Westpac BML case ? exam preparation ? printed 27 May 2006
Obtaining ACCC approval
This was obtained for two reasons:
? in light of Wallace enquiry, ACCC accepted W's submission that market should be segmented into six product markets for retail banking, and that "substantial lessening of competition" test could be applied to each; and
? by negotiating a series of conditions designed to protect customers.
Result: Major success. Without ACCC approval, no merger
Operational perspective, challenge is to roll out a plan which:
? Technical conversion - avoided failures of previous mergers
? Customers/service delivery at branches ? doesn't disaffect Westpac's and BML's
? Staff ? informative to and inclusive of Westpac's and BML's
? preserves the best of each bank
Technical Conversion
Must integrate the IT systems
Must avoid the technical failures and loss of data which occurred in previous mergers
Decision to migrate to Westpac system
Difficulty in retaining skilled IT staff to run Hogan system in short term
? frequent and honest communication
? negotiating a orderly exit of employees to other organisations
Result: successful ? no technical "hiccups" or loss of data
Customer service delivery through integrated Branch Network
Retain the popular "look and feel" of BML branches
Primarily adopt Westpac locations due to size
Pick the best systems and process from each:
? BML's uniforms, recruitment and induction procedure
? Westpac's front line authority levels higher so were re-launched