La banca non può più limitarsi a creare valore per i soli shareholder, ma deve farlo per gli stakeholder.

Il valore non può più identificarsi con la massimizzazione del ROE di breve periodo, bensì deve consistere in creazione di valore duraturo per gli stakeholder.

Ne consegue che, per ottenere la qualifica di eccellente, la banca deve creare valore duraturo per tutti gli stakeholder.

Ciò premesso, il fondamentale generatore di valore per la società e le organizzazioni è l’uomo. L’uomo può, pertanto, essere definito a pieno titolo risorsa umana o, se vogliamo, capitale umano.

Le competenze e le conoscenze delle risorse umane, applicate con l’aiuto dell’Information Communication Technology in un ambiente organizzato quale è la banca, generano inter alia risorse di natura  intangibile interne (innovazione, know-how,  cultura aziendale, ecc.) ed esterne (immagine,  brand awareness, relazioni con i clienti, fornitori, comunità sociali, ecc.), a loro volta, generatrici di valore.

All’insieme delle conoscenze e delle relazioni che possono generare valore si dà la denominazione  di “capitale intellettuale” che, pertanto, risulta costituito:

  •  dal capitale umano (le risorse umane);
  •  dal capitale relazionale (l’ambiente esterno);
  •  dal capitale strutturale (l’organizzazione).

Il capitale intellettuale della banca è rappresentato dall’insieme delle conoscenze e delle competenze delle risorse umane che vi lavorano, dalla capacità di innovazione, dall’efficienza ed efficacia organizzativa e dal patrimonio di relazioni instaurate con il mercato e con l’ambiente esterno.

I principali driver della creazione di valore sono rappresentati dalle interrelazioni tra le tre tipologie di capitale intellettuale.

L’obiettivo del management deve essere quello di massimizzare le interazioni positive tra i tre elementi costitutivi il capitale intellettuale.

 

BEST PRACTICE

 

Molto interessante in proposito è l’esperienza del Santander Central Hispano (SCH), gruppo che nasce nel 1999 dalla fusione di due grandi istituti di credito iberici.

La banca spagnola, in coerenza con la propria vision di “essere un’istituzione finanziaria in grado di agire prima e meglio dei concorrenti, al fine di generare valore per tutti gli stakeholder, primi fra tutti i clienti, i dipendenti e gli azionisti”, ha elaborato un proprio modello di riferimento per la valutazione del capitale intellettuale (inserendolo come appendici negli Annual Report del 1999, 2000 e 2001), che si compone dei tre classici elementi sopra menzionati:

  • – Capitale Umano (Human Capital);
  • – Capitale Relazionale (Relational Capital);
  • – Capitale Strutturale (Structural Capital).

Le prime due appendici concernono il biennio 1999 e 2000; le ultime due il biennio 2000 e 2001.

Mi limito a sottolineare, lasciando al lettore il piacere della disamina delle soluzioni individuate nelle quattro appendici, l’evoluzione intervenuta nel solo volgere di due esercizi nel contesto di riferimento e, quindi, nella capacità della Banca di approntare risposte allo stesso tempo veloci, efficaci e trasparenti.

 

SCH APPENDIX 1.

THE VISION: EARLIER AND BETTER IN ORDER TO GENERATE VALUE

Santander Central Hispano developed its activities during 2000 under the framework of a clear and well-defined vision: to be a financial institution capable of acting “earlier and better” than its competitors, in order to generate value for all stakeholders – shareholders, clients and employees.

The vision affects all spheres of the Bank. The Bank’s vision is based on three pillars:

1. the first is to be the reference bank in Europe; with leadership in Latin America; offering the best customer service; the largest of business in all countries; an optimum presence in the traditional and new economies; the best team of professionals and the largest capacity to generate shareholder value;

2. the second pillar consists of the Bank’s founding values: anticipation and excellence;

3. the third is its operating plan, Program ONE, the reference management framework for 1999-2000 based on six specific targets: net attributable income, net operating income, efficiency, non-performing loans, NPL coverage and ROE.

Santander Central Hispano’s vision has immediate implications on the generation of value for shareholders, clients and employees. This appendix sets out the conceptual model that is derived from the Group’s vision, while the Annual Report as a whole provides concrete facts and figures which  guarantee the generation of value for all three stakeholder collectives.

