Beyond Budgeting Round Table (BBRT). Konserndirektør Sigurd Aune holdt en presentasjon i London om SpareBank 1 Gruppen og Beyond Budgeting. The SpareBank 1 group’s road to a new corporate governance based on the principles of Beyond Budgeting.

1. Rolling
Culture and
forecasts
organization
Dynamic Management
Dynamic
Tekst
Management
The SpareBank 1 group’s road to a new
corporate governance based on the
principles of Beyond Budgeting
Benchmarking
Bonus and
and scorecards
incentives
Sigurd Aune, CFO
BBRT, London
29 April 2009

2. Agenda
1.Company presentation
2. How we started
3. Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4. What have we learned so far?
5. Challenges ahead
6. Contact information
2

3. SpareBank 1 Gruppen AS – the structure
SpareBank 1
SpareBank 1 SpareBank 1 Sparebanken Samarbeidende
LO
Nord-Norge (19,89 %)
SR-Bank SMN Hedmark Sparebanker (19,89 %) (9,29%)
(19,89 %) (19,89 %) (11,14%)
SpareBank 1 Gruppen AS
SpareBank 1 SpareBank 1 ODIN
Oslo Skadeforsikring Forvaltning
Alliance Co-operation Programme
(100%) (100%) (100%)
SpareBank 1 SpareBank 1 SpareBank 1
Boligkreditt Medlemskort Livsforsikring Focus areas
(100%) (100%)
– Brand
EiendomsMegler 1
– Technology
BNbank
– Competence
Argo First
– Common processes and use of best practices
Securities Securities
(Bank owned
(75%) – Purchasing
(24,5%)
activities)
Regional competence centers
– Payment services: Trondheim
SpareBank 1
– Credit: Stavanger
Gruppen Finans
Holding AS – Training: Tromsø
(100%)
SpareBank 1 Actor Fordrings- SpareBank 1
Factoring forvaltning LTO
(100%) (100%) (100%)
Verdigjenvinning
(100%)
3

4. The SpareBank 1 Alliance
The SpareBank 1 Alliance, key figures (31.12.08)
- 20 independent savings banks
- Including 7 exchange listed primary capital
certificate banks
- Co-ownership of two commercial banks (BNbank and
Bank 1 Oslo)
– Total assets: ca NOK 583 billion (incl. BNbank)
– 352 branches across Norway
– 378 distribution offices
– Total no. of employees: ca 6,300
– Internet customers: ca 530,000
SpareBank 1-banks:
SpareBank 1 Nord-Norge, SpareBank 1 SMN, SpareBank 1 SR-Bank,
Sparebanken Hedmark, SpareBank 1 Ringerike, Rygge-Vaaler
Sparebank, SpareBank 1 Hallingdal, SpareBank 1 Buskerud-Vestfold,
SpareBank 1 Gran, SpareBank 1 Gudbrandsdal, SpareBank 1 Jevnaker
Lunner, SpareBank 1 Nordvest, Halden SpareBank 1, Sparebanken
Telemark, Modum SpareBank 1, SpareBank 1 Lom og Skjåk, SpareBank 1
Nøtterøy og Tønsberg, SpareBank 1 Volda Ørsta, SpareBank 1
Hardanger, SpareBank 1 Kvinnherad, Bank 1 Oslo and BNbank.
Product companies in SpareBank 1 Gruppen AS:
SpareBank 1 Livsforsikring, SpareBank 1 Skadeforsikring, ODIN
Forvaltning, Argo Securities (75%), First Securities (24,5 %),
SpareBank 1 Gruppen Finans Holding – a holding company for a
subgroup consisting of SpareBank 1 Factoring, Actor
Fordringsforvaltning, SpareBank 1 LTO and Verdigjenvinning.
Other enterprises owned by the SpareBank 1-banks:
SpareBank 1 Boligkreditt, BNbank and EiendomsMegler 1.
4

