People, Service, and Profit at Jyske Bank Essay Example

Danish Kronor, DKKl), Denmark was the southernmost of the Scandinavian countries. Denmark had been a wealthy country for hundreds of years. This was originally due to its strategic location in the Baltic Sea (see Exhibit 2) enabling it to extract tolls from merchants who were forced to sail within cannon range of its shores. More recently, much of Denmark's wealth came from high-value-added goods such as agricultural products, pharmaceuticals, machinery, instruments, and medical equipment, in addition to a highly-developed service sector including shipping.

Following the Second World War, Denmark adopted a social welfare system its government described as follows: The basic principle of the Danish welfare system, often referred to as the Scandinavian welfare model, is that all citizens have equal rights to social security. Within the Danish welfare system, a number of services are available to citizens, free of charge.... The Danish welfare model is subsidized by the state, and as a result Denmark has one of the highest taxation levels in the world. JUTLAND Jutland was physically separated from Denmark's capital, Copenhagen (see Exhibit 2 for a map).

Copenhagen, with a population comprising almost one-quarter of all Danes, was located on the island of Zealand (Sjaelland). Jutland's isolation from the capital prior to modem transportation led to its people being characterized differently from their Zealander neighbors: Jutlanders were supposed to be honest, unpretentious, egalitarian, open and direct in their communication style (candid), commonsensical, frugal, sober-minded, and relatively unsophisticated, at least in contrast to those, as one Jutlander put it, "slippery people from Copenhagen.

Jyske Differences

Jyske Differences stemmed from Jyske Bank's core values. These stood as central tenets, guiding virtually all aspects of the organization's life. As

one manager pointed out, the values were consistent with the bank's Jyske heritage: "Really, when we started talking about our core values, and their Jyskeness, we just became overt about values we had long held. " Jyske Bank's core values, published for employees, customers, and hareholders, were that the bank should (1) have common sense; (2) be open and honest; (3) be different and unpretentious; (4) have genuine interest and equal respect for people; and (5) be efficient and persevering. See Exhibit 3 for a more detailed description. The core values led management to reevaluate how the bank did business with its customers. Managers determined that if the bank were to be true to its values, it would have to deliver service differently from both how it had in the past, and how other banks delivered service.

Jyske Differences were thus operationalized as specific practices that distinguished Jyske Bank. Competitive Positioning Managers looked to Jyske values and differences for the bank's competitive positioning. This process was aided by a Dutch consultant, whose market research indicated that Jyske bank's core target market of Danish families and small-to-medium sized Danish companies (earnings were 40% commercial, 60% retail) generally liked the idea of a bank that was Jyske.

Additional research suggested that what managers described as the "hard factors" of price, product, and location had become sine qua non in the eyes of customers. In contrast, "soft factors" relating to an individual customer's relationship with her service providers served as the basis for differentiation, specifically, "being nice," "making time for the customer," and "caring about the customer and his family. " Managers felt that the "genuine interest" component of the

bank's values dictated a shift from traditional product focused selling to a customer-solution approach.

They characterized the new approach by contrasting the statement, "Let me tell you about our demand-deposit account," with the question, "What do you need? " Although the bank's core financial products remained essentially similar to those of other Danish banks' the way they were delivered changed. This required significant changes in the branches, both tangible and intangible, and how they were supported. Tools were developed to support solution-based service delivery. For example, new IT systems helped employees take customers through processes to determine their needs and find appropriate solutions.

In one, the customer and her banker filled out an on-line investor profile to determine what style of investment products were most appropriate for her based on risk aversion, time frame, and return goals, among other factors. A manager commented that, "The tools themselves aren't proprietary. We've seen other financial services with similar programs-it's how our people use them that makes the difference. " Another stated, "Our tools are designed either to enhance our ability to deliver solutions, or to reduce administrative tasks and increase the amount of time our people can spend with customers-delivering solutions. Finally, being overtly Jyske meant that the bank would no longer be a good place for any customer meeting its demographic criteria for two reasons. First, delivering this type of service was expensive. As a result, the bank charged a slight premium, and targeted only those customers who were less likely to represent a credit risk. Second, the bank would have a personality. According to one manager, "The danger in having a personality is, someone, inevitably, won't like

you. " Senior management considered this the price of being candid, and welcomed the effect it had on some customers.

