Page 28 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

BANC ONE
iutilltied /tom page 13

I sta Ifs of the banks it acquires, rather it works closely
with them to show them how the other banks in a group
heca me successful, and it cajoles them into following suit
(management innovation). In a different area of control.
It has even developed a video which it sends to delin-
quent credit card accounts. This video has resulted in
increased payments and reduced delinquency rates (pro-
cess innovation). It is considered to have leading edge
technological applications in several areas (process in-
novation). Finally, it has produced a series of clever ads
touting its resources (marketing innovation).

Many bankers are not prepared for such changes. They
cannot utilize their computers fully and are not prepared
to make creative decisions, having spent much of their
careers in a regulated environment with almost guaran-
teed returns on investment. With limited competition
and no change, decision making was routine and pro-
grammed. Largely structured, easy decision rules were
available. That is not the case any more.

The bank that intends to survive has to be creative and
competitive. Research has shown that a creative indi-
vidual makes better decisions than one who is strictly
rational. This is as true of bankers as of anyone else.

Source: "Banc One Corporation 1992 Annual Report," (Columbus, Ohio: Banc One, Feb-
ruary 3993), pp. 5-10; "Banc One: Mightier Than Its Parts," Economist (December 19, 1992),
p. 76; James S. Hirsch, "Growing Ambition: Fast-Rising Banc One, Already Big in Texas,
Looks at Other Areas," Wall Street Journal, December 26, 1990, pp. A2, A10; Steve Weiner,
"Banks Hire Retailing Consultants for Helping Become Financial Products Stores," Wall
Street Journal, May 20, 1986, p. 31.