Financial Institutions

New Organizational Structure for a Financial Holding Company


Situation

A leading financial holding company in Taiwan has six subsidiaries; its biggest operations are in insurance and banking. This market leader was entering a period of pressure and change: recent acquisitions required active management; a consolidating market posed buyout threats; analyst expectations were high; and investor relations needed careful attention. BCG was engaged to help the company’s senior management acquire the new skills necessary to deal with these challenges.

Approach

The goals of the project were to clarify the role and function of each entity within the organization and to develop a new organizational structure. This new structure would establish: clear roles and responsibilities; defined management processes to monitor, control, and integrate related functions in subsidiary companies; and the ability to identify and quantify synergies generated across the organization. The BCG team’s first step was to  interview both the senior management group and the leaders of key subsidiaries. Next, we outlined a new organizational structure that defined roles and responsibilities and delineated management processes. We based the new structure on leading local and global practices, feedback from the client’s management team, and our own understanding of the client’s complex situation. Finally, we assessed key sources and potential value of revenue and cost synergies.

Impact and value created

BCG designed a well-crafted organizational structure and effective management processes. We also identified key synergy sources and measures to help realize those synergies. The outcome was that the client was able to more effectively coordinate and harness opportunities across all of its core business units.

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