For example, Jyske Bank's cash/debit card had a picture of a black grouse on it, black grouses being found in Jutland's rural countryside. When a few customers complained that the bird didn't seem very business-like, or wasn't hip (one was "embarrassed to pull it out at the disco") managers were happy to invite them to open accounts at competitor institutions. A manager noted: Actually, if no one reacts to our materials, they're not strong enough. Some people should dislike us. After all, we're only about 6% of the market.

I don't want everyone to like us-we're not for everyone and don't want to be. Tangible Differences Account Teams Delivering on the bank's competitive positioning required a number of tangible changes in its service delivery system. These began with assigning each customer a branch employee to serve as primary point of contact. Over time, managers discovered that this created problems, because customers often arrived at a branch when their service provider was busy with other customers or otherwise unavailable. Nevertheless, managers were committed to providing individualized service.

According to one, "How can we be honest in saying we care about customers as individuals if we don't get to know them as individuals? And without knowing them, we can't identify and solve their problems. " The solution was found in account teams: each customer was assigned to a small team of branch bankers. These employees worked together to know and serve their customers, sitting in close physical proximity within the branch. Branch Design Jyske Bank planned to spend approximately DKK

750 million to physically redesign its branches (most of this had been spent by 2003).

Danish observers described the new branches as looking "like an advertising agency" or "a smart hotel. " These effects were accomplished through the use of modem, up-scale materials such as light wood, warm colors, and original art. Branch redesign also included changes in the way customers interacted with their bankers, made possible by architectural and design changes. For example, customers waiting for their banker could help themselves to fresh coffee in a small part of the branch resembling a cafe.

A customer commented on the cafe, "It means more than you initially think-it makes you feel welcome, it says they're really interested in me. " Fruit juice was available for children, who could amuse themselves with toys in the play center. Bankers' desks were now round tables, signifying equality. A team of three or four bankers sat at a single large round table, with customers making themselves comfortable between the bankers' work stations. Customers could see bankers' computer screens, reinforcing openness.

Customers' ability to view the screens also facilitated the use of IT programs designed to structure interactions between account team members and customers. As equals, bankers and customers sat in the same type of chairs, and bankers no longer sat on a raised dais, the origins of which went back to feudal times when the heads of certain people were supposed to be higher than those of others. If a conversation required more discretion, specially designed meeting rooms giving the feeling of "home" were available. Exhibit 4 contains pictures of a remodeled branch.

Details Jyskeness was infused into the bank wherever possible, a

formal policy requiring Jyske differences to be considered in all product and IT development. No detail was too small: for example, although employees' business cards had their pictures on them, as one manager put it, "They were bad pictures, really gray. They weren't warm-the people in them looked stiff and uncaring. " To make them more Jyske, the bank hired a professional photographer who worked with each employee to "get the genuine interest in that employee's eye to come to life. Each picture was then tinted slightly yellow to make it resemble "an old family photo. " Intangible Differences Delivering the bank's new competitive positioning also required numerous intangible changes and other changes not immediately visible to the customer. Managers stated that the most important of these involved training and empowering those employees closest to the customer to serve the customer. Training Before a branch was remodeled, all staff took part in special training sessions.

These included teambuilding and customer service, drawing on best practices from the "traditional" retail sector. Empowering the Branches Jyske Bank leadership examined its organizational structure, asking, "Where is value created? " and "Where decisions should be made in order to create the most value? " The answer to both questions was "in the branches. " Previously, almost all lending decisions of any consequence required approval at the branch, regional, and headquarters levels. Specifically, a customer would approach an employee for a loan.

The request would be communicated to the branch manager. The branch manager would then make out the formal application, which if the loan was for more than DKK 3 million, was sent to a regional office with the branch manager's

comments. The regional office would then comment on the application, and if the loan were for more than DKK 15 million, send it to headquarters for approval, where additional comments were added to the application. Loans of more than DKK 30 million also required approval from the head of credit for the bank as a whole.

In examining this process, managers discovered that most of the debate and communication were among individuals in the middle, rather than between the employee closest to the customer (who presumably had the most information about the customer) and the ultimate decision maker. After reviewing the situation, the bank's leadership stated, "If we are to be true to our value of using common sense, we shouldn't need so many people, and so many layers, reviewing loans. " First, the process was changed so that the employee receiving the request for the loan completed the formal application.

