The Royal Bank of Scotland --- breif entire management plan

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Managing Operations

Undoubtedly, RBS managed its resources successfully. Forecasting is one aspect of planning capacity. Its four functions are marketing, operations, HRM and finance. RBS took measures according to these functions in order to plan its capacity. Take the Manufacturing Division and Retail Division (one of the customer-facing divisions) for example. Firstly, RBS used psychometric tests to draw out appropriate staff who were interested in people for 'front office' branches, and those who were interested in processes and systems for 'backroom' Manufacturing Divisions. This method could plan and distribute human resources well and meet the service quality standards (Figure 1-1).

Service Package

Physical Items Operations Control Service Contact Process

Backroom Front Office Backroom Front Office

Produced Produced Produced Produced

(No contact) (No contact) (Low contact) (High contact)



Equipment people

Predictable Unpredictable

Encounter Encounter

*Figure 1-1*

Secondly, RBS made great effort to plan capacity in new operating processes and outputs patterns.

It launched the 'Direct Line' to deliver financial services by telephone, and it successfully set foot in private motor insurance. It also opened the online bank as the complement of the traditional bank. These measures could make RBS competitive based on the successful capacity planning. In the other hand, customers' satisfaction could be met by the high level of quality standard. Thirdly, RBS took several measures which were focused on the marketing function of forecasting. RBS made its branches more organic rather than mechanistic ones. Tells tried to interest customers in other products, and customers relationship managers tried to improve service quality to make the customer-facing areas more comfortable. RBS even made its physical layout more open. This was useful for making customers more satisfied and comfortable. There was a common purpose behind these activities--planning its resources perfectly to meet customer expectation of service quality.

Additionally, RBS managers...