5. The SpareBank 1 Alliance has a strong position in Norway
2008
Retail market – Number of customers * Number of branches *
2,50 400
2,30
352
350
2,00
2,00
300
250
1,50
210
Million
189
200
1,00
0,85 150
0,75 125
0,55
100
0,50
55
42
0,21 50
26
0,10
0,00 0
DnB NOR SpareBank 1 Storebrand Terra-Grp. Nordea N. Danske/Fokus Handelsbanken
SpareBank 1 DnB NOR Terra-Grp. Nordea N. Danske/Fokus Storebrand Handelsbanken
N.
N.
Market shares Total assets (NOK billion)
1832
25,0 %
1800
20,3 % 1600
19,4 %
20,0 % 19,1 %
17,5 %
17,4 %
17,3 % 1400
16,4 %
15,9 %
15,4 % 15,4 %
14,6 % 1200
15,0 % 13,8 %
12,8 % 12,6 %
NOK bn.
12,3 %
12,2 % 12,0 % 11,7 % 1000
10,2 % 10,0 % 10,0 %
9,9 %
9,8 % 9,8 %
10,0 % 800
583
549
600
5,0 % 382
400
198 190 172
200
0,0 %
2002 2004 2005 2006 2007 2008 0
DnB NOR SpareBank 1 Nordea N. Storebrand Fokus Bank *** Terra-Grp.** Handelsbanken
N.***
Loans - retail market Loans - corporate market P&C insurance ODIN mutual funds
* Numbers as of 2007
** Numbers as of 3Q 2008
*** Estimate based on average lending growth
5 Sources: Accounting reports, Statistics Norway (SSB), Norwegian Financial Services Association (FNH), Norwegian Mutual Fund Association
(VFF).

6. The SpareBank 1 Alliance
Strategic Platform
• Maximizing shareholder value and value created for the market regions
Purpose
covered by the banks by maintaining a regional structure of independent
banks – through:
Efficiency Local Market Focus
Cornerstones
• •
As a group, the banks seek to increase Each bank continues to maintain its link
their efficiency as compared to with its local community by:
competitors by:
- Keeping its own name and legal
- Economies of scale identity
- Mutually increasing critical core - Taking advantage of its proximity
competencies to the local market
- Sharing development investments
ALLIANCE PROGRAMME SEPARATE LEGAL IDENTITIES
COMMON SUPERBRAND
6

7. Agenda
1. Company presentation
2.How we started
3. Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4. What have we learned so far?
5. Challenges ahead
6. Contact information
7

8. Change starts at the top of the organization
• Eldar Mathisen was hired as new
CEO starting June 2007
• He was acquainted with many of
the Beyond Budgeting principles
from his experience at Sandsvær
Sparebank
• Group economy invited external
speakers to top management
meetings; including Lennart
Francke, Jan Bergstrand and
Bjarte Bogsnes
• Top management developed
interest in the Beyond Budgeting
principles
8

9. Analyzing the current situation
- Project launched by top management
• The trend had already been
discovered – the budget was
outdated by February
1200
1000
• The project’s main purpose was to
800
investigate a more dynamic model
MNOK
600
for corporate governance
400
• It was important to see how
200
decisions could be made closer to
0
the customers
05
07
5
5
7
7
6
05
07
05
06
06
07
6
05
6
07
r. 0
r. 0
.0
.0
l.0
.0
.0
g.
v.
g.
n.
n.
c.
p.
c.
b.
b.
ct
ct
ay
ar
Ju
Ap
Ap
Au
No
Au
Ju
Ju
De
Se
De
Fe
Fe
O
O
M
M
Budget Pre-tax profit
• How could we as an organization
be more ambitious?
9

10. Main conclusion
FORECAST
• Universal tools, like the
(unbiased)
GOAL budget, will never quite
(desired
cover the intended
future)
purposes satisfactory
BONUS
(incentive)
RESOURCE
ALLOCATION
(best use of
funds available)
Budget
10

11. Convincing the board of directors
- “By separating processes you’re letting go of illusive control and
gain actual control and flexibility”
”Traditional” Step 1 - Separate Step 2 - Improve
budget/plan
• Front-loaded
• Ambitious
Goal
• Relative if possible
•Goal
• Action-based
•Forecast
• Expected outcome – early warning
Forecast
•Resource • Both financial & non-financial
allocation • Limited detail
• No pre-allocation
Resource
• Projects - decision gates & criteria
allocation
• Operations - relative KPIs etc.
• Monitoring - intervention if needed only
”Same number –
”Different numbers”
conflicting purposes”
11