 

1.1 Generation of value for clients

Santander Central Hispano, like any other financial institution, generates value for its clients in a different way to that of industrial and service companies. Its business is structured more as “network of value creation” than a “chain of value” in the traditional sense, because a bank does not buy raw materials, nor transform them into products that are then sold.

For a bank, therefore, a saver who makes a time deposit or someone who requests a loan are customers rather than suppliers. In this sense, Santander Central Hispano, like all financial institutions, is really a meeting point between customers with complementary financial and a collection and payments agent.

In 2000 the “Santander Central Hispano value creation network” broadened the concept of global distribution network to include local reach. On the one hand, the Group competes globally in all areas and world markets (asset management, corporate and investment banking, treasury and capital markets, securities and custody); and it does this, furthermore, with management tools that are also globalized, such as risk management, technology platforms, audits, business systems and methodologies, etc. On the other hand, its universal financial services also compete locally due to two factors:

– first, the Group’s capacity to “customize” its portfolio of products and services (1,393 references in 2000, 261 more than in 1999) to the particular features of each market and customer segment;

– second, to its own particular strategy to maintain local identities, brands and ways of doing business, because this ability to adapt is perceived by clients as a generator of value.

For this dual global and local reach approach the Group has an extensive distribution network, based on more than 10,800 branches, whose activity is complemented with eight alternative channels: telephone banking; ATMs; Internet; digital TV banking; express offices in large shopping centers; WAP-enabled telephone banking and agents.

 

1.2 Generation of value for employees

A multinational Group, present in more than 42 countries, and operating in all business areas, offers many possibilities of professional development for its employees. We have the following programs underway: identification of professionals with high potential in Spain and Latin America; internal promotions by merit and competition; development of international careers, extension of the variable remuneration system to 90% of employees (which is linked to achieving business goals).

Moreover, the training programs by areas are also a key instrument for generating value for employees. Particularly noteworthy in 2000 were the following: support for systems’ integration processes; Internet at the service of business; development and integration programs for professionals from the different banks that comprise the Group; key collective career plans; corporate programs on prevention of money laundering; internal audit and risk management (markets and business).

 

1.3 Generation of value for shareholders

Santander Central Hispano’s objective is to maximize the Group’s value for its 1,018,062 shareholders (as of 31.12.2000), in terms of income, dividends, share price and capitalization. Net attributable income rose 43,4% in 2000 and 81% since the merger. Net earnings per share increased 58% in 1999 and 2000 and the proposed dividend, charged to 2000 results, is 20,2% higher.

The Santander Central Hispano share has risen 55,7% since the merger, compared with 43,1% for the banking index and -2,1% for the Ibex-35. This performance and the capital operations carried out in 2000 produced a 68% rise in market capitalization over the two years to Eur 51,986.7 million at 31.12.2000. This capitalization makes Santander Central Hispano one of the largest banks in Euroland and among the 15 biggest in the world.

In addition to financial considerations, shareholder value is derived from other factors: periodic and transparent information (daily, weekly, quarterly and annual); insurance policies with special conditions (life, cars, accidents and home) and free accident insurance; dividend reinvestment plan; free access to Internet; differentiated communication access; and special conditions for shares, if deposited with one of the Group’s entities (fees waived on purchases, custody, maintenance, administration, dividends and capital operations).

 

SCH APPENDIX 2.

INTELLECTUAL CAPITAL: BUILDING THE FUTURE

The concept of intellectual capital comes from the recognition of the difference between the book and market values of a company. This difference, which is difficult to measure in monetary terms, reflects, however, the growth and profitability potential of a company.

Santander Central Hispano, for the second year running, sets out in its annual report the components of its intellectual capital, in order to substantiate its forecasts and expectations and show that by measuring its intellectual capital it has the capacity for conducting a management that guarantees a continuous positive impact on the Group’s value.

 

The three key components of intellectual capital (Human Capital, Relational Capital and Structural Capital) should not be viewed as if they were photographs taken at the end of each year, but their interrelation should also be considered as growth in value also depends on this.

