People, Service, and Profit at Jyske

Bank

Group no.(2)
Member:-
F1-Nilesh Bhagat
F45-Aditya
Todankar
F46-Paras Trivedi
F26-Malika Palande
F49-Pritam Vaity
 Objectives for Case:
People, Service and Profit at
Understand how a service firm repositions itself
Jyske Bank
•

through:
–
tangible changes
–
intangible changes
–
communication
•
Analyze specific implementation strategies related to
each of the gaps in the Service Quality Gaps Model:
–
Gap 1 - The Knowledge Gap
–
Gap 2 - The Service Design and Standards Gap
–
Gap 3 - The Service Performance Gap
Jyske Bank Value Chain
Danish Banks’ Quality of
Service Metrics
Danish Banks’ Quality of
Service Metrics
Remodeled Branch
Remodeled Branch
Remodeled Branch
Remodeled Branch
The Jyske Bank Value Chain
 Jyske Bank’s 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
 Effects of the Strategic
Decisions
1. Product Quality
•
New IT systems helped employees take
customers through processes to
determine their needs and find appropriate
solutions E.g : Determining the style of
investment products based on risk
aversion, time frame and return goals
customized for a particular client
•
98% of the loans processed at regional
office itself
 2. Price
•
As delivering this type of service was
expensive, the bank charged a slight
premium
•
Targeted to customers who were less
likely to represent a credit risk
•
Expectations regarding price and terms
were more often included in the
application
Q.1 A) What was Jyske Bank’s Competitive
positioning?(mid-1990s)
•
As stated in the case, Jyske Bank’s positioning strategy is
strongly believed to be found in its values and differences by the
managers.

•
“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 Bank also had their core values which guides all aspects of
the organization’s life
 B) What did it do for Customers relative to
its Competitors?
•
The staff at Jyske Bank proved they were not afraid to make these
changes.

•
They made both tangible and intangible changes where necessary
not only to influence the outcome of the business but also to
provide guaranteed customer satisfaction.

•
The effect of these strategic changes as lead to an increase in
customer satisfaction based on data collected by independent third
parties and has the highest customer satisfaction level among its
major competitors.
TANGIBLES
Mid 1990’s 2003
- One employee for a group - A customer allotted to a group
of customers of bankers

Servicescape
- - Round tables, computer visible,
no longer a dais, play place, café
outlet, specially designed
meeting rooms and change in
interiors.

- Physical Evidence: Dull - Friendly image of employees.

images for employees
INTANGIBLES

Mid 1990’s 2003

-Training provided to -Training provided to employees
employees
- A long procedure before - The procedure is highly
process . reduced for better services.
Q.2 What was Jyske Bank’s Competitive Positioning?
Out of The Box Service

•
Physical evidence:
•
Developing a niche market and targeting the
right set of customers.
•
A customer assigned to a group of bankers.
•
Friendly pictures of employees.
CUTTING EDGE
•
Technology – Similar

•
Delivery – Significant Difference
a) Tools Developed -> Customer Needs Identify
b) Tools + People -> Cutting Edge
VALUE ADDED
•
People : Being nice to customer
• Making time for Customers
• Caring about Customers.
•
Focused at niche market
•
Training un team building and customer service.
•
Empowerment to employees.
•
Incentives
SERVICE DIFFERENTIATES
•
Process: Traditional product selling to
customer solution approach.
•
Delivery of financial product changed.
•
Employee centric
•
Empowering employee for decision making
•
Training
•
Commitment
•
Incentives
Q.3 Tangible Changes Made by Jyske
Bank
•
Re-design of branches (modern/warm/original
art)

•
Café – coffee available/juice for kids

•
Play area for kids

•
Business cards with photos

•
Large round tables where 3-4 bankers are
seated
Intangible Changes Made by Jyske
Bank
•
Reorganization around account teams – primary point of
contact

•
Training in team building and customer service (caring,
asking, listening)

•
Empowerment of employees (decisions, spending)

•
Managers who think strategically and lead change
through coaching

•
Select for social abilities, values, and attitudes

•
Jyske “way of life” – strong culture
 Q.4 Gaps Model of Service
Quality
•
Customer Gap:
–
difference between customer expectations and
perceptions
•
Provider Gap 1 (The Knowledge Gap):
–
not knowing what customers expect
•
Provider Gap 2 (The Service Design &
Standards Gap):
–
not having the right service designs and standards
•
Provider Gap 3 (The Service Performance
Gap):
–
not delivering to service standards
Gaps Model of Service Quality

Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service

External
COMPANY Service
Communications
Delivery Gap 4 to Customers
Gap 3
Gap 1 Customer-Driven
Service Designs and
Standards
Gap 2
Company Perceptions
of Consumer
Expectations
 Strategies Implemented to
Close Gap 1
•
Focused on a specific targeted segment –
price premium/non-credit risk, families, and
mid-sized businesses
•
“Not for Everyone” so they know their
market segment well
•
Research by Dutch consultants revealed
customers were interested in and
responsive to a “Jyske” type bank, and that
they were also interested in softer
attributes of service—not just price and
location
 Strategies Implemented to
Close Gap 2
•
New IT systems helped employees take
customer through a process to determine
their needs and the right solutions
•
Services are designed around Jyske
values so they are consistent with
positioning
•
Computers are visible to customers so
they participate and are aware of process
and decisions
•
New branch design – warm, friendly,
 Strategies Implemented to
Close Gap 3
•
Support systems and technology for
employees
•
Empowerment in decision making
•
Training in customer service – listening,
caring, asking
•
Management coaching and leadership
•
Measuring employee satisfaction
•
Internal communication – video on Jyske
Differences
 Strategies Implemented to
Close Gap 4
•
All communication elements are consistent
with positioning (design, people, business
cards, checks)

•
Little advertising – focus on word-of-mouth
communication

•
Internal communication is strong