Bank of Montreal 1999 Annual Report Download - page 6

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4Bank of Montreal Group of Companies 1999 Annual Report
and medium-sized business clients and to those
devoted to consumer lending, including mortgages
and consumer finance. In the United States we
are continuing to develop our valuable Harris Bank
retail franchise in the greater Chicago area and
build our mid-market corporate banking business
across the Midwest.
Everywhere in North America, we are vigorously
building our e-business capabilities, with our
subsidiary Cebra continuing as a market leader in
Canada. Since e-business has become a funda-
mental element of all the operating groups, we are
treating it as a high-priority emerging business
from an enterprise-wide perspective.
Private Client Group
Within our Private Client Group, where the focus
is also on high growth and high returns, we are
improving our range of offerings as well as our
ability to co-ordinate and cross-sell them to four
North American market segments: the main-
stream, affluent, high net worth and institutional
asset management markets.
We are also exploring expansion opportunities
in selected markets in Canada and the United States
.
These opportunities include the expansion of
our retail brokerage business or private banking
franchises; the acquisition or development of
e-brokerage and other lower-cost channels of distri-
bution; and the development of a full-service
investment management package designed to tap
into the lucrative high net worth market.
Investment Banking Group
Within our Investment Banking Group, our first
priority is to maintain our leadership position
as a broad-based provider of wholesale banking
services in Canada.
Alongside our Canadian base we are building
our North American business by developing our
strong capabilities in two sectors, energy (including
exploration and production, electric utilities and
pipelines) and media and communications.
The other major feature of our aggressive growth
plan for Investment Banking is the expansion of
capability-based businesses such as credit portfolio
management, securitization and merchant banking.
To the Owners of Bank of Montreal
Enterprise Accomplishments
–
A Year of Transition
Increased Client Focus through significant reorganization
Established 32 lines of business (LOBs) with clear
accountability for specific value-creating goals
Ensured seamless client service by clustering the
LOBs into three client segment groups
Maximizing Shareholder Value through a new
approach to strategy development
Approved new value-maximizing strategies for most
LOBs with the goal of being top quartile among our
peers in total shareholder return
Established the Office of Strategic Management to
ensure rigour and discipline in creating alternative
strategies for the highest value creation
Selectivity and Resource Allocation
Established a rigorous resource allocation process
which moves capital, technology and other resources
away from low-value businesses to businesses with
the highest value potential
Sustained Value Creation with new measurement
standards
Aligned financial targets with capital market
expectations with the goal of top quartile share-
holder returns
Implemented net economic profit as a key measure
which reflects the risk-adjusted economics or cash
contribution of each LOB
Inclusion and Communication through revised
leadership committees
Established a new senior management committee
structure to increase focus and discipline on strategic
leadership and performance management
Established a more inclusive approach to strategic
development and communications
People Development through leadership training
Increased priority for leadership training through
a new management training program with an
emphasis on leadership skills
Compensating Performance on New Measures
Developing senior management compensation to
align with the new performance standards
Introduced an employee share ownership plan for
all employees which reinforces the shareholder value
focus of our performance