The most important relation is the transformation of human capital and relational capital into structural capital.  This process, which must be stimulated and managed, constitutes what is known as knowledge management and enables expert knowledge (i.e. the knowledge that Santander Central Hispano’s professionals have to carry out universal and global banking) to be an asset of the bank for the benefit of everyone, for it improves employability, on the one hand, and consolidates the organization as an entity, on the other.

 

2.1 Human Capital

Personal abilities, capacity to innovate and improve, commitment and motivation of human resources, are key elements of intellectual  capital.

 

  • Personal abilities: knowledge, skills and professional qualities

This series of indicators reveals the degree of effort of employees to increase and perfect their level of abilities, as well as the resources and learning opportunities that the company provides for this purpose. By perfecting professional skills and experience, the capacity to take better decisions than those of the competition is increased, to contribute more to our teams and provide better services to clients.

 

INDICATORS

2000

1999

 

 

 

Hours of training/employee*

57.45

52.96

Total number of training hours (thousands)*

1,855.0

1,905.5

Training hours/working day (yearly) (%)

3.3

3.1

Training cost/wage bill (%)

1.3

1.3

Participants/total employees (%)

88.75

72.50

 

 

 

Evaluation of training courses: applicability (scale of 1-10)

 

 

 

Opinions of participants

7.86

8.08

 

Opinion of line manager

8.02

8.25

Employees with access to on the job training (%)

62.93

Number of internal trainers

965

 

As a % of total employees

3.49

 

% of hours given

36.18

% of employees who perceive that their line manager facilitates information

89.29

* The criteria for recording distance training has been changed.

 

  • Capacity to innovate and improve

In order to maintain our leadership we have to assimilate changes, generate new ideas and transform them into actions, services and products faster than the competition. It is therefore necessary to know our learning capacity through indicators that allow us to consider the diversity of employees as an investment for the future and the company’s capacity to take on new projects.

 

INDICATORS

2000

1999

Average age of employees

42.46

42.90

Male/female employees (%)

73/27

75/25

Number of participants in best-practice processes

6,327

1,003

Number of projects related to management of knowledge

6

3

Number of new products and services developed

261

86

Number of improvement suggestions contributed by staff

2,691

2,316

 

  • Commitment and motivation

The concept of commitment to the Bank’s goals and of active employee involvement are key factors of human capital. Aspects such as the number of  years in the company, remuneration and promotion policies and participation in improvement processes have to be measured, as they reveal a very positive association with individual motivation and are closely linked to greater productivity and quality of work.

 

INDICATORS

2000

1999

Length of service (years)

19.80

20.00

% off staff with variable remuneration

95.00

89.00

 

 

 

Systems of suggestions

 

 

 

Cash prize

88

83

 

Points prize

63

63

Employees promoted/total (%)

9.01

% of employees who felt explicitly recognized

64.6

Degree of satisfaction in the relation collaborator-line manager

7.22

% of employees who felt their opinions were taken into account

64.8

% of employees who positively evaluate their working environment

69.2

 

2.2 Relational Capital

This concept reflects the value to Santander Central Hispano of all the relations it maintains with its environment, where the client is the main point of reference. The loyalty and affinity of clients, the Bank’s capacity to generate new clients, the intensity of relations and connections with them and with the other parties should be evaluated, as they generate competitive advantages for the present and the future.

 

  • Loyalty and affinity

The creation of solid and transparent relations based on mutual confidence whit our clients is a very valuable intangible element, for it ensures the company’s present and future income. The indicators below reflect the Bank’s systems to improve client attention, satisfy client needs and determine their own valuation of our services through satisfaction indices.

 

INDICATORS

2000

1999

Number of clients in complementary channels

 

 

 

Express/Punto offices

84,609

72,450

 

Telephone line (retail networks in Spain)

2,194,229

1,636,687

 

Internet banking (Group)

1,213,000

330,000

Self-service

 

 

 

Number of credit cards

1,396,430

 

Number of debit cards

2,811,159

 

Savings books (magnetic band)

4,226,572

Global satisfaction index of individual clients

8.10

8.07

% of employees who perceive customer attention in their work

87.8

Market share in Spain

 

 

 

Assets

22.9

22.3

 

Lending

17.7

18.7

 

On-balance sheet customer funds

19.9

19.1

 

Mutual funds

25.1

24.3

 

Managed funds

20.7

20.2

 

  • Intensity, collaboration and contact

The intensity of relations and contact with clients and with other agents indicates the level of stability and sustainability of business and the increase in value in the form of knowledge, cost savings, recognition, etc.