This empowered that employee by giving him ownership of the loan, which he was trained in how to handle. He was also put in charge of pricing the loan, as long as his suggested pricing was within a set range of where the final approval authority felt it should be. Most loans received final approval from the branch manager, who was either selected in part based on her credit skills or given additional training in credit. A few loans required approval at the regional level because of their size. In these instances, the employee completing the application sent it directly to the regional head of credit. 8% loans were handled at the branch or regional levels, where loans of up to DKK 90 million were approved.

The credit department at headquarters was disbanded, leaving only the bank's head of credit who reviewed loans of more than DKK 90 million. This additional review was retained for loans of this size because exposure to the customer would be so great that default could significantly affect the bank's capital. The changes implemented were originally designed to affect internal processes. However, they also improved customers' experiences.

For example, managers believed that because the employee in direct contact with the customer made the application, the quality of information in applications increased; as a result, more borrowers worthy of credit received it, and the quality of loans in the bank's portfolio improved. In addition, the time to reach a decision for the largest loans declined from a maximum of three weeks to ten days. Smaller loans able to be approved within the branch could be made almost instantly. Finally, customers' expectations regarding price and terms were more often included in the application.

This helped the approving authority to see whether the loan, in a form acceptable to the bank, was likely to be accepted by the customer, saving time and effort when customers' expectations were inconsistent with the bank's requirements. The streamlined approval process did not pose a credit risk, according to managers, because of the combination of: (1) improved branch credit skills, (2) lack of incentive to make poor loans (branch managers had no incentives immediately related to loan volume or quality), and (3) a robust internal auditing function that monitored credit quality.

At the same time that the credit process was redesigned, the bank consolidated from five regions to three, and increased spans of control so that between

35 and 45 branches reported to each business unit director, who had a staff of marketing, credit, human resources, and control professionals at the regional level (many of whom had previously been at headquarters). A senior manager commented on the roles of headquarters, the regions, and the branches: Headquarters is where we transform our values and strategy into products, processes, and information technology.

The three regions are where we make sure that what comes from headquarters is translated for the local marketplace and where we ensure that Jyske Differences are being acted upon-that customers experience them. The 119 branches are where we serve customers and thus where value is really created. 20% of what we do is development at headquarters, and 80% is implementation in the field, supported by the regions. Given the small size of our branches we need the regional level to ensure that implementation is done right. Empowerment throughout the Bank Empowerment was not limited to the branches.

Throughout the bank, employees were encouraged to make decisions of all sorts if they felt comfortable doing so. In general, employees were encouraged to ask themselves, "Does it make sense to ask for help or permission? Is there a business reason for asking? Is this something you've never done before? Is this a 'big' decision (big being relative)? Is it debatable, or is it a new principle? " In general, employees were told, "When in doubt, ask. However, if there is no doubt, go ahead. " Managers were expected to set an example. Examples of this policy in action included working hours and vacation time.

One employee noted, "If your job makes it possible, you set your

hours, you just have to agree with your colleagues, you don't need approval from your boss. You do the same with holidays. " A manager noted, "The union" at headquarters didn't have a problem with this, but the union in Copenhagen worried that employees might misuse the flexibility. " Another example involved the amount employees were able to spend on meals and entertainment while traveling or entertaining customers. Previously, there had been a set amount, DKK 125 and bills consistently came to DKK 125.

Consistent with its value of common sense, the bank changed the policy to be (paraphrased) "Spend what you need to spend. " This resulted in what an executive stated was a "substantial decline in travel and entertainment expenses. " When asked, "How do you get a system like this to work? " he replied: First, you tell people what's expected. Second, you check on their behavior. If they are buying expensive wine, you ask, "Why? " You explain what makes sense, and why. You do it in a way that tells them you honestly want to help them improve. Third, if there are continued problems, this person may not be right for the bank.

The real challenge is when we hire someone from another bank. We expect them to be up to speed quickly because of their background, but they aren't used to making these kinds of decisions-they have to be taught how. Management Style A senior manager commented: You can train and educate all day long, but unless your managers and employees are committed to Jyske Differences, they just won't happen. Getting them committed required a great deal of my effort. When

we started this process there were times when it was hard-really hard. The branch managers didn't think strategically-they sat in their offices and focused on their day-to- day work.

I wanted the branch manager to get up on a hill and look around, to get a bigger picture. To get them to change I asked them questions: What's the market? Where-and who-are your competitors? What are your strengths and weaknesses, how do they tie to Jyske Differences? Now, contrast what you need with what you have. Are the teams in your branch living up to the demands? What do you need to do to ensure that that they will? There will be resistance; understand where it is coming from. One way to deal with it is to make agreements with individuals on how they will develop new skills.