12. Informing the organization
Implementing Dynamic Management is a big step and it will take time
• Video presentation to be
able to reach all employees
• Use of social media to
allow feedback from the
organization
• The most important
message we have
communicated is:
“Continue to do what you’ve always done
until you’re being told otherwise”
12

13. Agenda
1. Company presentation
2. How we started
3.Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4. What have we learned so far?
5. Challenges ahead
6. Contact information
13

14. Rolling
forecasts
Culture and
organization
Rolling forecasts
Dynamic
Tekst
Brutally honest Management
Bonus and Benchmarking
incentives and scorecards

15. The budget column has not been replaced by
rolling forecasts
Change Year To Change Change
February from last Date from YTD Rolling from last
Figures in MNOK 2009 month 2009 2008 12 months 12 months
SpareBank 1 Livsforsikring
Additional provisions recognised as
income in consolidated accounts
ODIN Forvaltning
SpareBank 1 Skadeforsikring
Bank 1 Oslo
EiendomsMegler 1
SpareBank 1 Medlemskort
Argo Securities
SpareBank 1 Gruppen Finans Holding
Correction subsidiaries - pro forma IFRS
Net result before tax from subsidiaries
Total operating costs holding
Net investment charges holding
Gains from sale of companies holding
Share of associated company
Amortisation
Pre-tax result
Taxes
Net result for the period
Majority interest
Minority interest
15

16. Rolling forecasts – process
• Rolling 12 months forecast each quarter
• Due to owners that still operate with a budget, the forecast
made in October is 15 months
Jan Apr Jul Oct Jan
16

17. A one way process
3
2
1
• Quick build-up – bottom-up
• No immediate time to change, feedback, revision nor negotiation
• The manager is responsible for the forecast when it is sent up one level
• Forecasts should be built on information already available
17

18. How should we follow up on a forecast?
Q4
Q3
Q2
Q1
∑ 12
2009
2009
2009
2009
Q1 2009
months
Q1
Q4
Q3
Q2
∑ 12
2010
2009
2009
2009
Q2 2009 months
• The forecast created in Q2 2009 should be compared with the
forecast created in Q1 2009
• Why did the forecast change?
– Why is the result different than what we predicted last quarter?
– Have any of the assumptions changed?
– What actions can we take – if any?
18

19. Action plans
1. Does the forecast indicate that we will not reach our long-term goals?
2. Analyze – can or should we take action?
3. If so – what kind of action should we take?
3a. Strategic decisions 3b. Continuous improvement
– Meet new competition – Reducing department costs
– Diversification – Efficiency improvements
– Changes in company portfolio – Innovation
– Organization structure – Etc.
– Etc.
19

20. Rolling
Culture and
Benchmarking forecasts
organization
and scorecards
Dynamic
Tekst
Daring to be ambitious Management
Bonus and
incentives Benchmarking
and scorecards

21. League tables
F A GD Pts
Man Utd 61 - 23 38 77
Liverpool 66 - 26 40 74
• How many football teams have a
Chelsea 56 - 20 36 71
budget for the number of goals
Arsenal 60 - 32 28 65
they will score in a given
Aston Villa 50 - 44 6 55
season?
Everton 48 - 36 12 53
Fulham 34 - 28 6 47
• What action does a team falling
West Ham Utd 38 - 38 0 45
behind take?
Manchester City 53 - 45 8 44
Tottenham 41 - 41 0 44
• How can you advance on the
Wigan Athletic 31 - 38 -7 41
table next year?
Stoke City 33 - 49 -16 39
Bolton 40 - 51 -11 38
• A league table with competitors
Portshouth 35 - 50 -15 37
that are comparable will tell you
Blackburn 37 - 55 -18 37
about your company’s real
Sunderland 31 - 46 -15 35
performance
Hull City 37 - 59 -22 34
Middlesbrough 25 - 49 -24 31
Newcastle 37 - 53 -16 30
WBA 33 - 63 -30 28
21

22. Reaching your long-term goal
TARGET
Q1 • If your long-term
goal is to win your
league, your short-
term target is to
score more goals
than your opponent
• There are a number
of ways to reach
your short-term
target
• It is therefore crucial
to be able to make
new plans when
changes occur
22