 

INDICATORS

2000

1999

Number of new clients

874,138

613,169

Number of telephone calls attended*

3,747,237

4,995,518

Number of transactions carried out over the telephone*

3,562,358

670,486

Average number of employees per branch

5.53

5.33

Number of alliances with business schools

5

Number of countries where SCH is present

42

37

* The recording criteria have changed

 

2.3 Structural Capital

Structural capital consists of the organizational structures and infrastructure, systems and processes, technology and products. In short it is the materialization of the company’s knowledge and of the instruments that make  it possible.

 

  • Customer support

This series of elements tries to identify the systemized processes that the Bank has created to tend to and satisfy internal and external clients, as well as the indicators which evaluate the efficiency of these processes.

 

INDICATORS

2000

1999

Number of branches in Spain

5,518

6,011

Number of branches abroad

5,309

2,702

Number of ATMs in Spain

6,196

5,811

Number of passbook updaters in Spain

1,160

822

Number of portals for clients (Internet)

50

Number of complementary channels

21

8

Number of telephone calls a day attended for internal users

4,723

2,709

 

  • Technology and quality of processes

The identification and explicitation of key processes and the endowment of technological infrastructure are factors to be taken into account in business management, as they provide an efficient evaluation of organizational knowledge. It is necessary to evaluate the effort being made by the Bank today in order  to generate opportunities for the future.

 

INDICATORS

2000

1999

Number of PCs per employee

1.34

1.24

Number of PCs per branch

7.0

6.4

Processing capacity (Mips in central host)

7,002

6,334

Storage capacity

660.8

466.1

% of employees connected internally by e-mail

100.0

98.01

Number of ISO-9000 certifications

94

24

 

  • Product technology

This covers specific and differentiating methods and formulas relating to the Bank’s products and services. The aim is to measure not only their existence but also their degree of explicitation and documentation, so that this knowledge can be shared and reused by all the employees of the Group.

 

INDICATORS

2000

1999

Number of products and services (catalogue)

1,393

1,132

Number of new products and services developed

261

86

Number of “intranetized” processes

24

Number of “internetized” processes

20

 

SCH APPENDIX 3.

REINFORCEMENT OF THE PILLARS DURING 2001

During 2001, Santander Central Hispano significantly reinforced the pillars upon which it has traditionally conducted its business: balance sheet strength, efficiency and profitability.

 

  • Balance sheet strength

The Group increased its equity base during 2001 and lifted the BIS capital adequacy ratio to 12.04% from 10.86% in 2000, improving Tier 1 capital through the issue of Eur 900 million in new shares to replace stock. At the same time, our prudent policies on loan approval, monitoring and recovery reduced the NPL ratio to 1.86% and increased NPL coverage to 143%.

In response to the crisis in Argentina, and to cover possible future contingencies there, we decided to establish a special reserve of Eur 1,287 million. Of this, Eur 1,187 million fully covers the book value of our investment in Banco Rio de la Plata. A charge of Eur 398 million was also made  against reserves due to the impact of the devaluation of the Argentine peso against the US$ during 2001.

A total of Eur 5,750 million was assigned in 2001 to loan provisions, writedowns, early amortization of goodwill and the special reserve mentioned above. Eur 3,050 million of this was financed by the extraordinary capital gains generated by the sale of partial or full stakes.

 

  • Efficiency

Cost control measures and steps taken by the Group’s different business units to increase efficiency produced an improvement in the efficiency ratio of more than two percentage points during 2001 to 53.98%.

 

  • Profitability

The profit levels achieved last year were made possible by a sound revenue structure, which is well diversified by geographic and business areas and focused on the most profitable and recurrent activities.

In this way, Santander Central Hispano is in a position to ensure increased profitability in the medium term, even in the most adverse economic and market environments.

We are convinced that the markets will assess our management performance positively, and that the Bank’s share price will reflect the Group’s true value.