If there is a complete mismatch you may need new team members, but for the most part, you can coach your people through this kind of change-you can lead them. According to another executive: The branch managers have to be able to motivate employees to work a little harder, and differently. The most successful give their employees a lot of latitude for decision making. They do a lot of training, 80% of which is on the job. When it isn't, it's mostly role playing. There aren't any high-powered incentives to offer, but there are really good tools coming out ofIT. It's more how the branch managers do it than what they do.

They constantly link the tools, training, and behaviors to our Jyske values. They get their employees to share the values and act on them. A third noted: When

I have a difficult situation I look for what I call a "culture carrier. " I try to put that person into the middle of it, because they live our values. What I usually see is that the other employees who are on the fence about the values start to come over-they see the example and they like what they see. This leaves the few people who really don't want to be Jyske on the outside, and they tend not to last long.

Most people are willing to change, but they've got to be supported in the process. Human Resources Legal aspects of human resources, record keeping, and training were centralized at headquarters. In contrast, advice on how to deal with human issues was provided by human resource professionals located in the field (at the regional level). They delivered this advice to general managers in the field such as branch managers. The branches had to pay for this service, and they could choose to either buy the service or do without if they preferred. Selection: An executive discussed employee selection at the bank: It's very important.

For most of the jobs, we're not only looking for banking skills, we're looking for social abilities-service mindedness and compatibility with our Jyske values: openness, genuine interest in other people. You can smell it when you speak with someone. We don't have a systematic approach to this, although when we're hiring someone from another bank we ask why they want to work for us and listen for answers consistent with Jyske values. We can train most banking skills, but we can't train these attitudes. Maybe our biggest challenge is hiring people

with them, and getting a few of our established employees to adopt them.

Some departments of the bank asked potential hires to write about themselves. A manager noted, “We’re looking to see whether they’re engaged in what they do, or if they’re promoting themselves. ” Training: A manager in human resources commented We have told every employee that his or her development is his or her responsibility. We believe development is incredibly important. While my peers at other Danish banks are cutting staff and saving every way possible, our goal isto get employees and managers to invest in more development. But it's up to the individual to decide what to invest in.

We're outsourcing a lot of development activities, but we keep anything related to Jyske values in house. Incentives: Managers pointed out that the bank had few monetary incentives. The few in place consisted of three types, stock, one-time payments, and annual raises. Stock incentives: if the bank's annual performance was above the average of the top ten Danish banks', a stock option grant valued at DKK 8. 000 was made available to all employees and managers. In addition, any employee could use up to DKK 13. 200 to buy company stock annually at a 20% discount.

If the bank's annual performance was among the top three Danish banks', the discount rose to 40%. One-time payments: for truly exceptional work, employees could be awarded one-time payments. Fewer than 1 % of individuals at the bank received this type of payment. Raise incentives: employees and managers received annual salary increases based on their manager's evaluation of their work. The highest raise practicably possible was 10%, although an employee

or manager in the top 15% of performers (the highest level) typically received a raise of approximately 7%.

Salary raises were eventually limited as total salary had to remain within the bands established for a particular position. Once an increase was granted it became a permanent part of the employee's salary Commitment An employee commented on what it was like to work for Jyske Bank: "I'm not restricted. I don't have to leave my head at home-I can take it with me to work and I'm supposed to. " Another commented: You're treated as a human being here. At other banks you have to be really careful what you say. Here, you can be open and honest - I can approach anyone – even the CEO. Jyske Bank is a way of life.

You come in at 8:00 and you leave when you collect your pension. I pay a premium for this, I could earn more at another bank, but it's worth it for me. At some banks, bankers have prostituted themselves for higher pay, stuffing products down the throats of customers those customers may not need. We don't. Anders Dam, Jyske Bank’s CEO, stated: If you can create an environment in which people aren't talking about money, but where they gain value in their relationships with their colleagues and their customers, where the bank will take care of those who work hard even if they get sick, then people will be committed to the bank.

Metrics and Financial Results Bank managers frequently referred to the importance of measuring performance, in both quantitative and qualitative ways, and at a variety of locations in the bank. Traditional financial measures

were considered important, but not all-important. In addition to traditional measures, Jyske Bank implemented an information technology system to measure account profitability on a risk-adjusted basis (risk adjusted return on capital, or RAROC). This had been a considerable effort and was just coming on-line in 2003.