23. Reaching your long-term goal
TARGET
Q4 • If your long-term
goal is to win your
league, your short-
term target is to
score more goals
than your opponent
• There are a number
of ways to reach
your short-term
target
• It is therefore crucial
to be able to make
new plans when
changes occur
23

24. From plenty of goals, targets and activities to
few and ambitious goals
Kunden opplever trygghet, nærhet og en enklere hverdag.
3. God
1. Vekst i avkastning på
2. Vekst i andre 4. Redusert
balanse risikojustert
inntekter kostnadsprosent
kapital (RORAC)
11. Engasjert og
interessert i kundens
behov
12. Profesjonell 10. Vi snakker 7. Til å stole på
13. Tar
rådgivning samme språk relevante 8.
9. Lokal
initiativ Tilgjengelighet i
engasjert
alle kanaler
“You can't see the
quot;Vi ser ikke skogen for
støttespiller
6. Selge mer til
5. Flere kunder
hver kunde
(nye + beholde)
forest for trærquot;
bare the trees”
18. God samhandling 14. Økt
15. Flere
mellom enhetene kundeaktivitet
medarbeidere i
salgsrettet
17. Vi har beste 16. Bedre innsikt i
arbeid
prosesser kundelønnsomhet
20. Tydelige
19. Frigjort tid til
krav til
kundearbeid
rådgivere og
ledere
Nær og dyktig
21. Yter det ”lille 23. Økt
25. Lederne er
ekstra” kundeorientering 22. Tar ansvar
gode forbilder
i støtte og linje for helheten
26. Engasjerte
√
24. Mer
og læringsvillige OK
kremmerånd/salgs
medarbeidere
kultur
Må følges opp
Må handles/besluttes
24

25. Breaking down a long-term goal
The most
GOAL
successful bank
Greatest
TARGET
Return on equity Largest growth in
improvement in
close to average loans and deposits
cost/income ratio
League table
League table
League table CHECK
2004 2005 2006 2007 Snitt
2004 2005 2006 2007 Snitt 2004 2005 2006 2007 Snitt
Bank 1 Oslo 0 14,4 13,6 18 11,5
Bank 1 Oslo 68,9 74,5 59,9 73,4 69,2 Bank 1 Oslo 7,7 15,3 16,8 8,0 11,9
Hedmark 10,1 14,1 13,9 7,9 11,5
9,5
Hedmark 52,2 49 54,3 56 52,9 Hedmark 9,6 10,3 8,9 9,3
Møre 5,4 10,5 14,8 13,9 11,2
Møre 11,8 13,8 13,5 15,3 13,6
Møre 47 50,4 51,3 48,3 49,3
Sør 10,1 12,4 16,8 17 14,1
Sør 12,2 12,2 10,8 11,0 11,6
Sør 53,3 53,2 54,7 51,6 53,2
Øst 4,7 8,9 16,3 10,9 10,2
15,5
Øst 17,2 24,7 7,0 13,2
55,6
Øst 46,6 57,1 67,8 50,8
Pluss 16,7 17,4 17,6 16,7 17,1
11,7
Pluss 10,5 11,4 13,1 12,0
42,1
Pluss 46 43,3 39,3 39,7
Sogn & Fj. 9,4 11,7 15,1 25,8 15,5
Sogn & Fj. 11,5 11,3 11,2 12,8 11,7
53,9
Sogn & Fj. 52,9 56,1 56,5 50,1
Vestfold 17,7 13,9 11,4 11,3 13,6
Vestfold 12,1 14,2 12,6 11,1 12,5
54,7
Vestfold 54,1 53,5 55,8 55,2
Sandsvær 7,2 28,2 16,7 1,7 13,5
12,6
Sandsvær 13,6 15,8 10,5 10,4
53,8
Sandsvær 55,2 54,7 52,2 53,2
Snitt 9,0 14,6 15,1 13,7
Snitt 12,3 14,2 10,9 11,9
Snitt 52,9 54,6 54,6 53,1
SR-bank 11,8 13,7 25,4 13,4 16,1
SR-bank 19,5 25,5 22,6 16,1 20,9
SR-bank 47,8 45,7 49,9 53 49,1
Midt-Norge 5,3 33,4 16,8 11,4 16,7
Midt-Norge 18,8 22,9 23,6 15,8 20,3
Midt-Norge 48,5 50,1 49,7 52,2 50,1
Nord-Norge 14,8 20,2 22,8 14,6 18,1 Nord-Norge 3,3 9,9 11 8 8,1
Nord-Norge 52,9 51,6 49,2 55,2 52,2
25

