Our vision, values and long-term strategy
During 2004 Nedcor agreed on a common vision, groupwide values
and a common overarching group strategy. The power of our common
strategy lies in all divisional three-year plans (2005
2007) being completely aligned with the group strategy, ensuring
that all entities within the group work towards a common goal.
The vision is to become Southern Africas most highly
rated and respected bank.
The Group Executive Committee (Group Exco) and staff from
across the bank defined ten aspirations that describe the
essence of what we have to become to achieve the vision in
At Nedcor we refer to these 10 objectives as the Deep
Green aspirations towards which we strive:
- A great place to work: we are energised
and committed. Nedbank is truly the best place to work
and an employer
of choice. We have clear career paths and opportunities
- A great place to bank: we are the benchmark
for client service, as we listen to our clients, understand
their needs and deliver on them. Our client satisfaction
levels are the envy of all. People are talking about the
Nedbank way. As a result, our client base has grown
in all segments. Our clients are our most effective marketers.
- A great place to invest: we are transparent
and dependable in our financial performance. We deliver
acceptable returns to all our stakeholders. Our key financial
objectives have been achieved. ROE > 20%; cost/income
ratio < 55%.
- Unleashing synergies: we are the power
of one a
single, highly coordinated integrated bank a bank
that unlocks all its synergies. We are quick off the mark,
empowered and highly efficient. Everything is shared. Nothing
- Worldclass at managing risk: understanding,
measuring and managing risk is central to everything we
do. We have engrained risk management in our business.
We understand that banking at Nedbank is about managing
risk, not avoiding it. Our risk management methodologies
- Community of leaders: we have created
a broad community of leaders throughout the bank. We take
ownership of what is entrusted to us and set the example.
We are forward-thinking and strategic in our decision-making
and actions. The victim culture has been eradicated.
- Most respected and aspirational brand: we
have successfully positioned Nedbank as the most aspirational
for all market segments. Nedbank is perceived to be
the leader in client understanding and care.
- Highly involved in the community and environment: we
are Proudly South African. We understand that being a leader
in community development and caring for our environment
is both the right thing to do and a business imperative.
- Leading transformation: we have truly transformed
and have surpassed Financial Sector Charter (FSC) requirements.
Transformation needs no longer be highlighted as a separate
imperative: it is integral to everything we do and how
- Living our values: we
have a culture the way things are at Nedcor that
is tangible and living. Integrity, respect, accountability,
beyond boundaries and being people-centred are no longer
concepts, but our way of life.
To create and foster a united Nedcor we embrace a single set
of values. These groupwide values create a sense of unity, encourage
the various clusters to move away from silo mentalities and
form the foundation of our common organisational culture.
To create unity of values, not only within Nedcor, but also
across the entire Old Mutual Group, the leadership of all
the Old Mutual businesses engaged in an inclusive process
to determine a single set of values that best meet the requirements
of each Old Mutual business unit. The business units jointly
decided on the following common set of Old Mutual values,
namely accountability, integrity, respect and pushing beyond
Nedcor incorporated these four values into a set of behaviours
that is unique to Nedcor and adopted a fifth value of being
people-centred that reinforces Nedcors commitment to
staff and clients.
A clear and simple group strategy provides the high-level guidelines
that direct the entire organisation towards a common goal. The
group strategy describes the scope of our business, our primary
strategic focus as well as the groups delivery capability,
key differentiators and business model.
Back to the basics of banking: Nedcor will focus on serving
clients financial services needs and will not dilute this
focus by pursuing distracting business models. Nedcor aims to
become the best at the basic elements of service delivery.
Full-spectrum banking: Nedcor will continue to have a retail,
corporate and investment banking business and will provide
a comprehensive range of products and services to the full
spectrum of South African banking clients.
Southern Africa focus: Nedcor will seek and find growth
opportunities in South Africa and, where opportunities exist,
cautiously expand into Southern Africa. The purpose of international
operations is primarily to serve the international banking
needs of Southern African clients as well as to serve multinational
clients doing business in Southern Africa.
Primary strategic focus
Drive transactional banking
In the next three years the group will focus on growing its
share of transactional accounts, both in the retail and corporate
banking areas. This will be achieved through client acquisition,
retention, cross-sell and improving Nedcors primary banker
Build a high-performance culture
To unleash the immense human potential in Nedcor and to improve
staff morale the group has embarked on a culture transformation
process. The primary objective of the transformation process
is to build a high-performance culture through removing the
key stumbling blocks that inhibit client-driven performance.
The culture will be transformed to a values-driven one,
with trust, empowerment, accountability and a bias for action
truly being lived in Nedcor. The culture shift will also transform
Nedcor from a politicised, inward-looking organisation to
an outward-looking organisation that can function well across
the boundaries of internal businesses. The Group Exco is committed
not only to leading this transformation journey by example,
but also to developing a community of leaders at all levels
of the organisation that can create momentum towards a permanent
Optimise our mix
To improve our group lending margin the group has put action
plans in place to increase lending in the retail segment. Equally,
the aim is to improve our product mix and client segment mix
to optimise profitability.
The approach to growing our business will be to find opportunities
within and across divisions to improve delivery to our clients,
while at the same time seeking opportunities to optimise cost
effectiveness, but not at the expense of income growth.
Move beyond transformation
Nedcor will demonstrate its deep commitment to the new South
Africa by truly transforming itself into a bank accessible to
all South Africans. As a transformed organisation the group
will be better positioned to increase its share of public sector
business and to grow its client base in the lower-income segments
of the retail market.
To achieve this aspiration Nedcor has set targets that surpass
FSC requirements in respect of employment equity, ownership,
access, procurement, empowerment financing and corporate social
Nedcor already leads the financial services industry through
its contribution to and involvement in communities and the
environment. More importantly, however, Nedcor will leverage
the investments made on the community and environment front
by aligning these with its primary business imperatives and
specific cluster strategies.
Align the organisation with a synergistic client-driven
Nedcor has changed from a product-driven to a client-driven
business model, redefined leadership accountabilities and fundamentally
changed its structure.
By the end of 2004 the group had addressed major structural
deficiencies by devolving authority and transferring decisionmaking
to client-facing units to improve delivery to clients. Core
to the new way of functioning is the centralisation of the
capital management, information technology and risk functions.
To build on these positive changes the group is simplifying
processes in accordance with the principles of a client-driven
business model, further refining accountabilities within the
divisions and tightly aligning performance agreements with
the action-orientated three-year plans that underpin our strategy.
There is great potential to unlock synergies among businesses
within the bank to which end cross-divisional teamwork is
Making sure it happens
The capability to deliver on strategies and plans in the past
often fell short of what the group required to achieve success.
To this end a Strategic Recovery and Turnaround Office has been
established, with a mandate to track and monitor all major strategic
projects in the group.
Our key differentiator
Recognising that the group is servicing a broad spectrum of
clients with vastly diverse needs, a single positioning at product/price/servicing
level will not be adequate to differentiate Nedcor from its
competitors. To achieve the growth required the group needs to
understand clients banking needs better than any of its
competitors and gain and keep clients by delivering the best
combination of products and services through the right channels
and at the right price to meet these needs. Being great at listening
to clients, understanding their needs and delivering on these
embodies the groups unique differentiation.
Nedcors strategy for the next three years is simple: the
group is returning to the basics of banking and will be a full-spectrum
bank ranging from retail to corporate banking and from basic
banking products to complex tailored banking solutions. The
bank will operate primarily in Southern Africa and will compete
in the market through a relentless focus on better understanding
and meeting clients needs.