Customer and employee measures were also considered important. Managers reported that employee satisfaction was higher at Jyske Bank than at any of its major competitors based on data collected by independent third parties. Several sources of data indicated that Jyske Bank customer satisfaction was also the highest among the bank's major competitors Customer satisfaction could be tracked to the regional level. Plans were in place to be able to measure and report it at the branch, and eventually the individual customer, levels.

Jyske Bank took a conservative approach to earnings, writing off its entire investment in remodeling branches, building a new headquarters, and new information technology systems in the years in which spending occurred. This amounted to DKK 302 million in 2002, DKK 253 million in 2001, DKK 194 million in 2000, and DKK 212 million in 1999. Results for 2002 also reflected an extraordinary tax payment ofDKK 222 million, which was described as "a potential liability in light of discussions with the Danish tax authorities. '? Jyske Bank's statement of core values and principles included the following: .. he aim is for Jyske Bank every year to be one of the top performing Danish banks ... Jyske Bank is thus an excellent choice for shareholders who want to make a long-term investment and who do not attach great importance to decisions which generate only short-term price increases. Communication Management believed

that most employees liked working for the bank and appreciated Jyske Differences as they affected their jobs. Sustaining Jyske Differences required the bank to remain independent, not an easy task in the Scandinavian banking market, which had consolidated considerably during the 1990s and early twenty-first century.

Executives believed that they had taken the right steps to remain independent by investing in employees, systems, and infrastructure that would enable the bank to deliver superior value to its targeted customers, and thus achieve superior financial returns. This economic model was built on the bank's value chain (see Exhibit 5). Delivering that value required considerable change. One manager stated a point that several alluded to: If you want employees to behave differently, you have to be sure they know what that means-how they should behave going forward, and why they should change.

We can't ask people to change without communicating this kind of information to them-it's not fair. Bank leadership believed that communication should be, in the words of an executive, "a car wash, not a waterfall--communication must come from all directions at once, not just cascade down from above. " In that spirit, in 1997 communication reinforced Jyske values and differences when the bank produced a video tape on Jyske Differences made available to all employees. This was designed to look like a television talk show. The host was a prominent Danish television personality and the guests were Anders Dam and Danish experts on business.

Each was interviewed and they discussed what Jyske Differences were, how they were being implemented, and what they meant to employees and customers, supported by video clips of employees and customers in the branches. Communication

efforts continued in 1999, executives planning a surprise for the bank's strategic meeting, to which all employees were invited every third year. The Battle at Vejle The 1999 strategic meeting took place in Vejle, the closest city to the bank's headquarters with an auditorium large enough for the 82% ofthe bank's 3,107 employees who chose to attend.

The meeting opened with a panel of senior executives, some of whom were from Jyske Bank, and others who were strangers. A grim-faced Anders Dam got up, and introduced one of the strangers as "the CEO of a large, very large, Swedish bank. " Dam then continued, explaining that the Swedish bank had offered to buy Jyske Bank for almost twice its current stock market valuation, a premium of 2. 3 times what other Danish banks had recently been acquired for. A fax was to be sent to the Copenhagen stock exchange, suspending trading in Jyske Bank shares immediately after the meeting.

As he spoke, a sense of foreboding rose in the audience. Non-Scandinavians should note that despite the currently cozy relationship between Swedes and Danes, they fought against one another for many centuries, Southern Sweden once having been a Danish possession. The CEO of the Swedish bank took the podium and announced (in Swedish, which is very difficult for most Danes to understand) that his Danish was very poor, so that he would "speak Scandinavian, very slowly," after which he continued to deliver his address in Swedish. He stated, among other things, that "You - Jyske Bank, you are good, very good.

But are you good enough? For tomorrow? For the future? For a world without borders across the continent?

" After his speech Anders Dam took the podium again and asked for an "immediate and honest response" from the employees. Over the course of several questions and responses it became clear that although the takeover was friendly, the integration would be anything but. In the words of the Swedish CEO, "A merger has certain administrative advantages, which will require an adjustment in staffing. " Eventually, a manager got up and said, "Do something for the environment.