26. Rolling
Culture and
forecasts
organization
Bonus and incentives
Dynamic
Tekst
Linked to ambitious goals Management
and league tables
Benchmarking
Bonus and
and scorecards
incentives

27. New bonus and incentive program
- Fixed maximum amount to all employees
Group level: Maximum
• Profit sharing
• Based on a certain return on equity NOK 16,000
Company level:
• Relative performance
• Position in league of ambitious goals NOK 34,000
Maximum amount NOK 50,000
27

28. Relative performance:
Avoiding negotiation of short-term fixed targets and
dysfunctional behavior to meet the numbers
• Bonus is dependent on
Example:
relative performance in
league tables
The most
GOAL
successful bank
• The league tables are
Greatest
TARGET
Return on equity Largest growth in
improvement in
close to average loans and deposits
cost/income ratio
connected to the long-
term goals to avoid
League table
League table
League table CHECK
2004 2005 2006 2007 Snitt
2004 2005 2006 2007 Snitt 2004 2005 2006 2007 Snitt
11,5
Bank 1 Oslo 0 14,4 13,6 18
69,2 11,9
Bank 1 Oslo 68,9 74,5 59,9 73,4 Bank 1 Oslo 7,7 15,3 16,8 8,0
11,5
Hedmark 10,1 14,1 13,9 7,9
52,9 9,5
Hedmark 52,2 49 54,3 56 Hedmark 9,6 10,3 8,9 9,3
short-term focus
11,2
Møre 5,4 10,5 14,8 13,9
13,6
49,3 Møre 11,8 13,8 13,5 15,3
Møre 47 50,4 51,3 48,3
14,1
11,6 Sør 10,1 12,4 16,8 17
53,2 Sør 12,2 12,2 10,8 11,0
Sør 53,3 53,2 54,7 51,6
Øst 4,7 8,9 16,3 10,9 10,2
15,5
55,6 Øst 17,2 24,7 7,0 13,2
Øst 46,6 57,1 67,8 50,8
17,1
11,7 Pluss 16,7 17,4 17,6 16,7
42,1 Pluss 10,5 11,4 13,1 12,0
Pluss 46 43,3 39,3 39,7
Sogn & Fj. 9,4 11,7 15,1 25,8 15,5
11,7
53,9 Sogn & Fj. 11,5 11,3 11,2 12,8
Sogn & Fj. 52,9 56,1 56,5 50,1
13,6
12,5 Vestfold 17,7 13,9 11,4 11,3
Vestfold 12,1 14,2 12,6 11,1
54,7
Vestfold 54,1 53,5 55,8 55,2
12,6 13,5
Sandsvær 13,6 15,8 10,5 10,4 Sandsvær 7,2 28,2 16,7 1,7
53,8
Sandsvær 55,2 54,7 52,2 53,2
Snitt 9,0 14,6 15,1 13,7
Snitt 12,3 14,2 10,9 11,9
Snitt 52,9 54,6 54,6 53,1
SR-bank 19,5 25,5 22,6 16,1 20,9 SR-bank 11,8 13,7 25,4 13,4 16,1
SR-bank 47,8 45,7 49,9 53 49,1
• The target connected to
Midt-Norge 18,8 22,9 23,6 15,8 20,3 Midt-Norge 5,3 33,4 16,8 11,4 16,7
Midt-Norge 48,5 50,1 49,7 52,2 50,1
Nord-Norge 14,8 20,2 22,8 14,6 18,1 Nord-Norge 3,3 9,9 11 8 8,1
Nord-Norge 52,9 51,6 49,2 55,2 52,2
AVERAGE
the ambitious goal may
change if necessary in
60 % 77 %
95 %
75 %
order to be the most
successful bank
Bonus: 34,000 * 77 % = 26,000
28

29. Culture and
Rolling
organization
Culture and forecasts
organization
Dynamic
Tekst
The only implementation Management
project still active
Benchmarking
Bonus and
and scorecards
incentives