It is worth noting that over the last 10 years the dividend paid for each share of the Bank increased by an annual accumulative average of 11.2%. One hundred pesetas invested in the Bank’s shares at December 31, 1991 had grown, with reinvestment of dividends, to 718 pesetas at December 31 2001. Over the same period, an investment of the same amount in a basket of share tied to the Ibex-35 would have totalled 323 pesetas.

 

SCH APPENDIX 4.

INTELLECTUAL CAPITAL INDICATORS: BUILDING FOR THE FUTURE

Our intellectual capital model groups three main components: human capital, structural capital and relational capital.

This model reflects the different expressions of organizational knowledge. It is dynamic to the extent that it aims to go beyond mere simple growth of each type of capital. Using knowledge management tools, interconnection flows are created among the different components of intellectual capital to enhance value intrinsic to Santander Central Hispano.

The information offered here should not be considered as a full inventory of our intellectual capital. The indicators have been chosen for their significance, in accordance with business strategy and, unless otherwise stated, only refer to the parent bank in Spain.

 

4.1 Human capital

Existing skills, the ability to innovate and improve, as well as commitment and motivation, are key components of intellectual capital that must be measured and managed as they are drivers for creativity and work yield.

 

  • Skills: knowledge, expertise and professional qualities

This series of indicators measures the effort made by employees to increase and perfect their level of skills.

 

INDICATORS

2001

2000

 

 

 

Training cost/wage bill (annual %)

1.3

1.26

Participants in training programs/total employees (%)

95.38

88.75

Employees with access to training via computers (%)

100

62.93

Number of trainees managed

653

578

Number of on-line learning activities (Formavia)

328

18

Employees using Formavia/total (%)

65.85

0.93

 

  • Ability to innovate and improve

Indicators of experience, diversity and innovation that reflect our capacity to learn and generate ideas.

 

INDICATORS

2001

2000

 

 

 

Average age of employees

42.68

42.46

Male/female employees (%)

72.5/27.5

73/27

Number of employees with university degrees

34.11

32.12

Number of CVs managed in external selection processes

46,243

45,380

Number of consultations answered by the employee attention service

32,294

27,731

Number of projects related to knowledge management

8

6

 

  • Commitment and motivation

Commitment to the Bank’s objectives is associated with motivation, productivity and quality of work.

 

INDICATORS

2001

2000

 

 

 

Length of service (years)

20.02

19.80

Employees promoted/total (%)

10.05

9.01

% of staff with variable remuneration

100.00

95.00

Number of employees incorporated to Management by Results

2,145

2,370

Number of job appraisals managed

34,751

27,653

Number of contributions to knowledge communities

114

26

Number of improvement suggestions contributed by staff

2,353

2,691

 

4.2 Structural capital

Structural capital consists of organizational structures and infrastructures, systems and processes, technology and products.

  • Customer support

This item consists of identifying the systemized processes that satisfy the needs of both internal and external clients.

 

INDICATORS

2001

2000

 

 

 

Number of branches in Spain

4,707

5,518

Number of branches abroad

5,110

5,330

Number of portals (Internet) for clients*

47

50

Monthly average of IT transactions (millions)

240.2

231.5

Number of telephone calls a day attended for internal users

5,073

4,723

Number of Intranet forums of debate

15

6

* Reduction due to optimization of portals; this figure is for the Group

 

 

 

  • Technology and quality of processes

Identification of key processes and correct application of technology facilitate efficient use of organizational knowledge.

 

INDICATORS

2001

2000

 

 

 

Number of PCs per employee/branch

1.23/7.53

1.34/7.00

% of employees connected internally to Intranet/e-mail

100/100

66.52/100

Processing capacity (Mips in central host)

8,663

7,002

Storage capacity (Terabytes)

1,160.7

660.8

Monthly number of pages accessed in Intranet

1,976,192

749,643

Monthly number of pages accessed in Internet

168,235,423

51,648,320

Number of ISO-9000 certifications

99

94

 

  • Product technology

The level of documentation is measured, so that this knowledge can be shared and reused by all Group employees.

 

INDICATORS

2001

2000

 

 

 

Number of products and services (catalogue)

1,603

1,393

Number of new products and services developed

210

261

Number of intranetized processes

200

24

Number of internetized processes

50

20

 

4.3 Relational capital

This concept reflects the value to Santander Central Hispano of all relations within its sphere of operations, where the clients is the main point of reference.

