NATIONAL Commercial Bank (NCB), truly has had an interesting history. Starting off as Barclay's Bank, of Britain, the company was nationalised in 1977 and became the National Commercial Bank. It flourished through the ensuing decades as the bank that was truly 'Jamaican'. It ventured into new territories of investment such as tourism, agriculture and real estate.
Then came the 1990s with the crumbling of many banking entities. The resulting exposure of the saving public, forced the Government into the establishment of the Financial Sector Adjustment Company, FINSAC.
FINSAC in 1997 provided some $20 billion to bolster NCB which, by now, had divested its interests into all non-banking entities. FINSAC's role, was that of a holding company, which sought to rescue failing companies by capital injection in exchange for shares which would then be off-loaded to a willing buyer.
Enter Michael Lee-Chin, the 'billion-dollar' man and chairman of AIC, one of Canada's premiere investing houses. The 51-year-old Jamaican emerged with a purse of US$217 million to take 75 per cent of the NCB's shares. Mr. Lee-Chin's phenomenal success has hinged on his three-pronged principle of investment; buy, hold and prosper, and that is exactly what he intends to bring to NCB.
The analysis of what was done right and what was done wrong is still left to be done, but one area, which the bank will be paying keen attention to in the upcoming years, is marketing.
But how will this be done? Will millions be spent on advertising? Or will they, like many other international multi-billion dollar companies use a combination of strategies; advertising, promotions and public relations or will he seek to employ what many marketers call 'guerrilla marketing'?
Image is everything
Having set up a 'working haven' at parent company AIC where employees enjoy the setting of a tropical paradise, Mr. Lee-Chin shows concern for the entire image of his new-found bank.
"The physical image of the bank will have to change", says Mr. Lee-Chin, explaining that they would improve the appearance of the physical plant. "We have to make both customers and employees more comfortable and be even more proud to be a part of the NCB family."
Internal motivation scheme
According to Mr. Lee-Chin, the physical plant is not the only consideration in imaging. Many companies tend to overlook the importance of their most valuable assets - their employees.
NCB has laid some great plans and has challenged its employees to increase their levels of output to levels which not only justify, but also binds the company to keep them.
With a staff complement numbering into the thousands, 864 of which is judged as excessive, one would have expected massive job cuts with the buyout. Mr. Lee-Chin, however, has chosen to look at things differently. "With this staff complement," says he, "we will be able to offer a more efficient and more diversified service to our customers, if the staff is able to rise to the challenge and produce."
Operations
Mr. Lee-Chin proposes fundamental change in the modus operandi of the bank.
"In most banks there is a disconnect between what happens at the head office and what happens on the front line (the branches)," he explains. "NCB is no exception. This does not serve our purposes. We are serving customers therefore we must interface with them, understand them.
"The head office has to be there to support to the branches. Cues are to be taken from the branches, the head office is there to meet the needs of the front line (branches) not the other way around."
For Canada's 14th richest man, according to the Canadian Business, NCB will have to adopt a new attitude. The attitude needs to be, 'I want to be there for you', with the objective of building the reputation to the ultimate.
"With this done, marketing spend will continuously tend to zero and word of mouth will adequately promote our goods and services", says Mr. Lee-Chin.
The marketing strategy
According to Mr. Lee-Chin there are three essential ingredients to every successful business. These are addressing customers needs wholeheartedly, completely differentiating itself in the marketplace and working every day to enhance its reputation.
To Mr. Lee-Chin, the marketing strategy is simple - it involves working towards the three essential ingredients. The bank has now given an undertaking that it will work to enhance these ingredients and do nothing to diminish them.
For the AIC boss, this is only possible through a change in the corporate culture and the efficient performance of his staff.
His marketing strategy comes as no surprise, as AIC is listed as one of the only two investments houses in Canada which grew without a reliance on advertising.
"They had phenomenal numbers and you had investors saying to advisors, 'I want AIC'", says Dan Richards, industry specialist of Strategic Imperatives in Toronto, speaking to Canadian Business in March.
NCB into the future
When asked about his vision of the bank in another five years, Mr. Lee Chin said, "NCB has a tremendous distribution network, great emotional equity. NCB will provide products and services that will help you to achieve your goals." The question that must be asked is, 'What products do you need to help you to achieve your goals for every single need from mortgage to insurance to financial advice,' NCB will be seen as the wealth-creation bank - the place you go to create and manage your wealth. Branch offices will therefore be distribution points for those services. In other words we will be running a seamless operation."
So NCB might not be pumping mega-bucks into advertising. The plan is to lure you with quality products and services.
Information provided by Ashcar Consultants.