30. The devolved leadership principles of Beyond
Budgeting as a starting point
1. Customers Focus everyone on their customers, not on hierarchical
relationships
2. Organization Organize as a lean network of accounting teams, not as
centralized functions
3. Autonomy Give teams the freedom and capability to act; don’t micro-
manage them
4. Responsibility Create a high responsibility culture at every level, not just at the
top
5. Transparency Promote open information for self management; don’t restrict it
hierarchically
6. Governance Adopt a few clear values, goals and boundaries, not detailed
regulations
30

31. New management policy = three words
Responsibility
Involvement
Business insight
31

32. Business insight
• Strategic information should be transparent
• Emphasis on developing skills
• Stimulate knowledge and understanding of
business models, competitive conditions,
value drivers, etc.
• Discussion of strategic questions on lower
Responsibility management levels
Involvement
Business insight
32

33. Involvement
• Involve middle management and other
employees in decision-making processes
• Employees should be involved on higher
levels in the organization
Responsibility
Involvement
Business insight
33

34. Responsibility
• Delegate responsibility to employees
• Processes for authorization and freedom of
action must be developed as a foundation
• When you have the business insight,
involvement and responsibility should come
naturally
Responsibility
Involvement
Business insight
34

35. Agenda
1. Company presentation
2. How we started
3. Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4.What have we learned so far?
5. Challenges ahead
6. Contact information
35

36. Some lessons we have learned
1. Top management involvement is crucial
2. External speakers are great motivators
3. Look for best practice companies in all business sectors, not just
your own
4. You don’t need to buy a new business intelligence system before you
start
5. Communication: “Continue to do what you’ve always done until
you’re being told otherwise”
6. Implementation projects have final dates
36

37. Agenda
1. Company presentation
2. How we started
3. Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4. What have we learned so far?
5.Challenges ahead
6. Contact information
37

38. How can we create a uniform corporate
governance?
Action plans
How should we follow up on a forecast?
1. Does the forecast indicate that we will not reach our long-term goals?
Q4
Q3
Q2
Q1
∑ 12
2009 2009
2009
2009
Q1 2009
months
2. Analyze – can or should we take action?
Q4 Q1
Q3
Q2 3. If so – what kind of action should we take?
∑ 12
2010
2009
2009
2009
Q2 2009 months
3a. Strategic decisions 3b. Continuous improvement
• The forecast created in Q2 2009 should be compared with the
forecast created in Q1 2009
– Meet new competition – Reducing department costs
– Diversification – Efficiency improvements
• Why did the forecast change? – Changes in company portfolio – Innovation
– Why is the result different than what we predicted last quarter? – Organization structure – Etc.
– Have any of the assumptions changed? – Etc.
– What actions can we take – if none?
New management policy = three words
The most
GOAL
successful bank
Greatest
TARGET
Return on equity Largest growth in
improvement in
close to average loans and deposits
cost/income ratio
Responsibility
League table
League table
League table CHECK
Involvement
2004 2005 2006 2007 Snitt
2004 2005 2006 2007 Snitt 2004 2005 2006 2007 Snitt
11,5
69,2 11,9
Bank 1 Oslo 7,7 15,3 16,8 8,0 Bank 1 Oslo 0 14,4 13,6 18
Bank 1 Oslo 68,9 74,5 59,9 73,4
11,5
52,9 9,5 Hedmark 10,1 14,1 13,9 7,9
Hedmark 52,2 49 54,3 56 Hedmark 9,6 10,3 8,9 9,3
13,6 11,2
49,3 Møre 5,4 10,5 14,8 13,9
Møre 47 50,4 51,3 48,3 Møre 11,8 13,8 13,5 15,3
14,1
11,6
53,2 Sør 12,2 12,2 10,8 11,0 Sør 10,1 12,4 16,8 17
Sør 53,3 53,2 54,7 51,6
10,2
55,6 15,5 Øst 4,7 8,9 16,3 10,9
Øst 17,2 24,7 7,0 13,2
Øst 46,6 57,1 67,8 50,8
11,7 17,1
42,1 Pluss 16,7 17,4 17,6 16,7
Pluss 46 43,3 39,3 39,7 Pluss 10,5 11,4 13,1 12,0
11,7 15,5
53,9 Sogn & Fj. 11,5 11,3 11,2 12,8 Sogn & Fj. 9,4 11,7 15,1 25,8
Sogn & Fj. 52,9 56,1 56,5 50,1
Business insight
13,6
12,5 Vestfold 17,7 13,9 11,4 11,3
54,7 Vestfold 12,1 14,2 12,6 11,1
Vestfold 54,1 53,5 55,8 55,2
12,6 13,5
Sandsvær 7,2 28,2 16,7 1,7
53,8 Sandsvær 13,6 15,8 10,5 10,4
Sandsvær 55,2 54,7 52,2 53,2
Snitt 12,3 14,2 10,9 11,9 Snitt 9,0 14,6 15,1 13,7
Snitt 52,9 54,6 54,6 53,1
SR-bank 11,8 13,7 25,4 13,4 16,1
SR-bank 19,5 25,5 22,6 16,1 20,9
SR-bank 47,8 45,7 49,9 53 49,1
Midt-Norge 18,8 22,9 23,6 15,8 20,3 Midt-Norge 5,3 33,4 16,8 11,4 16,7
Midt-Norge 48,5 50,1 49,7 52,2 50,1
Nord-Norge 14,8 20,2 22,8 14,6 18,1 Nord-Norge 3,3 9,9 11 8 8,1
Nord-Norge 52,9 51,6 49,2 55,2 52,2
38

