ING Insurance Asia Pacific (IAP), one of the top five foreign financial services provider in Asia Pacific show robustness financial results regardless the continuing declines in the global equity markets and the market volatility.
Despite the good financial results, IAP is encountering operation issues internally. There is no alignment between regional headquarter and business units. Communications between regional office and business units are not efficient nor effective, it has been difficult to drive initiatives down and cross. Operation-wise, there is no model or system is in-place to monitor and track the performance. Lack of standardization on the operation and evaluation process make the comparison and sharing of best practices between business units impossible.
Cause of Issues
The above issues are mainly stem from one single cause - the lack of a strategic operation model to bring the necessary level of alignment, business process integration and data standardization in the business units.
Added onto it is the organization reporting structure, local business / function manager reports to the county manager instead of the regional manager, which means regional office has no responsibility on the local business unit and make the structure further dis-integrate and decentralize.
What complicate the picture more is the great variation in terms of business unit's internal organizational characteristics and operating style. Some business unit is organized around product while some organized around solution provider. There is no corporate – wide approach and when a local unit is successful, the potential benefits to other units are rarely explored. Thus, no synergy is exist.
Operation Model is the Answer
IAP is seem to function with many discrete units without the dots connecting each other and, and they are towards all the different directions that hardly bring any synergy across. To address the issue stated,...