David Lopez

11/3/2015
CASE 6
PEOPLE, SERVICE, AND PROFIT AT JYSKE BANK
QUESTIONS:
1. What is Jyske Banks new positioning or competitive differentiation strategy?
Jyske Banks competitive advantage was to become a well-balanced bank that treated
shareholders, customers, and employees with equal importance. This approach was known as the
Jyske Difference and was targeted towards a particular segment of the market. This approach
was based on the core principles of the bank: common sense, be open & honest, be different &
unpretentious, have genuine interest & equal respect for people, and be efficient and persevering.
These core principles made management realize Jyske Bank would need to provide service
differently from their past and other banks, this is how they would differentiate themselves. The
competitive positioning was to focus on the soft factors of the industry such as building customer
relationships. Even though they offered similar financial products as other banks, the difference
was on how they were delivered. Products and service were customer focused and essential to
establishing a relationship with the bank.
Employees were empowered in this strategy to make better decision by entrusting them to make
the right (common sense) choice. Empowering employees to make decisions led to more quality
loans being approved as well as improved efficiency among the departments. The bank was able
to cut cost and approve more loans by cutting out the previous steps necessary to approve a loan.
This approach allowed for all employees to become more invested in their work which led to
improved efficiency throughout the company and higher customer satisfaction.
2. What changes did the bank make to get to its new position? What effect did these changes
have?
To successfully implement its Jyske difference strategy, Jyske bank had to make several
tangible and intangible changes.
Account teams were created to work together and provide personalized service to each customer
to build customer relationship and increase understanding of customer needs. Branch interiors
were remodeled to make the customers feel welcomed. Original art work was used to give a
homier environment for the family. Play area for children and a caf for the adults were also built
into the new bank design. The round table design provided the customer with a sense of
transparency and collaboration with their account teams. JYSKE bank tried to show that their
employees are working with genuine interest to serve customers properly. They hired

professional photographer who worked with employees and captured the genuine interest in
employees eyes. JYSKE bank redesigned their bank branches to make their branches customer
friendly. Employee layouts in the branches shows quality of the service since they could provide
quick services to customers.
JYSKE Bank provided adequate training to their employees. The team based service strategy of
JYSKE Bank helped differentiate them from the other banks. Through training they empowered
employee in the loan process and thus decentralized the entire loan process. As employees were
properly trained, they were are also given some additional power to provide the service. They cut
down loan times from 3 weeks to 10 days for large loans and were approving small loans almost
instantly.
3. Analyze Jyske Banks success using the Service Quality Gaps Model found in Chapter 2.
What are Jyske Banks strategies for closing the 5 gaps in the model?
The gap faced by Jyske Bank was not large therefore making it easier to close this gap with
exceptional service. They were going after a particular segment that would be willing to pay a
premium for the services and understood the culture of the bank. This approached minimized the
gap leading to a successful strategy.
The Listening gap was closed by developing ways to figure out customers' problems and their
expectations with technological tools and employees' dedication. The IT software was developed
to understand customers needs as well as build trust. The account teams set up a personalized
banking experience with each and every customer that provided a better understanding of what
customer needs were.
The Service Design and Standard Gap was closed by redesigning the banks layout that fostered a
more relatable environment. The infrastructure of the bank helped provided better solutions and
improved efficiency for a better customer experience. For example the turnaround time for loans
and the personalized approach of dealing directly with the branch. The core principles were also
encouraged to each and employee and they expected managers to lead by example. Employees
were empowered to deliver excellent service to their customers.
The Service Performance Gap was closed by investing heavily in training employees and
retaining them. This provided consistency throughout the company to deliver quality service.
The employees of Jyske bank were happy with their jobs and this translates into a better
relationship with customers. A big part of employee satisfaction was how they empowered them
to make their own decisions (time off flexibility).
The Communication Gap was closed in the redesign of the bank by creating an environment
where there was transparency. The computers were shown to customers so they can see what
exactly what was going on. This allowed the customer to be involved in their own solution. It
was not a top down approach but more of a car wash approach as stated by the case,
communication must come from all angles.

4. In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske
Bank?
In my opinion I believe Jyske Bank can sustain its growth and success but only in its current
home market. I believe the Jyske difference makes sense for the attitudes and culture of those
accustomed to it in Jutland. This very direct approach may not transition well in newer markets
especially with different customer norms and customs. For example they are going after a
particular customer segment because they are willing to tell customers to bank with other
competitors if they dont fit into the Jyske culture. Its completely opposite from the customer is
always right approach instead its more of a not every customer is right approach.
Currently they are independent and to expand globally or into other markets they may need to
merge. Their Jyske Difference culture doesnt correlate well with traditional bank cultures as
seen by employees transferring in from other banks and have trouble adjusting. The merger may
fail completely therefore stopping any chance of expansion. It may be a hard time to grow
organically keeping this type of culture in order. I wouldnt invest in Jyske Bank because it is
more of a niche bank in a niche market.