  • Loyalty and affinity

These indicators reflect systems designed by the Bank to create solid relations with its customers, improve service, meet client needs and obtain feedback through customer satisfaction indices.

 

INDICATORS

2001

2000

 

 

 

Number of telephone banking clients*

1,977,266

1,765,729

Number of Internet banking clients

618,900

375,539

Number of credit cards*

1,176,169

1,085,335

Number of debit cards*

2,680,979

2,602,262

Savings books (magnetic band)

4,309,354

4,226,572

Average length of years of clients

10

9

Global satisfaction index of individual clients (out of 10)

8.25

8.10

Global satisfaction index of corporate clients (out of 10)

7.33

7.23

Market share in Spain**

 

 

   Loans

16.5

17.7

   On-balance sheet customer funds

20.5

19.9

   Mutual funds

26.3

25.1

   Managed funds

21.6

20.7

Number of publications for shareholders

5

4

Number of publications for clients***

5

7

Number of publications for employees

3

3

Number of complaints received by the customer attention unit

7,224

8,210

* Change in the recording criteria over 2000.  ** Latest available figures.  *** Reduction as a result of merged networks

 

  • Frequency, collaboration and connectivity

This is a series of indicators on level of penetration achieved by distribution channels with clients and the degree of frequency.

 

INDICATORS

2001

2000

 

 

 

Number of new clients

866,192

874,138

Number of telephone calls attended

3,049,750

3,747,237

Number of transactions carried out by telephone

5,789,552

3,562,358

% of accessibility of telephone banking

93

80

% of clients satisfied with telephone banking

87.68

85.10

Number of Internet clients

618,900

375,539

Number of Internet transactions carried out

41,527,361

28,014,116

Number of direct client-server electronic banking clients

58,949

54,734

Number of electronic banking transactions carried out

149,205,463

131,561,056

Average number of employees per branch

6.10

5.53

 

CONCLUSIONI

Gestire una banca  non è mai stato così difficile. I decision maker devono tenere in considerazione un numero sempre maggiore di variabili per individuare le giuste strategie e mantenere elevata la capacità competitiva della propria organizzazione.

Occorrono metodi, approcci, strumenti e idee per aumentare la velocità di risposta al mercato, anticipare il futuro, cogliere nuove opportunità, ridurre i costi, migliorare l’efficacia e alimentare la spinta innovativa.

Di conseguenza, l’azione del management si deve orientare verso:

  • – la creazione di valore, da ricercare con un’accorta e rinnovata capacità di gestione dei rischi aziendali;
  • – un’attenzione particolare alla variabile commerciale, tenendo conto della possibilità di coniugare le grandi opportunità offerte dall’internet, phone e mobile banking, ad un approccio customer oriented delle leve commerciali;
  • – una continua attività di formazione, per adeguare le Risorse Umane coinvolte nei processi aziendali alle molteplici esigenze di crescita professionale generate dalle trasformazioni in atto;
  • – uno stile direzionale partecipativo, che punti sulla motivazione e sul rispetto delle aspirazioni dei collaboratori, continuamente sollecitati alla trasparenza, alla correttezza ed alla professionalità, così da connotare la gestione con valori condivisi e conferendole un imprinting unico e distintivo.

 

Rebus sic stantibus:

  • – la banca deve dotarsi di Risorse Umane che sanno, ossia che sappiano individuare nuove opportunità di crescita e di riduzione dei costi, sappiano velocizzare la produzione e la distribuzione e sappiano fidelizzare sempre di più la clientela;
  • – le Risorse debbono saper fare, ossia devono essere capaci di passare con successo dalla teoria alla pratica delegando in maniera adeguata (sapendo far fare);
  • last but not least, affinché si autoalimenti un circolo virtuoso, le Risorse debbono far sapere con i media più idonei tutto quanto precede.

 

Ebbene gli indicatori individuati nell’ambito del capitale intellettuale consentono:

  • al management di monitorare e guidare lo sviluppo dei più importanti driver della creazione di valore;
  • agli stakeholder di conoscere aspetti altrimenti non visibili della banca di cui hanno a cuore le sorti.

 

Francesco Lenoci, Consigliere di Direzione