Bank of Montreal 2008 Annual Report Download - page 53

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MD&A
BMO Financial Group 191st Annual Report 2008 | 49
Personal and Commercial Banking U.S. (P&C U.S.)
Who We Are
“We are here to help” –serving more than 1.2 million customers and working together with other Harris and BMO businesses
in select U.S. Midwest markets. We respond to their needs in the way they prefer –online, in person or over the phone.
Our emphasis on being an active part of the community allows us to use our local knowledge, specialized sales force and
integrated distribution network of over 280 branches, our call centre, online banking and more than 640 automated
banking machines to effectively deliver the highest level of service to our customers.
“We provide the help that
enables our customers
to have confidence in their
financial decisions.”
ELLEN COSTELLO
PRESIDENT AND CHIEF EXECUTIVE OFFICER
HARRIS FINANCIAL CORP.
Strengths and Value Drivers
•A rich heritage of over 125 years across the U.S. Midwest with the
established Harris brand and a commitment to service excellence.
•Strong market coverage, with over 280 branches conveniently
located in communities in the Chicago area, Indiana and Wisconsin,
allowing our customers to conduct transactions at any location
as well as online and through our call centre.
•
Deep relationships with local communities, businesses and leaders.
•A community banking business approach focused on delivering
a differentiated customer experience, with competitive product
offerings, an effective distribution network, including our call centre,
online banking and ABMs, and strong sales management and
marketing capabilities.
•Opportunity to leverage the capabilities and scale of BMO Financial
Group while emphasizing local authority, accountability, knowledge
and commitment.
Challenges
•The economic environment is very difficult, with contracting
credit markets, a changing regulatory environment and persistent
uncertainty over the strength of the overall economy.
•Chicago-area market dynamics remain intensely competitive within
a consolidating U.S. marketplace as banks compete aggressively
on price to achieve deposit growth.
Our Lines of Business
To be the bank that defines great customer experience.
VISION
PATH TO DIFFERENTIATION
•A culture focused on being helpful to customers in unexpected ways
and providing customers with the information and proactive guidance
they need to make the right financial decisions and feel confident
about choosing Harris as their financial services provider.
•Strong, dynamic leaders with the knowledge, relationships, skills and
authority to act decisively and responsibly.
•Ongoing training and coaching philosophy that develops the capabilities
of our front-line sales and service employees to exceed expectations.
•A disciplined and transparent performance management system,
aligned with our objectives, that rewards top performers and motivates
underperformers.
•Highly effective community outreach and targeted marketing that combines
strong, centralized expertise with local market insight.
Key Performance Metrics and Drivers 2008 2007 2006
Average US$ loan growth (%) 10.8 11.4 15.2
Average US$ deposit growth (%) 8.4 8.4 3.4
Cash operating leverage (%) (7.0) (1.7) (2.4)
Number of branches 281 232 202
Employee engagement index (1) 74 72 69
Retail Net Promoter Score (2) 42 41 39
(1) Source: BMO’s Annual Employee Survey, conducted by Burke Inc., an independent
research company.
(2) A measure of the strength of customer loyalty.
•Deliver a differentiated customer experience, being helpful in unexpected
ways and responsive to evolving customer needs and preferences.
•Deliver an integrated and differentiated experience for our customers with
wealth management needs, in partnership with Private Client Group.
•Grow our commercial businesses and become the leading player in our
markets through aggressively building our capabilities and strengthening
our focus on this segment.
•Continue to expand our distribution network through a combination
of acquisitions and organic expansion, taking advantage of recent market
and industry events.
•Improve productivity through a performance-driven culture, putting
the best people in key positions with clear accountabilities for results.
STRATEGIES
P&C U.S. offers a full range of products and services to consumers and
businesses, including deposit and investment services, mortgages, consumer
credit, business lending, cash management and other banking services.