needs.

Whether they visit the bank branches or go online, customers are always given an individualized service that directly addresses their individual needs and financial situation.

Enter a postcode on the homepage and be taken to the local website where customers can meet the management team and read a message post from the branch manager.

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

Svenska Handelsbanken’s success is founded on its “localism” ideology. It is a local relationship bank.

As a consequence of the increasing digitalisation, Svenska Handelsbanken closes half of its branches in Sweden – going from 380 branches to 200 branches.

https://pressreader.com/article/281745566810839

https://twitter.com/MicheleZanini/status/1638157577539276800

Question # 3

How is openness strengthened?

https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446

In Handelsbanken, branches are compared with each other.

https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446

Results of branches are shared openly with everyone – thereby comparing branches with each other.

The ratio between cost and income (C/I) and customer satisfaction are emphasized.

https://gup.ub.gu.se/file/132998

Question # 4

What is centralized?

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

People are rewarded in the form of equal share of profits when the bank’s return on equity beats their competitors’.

Handelsbanken has an internal accounting system with a high detail in profit and loss statements as well as account balances. This makes it possible to very quickly determine if a branch is wandering off.

https://gup.ub.gu.se/file/132998

Question # 5

How is autonomy strengthened?

https://www.linkedin.com/posts/frankcalberg_there-is-no-central-marketing-department-activity-7043951973804498944-nqBD/

Each branch works independently, for example by  managing its own websites,  setting its own pricing on loans and deposits, and  making its own loan decisions.

http://www.managementexchange.com/blog/bureaucracy%E2%80%99s-3-trillion-price-tag

12,000 people work for the bank.

http://www.managementexchange.com/blog/bureaucracy%E2%80%99s-3-trillion-price-tag

Handelsbanken pioneered the decentralized banking method.

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

Branch managers are granted a high level of autonomy in making their own decisions on their branch’s budget and every aspect of the branch’s banking operation.

Question # 6

How are people paid?

https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/

Question # 7

How are leaders selected?

Managers at Handelsbanken are internally selected. 3 reasons:

1. Managers should be well informed about operations.

2. Managers should be able to understand situations that people experience in their daily contact with customers and with various procedures.

3. Since managers are important in maintaining the core ideas of Handelsbanken, they need to internalize these core ideas before they become managers.

https://gup.ub.gu.se/file/132998

Branch managers are responsible for making sure that

 people have the right conditions / opportunities that help them to learn / develop / grow.

 People have the right coaches / coaching that help them to learn / develop / grow.

https://gup.ub.gu.se/file/132998

Question # 8

How is learning strengthened?

People, who work for Handelsbanken, set their own goals.

https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446

https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446

People, who work for Handelsbanken, are held strictly accountable for their performance.

To support the decentralized organizational structure, people coach each other.

https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446