FUM is a banking company in Cape Cod, Massachusetts. FUM is failing to compete effectively and grow as required. I (Ashley Brooks) have been called in as a consultant to help evaluate and assess the situation. All parties involved in the assessment (including board members, employees, management, and customers) are supportive of FUM and want FUM to succeed! Brooks consulting joins these constituents in the desire to see FUM succeed. It is within this context that Brooks consulting shares its findings and recommendations. Our assessment has discovered the following:
An economic down turn has had a significant negative impact on FUM
FUM has high turnover rates; 4% higher than the industry average
FUM competitors offer better returns and lower rates.
FUM is suffering from a lack of new business growth including:
Lower deposits
Borrower defaults
FUM has significant examples of unprofessional and inexperienced managers
FUM has operational challenges resulting from lack of standardization and adherence to consistent polices requirements
FUM is suffering due to a down turn in the economy. FUM needs to rethink strategies addressing the challenges in order to eliminate the external factors crippling FUM, and improve operations in order to compete effectively. The poor economy is resulting in deposits being down as well as borrowers defaulting on loans. Although FUM is bound to a certain percentage of consumer loans, there is no requirement to retain the loans as annuities.
FUM’s CEO and VP are not aligned with the board of directors on the future business plan. The CEO and VP would like to hit the ground running and incorporate new technology in banking locations as well as emphasize new customer growth. That being said, the board of directors is not in synch with the specific strategies to improve performance and is reluctant to incorporate recommended changes. Due to the disagreement of the two parties there is no progress in the company. As a result, there is a lack of progress and company competitiveness is at risk.
Employees at FUM are concerned about job stability. Employees recognize there is a disconnect between the CEO/VP and board or directors regarding the introduction of new technology. Employees view new technology as a threat. The use of new technology has not been properly positioned relative to the role of the employees. As a result, employees are concerned the new technology will replace them. Due to this uncertainty, employees are looking for jobs outside of FUM and results in high turnover.
FUM is not competitive from a salary and benefit perspective. Employees are noticing that they can receive higher pay and greater benefits at other companies. As a result, the turnover rate is 4% higher than the industry average. Evidence of this is FUM lost their top two personal bankers in the last six months.
Employees at FUM are receiving substandard training. The employees are experiencing increasing processing volumes which overwhelms them. The increasing demands and lack of training is having an impact on retention. Employees are quitting and the turnover rate within the company is 4% higher than the industry average.
FUM is having trouble recruiting employees. FUM is not following up with employees who are interested in open positions. Sometimes FUM will interview potential candidates only to later tell them the position has already been filled. Some candidates are asked to reapply for positions they have already applied for. This type of behavior from the recruiting team impacts employee acquisition and highlights the unprofessional and disorganized nature of the company, which further impacts recruiting in a negative way.
Employees at FUM feel there is limited opportunity for advancement. There is a high degree of part time work (70% of tellers are part time). Part time employment limits salary, benefits, and advancement. FUM seems to be promoting part time work which negatively impacts the
