No difference in performance was being experienced.
A lot of time was being spent with its major suppliers in innovation session and discussions about how to work better together but with limited concrete progress.
It constantly had suppliers saying the bank was a “strategic customer” but didn’t get a sense of any different value or action. The vendors were also fatigued by heavy handed contract and service management, and frequent imposition of one sided cost reduction targets.
The Hanya way. . .
They explored what “strategic relationship” really meant.
The bank chose its three most critical vendors and asked for help in driving more value (for all parties) in the relationships.
And the Results…?
Differentiated relationships and improved outcomes emerged
Cost reduction of over £26m with a reduction of 120 staff.
Increase in customer satisfaction of 23 percentage points and staff satisfaction improvement of 18%.
A strong and enduring level of trust between the vendors and the bank.