a. Week 1 McKinsey Connecting Employees in IBs

Most banks recognize that the answer doesnt lie in

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Unformatted text preview: s change at senior levels, but not much else does. Most banks recognize that the answer doesn’t lie in “solid-line” relationships, and many have consequently introduced myriad “dotted lines” to compensate for a lack 2 of linkages. The risk, finance, technology, and operations functions, for example, typically have both solid and dotted lines to the business and functional heads. These relationships partially address the silo problem, but definitions of what dotted-line relationships actually mean are often inconsistent, and it is not always clear whether a dotted-line subordinate is truly a member of a solid-line team. In many banks with overlapping clients, geographies, product solutions, and capabilities, strong and effective formal and informal networks will be the solution. The question is how to identify, measure, and enhance them. The power of networking Even the most hardened skeptics acknowledge that effective collaboration and networks have an economic value: at one bank, 80 percent of the managing directors surveyed agreed that they do. In another analysis, additional networking corresponded to higher performance ratings for bankers (Exhibit 1). EX HI B IT 1 The value of collaboration Instead of trying to blow up silos, however, organizations should build well-functioning networks that bridge them effectively. In our experience, more 3 networking isn’t always better—hence the inability of broad forums to add value by themselves. Indeed, one firm we know raised its productivity 25 percent by eliminating interactions that didn’t add value. Banks must keep the focus on economic benefits and the role of networks in creating them in selected areas. To address this need, banks must understand three underlying barriers. First, information doesn’t travel effectively between groups: “I did not know we could do that” is a familiar refrain. Second, groups routinely compete with one another for clients, sometimes in front of them: “The securitization team and the lending team were trying to...
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