Human Resource Case Study

Background

FICGC, with its headquarters in Nanjing, was established in 2008 to meet the financing needs of the growing SME market in China. Its primary product is to provide financial guarantees to commercial banks for SMEs to obtain credit facilities. FICGC with its national guarantee license issued by the State Administration for Industry and Commerce of China, has established market presence since commencing operations. In serving the SME market with its services, it has also built strong relationship with governmental agencies and communities at large.

In mid-2012, as part of good corporate governance, the Board directed the Senior Management team of FICGC to embark on a strategic exercise with the intent to position FICGC competitively for the next phase of growth, given the challenging market dynamics.

In collaboration with FFH SME and Human Resource functions, the FICGC senior management team led a comprehensive review of its resource capability and capacity, processes, policies and portfolio performance. This includes the assessment of sales and service efficiency, distribution network productivity, organization and risk management effectiveness.

This exercise highlighted new opportunities to enhance organizational effectiveness, increase process efficiency and improve risk adjusted returns on portfolio. A strategy was mapped out jointly by FFH and FICGC senior teams and the identified initiatives were subsequently executed to crystallize these advantages. These initiatives focused on encouraging innovation, infusing new corporate ethos, integrating front-end with back-end processes and adoption of disciplined sales and service practices with clearly defined responsibilities and accountabilities.

Results

Key structural changes were made and they include the redefinition of roles, responsibilities and accountabilities in the operations, sales and service and credit risk departments and the clustering of branches into hubs (operating business units) by regions.

In aligning the organization structure to the identified strategic objectives, the FICGC Human Resource team worked intensely with each function on resource and capacity planning, job redesign, succession planning, training development programs and other initiatives supporting the implementation plan.

In collaboration with FFH Human Resource function, a change management and communication plan to internal and external stakeholders was designed and subsequently implemented successfully. This included a two-day “boot camp” attended by the sales leaders and credit team, during which the organization’s new strategic direction, the new organization structure and the enhanced value proposition were shared.

This resulted in an organization structure which is more symbiotic, operating with efficient processes that optimize the use of technology, and encourages innovation whilst embracing strong risk culture and delivering strong financial performance.