Put the Swedes on the ferry and send them back! " His suggestion received wild applause. After a pause, Anders Dam returned to the podium and, now smiling; explained that it had all been a joke, which he called "Jyske Fun. " He added that he was "proud, proud as a peacock of your reaction to the joke;' being delighted that the vast majority of the audience flatly rejected the idea of being acquired. One questioner put it bluntly, stating that (paraphrased) "Jyske Bank couldn't live Jyske Differences, couldn't do the things for employees and customers they had been working so hard on, if it were to be acquired. Dam finished his speech by pointing out that if Jyske Bank were to remain independent in the increasingly-competitive environment Danish banks now faced, everyone would have to contribute. Part of that contribution was an effort to diversify the bank's type of shareholders and increase their number in order to ensure that they shared its long-term perspective on financial performance. Employees encouraged customers to consider purchasing Jyske Bank Group shares. Between the "Battle at Vejle" and 2003, the number of shareholders increased from 150. 000 to more than 210. 000.

Managers and

employees agreed that the message of the "Battle at Vejle" was heard throughout the organization and that Jyske Fun was a good idea. Subsequent examples of it included the only national advertising campaign the bank had engaged in during the past decade, which was effectively a dog beauty contest with entry requiring a visit to a local branch. When asked why advertising was so limited, an executive replied: Two reasons. First, we rely on word of mouth, so we don't need to advertise that much-our advertising cost as a percentage of revenue is half what banks of similar size spend.

Second, we have to be absolutely sure we can consistently deliver Jyske Differences before we advertise them. Later in 1999, communication efforts continued when managers created a video tape illustrating Jyske Differences in an unusual way. The tape introduces Max Performa, an ex-KGB agent hired by a mysterious and beautiful senior manager of a competitor bank. Performa is assigned to find out if Jyske Differences are actually being delivered at Jyske Bank's branches. He checks off each Jyske Difference as he experiences it, pretending to be a Jutlandish farmer wanting a loan (speaking Danish with a thick Russian accent).

In the course of applying for the loan he discovers that Jyske Differences are being delivered, among them that the employee opening his account has the authority necessary to meet his needs (common sense), that the bank will go to great lengths to show genuine interest in him (he and the branch manager drink an entire bottle of vodka one afternoon), and that Jyske Bank is different and isn't for everyone: when he complains about the black grouse

on his debit card he is politely told he might be happier banking with a competitor.

At the end of the tape the viewer learns that the mysterious senior manager who hired Performa actually works for Jyske Bank. Executives believed that they needed to constantly reinforce the message that remaining independent required every employee to work a little harder, and to behave in a manner consistent with Jyske Differences. To deliver that constant reinforcement, they printed the bank's values and Jyske Differences in materials that managers were asked to discuss with their employees.

On one occasion, branch employees were asked to come in on a Saturday, without pay, to discuss the values and differences and their implications for day to-day behavior. 80% chose to come in. In 2002, communication efforts included the bank's strategic employee meeting, called "Return to Vejle. " The meeting, complete with live, high-energy music (a locally popular drum duo) and entertainment, celebrated the bank's accomplishments and served as a reminder of what still needed to be done. Finally, in 2002 the bank introduced what it called a "tool box" for communicating value chain information to and from the branches.

The tool box enabled each branch to select elements on the bank's value chain (see Exhibit 5) and measure the branch's performance against goals related to that element. The tool box delivered regularly updated information including guides such as green or red lights describing the branch's performance on the selected value chain elements. An executive described the tool box as "a way to operationalize the value chain so that everyone in the organization understands how they need to behave on a day-to-day basis in order

to optimize it. CONCLUSION The bank's leadership believed that Jyske values and differences, and the bank's value chain, provided ways to achieve the balance they wanted among their three stakeholders: employees, customers, and shareholders. Several leaders commented that with the large capital investments behind them as of 2003, net income would increase considerably in the coming years, assuming the recession of2001 and 2002 was over. Shareholders had received a 17. 8% annual return on their investment for the ten years prior to year-end 2002.

Anders Dam's 2002-2003 goal for shareholders was to increase the bank's stock multiple approximately 40% to the level of Danske Bank's, the largest and most richly-priced bank in Denmark. This was achieved in July 2003. 6 While the bank's leadership was pleased with the bank's success, they were more interested in determining how the bank would remain in a position of leadership while still keeping the interests of its key stakeholders in balance.

Questions To The Jyske Bank Case

1. As of the mid-1990s, what was Jyske Bank's competitive positioning, that is, what did it do for customers relative to its competitors?
2. As of 2003, what was Jyske Bank’s competitive positioning?
3.  What did Jyske Bank change to enable it to deliver its new competitive positioning?
4. How did Jyske Bank implement those changes
5. What are the learning outcomes of the case?