39. The Balanced Scorecard
- Do we need it?
• Does it add value?
• If so, which parameters
should we focus on?
– Only value drivers?
– Critical result indicators?
• What should replace the old
budget and fixed targets?
• Should we combine it with
league tables?
• What about staff functions?
39

40. The financial crisis
Index showing the value of subprime mortgages
• A cost reduction program has
been initiated by our owners
• How can such a central initiative
Index
be combined with delegation of
responsibility?
• Will it undermine our new
corporate governance?
Delinquency rates, all banks, real estate loans, residential World, Standard & Poors 1200, Index, Market Cap, USD
USD (thousand billions)
thousand billions
Percent
40

41. Our ownership structure, the SpareBank 1
Alliance, presents an extra challenge
• Some owners budget while
SpareBank 1 Gruppen AS – the structure
others operate with rolling
SpareBank 1
SpareBank 1 SpareBank 1 Sparebanken Samarbeidende
LO
Nord-Norge (19,89 %)
SR-Bank SMN Hedmark Sparebanker (19,89 %) (9,29%)
(19,89 %) (19,89 %) (11,14%)
forecasts
SpareBank 1 Gruppen AS
• They are used to the illusive
SpareBank 1 SpareBank 1 ODIN
Oslo Skadeforsikring Forvaltning
Alliance Co-operation Programme
(100%) (100%) (100%)
control that the budget has
SpareBank 1 SpareBank 1 SpareBank 1
represented, when following
Boligkreditt Medlemskort Livsforsikring Focus areas
(100%) (100%)
– Brand
EiendomsMegler 1
– Technology
BNbank
– Competence
up on SpareBank 1 Gruppen’s
Argo First
– Common processes and use of best practices
Securities Securities
(Bank owned
(75%) – Purchasing
(24,5%)
activities)
Regional competence centers
results
– Payment services: Trondheim
SpareBank 1
– Credit: Stavanger
Gruppen Finans
Holding AS – Training: Tromsø
(100%)
SpareBank 1 Actor Fordrings- SpareBank 1
• For the several product
Factoring forvaltning LTO
(100%) (100%) (100%)
companies, it is difficult to find
Verdigjenvinning
(100%)
relative targets and league
tables
41

42. quot;....a continuous journey of learning and adaptionquot;
Jeremy Hope et.al, BBRT
42

43. Agenda
1. Company presentation
2. How we started
3. Four implementation projects
1. Rolling forecasts
2. Benchmarking and scorecards
3. Bonus and incentives
4. Culture and organization
4. What have we learned so far?
5. Challenges ahead
6.Contact information
43

44. Embed or share this presentation
Contact information:
Dynamisk.Styring@SpareBank1.no
Visit us at:
www.sparebank1gruppen.no
www.slideshare.net/SpareBank1
www.flickr.com/photos/sparebank1
www.youtube.com/user/Sparebank1Norge
http://pengeroglivet.blogs.com
44